Financial Services and Customer Communications

The Financial Services industry has much to be gained from improving the quality of their business and customer communications. After all, if you really analyse your customer relationship what is likely the most regular touch point between your organisation and your customers?

That’s right, in the majority of cases, it is going to be the regular documents that you send out to clients – Statements, Policy Documents, Tax Statements and promotional materials.

In an earlier post, I mentioned the length of time that people spend reading their statements, likely it’s working on an average of between 1 and 3 minutes. Now, think about how much time someone would spend reading your ad in that National Newspaper? What is the cost to serve that ad?

Think a little bit deeper and look at the statementing process. You already do it right? Now look at your statement. What it is telling your customer about your company? My guess is that unless you’ve already done this, not much. It probably gives your branch address, a phone number and not a lot more.

Now take a look at that statement and think about how effectively that space is used. What would you pay for that White Space in an advertising outlet over to the left of the page, or the one between the address and the statement line items?

Look at the bill again, just look at the data that you hold on that customer, not only on the bill itself but across the enterprise. Now think. If we can harness that data to better understand the customer, with the latest in Customer Communications Management technology, we can create messages that are relevant to that customer. This relevance can be driven by any number of factors.

Share of Wallet, Percentage of Portfolio are all critical measures to banking and other financial services organisations. The costs to acquire a customer are high. Once acquired, any bank should be seeking to maximise the opportunity to extend their relationship to improve the profitability of the individual customer.

Thus it is possible to promote targeted messages to the customer, messages that the customer is likely to respond to. This is not a catch-all approach to advertising, it is specifically about building a unique relationship with a customer.

For example, life stage can affect the financial products that we as consumers are interested in. We can promote financial products directly suited to a persons life stage.

The statement is one of the single biggest opportunities for you to improve the end customer relationship and to increase the profitability of your customers. Transpromo as can be delivered by Customer Communications Management technology is a proven approach, with examples demonstrating astonishing results for clients.

Next time, I’ll take a look at some of the elements of Transpromo as we work towards shaping how to best approach establishing a project in your organisation.

Benefits of Using a Personal Financial Statement Template

These days, you do not need to hire the services of an accountant to analyze your finances. You can do this by yourself by using a personal financial statement template. This template comes in two forms-the balance sheet and the income statement. You should fill out both forms to have a more detailed analysis of your finances.

It is also important to have all the information that you will need to fill out your personal financial statement template such as your salary, assets, liabilities, and expenses.

What are the benefits that you can get from making a financial statement? Here are some of the benefits.

• First, you will know your current financial standing in terms of figures. You will know if your income covers your expenses well and if you have more assets than liabilities. These factors will determine your present financial standing. And because of this, you can easily predict what will happen in the future or you can also set goals based on the results.

• If you are planning to start your own business, of course you need to have a capital. And to get the necessary capital, you need to apply for a loan from a bank or lender. These financial institutions would want to know more about your capacity to pay and they will ask for your financial statements. If they can see that you are managing your finances well, they will surely approve your loan application.

• Knowing how you are doing financially will also give you peace of mind. If you are not doing so well, you can think of solutions by looking at your statements. But if you are doing more than okay, you can continue doing what you are doing.

Personal Financial Planning – 3 Things to Learn Today

Owing too much is definitely not a pleasant situation. If you, however, do not have adequate personal financial planning, having too much may also be a problem. It doesn’t matter whether you millions to repay or you have millions to spend, if you aren’t able to plan your finances well, it could create lots of problems.

Same goes for entrepreneurs as well. If they wouldn’t manage the inflow or outflow of they money appropriately, their business would be nothing more than a corporate mess. Three basic things you cannot afford to ignore, when we talk about improving financial stability:

– Increase Cash Flow
– Eliminate Debt
– Grow Money

The Recent Economic Downturn
During the recent economic down turn, corporate bodies started rightsizing people in order to cut costs. I still fail to understand how would it help them grow and get out of the chaos? Companies grow when there is more production of goods or services. If majority of people are downsized, how can they expect their business to grow?

The similar concept was adopted by companies all over the world. Instead of focusing on increasing cash flow by increasing human capital, they started laying off people. The whole economy came to standstill because there was less production and less money to buy it as most people didn’t have income.

Eliminate Debt
Eliminating debt is equally important. Most people in our country have made it a habit to live with credit and keep paying interest. Rich people, too, like to give away money as interest as it would save them money on taxes. They don’t, however, realize, wealth creation or growth of money is not possible without completely eliminating debt.

We don’t really like to do big calculations. Let us, however, have a logical view for a while. Since you had your first credit card, mortgage and other loans, do you remember how much you have spent on interest, late fees, over draft, and other charges? In most cases, the number would be quite huge. If we would have saved all the money by not borrowing it, we would all have been millionaire by now. It is, however, never too late. Start repaying your debt immediately for effective personal financial planning.

Grow Money
After eliminating all your debts and vowing not to borrow any money, there are only two things you can do with your money: Waste it or grow it. Growing wealth is probably is very challenging yet exciting job. However, if you study a bit on how to increase your money, you can do it easily.

You need a proper plan to become wealthy. If growing money was so easy, each one of us would have had our private mansions with couple of limos. The only reason why it’s difficult is due to lack of essential knowledge. Personal financial planning begins with proper education and being well-versed with financial terms, investment strategies, better calculation, and so on. The more you ignore this reality, the more deeper your problem would be.