What is this thing called CRM?

• Position: Marketing News - Brief Article

It's more than data mining, says Diane Gerstner. True customer relationship management involves "the totality of how financial institutions approach their business and interactions with customers." Gerstner, who is national assistant director of sales solutions for Alex Sheshunoff Management Services, LP, Austin, Texas, says a true CRM strategy can be broken down into a series of incremental steps:

* Individualization. Every bank is different, and your strategy should take into account where you are in the process. First, you should conduct an initial review to determine where you stand with regard to market opportunities, organization and business processes, technology, and human resources.

* Technology. "Technology is not the sum total of a CRM strategy," Gerstner says, "but it is a core component." Your operating system must be capable of supporting new product structures and fee arrangements, and your telecommunications structure must be flexible enough to handle a variety of touch-points, "including electronic and telephone communications."

* Sales. Your managers at every level, from the executive office to the front line, need to know how to manage, track and motivate sales. Gerstner says the most effective programs include training, on-the-job behavior modification, new techniques and procedures, and...