CRM System Helps Banks Post Productivity Gains

Three banks --N.J.-based Interchange Bank, Legacy Bank of Texas and San Jose-Calif.-based Technology Credit Union--have reported productivity gains following installation of sales automation software from Strategix Performance.

The three banks boosted their qualified sales referrals by 50 percent using the Strategix Universal Marketing Database (UMD), a suite of software products that enables companies to implement incentive compensation programs. The banks also improved employee performance evaluation, integrated department systems, and executed incentive programs that aided in the retention of key employees.

Strategix Performance UMD manages referral and sales activities, and tracks sales, service and customer relationship management results. The suite includes both employee performance management (EPM) and customer relationship management (CRM) modules. The modules link the customer and employee on the CRM side, as well as the employee and management internally on the EPM side. UMD operates on low-cost, enterprise-wide intranets, accessed via industry standard Web browsers, and is deployed via end-user license or ASP hosting.

"Strategix Performance's EPM modules allowed us to better evaluate company-wide employee performance," according to David Acevedo, first vice president at $863 million Interchange Bank. "Since the system is also incentive-based, we experienced a 50 percent increase of qualified referrals within eight months of implementing the first two modules." While Interchange is primarily utilizing the product for EPM, CRM-based modules will go live in 2002.

Cost-effective incentive programs supporting sales and service initiatives were the main goals for Legacy Bank of Texas and Technology Credit Union. The accountability provided by Strategix Performance's EPM modules systems, coupled with the access to customer information provided by the CRM modules, have enabled the banks to achieve sales goals. Legacy Bank has initiated more than 130 different employee incentive programs. Within 10 months of installation, Legacy Bank increased company loyalty and reduced the employee turnover rate by half. Now it's aiming to increase brand loyalty with its customers.

"The same system that allowed us to reduce employee turnover is now being used as a customer retention tool for the top 20 percent of our customers," according to Don St. Clair, CEO at $800 million Legacy Bank of Texas. "By using the same method, the UMD suite can provide data to identify and track the top percentage of customers with profitable accounts, allowing the company to determine the best way to properly service, maintain and improve customer loyalty."

An EPM-based automated incentive system rewards employees for managing, monitoring and serving their customers closely, allowing a more cohesive and consistent relationship to exist through CRM technology.

"Industry-wide, to build and retain profitable customer relationships, companies have had to rely upon disparate and non-integrated systems for relationship marketing, sales and service," said Peter Djokovich, president of Costa Mesa, Calif.-based Strategix Performance. "To make CRM work, the human factor using the technology must also be addressed, and with integrated EPM and CRM, this is what we offer."