CRM in intermediated financial services markets

CRM in intermediated financial services markets


This paper examines the role of customer relationship management (CRM) within an intermediated business environment, ie where the relationship between supplier and consumer (‘customers’) is through intermediaries or third parties (‘partners’). In this case — a major UK insurance company (‘The Insurer’) — the partners are banks, building societies and major retailers. Their customers are supplied insurance services either on behalf of or in tandem with the partners. Figure 1 provides a simple picture of the arrangement.

Customer relationship management is usually defined as:

— an overall philosophy of putting the customer at the heart of the business.

A process of finding, creating, keeping, developing and supporting profitable relationships with customers, today and into the future.

Much of the literature on CRM assumes that the supplier-customer relationship is direct although the first literature on intermediated CRM is starting to appear.

Figure 1 The intermediated business environment

This paper shows that in an intermediated situation, CRM techniques are not only relevant but vital for generating improved value for all parties: suppliers, partners and customers.

The paper describes:

—   the background to the Insurer and the products it offers

—   how the Insurer operated with its partners and the types of relationships it is able to develop with them

—   the issues that can influence the effectiveness of CRM activities within such partnerships.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

Calculate APR