CCR Magazine

You are here  :Home arrow News arrow Pegasystems Survey Reveals Financial Institutions Slow to Shift to Customer-Centric Sales Culture
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Pegasystems Survey Reveals Financial Institutions Slow to Shift to Customer-Centric Sales Culture PDF Print E-mail
Friday, 25 August 2017
Pegasystems Inc., the software company empowering customer engagement at the world's leading enterprises, has announced a new global survey that shows financial services institutions need to accelerate their move to a more customer-centric sales culture. While the wide majority of financial services firms and banks realise they must shift from product-based to relationship-based selling to remain competitive, only one-third of banks have successfully made the transition.

In a survey of 250 global financial services professionals, 79 percent agree that institutions will move away from product-based selling to focusing on customer relationships in the next five years. However, only 31 percent deploy relationship-based sales models today to any significant degree, including just one percent who fully leverage it. Another 29 percent are still deeply stuck in product-based selling approaches that often prioritise booking revenue over the real needs of each customer. The rest, 50 percent, use a mixed approach to navigate these new customer demands.

Increased customer expectations for personalised banking experiences are driving banks toward this alternative way to engage, but most banks aren't yet delivering. Seventy-six percent of financial services professionals say customers want more personalised product recommendations based on their needs and goals. However, today only 28 percent of banks feel they fully support the personalised needs of customers.

How can banks successfully shift to relationship-based selling? Of those furthest along in their relationship-based selling journeys, 92 percent are either already implementing AI, or plan to do so in the next 12 months, indicating AI will be a key differentiator between leading and lagging financial services firms and banks. More specifically, 88 percent of respondents who feel they need a higher level of audit to ensure suitability believe AI can help match the right product with the right customer, which isn't consistently happening today. In addition, nearly all survey respondents (99 percent) believe a unified customer relationship management (CRM) platform is either very or somewhat valuable to supporting customer engagement.

Banks view the lack of real-time customer insights as the top barrier to instituting a relationship-based sales approach, identified by 63 percent of respondents. They also cite pressure from fintech competitors (59 percent) and insufficient customer profiles (47 percent). But banks that can overcome these obstacles and make the transition to relationship-based selling reap tremendous benefits. Of the respondents who have shifted to this new selling model, 85 percent indicated their customers are more loyal, 81 percent reported increased customer satisfaction with products, and 79 percent received more referrals from customers to friends and family.

The July 2017 commissioned study, conducted by Forrester Consulting on behalf of Pega, surveyed 250 financial services professionals in Canada, United States, the UK, France, Germany, the Netherlands, Spain, Japan, and Australia.

"Many banks struggle to shift from product-based to relationship-based selling, but failure is not an option if they expect to provide compelling customer experiences," said Ron Wellman, global director and industry principal, CRM for financial services, Pegasystems. "By implementing a unified CRM platform powered with AI, banks can satisfy customer demands by intelligently guiding sales teams to deliver the most relevant recommendations to clients. This increases client satisfaction and positions banks as trusted advisors for the long-term."
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197