Comprehensive CRM implementation in the Japanese financial industry

Before deregulation in the 1990s, most companies in the Japanese financial industry did not need to do marketing and sales. They could rely on their highly reliable brand image to sell their products in the retail market. Most companies, therefore, had no idea of how to actively market and sell using retail information.

A leading financial institution wanted to develop and implement a comprehensive approach to customer relationship management (CRM) that could quickly deliver the company’s retailed-focused strategy.

Challenge
Sales, marketing, and customer service were all experiencing difficulties, but they were reacting to the issues in isolation within their departments. The main issues included:

No success in cross-selling or up-selling
Rapidly changing market with no analysis or plan for learning about customers and understanding their needs
Information for sales and marketing limited to information derived through claim management systems with no relevancy for marketing and sales

The company needed a comprehensive, strategic view of the issues and an approach that could link together and unify these critical departments.

Approach
A.T. Kearney worked with the financial institution to develop a comprehensive solution, which included five critical components:

Strategy – integrates customer strategy, product and service strategy, and channel strategy
Staff development – includes clear objectives, incentives, and training
Sales & Marketing processes – leverages customer information and makes it useful for both the marketing staff and sales force
Culture alignment – embeds customer-centric approach
IT strategy – supports the business strategy

Result
The financial institution is the top runner in Japan for CRM. They have introduced many new services in the Japanese market and enjoy top-class profitability.

Through the effective and efficient use of management resources and their integrated CRM approach, they are able to expand their geographic network with products and services tailored to regional characteristics.