Customer Relationship Management

Customer Relationship Management (CRM) is a technique for creating, maintaining, and

improving long-term customer relationships. It is a customer-centric methodology focused
on customer insights. The ultimate aim is to deliver ‘Personalised' service to consumers by
recognising and understanding their particular desires, interests, and behaviours. CRM
practises are used to achieve a deeper understanding of consumers for product creation,
segmentation, appropriate targeting, campaign management, and long-term profitable
customer relationships.

In today’s world which comprises of increasing competition, technological innovation, and

motivated consumers, Customer Relationship Management has become unavoidable for
growth and profitability especially in firms that deal with home loan services. It blends two
of the most important facets of home loan services sector: technology and relationship
marketing. It has the potential to bring about dynamic changes in the marketing strategies
of these firms in the immediate future with the intention of achieving business growth by
treating customers as commodities, consistently capturing, analysing, and disseminating
customer data, and using that data to obtain, attract, and better serve customers.

Components of CRM for Home Loan Services

There are 4 important components of CRM in home loan service sector: -

Interact and Deliver Acquire and Retain

Personalised
digital
Direct
services &
Marketing proper data
management

Priority
VIP
Services and
Customers -
dedicated
loyalty
Develop and Relationship
programs Understand and
Customize Manager Differentiate
Tools for Delivering CRM – Retain Customers and Make them Loyal
In the CRM process of Home Loan service sector, there are 5 important tools that can be
utilised effectively to ensure high customer loyalty and retention. They are: -

 Customer Application Forms

Customer application forms help in collecting customer data and knowing what the
customer wants. This data can be analysed properly to offer personalised services to
the customers.
 Centralized Database
The customer data that is collected through application forms can be kept at one
place and accessed anytime, anywhere without any hassles. The CRM software that
is used in maintaining this centralized database helps in arriving at good data insights
and customized service offerings.
 Wide Range of Service Offerings
A wide range of service offerings are provided in order to increase the customer
confidence. Customization options are also provided for better customer experience.
 Feedback Forms
Feedback forms are very critical in CRM process of home loan service firms. The
customer feedbacks on the service provided, technology used, employee behaviour
and promptness in solving customer queries are analysed properly for continuous
improvements in the service offerings of the firm.
 Cross Selling
Offering another service to the customer on top of the service which he has already
considered is an important tool to sell value to the customers and retain them for
longer periods.

Ways to retain and delight the customers and convert them as loyal
customers
There are 8 ways in which firms that offer home loan services can retain customers and
convert them as loyal customers: -

1. Under Promise and Over Deliver

Keep customers happy by under promising and over delivering. For eg: If a customer
applies for a home loan that takes some days to approve, the firm can quote a
proper date to these customers as to when the service will start and share updates
on a timely basis. This practice is better than the common practice of exceeding the
original deadline that most customers find annoying and unacceptable.
2. Keep Customers Well Informed
The firms should ensure that the customers are well informed if promises can’t be
met. Compensation should be provided under such circumstances that will delight
 the customer. If there is a small cost involved, weigh this against the customer’s
lifetime value.
3. Motivate Staff to be Engaging
The firms in home loan service sector should encourage their staff to perform an act
of kindness towards the customers such as offering water, opening the door for
them etc. This can pay real dividends in the future.
4. Do the Unexpected
Give unexpected gifts or surprises to the customers from time to time. For eg,
sending a bouquet to the premium customers on their birthdays can have a powerful
impact on building customer loyalty.
5. Acknowledgement Letter
The firms should send an acknowledgement note to the customers as soon as the
service has started. For eg, sending a hand written Thank You note can strengthen
the bond which a customer is likely to share with the firm.
6. Send out a Newsletter
Firms should send a regular newsletter to their customers to encourage them to visit
their website more often and look for new service offerings.
7. Improve Digital Touchpoints
The firms in home loan sector should improve their digital infrastructure and provide
a number of services through various digital platforms. Firms can also engage
regularly with their customers through social media as well.
8. Timely Calls
Firms should appoint a relationship manager for each and every customer and
ensure that this relationship manager calls them from time to time in order to check
whether the customer is facing any problem and also to share details of a new
service offering.