The Following report is the analysis of Customer Relationship Management (CRM) in

ICICI Bank, India.

Customer Relationship Management (CRM) is a business strategy for improving

profitability by focusing on customer needs and creating an attentive relationship with the
customer.

It involves a personalized and interactive approach for the entire customer lifecycle.
Successful implementation of a CRM approach requires changes in organization
structure, culture, and skills, as well as front- and back-office
information systems.

Aim of Customer Relationship Management is to produce Customer Equity in

Banking Sector. The following are the three major drivers of customer equity that are
considered for our analysis:

1. Value Equity.

2. Brand Equity.

3. Relationship Equity.

The competitive competency of any bank would be achieving all the above three benefits
so as to be a successful and most desirable bank in the future of its prospects.

1. Value Equity: This measures the customer perception about benefits relative to its
cost. The sub drivers of value equity are quality, price and convenience.

2. Brand Equity: Customer's subjective and intangible assessment of the brand beyond
the objectively perceived value. The sub drivers are customer brand awareness, customer
attitude towards the brand, customer perception of brand ethics
3. Relationship Equity: Customers tendency to stick to the brand above and beyond the
objective and subjective assessment of its worth .Sub drivers of relationship equity
includes loyalty programs, community building programs and knowledge building
program.

ICICI Bank was awarded the Most Customer Responsive Company at ‘The Economic
Times - Avaya Global Connect Customer Responsiveness Awards 2007′.

In the Insurance category, the winner was ICICI Prudential Life Insurance

The ICICI Bank is the first bank to appoint the post of Relationship Officer in its
every branch around India so as to enable an effective gapless customer interaction
between the bank and the customer. This designation carries the customer complaints and
critiques faced by the customers towards their transactions with the Bank like deposits,
loans, account maintenance, withdrawals, cheque books etc. This enabled a fearless and
non hesitative relationship between both ends.

ICICI bank has more brand equity with its customers in India holding awards
shown above and also its more number of Branches equaling SBI, the largest network
branches in India. This more proximity has made ICICI more established in the minds of
the customers that this bank has more reliable values and services.

ICICI Bank (www.icicibank.com) has won the DM Review World Class Solution
Award 2003 in the Business Intelligence category for its Teradata enterprise data
warehouse solution.
 "Winning this award is an incredible achievement for ICICI Bank and Teradata,"
says Teradata business manager (India) Amrish Rau. "The solution was the first large-
scale CRM implementation in the Indian banking sector. Teradata commends ICICI Bank
for its vision and willingness to take on such a monumental project. This shows how an
Indian company embracing enterprise data warehousing solutions can very quickly rise to
stand alongside the very best businesses in the world. ICICI Bank has set a precedent that
others can follow."

Data Base Management an essential feature of CRM is well established by ICICI

Bank with its customers. This bank was awarded as the world solution provider in Data
warehousing.

CRM- THE ICICI EXPERIENCE

CRM at ICICI involves increased communication between the virtual universal

bank and its customers and the prospects as well as within the group itself. The
underlying idea is to enhance every instance of contact with the customer. ICICI believes
that a true customer relationship can only be accomplished by considering the unique
prospective of every single customers.

The CRM strategy of ICICI proves to be One to One marketing so that every
prospect is taken care of in their own way this flexibility is the main reason for the
company’s overall success in Relationship marketing. The reliability the main key factor
in Banking sector as ot deals with the money of the customer the bank should show 100%
reliability with the customers and in that way ICICI knew that better Relationship
marketing would bring in more closer and reliable relationship with the public as which it
would attract more account holders with the bank.
 The award-winning Teradata enterprise data warehouse (EDW) solution has
enabled ICICI Bank to establish business intelligence market leadership in the fast-
growing Indian financial market. The bank uses its Teradata platform to develop tailored
marketing campaigns that have boosted customer acquisition rates significantly. It has
serviced over 11 million unique customers around the country. In addition, ICICI Bank's
credit cards and retail loans business units attribute 25 and 20 per cent respectively of
their new/incremental business in the past year to cross-selling activities facilitated by the
data warehouse.

The CRM software applications facilitate multiple business functions with the
customers of this bank. As known ICICI systems are well designed so as to equal quality
with its one to one marketing strategy and that is it was awarded in DM review world
class solutions.

These Success milestones talk more about the concentric and concrete functions of
ICICI in CRM strategies. The chronic strategies of ICICI right from its inception and till
now have shown the company’s importance towards its customer centric strategies and
organizations. The customer life cycle tracking system in ICICI is the only kind of
software used in the Banking sector in India. This unique software used by the ICICI
helps them to provide faster solution to the customers whenever they needed like
Dormant accounts, expired accounts, unlimited banking statements etc.

CRM BUSINESS CYCLE IN ICICI

1. Understand and Differentiate.

2. Develop and customize
3. Interact and Deliver
4. Acquire and retain.
 The basic model of implementing CRM is what followed by ICICI also. The post of
Relationship officer proved that the ICICI has felt that the bank needs a person
interacting with the customer and to the organization. ICICI started understanding the
customer needs from the relationship officers in every bank and started listening to the
basic benefits that the customers are expecting from the bank. Understanding the basic
benefits ICICI way was extended to provide extra ordinary services like Express
counters, 24 hrs account enquiry, Express bank statements, Faster loans etc.

Customization of these specifications is really tougher in case of banking sector since

India is the country where more than 1Billion people live and more diversified regions
and languages. Appointing local executives in respective regions was one of the smart
thinking for ICICI so that those local executives as Relationship Managers carry out
respective region customers’ problems more easily.

Customer retention is for what all these CRM companies are fighting for. This bank
has a wide customer networking system where the every account holder would pull on in
any other scheme of the same ICICI bank. For eg ICICI account holder would have both
Current and Savings account or Loan borrower or in any growth plans of the bank, this
would stick the customer with the bank at high rate. Thus ICICI has a strong customer
feeling with their organization and with their every scheme.

ONE REAL EXAMPLE

In 2008 economy slowdown many companies revenue fell down double the rate.
Among that economy has also eaten up the image of ICICI Bank. That time ICICI faced
three major problems:

1. 12% Account withdrawals from total holdings.

2. 24% decline in half yearly profit Jan-June.

 3. HDFC’s CEO Deepak Parekh.

K.L. Kamath the CEO of ICICI Bank that time addressed to the press about the
current situation saying that ICICI has a strong customer network that assures zero
account withdrawals in coming future. The statement also proved to happen, Kamath
made it happen with the strong customer base that ICICI had before. The bank sent a
prospective letter to every active customer about the reduced risk for their money in the
bank and also every branch of the Bank in India promoted risk minimization campaign
ads inside the branches and on some roads of the respective cities and towns. No matter
whether ICICI knew or do not knew that strong customer base would save their food but
that customer marketing really worked to retain the whole market share of the ICICI
Bank.

Thus ICICI has a strong customer feeling with their organization and with their every
scheme proving it that the ICICI have a successful CRM Implementation and high
Maintenance at high success rate.