The Importance of Collaboration and Clear Objectives When Choosing a CRM System for Community Banks

Community banks often face unique challenges when choosing a customer relationship management (CRM) system. Unlike larger institutions that have the leverage and resources to fully customize their systems, community banks and credit unions must consider their unique needs, resources, and staff expertise before selecting a CRM system that works for them. In this article, we’ll explore two community banks, People’s Bank of Commerce and FNCB Bank, and their disappointing experiences with CRM systems. We’ll also examine some of the challenges that community banks face when shopping for CRM systems and explore best practices for choosing the right system.

Two community banks, People’s Bank of Commerce and FNCB Bank, have had disappointing experiences with CRM systems

The importance of CRM systems cannot be overstated. These systems provide insights into customer behavior and help banks and credit unions manage their customer relationships more effectively. However, not all CRM systems are created equal. Some may be too complex, while others may not meet the specific needs of the bank or credit union. People’s Bank of Commerce and FNCB Bank are two community banks that have had disappointing experiences with CRM systems.

People’s Bank of Commerce: the CRM system was not vetted by all areas of the bank and did not serve the entire institution

The People’s Bank of Commerce found itself in a difficult situation after implementing a CRM system that was not fully vetted by all areas of the bank. The system was designed to serve only certain departments and did not fully serve the entire institution. As a result, employees were frustrated with the system, and customer service was impacted. It became clear that the bank needed a system that could effectively serve the entire institution.

FNCB Bank found Salesforce to be too powerful but too complex for their needs and required individual licenses

Although Salesforce is a powerful CRM system used by many businesses worldwide, FNCB Bank found it too complex for their needs. The system also required individual licenses, which meant that the bank had to pay more to implement it fully. FNCB Bank realized that they needed a simpler CRM system that could fit in with their resources and staff expertise.

A lack of clarity about the business problem they want to solve is one of the primary challenges facing banks and credit unions when shopping for CRM systems

One of the primary challenges that community banks and credit unions face when shopping for CRM systems is a lack of clarity about the business problem they want to solve. Banks and credit unions must define the problem they want to solve before they start shopping for CRM systems. They need to ask themselves important questions like: What specific problems are we trying to solve? What areas of our institution need the most help? What desired outcomes are we trying to achieve through the CRM system? Without clarity about the business problem they want to solve, banks and credit unions may find themselves overwhelmed with the many choices of CRM systems available to them.

Many institutions lack the leverage to get customization assistance from most CRM providers

Larger institutions have the leverage and resources to fully customize their CRM systems. However, community banks and credit unions often lack the leverage to get customization assistance from most CRM providers. As a result, they must work with what is available or take on the challenge of customization on their own.

Smaller institutions often lack a skilled administrator to effectively onboard and operate the system

Smaller community banks and credit unions often lack a skilled administrator to effectively onboard and use a CRM system. A skilled administrator can customize the system to meet the specific needs of the bank or credit union, monitor the system for any issues that may arise, and provide training to employees on how to use the system effectively.

Collaboration is critical to ensure that a CRM system works for everyone across the bank

Collaboration is critical when choosing a CRM system for community banks and credit unions. All areas of the bank must be involved in the process of choosing the system, from the board of directors to the front-line staff. This ensures that the system is designed to meet the specific needs of the bank or credit union and that it works for everyone throughout the institution.

The People’s Bank of Commerce created a well-discussed list of needs before beginning to look at CRM options

People’s Bank of Commerce learned from its previous experience and created a well-discussed list of needs before beginning to look at CRM options. It involved all areas of the bank in the process, and they were able to find a system that met the specific needs of the institution.

Without knowing the business problem that needs to be solved, teams can become too focused on functionality

It’s important to remember that without clarity about the business problem they want to solve, teams may become too focused on functionality that they may overlook the specific needs of the bank or credit union and become overwhelmed with the options available to them. Without defining the problem they want to solve, they may be blinded by shiny features that are not relevant to their institution.

The desired outcomes should define the ways that a technology will make them a reality

The desired outcomes should define the ways in which a technology will make them a reality. Technological solutions, including CRM systems, must be designed to meet the unique needs and resources of community banks and credit unions. They should not dictate how the institution operates, but rather support its operations in a bespoke manner.

Choosing the right CRM system for a community bank is an essential component of effective customer relationship management. By collaborating across all areas of the bank, defining the business problem that needs to be solved, and identifying precise outcomes, community banks can find the CRM system that meets their unique needs and resources. While customization may not always be feasible, a well-designed system that works for everyone can be far more beneficial than a complex system that is one-size-fits-all.

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