Customer Solution Case Study
/ / Russian Broker Closes Five Times as Many Deals, Improves Market Share with CRM Tool
Overview
Country or Region:Russia
Industry:Financial services—Credits
Customer Profile
Fosborn Home, founded in 2005, was the first professional credit broker in Russia, and now operates in St. Petersburg and other Russian cities as well as the capital Moscow.
Business Situation
Due to its rapid expansion in both customer numbers and business locations, Fosborn Home wanted a customer relationship management (CRM) solution to deliver on its ambitions to gain greater market share.
Solution
Fosborn Home implemented a solution based on Microsoft Dynamics® CRM 3.0 together with customised modules, for services such as commission calculations and improved distribution of incoming requests.
Benefits
Processing time cut by 60 per cent
Managers’ time freed by 50 per cent
Report generation increased
Rapid adoption of CRM tools / “Due to Microsoft Dynamics CRM about 50 per cent of managers’ time previously spent on straight-forward administration has been freed for business-critical tasks.”
Vasiliy Belov, Chief Executive Officer, Fosborn Home
Fosborn Home, the first and largest credit brokerage in the Russian Federation, is rapidly expanding its market share with new customers, additional partners, and offices in regional cities outside Moscow. The company, founded in 2005, needed a customer relationship management (CRM) system to support its ambitious business development strategy. And, in 2006, it chose Microsoft Dynamics® CRM 3.0. As a result, Fosborn Home has improved sales effectiveness by between 50 and 60 per cent, now closes five times as many mortgage deals a year as before, and has gained a market share of more than 5 per cent in Moscow. Managers no longer spend time on manual administration processes, freeing 50 per cent of their day to work on critical tasks.
Situation
Founded in 2005, Fosborn Home was the first and is now the largest loan brokerage company in Russia operating in the capital Moscow and other centres in the Russian Federation, including St. Petersburg, Nizhny Novogorod, Ekaterinburg, and Novosibirsk. Customers have been given credit deals up to U.S.$150,000. Due to its early success, Fosborn Home has developed a business strategy aimed at gaining a 10 per cent share of the market by 2010, together with a regional network of 40 subsidiaries. The Russian Parliament—the Duma—is currently considering legislation, welcomed by Fosborn Home, which will encourage the major commercial banks to make more resources available for lending to prospective home owners.
In the meantime, Fosborn Home has expanded its services from mortgages to a range of other credit instruments, including consumer credit, motor car purchase loans, and credits for small and medium-sized enterprises. To provide customers with a full service through a single point of contact, Fosborn Home is working in partnership with most of the leading commercial banks in the Russian Federation, including, recently, the Bank of Moscow, as well as with insurance companies, estimators, and property developers. The company is seeking to gain a 10 per cent market share by 2010 and wants to create a regional network of 40 subsidiaries.
Rapid expansion of its business base in terms of customers, partners, and regional offices, led Fosborn Home in 2006 to consider implementing customer relationship management (CRM) technology. Previously, the company had been working with standard Microsoft® Office software to manage its mortgage business.
Vasiliy Belov, Chief Executive Officer, Fosborn Home, says: “We wanted to attract new customers for existing products with a proactive marketing strategy, to expand our product line, and offer customers a much wider range of banking, insurance, and real estate services.”
The company has a rapidly expanding regional network, which offers a full range of services to clients outside Moscow. A major driver behind the search for a new business management tool for around 200 users in the firm was to improve the efficiency of operations, management, and customer service—and to provide operational control of sales in all offices and branches of the company.
Belov says: “As well as improving operations by automating business processes, we were also looking for a system that could provide financial reports and marketing analysis. Oracle Siebel CRM and Terrasoft CRM solutions were evaluated along with Microsoft Dynamics CRM 3.0.”
Solution
Finally, the Fosborn Home tender committee selected Microsoft Dynamics® CRM. The solution developed covered the whole service delivery process for the company’s financial services portfolio. At a more granular level, standard Microsoft Dynamics CRM components were used together with customised modules, developed for services such as commission calculations and improved distribution of incoming requests.
Belov says: “The new system automates the whole customer service cycle, including the customer’s initial inquiry, credit selection and calculation, production of loan documents for banks, choice of real estate, interaction with insurance companies, and loan maintenance.”
The project was completed in just seven months, and the CRM tools were supported with Microsoft SQL Server® 2005 data management software and Microsoft SQL Server 2005 Reporting Services. In addition to the 200 users of Microsoft Dynamics CRM, around 50 people have access to business intelligence reports.
Benefits
Fosborn Home now has a business management system that covers the whole lifecycle of its interactions with customers and potential clients. The software generates around 60 different reports. Time spent managing business processes has been cut by an average of between 50 and 60 per cent and sales productivity has increased. Fosborn Home now supports five times more mortgages than before and has gained a market share of more than 5 per cent in Moscow.
Managers Cut Customer Loan Processing Time by Up to 60 Per Cent
Automation with Microsoft Dynamics CRM has cut the average time taken by Fosborn Home to manage transactions by between 50 and 60 per cent. Average times on typical operations now are:
Two business days to file loan documents to a bank
Seven working days for bank approval
Two to three weeks to close a deal
In addition, processing time for incoming requests and telephone inquiries has been shortened, quality of service has been improved through use of planning and monitoring tools native to Microsoft Dynamics CRM, and revenue forecasting is now much more accurate.
Belov says: “The main difference between Fosborn Home and other mortgage brokers is that we are supporting not only the existing customer base but are managing the whole interaction with the client—from the first phone call or Web site–generated message to the finished mortgage or motor vehicle purchase loan.”
Automation Frees 50 Per Cent of Management Time for Critical Tasks
Automating routine processes with the new business management software has introduced new efficiencies into the company. Belov says: “Due to Microsoft Dynamics CRM, about 50 per cent of managers’ time previously spent on administration has been freed for business-critical tasks.” The following time-consuming operations were automated:
Printing bank papers and questionnaires
Credit program advice
Service company evaluations
Distribution of incoming requests for service
Staff time management
Financial and management reporting
Data Management Tool Provides 60 Different Business Reports
Fosborn Home has gained access to around 60 different reports that provide detailed business intelligence to managers. For example, they include cash incomes, number and value of deals, refusals, and sales plan fulfilment. Belov says: “The CRM system supports five times more mortgage deals a year and has helped Fosborn Home to gain more than a 5 per cent share of the Moscow market.”
The solution also supports full interaction between the Fosborn Home head office and its regional subsidiaries—each of them uses the centralised data management software and other applications through the Internet. Belov adds: “Standard Microsoft Dynamics features, such as customisable security roles, provide sufficient security for a multi-company IT environment.”
User-Friendly Tools Ensure Rapid Adoption by Staff
Productivity gains were largely achieved through automating business processes previously done manually or with spreadsheet software. However, the user-friendly interface and familiar look and feel of Microsoft technology resulted in rapid adoption of the new system at head office after an effective training programme. Belov adds: “Expansion to the regions was based on scaling the already implemented solution. We now have 200 active users as well as employees who receive the reports generated by the software.”
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: