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I Ashish Pandey student of IISE, LUCKNOW express my sincere gratitude and thanks to the respected Faculty of IISE Mr. Shekhar Srivastava who was really very kind in giving me the start up with this project.. Sheer blessings of my parents have helped me to complete my project. They have remained a source of inspiration for me who have always prayed for my success.
India is the most attractive banking sector in the world. Banking SectorRetail of industry are getting affected by this boom, favorably as well as unfavorably. Number of Banks in India is growing at electric rate and thus the challenge or opportunity of retaining the existing customers is also growing faster. This study focuses on the need of customer retention efforts such as loyalty programs etc., which enables the Indian banking sector to be competitive and better than others existing and upcoming banks. The study of existing loyalty programs and other customer retention efforts helps in understanding the current situation and strategies better. Their analysis provides a view of the relationship between the nature of the utility offered and the customer experience cycle by using Buyer Utility Map. It was found that loyalty card programs have not worked as well as expected, but the most important benefit of having loyalty program is that bankers can quantify new customer losses and introduce programs designed to retain or encourage the most profitable customers.
3 CONTENTS 1: INTRODUCTION 1 About ICICI BANK 2 CRM 2.19 11 12 20 22 .2 Benefits of CRM 3 CRM in ICICI 2 Research Methodology 5 Sampling and Data Collection 3 Analysis and Interpretation 4 Conclusion 5 Bibliography 5-06 07 07 07 10 11.1 Customer Relationship 2.
219 ATMs in India and presence in 18 countrie as well as some 24 million customers (at the end of July 2007). NYSE: IBN) (formerly Industrial Credit and Investment Corporation of India. ICICI reported a 1. the United Arab Emirates and USA. branches and representatives offices in 19 countries.712. including an offshore unit in Mumbai. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank HQ at BKC Mumbai .31 crore in Q2 September 2008 over Q2 September 2007. Thailand.29% increase in total income to 9. Punjab National Bank and Canara Bank — its main competitors.15% rise in net profit to 1. Indonesia. Kolkata and Vadodara (formerly Baroda) . the Bank is targeting the NRI (Non-Resident Indian) population in particular. branches in Belgium. ICICI Bank is one of the Big Four Banks of India.016 branches (as on 31 March 2010) and about 5. This includes wholly owned subsidiaries in Canada.21 crore on a 1. South Africa. China. Hong Kong and Sri Lanka. Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated). ICICI Bank now has wholly owned subsidiaries. is a major banking and financial services organization in India. It is the second largest bank in India and the largest private sector bank in India by market capitalization. life and non-life insurance. offshore banking units in Bahrain and Singapore. The bank's CASA ratio increased to 30% in 2008 from 25% in 2007. an advisory branch in Dubai. and representative offices in Bangladesh. The bank also has a network of 2. BSE: 532174.014.4 ABOUT ICICI BANK ICICI Bank (NSE: ICICIBANK. (These data are dynamic. Malaysia. Overseas. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of investment banking. ICICI Bank's shares are listed on the stock exchanges at BSE. venture capital and asset management. its ADRs trade on the New York Stock Exchange (NYSE). along with State Bank of India.) ICICI Bank is also the largest issuer of credit cards in India. NSE.
Bank of Madura was a Chettiar bank. which was headquartered in Sangli. In 2003. ICICI founded a separate legal entity. In addition to this. ICICI adopted a massive approach aims for cost control and cost cutting. India and South Africa. In 2001. ICICI established a branch in Dubai International Financial Centre and in Hong Kong. With respect to the international sphere. Also. ICICI Bank Eurasia opened a second branch. 1943). ICICI announced that the merger expand ICICI Bank's branch network by 25%. the Government of India and representatives of Indian industry. ICICI opened subsidiaries in Canada and the United Kingdom (UK). this time in St. and Kuala Lumpur. In 2006. ICICI also established a branch in Frankfurt. and had acquired Chettinad Mercantile Bank (est. On 23 May ICICI Bank announced that it would merge with Bank of Rajasthan through a shareswap in a non-cash deal that values the Bank of Rajasthan at about 3. In 2008. 1933) and Illanji Bank (established 1904) in the 1960s. The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank.taking deposits. ICICI made huge changes in its organisation like elimination of loss making department and restreching outsourced staff or renegotiate their charges in consequent to the recession. ICICI also received permission from the government of Qatar to open a branch in Doha. to undertake normal banking operations . ICICI opened a representative office in Bangladesh to tap the extensive trade between that country. an instant cross-border money transfer option for Non-Resident Indians (NRIs). ICICI will inaugurate I-Express. In India.000 crore. ICICI started its international expansion by opening representative offices in New York and London. ICICI Bank. In 2004. Jakarta. ICICI Bank UK opened a branch in Antwerp. a Russia bank with about US$4mn in assets. In 2009. ICICI Banking Corporation was later renamed as 'ICICI Bank Limited'. ICICI integrated the group's financing and banking operations. credit cards. in Belgium. and with a branch in Moscow. into a single entity. This service will be available through the ICICI Bank's select partners in the Gulf Cooperation Council . ICICI established Banking Corporation as a banking subsidiary. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. In 1994. ICICI acquired Bank of Madura (est. ICICI renamed the bank ICICI Bank Eurasia. After receiving all necessary regulatory approvals. and which had 158 branches in Maharashtra and another 31 in Karnataka State. Formerly known as Industrial Credit and Investment Corporation of India. The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. In 2007. ICICI amalgamated Sangli Bank. In 2005. In consequent of it. both wholesale and retail. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. head office in Balabanovo in the Kaluga region. The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai. Also. On 18h October 2010. Petersburg. In 2002. car loans etc. ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank. compesation to staff was not increased and no bonus declared for 2008-09.5 In 1955. ICICI opened representative offices in Bangkok. At the same time. into ICICI Bank. and in the UK it established an alliance with Lloyds TSB. in Maharashtra State. ICICI acquired Investitsionno-Kreditny Bank (IKB).
Several vendors now offer HR consultancy tools to their CRM software.6 ABOUT CRM Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers. a company needs to provide solution to some basic issues. difficult foresee ability of the competitive situation. more experienced. entice former clients back into the fold. no visible performance measures. unclear job roles. lack of career paths for ambitious employees. surplus economy. The overall goals are to find. and reduce the costs of marketing and client service. poor recruitment policies. attract. clients and sales prospects. and technical support. but also those for marketing. inter-group conflicts. CRM STRATEGY FOR HR CONSULTANTS When planning CRM strategies for Human Resources.Customer relationship management describes a company-wide business strategy including customerinterface departments as well as other departments Benefits of CRM The use of a CRM system will confer several advantages to a company: Quality and efficiency Decreased costs Decision support Enterprise agility INTRODUCTION The contemporary market environment is characterized by general variability. more fastidious. customer service. and synchronize business processes—principally sales activities. . Some of these issues are employee grievances. It involves using technology to organize. end-user self-service and improved reporting capabilities. These ad-ons provide solutions for enhanced staff productivity. exacting and more impatient consumers and users. critical skill shortages and management ignorance towards any of these problems (3). and win new clients. nurture and retain those the company already has. and well informed. no induction training for new employees. dissatisfaction with salary and remuneration. automate. who cease being loyal to traditional products and brands.(2) Therefore we have a dire need for effective tools for increasing customer value and CRM is the answer to that.
and also on systematic and consistent measurement and appraisal of their achievement. skill to improvise.7 APPLICATION Today’s evolved consumer behavior demands a lot from companies. the staff’s approach to managing the relation with customers is the key factor for the success of Customer Relationship Management (4). The basic workforce attributes in the context of CRM are an uncompromising concentration on customer’s needs. . The willingness and skill of continuous training and self-education are also crucial factors. That is why every company needs something to diversify itself from the contenders. In that scenario. and in doing so the requirements for training must primarily come from the skill recognition and staff appraisal (5). An organization is up against a multitude of astute competitors. competitiveness and will-to-win recognition. decisiveness. on their motivation and skills and knowledge. Physical and timely accessibility of product/services is just as important as giving a customer valued service. It is no longer a competition only among your own products. The success of CRM will depend mainly on professional work approach of employees. the ability of a team work and the ability to lead a team.
. . ―is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction • It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied.8 CRM – Customer relationship management . Attracting. retaining and growing customers Building customer relationships and customer equity Customer value/satisfaction Perceptions are key Meeting/exceeding expectations creates satisfaction Loyalty and retention Benefits of loyalty Loyalty increases as satisfaction levels increase Delighting consumers should be the goal Growing share of customer Cross-selling Customer equity • • • • • • • • • • • • • . Marketers must be concerned with the lifetime value of the customer.
Customer Relationship Management (CRM) has been deployed in retail banking.).. etc. Aggressive marketing and promotions on the part of the banks have resulted in most customers happily switching loyalties to enjoy better privileges. and lower payouts”. This has resulted in the adoption of various CRM initiatives by these banks to enable them achieve their objectives. family commitments. enhanced per-customer profitability. Setting measurable targets for each initiative in terms of growth in profits.9 CRM IN ICICI BANK Focus on ICICI Bank’s Initiatives The use of Customer Relationship Management (CRM) in banking has gained importance with the aggressive strategies for customer acquisition and retention being employed by banks in today’s competitive milieu. economic background. Customer expectation from banks can be summed up as: “Any time anywhere service. The steps that banks follow in implementing Customer Relationship Management (CRM) are: Identifying CRM initiatives with reference to the objectives to be attained (such as increased number of customers. .. personalized offers. The challenges in managing customer relations in retail banking are due to the multiple products being offered and the diverse channels being used for the distribution of the products. thereby making the task of retaining them more difficult for the banks. The use of Customer Relationship Management (CRM) in banking has been essentially done for the following purposes: Targeting customers: It is necessary for banks to identify potential customers for approaching them with suitable offers.. and Evaluating and choosing the appropriate Customer Relationship Management (CRM) package that will help the company achieve its CRM goals (a comparison of pay-offs against investments could be carried out during the evaluation exercise). etc. number of customers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage.
the technology. along with human resources of the company. and customer information at all touch points Identify new selling opportunities Increased market share and profit margin Increased revenues More effective reach and marketing Improved customer service and support Improved response time to customer requests for information Enhanced customer loyalty Improved ability to meet customer requirements Improved quality communication and networking Reduced costs of buying and using product and services Better stand against global competition . and the management of relationship and the main objectives to implement CRM in the business strategy are: To simplify marketing and sales process To make call centers more efficient To provide better customer service To discover new customers and increase customer revenue To cross sell products more effectively Benefits The following are the benefits of adopting CRM processes: Develop better communication channels Collect customer related data Create detailed profiles of individual customers Increased customer satisfaction Access to customer account history. enables the company to analyze the behavior of customers and their value. The main areas of focus are as the name suggests: customer . order information.10 RESEARCH METHOLODY Objectives of CRM CRM. relationship .
What is the role of e-marketing in increasing customer satisfaction.Why organization want to retain there existing customers.Why organization introduce loyalty programmes to retain there existing customers.What is the role of service and technology in customer relationship marketing. Sampling and Data Collection 1.What is the difference between customer relationship management and relationship management.Sample Size: 20 3.11 The purpose of this project is to understand that what is customer relationship management.Population: Branch ICICI BANK 2. Why organizations are interested in one to one marketing.How CR market is different from Transaction market.Also interacting with other intermediaries .Why they want mass customization.Survey and Questionnaire(one to one) 4.Discussion with heads 5.
2. No. Are you aware about the financial product offered by the ICICI Bank? Total 20 Yes 13 No 7 .11. PG:. Qualification : Graduate:.9 Business:. 2. Occupation : Service:.5 Other (Specify):-6 4. of respondent 20 people.12 Analysis and Interpretation 1. Any Other 3 3.4. Professional:.
.13 20 No 35% Yes No Yes 65% Explanation: . 65% people about the ICICI Bank & 35% people don’t know.In 20 sample size.
Saving A/c 09 Current A/c 04 Fixed deposit 04 Any other 3 Any other 15 % FD 20% Saving A/c 45% Current A/c 20% Explanation: .In 20 sample size. 20% current A/c.45% people invest saving A/c. In which type of account the investment has been made. 15% any other & last 20% fixed deposit people. .14 5.
Amount of investment a. 10% like 100000 & 25% people more than invest amount Rs.. more than 100000 10000 10 25000 3 100000 2 More than 100000 5 Investment more than 100000 25% 10000 50% 1000000 10% 25000 15% Explanation: . 50% people invest money 10000 Rs. . 25000 c.In 20 sample size.. 1000000. 10000 b.100000 d.15 6. 15% 25000 Rs.
16 7. Are you faced any problem? Yes 06 NO 12 yes 30% no 70% Explanation: . 30% people face the problem & 70% people do not face the problem. .In 20 sample size.
17 8. Have you made any contact to the bank when you faced problem? Total 20 Yes 18 No 2 20 No 10% Yes No Yes 90% Explanation: . . 90% people contact to the bank & 10% people don’t contact.In 20 sample size.
& in 20% cases it took more than 10 days. in 30% cases 4 to 9 days .18 9.In 20 sample size.in 50 % cases it took 1 to 3 days. . How many days did bank take to solve the problem ? 1 to 3 days 10 4 to 9 days 6 More than 10 days 4 MORE THAN10 20% 1 TO 3 DAYS 50 % 4 TO 9 DAYS 30% Explanation: .
Explanation: . . Are you satisfied with the services of bank ? Total 20 Yes 18 No 2 20 No 10% Yes No Yes 90% . 90% people satisfied with ICICI Bank & 10% people don’t.In 20 sample size.19 10.
5. it is important to know the reason behind each CRM application you use.20 Conclusion Customer Relationship Management (or CRM) is a way for businesses to connect with their customer. Start with the established vendors such as Siebel. Choose On-Demand. Major vendors are always updating their software and improving their services. analyze and learn from customer data. 3. This fits into the first point. and SAP. and methods will allow you to access. and provide better customer service. Stay on top of the tech curve. and sometimes the company with the most effective CRM solutions will be the most unassuming. Choosing On-Demand will allow your business to focus its attention in expanding in other areas and is therefore the way to go for the twenty-first century company. It’s not just software. comparing them to one another. To get the most out of your CRM applications. But you still have to use that information to develop lasting relationships with customers. It is all about the customer. as well as those just getting into the CRM market. Remember that flash is not everything. 2. CRM is one very important factor in an effective overall business strategy and should not be overlooked. This is not contradicting points one and three. The right software applications. This way you will be able to find the one that offers the services you need at a price that is fair. Know your options. It is important to understand that there are literally hundreds of CRM vendors competing for your business. It is continual process of learning your customers’ needs. desires. Microsoft. increase profits. This does not mean buying into every tech fad.‖ It is essential that you spend the time investigating the vendors and the services they offer. The end is always customer service. you need the most up-to-date technology. Salesforce. Whereas traditional CRM programs and services require companies to hire new IT people and demand extensive resources to implement elaborate programs. strategies. 4. Many will make unsubstantiated or completely meaningless claims. There are countless vendors who all claim to be ―number one. It is easy to get caught up in flashy programs and elaborate IT techniques and lose focus of the bigger picture. NetSuite. . 1. Keep this in mind when selecting vendors and software applications. All CRM is about enhancing customer satisfaction. and expectation and being able to respond in an effective manner. Therefore. Customer Relationship Management is not simply about implementing the right software packages. You should carefully consider whether a new technology is going to improve your customer relations. Ondemand CRM software comes with support.com. Vendors that offer On-demand solutions are especially great for small to medium size businesses. or just be a drain on resources. but it is a fast paced world and you have to keep up. The following are some tips to keep in mind in developing a CRM strategy for your business and finding the CRM vendor(s) that is right for you. IBM.
It is worth the investment to help you learn from customers and respond to their needs. customer relationship management will greatly improve your business. In selecting the right CRM solutions for your business.21 Properly implemented. look for a reliable vendor. always keep the customer in mind. These tips will help you run a more effective CRM campaign and improve your overall business . and stay on top of the latest technologies. Satisfied customers will be more willing to do repeat business and refer more customers to you.
RAKESH SHARMA PUBLISHES BY BIZTANTRA KOTLER.PRENTICE HALL.CHHABI SINHA.JHA & KOSHY.22 BIBLIOGRAPHY HANDBOOK OF RELATIONSHIP MARKETING BY JAGDISH N SHETH & ATUL PARVATIYAR.13TH ED .MARKETING MANAGEMENT.INDIAN EDITIONo RELATIONSHIP MARKETING-TEXT AND CASES BY S.KELLER.SHAJAHAN CUSTOMER RELATIONSHIP MANAGEMENT—CONCEPT AND APPLICATION BY ALOK KUMAR.
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