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A MANAGEMENT THESIS ON AN IMPACT OF E-MARKETING IN BANKING SERVICES FOCUSING ON (RELATIONSHIP APPROACH)

Submitted To: Poonam Mahendru

Submitted By: Yogesh Sharma 7NBYN016 INC- Yamuna Nagar

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MANAGEMENT THESIS ON AN IMPACT OF E-MARKETING IN BANKING SERVICES FOCUSING ON (RELATIONSHIP APPROACH)

BY: Yogesh Sharma 7NBYN016 MBA (2007-2009) INC – YAMUNA NAGAR A report submitted in partial fulfillment of The requirements of THE MBA PROGRAM INC- Yamuna Nagar

COPIES MARKED LIST:

Mrs. Poonam Mahendru (Faculty guide)

Abstract

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The customer relationship management (CRM) is essential and vital function of customer oriented marketing. Its functions include gathering and accumulating customer-related information in order to provide effective services. E-CRM is a combination of IT sector but also the key strategy to electronic commerce. E-CRM is a combination of software, hardware, application and management commitment. Aim of e-CRM system is to improve customer service, develop a relationship and retain valuable customers. E-CRM is a concern for many organizations especially banking sector. The purpose of this study is to gain a better understanding of the benefits e-CRM to customers and organization in banking industry. To justify the purpose two research questions have been addressed and on the basis literature review, a frame of reference was developed which helped us to answer the research questions and collect data. A qualitative research approach was used for this study. Empirical data was collected through in-depth interviews were conducted with two Swedish banks and a group of their customers. In the last chapter findings and conclusions were drawn on the basis on research questions. Our findings indicate that Swedish banks are well aware of the benefits and applications of the e-CRM and use the system to maintain good relationships with their customers. Our findings also indicate that with the implementation of e-CRM and the latest technologies. We have found that both the banks seem to have same description about the benefits of e-CRM. We found that both banks have maintained good relationships with customers due to the usage of e-CRM. Our finding indicates that with the implementation of e-CRM and the latest technologies banks have ensured full security for the transactions of their customer’s. E-CRM facilitates the organizations to provide one to one services and also maintain the transaction security of the customers.

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I have been of service, if I have glimpsed more of the nature and essence of ultimate good, if I am inspired to reach wider horizons of thought and action, if I am at peace with myself, it has been a successful day. “ALEX NOBLE”

ACKNOWLEDGEMENT

Researcher would like to take this opportunity to express my indebtness and gratitude to my Project guide Mrs. Poonam Mahendru (Faculty guide) for his guidance and the opportunities he provided to me to work on the project, my project stint would have been a lot harder had it not been the presence of her who patiently helped and guided me whenever I stood on shaky grounds. His friendly approach and a professional attitude helped me to enjoy my work immensely. Researcher also would like to thank ICFAI National College for giving me this opportunity.

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Table of Contents

Executive summary
1. Introduction

8 9 10 12 14 17 21 30 31 32 34 38 39 40 41 43 44 44 44 45 45

1.1 Background 1.2 Industry overview 1.3 Customer services in banks 1.4 Customer Relationship Management 1.5 Starting of E-Marketing 1.6 Overall research purpose 2. Literature review 2.1 E-CRM Benefits to Bank 2.2 E-CRM Benefits to Customers 3. Analysis and Interpretation 3.1 Cost/Benefit Analysis 3.2 Budgeting 3.3 Situational Analysis 4. Methodology 4.1 Title of Study 4.2 Objective of study 4.3 Research Process 4.4 Scope of Study 4.5 Limitation of study

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5. Findings and conclusions 5.1 Synopsis 5.2 How can the benefits of E-CRM foe the banks be described

46 47 47

5.3 How can the benefits of E-CRM for banks customers are described 48 6. Recommendations 7. References 49 50

List of tables

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TABLES Cost/Benefit Analysis SWOT

PAGE NO. 39 42

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Executive summary

The project involves in depth study and analysis of an impact of E-Marketing in Banking Industry. It also includes the study about E-Marketing. Researcher has to analyze various aspects related to E-Marketing like, Importance of E-Marketing in financial services; How E-Marketing differs from traditional marketing, Impact of E-Marketing in Banks Profits. This project is basically deals with an impact of E-Marketing in banking industry. How EMarketing is different from Traditional Marketing. E-marketing is basically is a part of Customer Relationship Approach (CRM). A greater focus on Customer Relationship Management (CRM) is the only way the banking industry can protect its market share and boost growth.CRM would also make Indian bankers realize that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover, create, and satisfy customer needs."

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Chapter-1 Introduction

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“By entering into your premises the customer is giving an opportunity to
serve him, but you are not doing any favour by serving him”. Mahatma Gandhi

Chapter 1: Introduction
Under this chapter an introduction of our topic will be explained, the background is first presented, proceeding into the problem discussion where the research area is discussed. The problem discussion will lead to the research purpose and the research questions. Finally, demarcations and overview of this thesis are presented.

1.1 Background
Changes are taking place dramatically in the marketing environment during the last few years. Information technology has encouraged several new innovations in the fields of marketing and business. Effects of information technology in the fields of marketing and management have emphasized the importance of re-arranging a new plan for marketing that gets benefited from web technology. In year 1990, many organizations were focusing on how to perform their transactions with the customers, and how they are going to address their strategies for sales promotions effectively. But after 1990 it was found that many companies have diverted their attention towards how organizations can maintain positive and long lasting relationship with customers. At the same time how to raise loyalty of customers. Thus strategies of organization have shifted towards customer-oriented strategies. Important factors like providing added services, recognizing the needs of the customers are termed as factors to decide the fate of companies. Organizations investigations have put light on importance of retaining customers is not a great deal than that of attracting new ones. Relationship marketing has turned out to become important factor in financial services. Customer relationship management (CRM) Bose, (2002) described the customer relationship management (CRM), essential and vital function of customer oriented marketing is to gather and accumulate related information about customers in order to provide effective services. CRM involves attainment analysis and use of customer’s knowledge in order to sell goods and services. Reasons for CRM coming into existence are the changes and developments in marketing environment and web technology. Relationship with customers is a newly distinguished as a key point to set competitive power of an organization. Companies gather data related to their customers, in order to perform customer relationship management more effectively. Web has disclosed a new medium for business and marketing scope to enhance data analysis of customers’ behaviors, and environments for one to one marketing have been enhanced. CRM lies at the heart of every business transaction. (ibid)
Massey et al., 2000 believes that CRM is about attracting, developing maintaining and retaining Profitable customers over a period of time. In this increased heightened global competition arena, the

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new ways of working are firmly shifting into the hands of paying customers and organizations adapting to e-CRM to CRM.

Electronic customer relationship management (e-CRM) E-CRM is combination of software, hardware, application and management commitment. ECRM can be different types like Operational, Analytical. Operational E-CRM is given importance to customer touch up points, which can have contacts with customers through telephones or letters or e-mails. Thus customer touch up points is something web based e-mails, telephone, direct sales, fax etc. Analytical CRM is a collection of data and is viewed as a continuous process. It requires technology to process customer’s data. The main intention here would be to identify and understand customers demographics pattern of purchasing etc in order to create new business opportunities giving importance to customers. Vital and important key point is that e-CRM takes into different forms, relying on the objectives of the organizations. It is about arranging in a line business process with strategies of customers provided back up of software’s. E-CRM is about people, process and technology and these are key paramount to success. Traditional definition of e-CRM according to Stanton et al., (1994) is to include attitude for entire business. Like identifying and defining the prime goal to everyone in the organization and creating a sustainable competitive advantage. Their study explores how e-CRM enhances the traditional definition of marketing concepts and enabling the organizations to meet their internal marketing objectives. It is identified that aim of e-CRM systems is to improve customer service, develop a relationship and retain valuable customers. Furthermore added advantage would be that it enhances delineation in customer’s value. Means to motivate valuable customers remain loyal with the enhanced features of e-CRM, where e makes the huge difference.

1.2 Industry overview

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The liberalization and globalization of Indian economy has taken place almost a decade ago the focus point in any service organization is “customer service”. It is more so in the banking industry. The phrases such as “Customer is the king”, “service to customer is service to god” are more myths but turned out to be realities. Customer service is the base for business expansion because of the stiff competition prevalent in the banking industry. With the advent of new private banks in 1995 “the concept of customer service” has become an important and pivotal issue in banks, be in the public sector, private sector. The survival of banking business is dependent on customer services. FOR long, Indian banks had presumed that their operations were customer-centric, simply because they had customers. These banks ruled the roost, protected by regulations that did not allow free entry into the sector. And to their credit, when the banking sector was opened up, they survived by adapting quickly to the new rules of the game. Many managed to post profits. For them an unexpected bonanza came from government bonds in which most were hugely invested. Ironically, the Reserve Bank of India's moves to cut aggressively the interest rates after 1999, pushed up the prices of bonds. So banks had a windfall doing almost nothing. The bond profits, like manna from heaven, improved the balance-sheets of all banks irrespective of their core performance. However, the era of lazy banking is soon to end. The mesh of rules that propped up the Indian banking industry is now being dismantled rapidly. According to a RBI road-map, India will have a competitive banking market after 2009. As one of the most attractive emerging market destinations, India will see foreign banks come in, what with more freedom to come in, grow and acquire. Therefore, it is imperative that Indian banks wake up to this reality and re-focus on their core asset — the customer. A greater focus on Customer Relationship Management (CRM) is the only way the banking industry can protect its market share and boost growth. CRM would also make Indian bankers realize that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover, create, and satisfy customer needs." What is CRM, and what will it deliver to the banks? CRM is, probably, one of the least clearly defined business acronyms, as there is no single definition for it. It is probably easier to say what CRM is not. Unfortunately, CRM has also become a misnomer for a range of solutions from IT vendors, each providing its own spin on the idea.

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CRM is variously misunderstood as a fancy sales strategy, an expensive software product, or even a new method of data collection. It is none of these. CRM is a simple philosophy that places the customer at the heart of a business organization’s processes, activities and culture to improve his satisfaction of service and, in turn, maximize the profits for the organization. A successful CRM strategy aims at understanding the needs of the customer and integrating them with the organization’s strategy, people, and technology and business process. Therefore, one of the best ways of launching a CRM initiative is to start with what the organization is doing now and working out what should be done to improve its interface with its customers. Then and only then, should it link to an IT solution. While this may sound quite straightforward, for large organizations it can be a mammoth task unless a gradual step-by-step process is adopted. It does not happen simply by buying the software and installing it. For CRM to be truly effective, it requires a well-thought-out initiative involving strategy, people, technology, and processes. Above all, it requires the realization that the CRM philosophy of doing business should be adopted incrementally with an iterative approach to learn at every stage of development. Indian Retail Banking continues to redefine the credit growth in the country. It grew by a whopping 44.4% in 2005-06 to touch Rs 3538 billion. This leap was despite the increase in risk weight by RBI for housing and real estate loans during August, 2005. Housing, which constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06. In order to help banks in India to understand the market and competition and plan future strategies, Cygnus Business Consulting and Research has just come out with an Industry Insight on Indian Retail banking – 2006 edition. This report analyses the retail banking market and its segments in India and presents the key trends, along with issues and challenges. The report also paints a future outlook for the market. Besides it profiles 21 major players in the retail banking space and their strategies.

1.3 Customer services in banks

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Importance of Customer Satisfaction:
The importance of customer service for capturing business in banks has become a focus point in all stages of marketing of banking services, since almost all banks are offering more the same products with little changes in nomenclature. In the present day situation customer becoming more and more demanding, bankers need to evolve new approaches, new and innovative products to keep pace with growing expectations. In order to service the customer more efficiently and to the highest level of satisfaction technology up gradation is an important aspect to speed up the servicing in all sphere of banking and to fulfill the customer needs.

Technology
Through technology is helpful in upgrading the services to meet the competition, it will become a fallout if not operated effectively and efficiently. Technology-driven products such a debit cards, credit cards, tele-banking, mobile phone banking, internet banking, fax, e-mail, help desk services, etc. have given more access to customers to communicate their needs instantly and transact their business promptly. For technology up gradation banks have to recruit specialists in each field – efficient people a all levels to provide these services. Bankers have to gear up the customer’s expectation. Bankers have to learn to use the technological advance to gain the maximum advantage in the business.

Customer Expectations
Customer service is required to be upgraded to satisfy the customer expectations. To render efficient customer service the banker has to first understand what really the customer wants. Therefore the bank managements have to continuously innovate and make strategies and evolve new products to attract the customer. In order to achieve this task banks have to prepare projects keeping in view the priorities of each segment of customer classified into middle value customers and high net worth customers. This will enable banks to innovate products to customer needs. Therefore to attract more and more business bankers are offering products linked with insurance investments etc. Segmentation is an important aspect in innovating a new service product. “What the customer wants” is a priority in this direction. All these efforts are ultimately providing a better service to the customer

Communication

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Interaction with customer is an important aspect in providing better service to the customer to their fullest satisfaction. Communication with customer at front office level will help bankers to really identify the needs and priorities of customers. Therefore the role of human resource department of the bank is to provide efficient staff at all levels. Wherever there is an interaction with the staff to deal with the customer. It is one of the top priorities of banks to provide good services.

Relationship management
Relationship manager’s role in providing a better service to the customers is pivotal to the expansion of banking business. These RMs maintain rapport particularly with high net worth customers and provide them all the services they need. This will help in not only retaining the existing customer base but also to capture the new clientele. Relationship is more important to provide good customer services. Alternatively good services will help the bankers to build up relationship. Unless the service is provide to the fullest satisfaction of the customers taking further reference from the existing customer to establish new relationship is difficult. Again this requires the service to the existing to the existing customers and their patronage to bank.

Mapping the customer needs
In the present day banking though the banking services are technology driven and major role is played technology in all decision on customer services the tested methods like customer surveys continue to help the managements in identifying the customer needs. Identifying the customer needs is important before providing the service so that will help managements to have an insight into customer needs and attitudes. In order to identify the customer needs banks have to develop a proactive approach. Such approach will not only enhance the image of the bank in the customers view point but also provides a satisfaction to the bank for having served the customer for his actual need customer surveys will help to know the good feeling among customers about the bankers services bankers enhance customer satisfaction by giving continuous attention to customer service. Mapping the customer needs is therefore an important aspect in servicing the customer.

Service Delivery Standards

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In order to maintain good service delivery standards in the operations and the branches of banks efficient and skilled staff are to be deployed by banks in all branches particularly in front office these staff should have better communication skills to maintain standards in service delivery. The concept of service delivery denote proper servicing of the customer by giving an appropriate answer and solution to the queries raised and service them to the fullest satisfaction. An expected level of the standard is required to be maintained. To maintain this standard bank’s branches should have adequate infrastructure and required literature to explain the products and the personnel at front office. Besides this, the amenities, like seating arrangement to customers, cash deposit queues etc. are properly maintained; adequate ambience is also maintained for attraction. The bank should provide all the required facility and operate the schemes provided by their competitors. These services delivery standard are the basic ones and bankers should maintain to cater “Good customer service”. “Service with a smile” should be the motto of all the personal working in the front office and to maintain “service delivery standards”. This is a wider concept and can be implanted at all levels and echelons of banking organization.

1.4 Customer Relationship Management

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Customer relationship management (CRM) became the number one focus when today’s competitive retail banks and the Indian banking market space were getting more saturated and competitive. Retail bank customers are demanding a different relationship with bankers and suppliers of financial than the traditional sales and transaction model. The new database technologies enable retail bankers to get the knowledge of who the customers are, what they bought and when they bought, and even predictions based on the historical behavior. Customer Relationship Management is a process by which a company maximum customer information in an effort to increase loyalty and retain customer business over their lifetimes. The primary goals of CRM are to:

• • •

Build long term and profitable relationship with chosen customer. Get closer to those customers at every point of contact. Maximize your company’s share of the customer’s wallet.

Managing customers is one of the main issues that banks face in today's hyper competitive environment. If the service levels are not up to customer expectations, in all likelihood the customer might take his business elsewhere. This is where Customer Relationship Management (CRM) practices (most important) and software (on the technology side) play an important role. Banks, who have absorbed CRM systems have been able to achieve transparency in customer interface and have made sure that customers receive offers which match with their needs. No easy task this! Consequently this has resulted in greater income for the bank as CRM 'satisfies customers and immediately builds loyalty'. Appropriate deployment of CRM systems also attracts newer customers, which can only be beneficial for any financial institution in the face of harsh competition. Another advantage of CRM is that employees are no longer burdened with the task of identifying opportunities by manually reviewing reports by studying client trends. Cross sell processes can be launched automatically by connecting transactions to CRM. This empowers the bank and simultaneously provides information to employees. Customers are always undergoing life-changing experiences like marriage, birth of a child, investing in a new house or opening new accounts. The magic of technology lies in gathering this knowledge and transforming them into means and ways of strengthening relationships with

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customers. Technology helps change the vision of the banks along with important changes in the lives of their customers. Mobile banking service is another luxury, which customers can enjoy today. Technology has enabled customers to access information through the phone instead of physically traveling to bank locations for the slightest of queries. Phones and advanced web phones have made it possible for customers to get details of balances, accounts and other transactions without traveling. Services such as money transfers and personal payments online and through the phone are already available. Technologies such as Internet banking and mobile banking have certainly simplified our lives. The best part is that these transactions (online and mobile) can be done in complete confidentiality and within a secured network, thus, protecting the customer/user from any fraudulent practices. Customers are enjoying technology in every sense in their financial relationships with banks. For example: Account aggregation is an existing technology in the arena of online banking. Moreover features such as chip, PIN, TIN are armed with the potential of dealing with multiple applications and that too on one card. In this day and age, customers enjoy complete luxury in terms of customized technical solutions and banks use the same to cement long term, mutually beneficial relationships.

CRM
Customer:

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A person who buys on products or services from a shop on business. A person or thing of a specific kind that one has to deal with.

Relationship:

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The way two or more people are connected or in a state of being connected. The way in which two or more groups of people regard & behave towards one another. An emotional association between two people.

Management:

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The process of managing. The people managing an organisation.

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The purpose of CRM

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“The focus of CRM is on creating value for the customer and the company over the longer term”. When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs. CRM enables organisations to gain ‘competitive advantage’ over competitors that supply similar products or services.

Why is CRM important

“Today’s businesses compete with multi-product offerings created and delivered by networks, alliances and partnerships of many kinds. Both retaining customers and building relationships with other value-adding allies is critical to corporate performance”.

“The adoption of CRM is being fuelled by recognition that long-term relationships with customers are one of the most important assets of an organisation”.

Benefits of CRM

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Improved customer retention & loyalty- customers stay longer, buy more & more often Higher customer profitability – lower cost in retaining customers, no need for more recruitment Reduced cost of sales- existing customers are more responsive It offers customers an insight into the Company It builds a long-term relationship with customers and maximises revenue

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E’s of E-CRM
The ‘e’ in e-CRM not only stands for “electronic” but also can be perceived to have many other connotations. Though the core of e-CRM remains to be cross channel integration and organization the ‘e’ in e-CRM can be used to frame alternatives decisions of e-CRM based upon the channels which e crm utilizes the issues which it impacts and other factors, the ‘e’s of e-CRM are briefly explained as follows: 1. Electronic channels: New electronic channels such as the web and personalized e-

messaging have become the medium for fast, interactive and economic communication, challenging companies to keep pace with this increase velocity. E-CRM thrives on these electronic channels 2. Enterprise: Through e-CRM a company gains the means to touch and shape a customer’s experience through sales, services and corner offices- whose occupants need to understand and assess customer behavior. 3. Empowerment: e-crm strategies must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company through which channel, at what frequency. An E-CRM solution must be structured to deliver timely pertinent, valuable information that a consumer accepts in exchange for his or her attention. 4. Economics: An e-crm strategy ideally should concentrate on consumer economics, which delivers smart assets-allocation decisions directing efforts at individuals likely to provide the greatest return on customer-communication initiatives. 5. Evaluation: Understanding customer economic relies on a company’s ability to attribute customer behavior to market programs, evaluate customer interactions along various customer touch point channels and compare anticipated ROI against actual returns through customer analytic reporting Companies that focus in E-CRM have several benefits• • • • • • • Serve their customer better, 24 x 7 (and better than competition) Reach out new customers more easily and build stronger ties with the exiting customers. Deliver most effective and accountable one to one communication. Reduce administration and customer support cost. Speed up order to deliver cycles for faster, better, customer services and more turns. Maximize the lifetime value of a customer. Reduce time to market.

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Ability to use customer data to drive business decision.

1.5 Starting of E-Marketing
Electronic market Electronic market is relatively new concept and has crept into business vocabulary around 1970s. Electronic commerce denote the seamless application of information and communication technology from its point of origin to its end point along the entire value chain of business processes conducted electronically and designed to enable the accomplishment of a business goal. These processes may be partial or complete and may encompass B2B as well as B2C and C2B transaction (Wigand, 1997). The E-commerce further leads to the emergence of the ''market space'' - a virtual world of information paralleling the real marketplace of goods and services - enables marketers to manage content, context, and infrastructure in new and different ways, thereby providing novel sources of competitive advantage (Rayport & Sviokla, 1994). With electronic marketing one can think for business across the globe that was not possible earlier. Traditional way of market segmentation with an internet audience may not be fruitful. In electronic marketing, segmentation can be done effectively by considering two key dimensions i.e. potential value of the segment to the particular market sector and comparative attractiveness of the channel to the customer (Hymas, 2001). The 4Ps frame work of traditional product marketing is not appropriate for electronic marketing due to unavailability of demographics and psychographics of electronic customers. Booms and Bitner (1981) considered 7Ps frame work for electronic Marketing. All most all the product can be made available for customer via electronic marketing but few product categories like Software, music, reports, games, videos etc, products can be delivered online at the same time, for other products it can be delivered later at the doorstep of the customers. It was initially believed that the Internet could benefit organizations because of the decreased costs involved with distribution, hence improving profit margins if they chose not to pass these benefits on to customers. But there are some electronic marketers like Amazon.com, have also contributed to price competition, effectively forcing the competitors to reduce the price. But same time Bromage (2001) argued that online customers buy online for convenience rather than for price advantages. Regarding place, electronic marketing offers potential to shift from a non-virtual marketplace to a market-space instead, incorporating virtual transaction/distribution spaces. Websites have the

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potential to give information, to entertain and be interactive in their communication. Internet can take over some of the activities offered by the personal sales person (e.g. accepting purchase orders), but some of the activities undertaken by sales representatives cannot be replaced by technology. The Internet allows organizations to make their service delivery system flexible. Because of the lack of physical proximity in electronic marketing, marketers make use of "virtual evidence" in the virtual environment. Lack of the personal interface may result in customer distrust of firsttime interaction with electronic channels. It is also more difficult for marketers to build a relationship with customers whom they never see (Dobie et al., 2001); in such a situation trust (to reduce transaction cost) can be generated by other means, such as communication messages and brands. Electronic marketing proved its effectiveness by reducing the time of shopping and made it easy for the people to shop. Most of the business houses adopted electronic marketing so far and many more are in pipe line .Although electronic marketing has proved its success in facilitating communication and exchange but still it has long way to travel. E-Commerce Electronic commerce (E-Commerce or EC) is an emerging concept that describes the process of buying and selling or exchanging of products, services, and information via computer networks including the Internet. It is the use of the Internet and the Web to transact business. Doing business online, typically via the Web. It is also called "e-business," "e-tailing" and "Icommerce." Although in most cases e-commerce and e-business are synonymous, e-commerce implies that goods and services can be purchased online, whereas e-business might be used as more of an umbrella term for a total presence on the Web, which would naturally include ecommerce (shopping) component. E-commerce may also refer to electronic data interchange (EDI), in which one company's computer queries and transmits purchase orders to another company's computer. E-commerce in the banking sector The impacts of e-commerce on the banking sector potentially can be profound. Banking assets and products are primarily ‘intangibles’, many of which seem ideally suited to digitization and on-line distribution. Wholesale banking already relies heavily on electronic systems, but these are mainly proprietary networks, open only to restricted groups of users. Internet-based banking

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applications are superficially ideal for many types of retail banking services, but this is as yet a relatively small segment of the banking market. Use of the Internet in banking operations can be considered a logical step as the new technology is basically an increment in an already evolving operational infrastructure. For a time, predictions
were common that the increasing use of the Internet would shake up existing market structures and threaten the dominance of established companies. In the financial sector a myriad of internet start-ups quickly began tapping into product markets traditionally served by banks. Moreover, established companies from related markets (like insurance) and unrelated markets were expected to be well suited for offering online banking products. The reality is that the established banks are still the major suppliers of banking products and services. Alternative suppliers (especially internet start-ups) have not (yet) been able to form serious competition in the Netherlands or elsewhere. There are a number of reasons for this. First, the supply of financial services through the Internet has similarities with the existing banking business and its infrastructure. Second, gaining and keeping new customers for banking services comes at great expense (Bagijn, 2001). Established banks hold a preferential position over newcomers in this respect. Also, start-ups have a number of disadvantages compared to the traditional financial service suppliers. Banks in general have the advantage of a well-known brand name and well-established customer trust. Moreover, a number of factors can make large companies (such as banks) better suited for implementing new technologies. Comparing small companies (Internet start-ups) with the large banking organizations, Wolffen buttel and Stegwee (2001) mention a number of reasons why the larger banks generally are more innovative if it comes to the use of e-commerce.

E-Business E-Business is a revolution that is transforming companies round the world, and it is impacting all the industries. E-business is much more than online purchase and implementation of computer applications by the IT departments; or putting up a company website. E-business affects the whole business and the value chains in which it operates. It enables a much more integrated level of collaboration between the different components of a value chain than ever before. Adopting e-Business also allows companies to reduce costs and improve customer response time. Organizations that transform their business practices stand to benefit immensely from innumerable new possibilities brought about by technology.

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Although it's early days for e-Business in India, we believe there are greater opportunities over the long term for India and Indian businesses. There is urgent need to usher in farsighted policies & practices to become a major economic force in the emerging world of E-Business. E-business includes E-business is not just about selling over the Internet. It's a 'catch-all' term for any business done electronically. Amongst other things, it can include:

Computers and computer networks, sometimes called IT (Information Technology) or ICT (Information and Communication Technology) Communicating by email Running a website Using the Internet to market your business or service Using databases for contact management, stock control, or to communicate with suppliers Using business software.

• • • • •

Electronic banking It is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used PC banking PC Banking is a form of online banking that enables customers to execute bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the customer a proprietary financial software program that allows the customer to perform financial transactions from his or her home computer. The customer then dials into the bank with his or her modem, downloads data, and runs the programs that are resident on the customer's computer. Currently, many banks offer PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts. interchangeably.

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Internet banking, Sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from browser- software that runs Internet banking programs resident on the bank's World Wide Web server, not on the user's PC. Net Banker defines a " true Internet bank" as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.

To date, more banks have established an advertising presence on the Internet- primarily in the form of informational or interactive web sites-than have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future. Internet banks generally have lower operational and transactional costs than do traditional brickand-mortar banks, they are often able to offer low-cost checking and high-yield Certificates of deposit. Internet banking is not limited to a physical site; some Internet banks exist without physical branches, for example, Telebank (Arlington, Virginia) and Bank net (UK). Further, in some cases, web banks are not restricted to conducting transactions within national borders and have the ability to make transactions involving large amounts of assets instantaneously. According to industry analysts, electronic banking provides a variety of attractive possibilities for remote account access, including:
• • • •

Availability of inquiry and transaction services around the clock; worldwide connectivity; Easy access to transaction data, both recent and historical; and "Direct customer control of international movement of funds without intermediation of financial institutions in customer's jurisdiction."

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E-Marketing: Before trying to define the term of E-marketing (or electronic marketing, so to speak), we should first take a look at the premises of its apparition and development. The theories concerning E-Marketing have not been unified yet, due to a large diversity in specialists' opinions. Still, one of the aspects that is established and has ceased being discussed in contradictory is the fact that electronic marketing first appeared under the form of various techniques used by companies distributing their products through online channels (Internet – based). That happened back in the pioneering age before 1995. These companies that opened the road were called "E-tailers", as opposed to the traditional retailers (also known as "brick-andmortar" retailers). During their limited life, these electronic retailers began to develop and frenetically introduced new marketing techniques based on the support offered by the internet. The online technologies mentioned above developed in the context created by the E-Tailers, they are widely used these days by B2C and B2B organizations. In other words, they evolved towards what we call now E-Marketing (you can also spell it e-Marketing if you wish, the "e-" stands in both cases for "electronic"). You might find as extremely useful and suggestive the perspective offered by the E-Marketing Association (EMA). You heard a lot, especially over the past 2 years, about the decline of online businesses (or the decline of dotcoms), but this temporary difficulty can be viewed as a similarity to the impasse of Columbus during his expedition that made him famous more than half millennium ago. The initial "business plan" with which Columbus started this trip (that of bringing the Asian resources in his country and getting fabulously rich) was a complete disaster: catastrophic estimations, not enough resources allocated, total lack of information upon the environment he will develop his "business" in, but... he discovered America instead and changed the world for ever. In a similar manner, we can say that the dotcoms, despite their terrible strategies (if any), "discovered" by mistake the world of E-Marketing. As we already noticed, defining E-Marketing is still highly problematic. Still, what do we mean when we use this term? As many other English words, the term was born by adding the prefix "e-" to a term already known and used, in this case "marketing". The prefix "e-" is actually the extreme contraction of the word "electronic" and is quite omnipresent in today’s language of many people: "e-marketing", "e-business", "e-mail", "e-learning", "e-commerce", "e-", "e-", "e-"... Definition of E-Marketing:

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• •

“E-Marketing is the use of internet as a media to market and promote your business globally”. “E-Marketing is a generic term utilized for a wide range of activities – advertising, customer communications, branding, fidelity programs etc”

Advantages of E-Marketing: When compared to traditional marketing, E-Marketing is the apt way to promote your products and services globally. There are many advantages some of which are listed below. Global Reach

No physical or geographical limitations- The use of the internet as the mainstay of operations virtually eliminates geographical boundaries. Access to unknown buyers and sellers. Own your virtual office. Always accessible (24/7) Enhance your business prospects and profits. Reach target audience. Publicizing your business through various chambers of commerce & Industry and Trade Associations.

• • • • • •

Easy Marketing • • • Classified information on competitive products. Acquire product knowledge. Compare products & Services.

Economics • • • • Cost effective strategies. Faster & easier access to products, buyers and sellers. Save Time and money you spend on sending faxes, couriers etc. Save money you spend on printing Catalogs, Brochures and other promotional material. Updates • Change of content is possible immediately.

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• • •

Add new products and services. Link other principle sites to your e Brochures for wider content reach. Add latest news, events and other information immediately.

More attractive compared to physical brochures • • Graphical user interface. Provide product animations.

E-Marketing services In order to effectively use e-Marketing to promote your products and services globally, there are various methods and tools used to do the same. You can use our services listed below to enable you in effectively e-Market you company. E-brochure Similar to a normal printed brochure, an E-brochure (Web site) also provides company related information. The difference arises from its power to reach global markets at a negligible cost. An E-brochure contains information such as company history, team, infrastructure, products, services, contact information and an Enquiry-Form for prospective clients to send enquiries. E-Catalog Just as any printed catalog, an E-catalog provides product information. However, the E-catalog furnishes product details on a more intricate level, supported by superior presentation techniques. Category-wise product description, Different views of products including an animated presentation with voice facilities can be achieved through the E-catalog. E-Mailer E-mail is the fastest and most economical method of communication in business communities. You can rarely find a business card without an E-mail address. The potential uses an E-mailer can be put to be.

• • •

Sending promotional material to buyers or suppliers. Updating clients or users about the latest upgrades on the product. Reminders about renewal of business contracts or services.

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Six simple steps to start e-Marketing
Starting e-Marketing is easy but walking on the right path is not so easy. There are just too many options you can consider! However, typically I would recommend my clients to follow 6 simple steps to plan and start doing e-Marketing and they are: 1. Building Effective Website 2. Designing Compelling Messaging 3. Sending Strategic Newsletters 4. Online Advertising 5. Managing Customer Databases 6. Building Alliances

Building an Effective Website - I have shared in other articles how important it is a website for eMarketing to be successful. It is not only design and layout but also the real business strategy behind. You have to consciously to make your website effective for your business and engaging your customers interactively. A website will only perform well when it is being revised and updated according to the environmental changes with Compelling Messaging.

Designing Compelling Messaging - It is really back to marketing basics about communications. You have to high play your products/services' benefits rather than functionality in order to distinguish your differential advantages over your competition. A lot of time, customers' buying decisions are based on trusts that built on the success references you are giving of other cases. Before you get this right, e-Marketing will never be a success.

Sending Strategic Newsletters - e-Newsletters are so easy to send out if you have any emails of our suppliers, partners, customers and prospects. However, your compelling messaging must be ready before your e-Newsletters can be successful. In additional, you need to send out useful information or knowledge occasionally other than sales promotions in order to attract your target audience to keep subscribing your newsletter.

Online Advertising - The most basic Online Advertising option I recommend is Search Engine Marketing. It is becoming mandatory for any companies nowadays to make sure their company information/advertisements are showing on the first page of search results. Without doing this, your website will just never be found in a very long while, Other Online Advertising options can

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be Web Banner Ad on your target customers populated websites or contextual advertising, etc. Managing Customer Databases - When you start doing e-Marketing, the next important thing is to keep up with your customer database(s). This is very crucial because your customer database will grow throughout your e-Marketing activities. The most basic way to do this is to use Excel or Outlook or any other mail clients but as you grow your customer database, it is better to adopt Customer Relationship Management software or a e-Marketing campaign software. Building Alliances - No one can be successful by doing e-Marketing alone and this is the fact! Hence, building alliances and letting your alliances to promote your products/services in their websites and other channels are the very key to success with e-Marketing. You potential return on investment (ROI) will grow even better than you can imagine.

1.6

Overall research purpose

Considering the discussion above, the purpose of this study is to gain a better understanding of the benefits of e-CRM to customers and organization in banking industry. To justify the purpose the following questions are addressed: RQ1: How can the benefits of e-CRM for banks are described? RQ2: How can the benefits of e-CRM for bank customers are described?

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Chapter – 2 Literature Review

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Chapter 2: Literature Review
In the previous chapter, an introduction and background to the research area of this study was presented as well as overall purpose and research questions. This chapter presents a review of literature relating to each of the 2 mentioned research questions. 2.1 E-CRM-BENEFITS TO BANK Computers, information technology, and networking are fast replacing labor-intensive business activities across industries and in government. Since the early 1990s, the computer, the Internet, and information technology have been merged to become a viable substitute for labor- and paper intensive banking processes between and across commercial banks. This has been seen in the widespread use of the ATM, credit cards, debit cards, smart cards, and lending through e-CRM via the Internet. This type of computer-based bank-to-bank, bank to consumer and consumer-to consumer transactional and informational exchange has been referred to as Electronic Commerce (EC). The term EC which taken place out of e-CRM and benefits of e-CRM to bank and its customers presented below. RELATIONSHIP WITH CUSTOMERS A CRM is an idea, which has its heredity line in the technology. In the earlier days relationship marketing’s sole aim was to get information about the preferences of the customers and the information, which was stored by them in their databases, So as to protect and deal with one to one relationship with customers CRM was developed. Once when the organization acquires the customers and is able to have them lastingly forever, this implies that the customer becomes more loyal and making good use of the services of the organization. Trust, cooperation and satisfaction have to be seen as the face of assurance between both the parties, for a long lasting relationship with customers. Organizations need to be in constant touch with their customer’s in order to build up long-term relationships. USING E-MAIL FOR BUSINESS COMMUNICATION The most popular tool for customer service is e-mail. Inexpensive and fast, e-mail is used to disseminate information (e.g. catalogues), to send product information and order confirmations, to conduct correspondence regarding any topic with customers and business partners, and responding to enquiries from customers. To answer a large number of emails quickly and costefficiently automated e-mail reply systems are increasingly implemented. Automated e-mail reply responses to customer inquiries are developed using intelligent agents that recognize key words and quickly respond to common queries. However, the greatest advantage of e-mail as a communication tool is providing quick and accurate information to all customer queries. E-mails

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can include forms, reviews, referrals and new contacts sent to customers as attached files and how e-CRM bringing bridge between bank and customer through email business communication. PERSONALIZED SERVICES OR ONE TO ONE SERVICES Personalization is a strategy that can be easily differentiated and which cannot be simulated by competitors in the market. A good personalized idea will enhance in the increase of sales, improves the customer relationship. Personalization can be defined as serving the unique needs of individual customers. By improving the customer conversations the organization can improve the customer relationships. Personalized services are not only limited in cheering new sales, but its successful implementation allows the organization to improve its effectiveness and efficiency in serving the customers established already. Identifying the needs of the customers and providing them a best solution before he makes a request shows excellence in service of the customers. Presently customers do not visit their banks for other kind of additional services such as finance, credit cards etc. customers still see the banks as providing bank services. Customers of the banks are becoming choosier and the success of the banks does depend upon this. ESTABLISHING A WEB SITE TO MARKET PRODUCTS OR SERVICES E-CRM providing cost savings, opportunism, and threats drive action and innovation even in conservative banks. They have influenced how banks must reposition themselves to take advantage of new opportunities that include establishing new service delivery channels and new markets for existing services (loans, letters of credit, etc.) Many banks have already built web sites on the Internet, offering banking services. Leveraging the power of the web is a move from static pages to dynamic applications that are connected to bank data. (ibid) TRANSACTION SECURITY Safety was seen as a major barrier to Internet banking. Banks were worried about unauthorized access to their systems, and customers were concerned about the protection of their personal data and the risk of false transactions. Banks have been able to manage security with least repercussions. Banks are exploring alternate security measures such as electronic signatures, digital certificates, smart cards and biometrics. A major problem with most of these measures is, their complications and cost to adopt and maintain. Furthermore, in many countries, electronic signatures are not enforceable by law. the e-purse bombed several years ago, and smart cards have been lukewarm at best. It is evident that banks are trying to ensure secure payment on the Internet. However, most favorable solutions keep on avoiding them. 2.2 E-CRM-BENEFITS TO CUSTOMERS

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Bank customers form expectations derived from many sources proposed that customers form expectations of what will happen in their next encounters based on what they “deserve”. Identify two levels of expectations, desired service and adequate service. Desired service represents the “wished for” level of performance and adequate service reflects showing more basic service expectations. The model permits exploration of the perceived difference between expected service and the experienced service, particularly the zone of tolerance developed by Parasuraman. They’re by customer specific benefits are under for the study. CUSTOMER INTERACTION AND SATISFACTION The importance of e-CRM technology in bank-customer interactions remains undisputed, commentators; nevertheless, emphasize how customer evaluation is shaped by social and personal forces. Interaction has got a very prime place in the banking services. However in order to make the interactions good it is highly important that both banks as well as customers actively involve themselves in the interaction. The relationship, which is maintained between customer and organization, has always a special place in the banking industry when compared to other industries. The interaction process has includes three major factors. 1.) Information exchange 2.) Business or financial (transactions) 3.) Social exchange He further explained thus the transaction process involves engaging both bank and customers in common satisfying terms. The bank should know what exactly the client wants; at the same time client should also make sure that has enough knowledge about the bank offerings. Social exchange involves more of maintaining long-term relationship with the customers. Confidence, trust, ethics and friendship to some extent are the aspects of the social exchange. CONVENIENCE With the increasing knowledge and superiority, of the customers banks are now trying to woo the customer by determining the aspects, which are really vital for them. Thus the aspects may include facilities, reputations, service, operation hours, interest on savings as well as on loan, location of the bank, convenience, friendliness, responsiveness, efficiency of employees, ambience of the banks, etc. Convenience plays a vital role when selecting a brand and if the customers are not happy with the convenience of a particular brand. It doesn’t take much time to switch brands. The extent of influence of the convenience on the customer is that it can also make the loyal customers to switch the brands. Location is considered to be convenient if it helps the customer to reduce the travel costs. Location also has broader impact on convenience includes time, place, acquisition etc. It has also greater influence on other convenience

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dimensions and is believed to be a precondition for other types of convenience. A convenient location is often considered o be an additional service aspect of the core services. SPEED OF PROCESSING THE TRANSACTION THROUGH E-RESPONSE Faster processing the transaction by e-CRM, the fact that responses to customer queries, order acknowledgement, delivery and payment information via emails or automated responses are greatly appreciated by customers. It has also been highlighted that the nature of e-responses also helps strengthen the relationship between the supplier and the customer and makes up for the personal response that prevails in the traditional shopping arena. One of the business respondents emphasized that “via e-mail order acknowledgment, we recognize and address our customers by their first names”, strengthening e-relationships with this service. Another business viewed that “a close relationship with customers can be developed from a distance with e-responses”. E-mail responses were widely used by businesses to acknowledge receipt of orders, payment and delivery of information. An e-response to say thank you, an apology for any delays, tailored emails from analysis of shopper profile to provide online shopping guidance and to announce the release of new products and specials supported online shoppers. Customer responses confirmed the value of e-responses in the B2C e-space, E-CRM how timely responds to customer for their requirement? TRUST it is an attitude of trust among the partners of substitute. It’s a vital aspect for understanding the potency of marketing relationships. Trust is an essential relationship structure, which is found in most of all relationship models. Trust factor can be seen in many ways like motivation to depend on a substitute partner and one who sees confidence in him. SERVICE QUALITY Service quality has its connections with the events that are behavioral like the outcomes from a mouth of a human being. There’s a lot of attention that has been focused in the relationship between service quality and its outcomes such as profitability and retention of customers and their loyalty. Five proportions of service quality are reliability, responsiveness, quality, empathy and assurance. Service quality is an important criterion that is being used by the customers in selecting a bank. Accounts, transactions accuracy, carefulness, factors in subject with functional quality, availability of the information technology, helpful and friendly personal and effectiveness in correcting mistakes are the most important determinants for the customers to determine the bank.

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Chapter - 3 ANALYSIS AND INTERPRETATION

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CHAPTER -3 ANALYSIS AND INTERPRETATION
3.1 Cost/Benefit Analysis

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Benefits from E-Marketing: Cost of E-Marketing:

o Revenue increases o ISP Costs

o Cost decreases o Hardware and Software Costs

o Intangible benefits o Design Costs

o Goodwill o Maintenance Costs

o Brand/Image Building

o Relationship Building

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3.2 Budgeting
Evaluate the cost/benefits analysis & Identify Potential Revenue Streams

• • •

E-Commerce – Do we sell on-line Content Sponsorship – Banners, Buttons, Sponsorships Intermediary Fees – Broker and Agent Fees

Revenue Streams Initial funds to support a Web site come from:

• • • • • •

Investors Loans Firm’s operating budget

Revenue streams that produce Internet profits come mainly from: Direct sales Advertising sales Other fees

Cost Savings By Selling and Marketing On-line

• • • •

Eliminating elements of the traditional distribution chain Increases possibilities of greater revenue Saves on traditional marketing costs (printing, postage) Increases target market to world-wide audience

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Intangible Benefits The industry is developing exponentially creating new marketing opportunities, although they may be hard to measure.

• • • • •

Goodwill Brand Equity Audience Measurement Public Relations Customer Satisfaction

3.3 Situation Analysis

Conduct An Environmental Scan

 Legal/Political Environment:

  Technological Environment  

Taxation, access, copyrights, & encryption

Communication Infrastructures Bandwidths, and New browsing devices

Conduct an Environmental Scan

 USER Trends:

Focus on how the net audience has changed over the last six months, last year, etc… Are there any trends. Is there any important target segments coming online. Understand overseas economies, also do they have the proper infrastructures to support what we are doing?


 World Economies :

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Develop a Market Opportunity Analysis

• • • •

Market Opportunity Analysis includes both demand and supply analyses. The demand portion reviews various market segments in terms of potential profit. The supply analysis review competition in selected segments that are under consideration The purpose of the supply analysis is to assist in forecasting segment profitability and finding competitive advantages in the online market.

SWOT Internal Capability Customer interactions Production and fulfillment People Examples E-commerce, customer service, distribution channels SCM, production scheduling, inventory management Culture, skills, knowledge management, leadership and commitment to e-business Technology ERP systems, legacy applications, networks, Web site, security, IT skills Core infrastructure Financial systems, R&D, HR

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Chapter - 4 Methodology

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Research methodology
Research methodology means the various means or methods used for collecting the data for our study. During the course of this study we come across many people and completed research by the help of receiving data from these people.

4.1 Title of Study A Management Thesis on an Impact of E-Marketing in Banking Services Focusing on (Relationship Approach)

4.2 Objective of study:

• • • • • • • •

To analyze about E-Marketing. To analyze the importance of E-Marketing in financial services. To analyze how E-Marketing differs from traditional marketing. To analyze the advantages of E-Marketing to the organizations. To analyze the impact of E-marketing in banking services. To analyze about E-Marketing strategies in banking industry. How are the characteristics of banking evolving within the financial sector as a whole as a consequence of e-commerce? What is the influence of electronic commerce on the value-added structure of the banking market?

4.3 Research Process •

Research work done through questionnaires/ survey Probable sample size of 100 respondents Internet/ research findings

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4.4 SCOPE OF STUDY: Two types of data have been collected for completing the study, those were:-

• •

Primary Data Secondary Data

Primary Data:

• • •

Primary data was collected through Questionnaire Data was collected from employees separately. Sample of the employees was taken on random basis.

Secondary Data: Secondary Data was update from company’s Broachers, Internet, Journals, and Magazines etc.

4.5 Limitation of study: Although sincere efforts were made to collect maximum and authentic information from the respondents, even then this report is subject to following limitations and problems:

• • • •

The respondents were quite reluctant in providing exact data. The time was also major hindrance, which was not enough for research. While formulating the questionnaire there might be some errors that could affect the research. Data was collected from limited people due to time constraint.

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Chapter – 5 Findings and conclusions

51 5.1 SYNOPSIS

This study attempted to shed lights on benefits of E-CRM both with the organization and the bank customer who are benefited with E-CRM in relation to the E-business environment. In particular the purpose of my research was to gain a understanding of the benefits of E-crm to customer and organization in banking industry. Based on this purpose researcher formulated the two research questions which researcher thought would provide us with a good insight regarding the E-CRM benefits. These research questions aimed to explore how the companies would take these benefits into consideration and implement to acquire more customers in order to generate more revenue to the organization. And how the benefits would benefits the customer. Since benefits of E-CRM theory refers to the application of the concept as part of the company’s strategies the empirical data be collected from the organization management perspective. Thus the analysis of the acquired of the empirical data can provide the researcher with a more holistic and general picture of E-CRM benefits that the companies and customers would bet benefited. However the data is collected for these two research questions by interviewing the bank employees and customers in order to get good quality of data. In general researcher believes that respondent provided the relevant information which balanced the quality of the two research questions. Taking the above into consideration below researcher discussing the findings and conclusions regarding each research question. 5.2 How can the benefits of E_CRM foe the banks be described? Researcher has found that banks have maintained good relationship with customers due to the usage of E-CRM by mainly providing good products and services according to the need of the customer. Banks are using e-mail to a very little extent in order to communicate with their customers and this is mainly due to the security and privacy reasons it was further founded i the banks haven’t been working on a large scale for using e-mail for communication to market their products and services. E-CRM has enabled both the banks to provide personalized services and one to one services to their customers both the bank have successfully implemented e-CRM in order to ensure efficiency and effectiveness in the service to its customers but these services are offered only at the request of the customers. Organizations have ensured and have taken enough measures to see that the latest and updated information is available through their websites. Websites have become their new and effective means of communication with the customers. Information about their products and services can be found very easily.

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With the implementation of e-CRM and the latest technologies banks have ensured full security for the transaction processed by their customers. Initially convincing them to use the online banking facilities was found to be a hard task. But banks have demonstrated their abilities for safe and secure transaction which resulted in customer making full usage of the online services.

Conclusion
The following conclusions are drawn from the above findings.

E-CRM enables financial institutions and organization to maintain relationship with customers.

Less usage of e-mail for their business purpose was adapted by the both the organizations.

E-CRM facilitates the organization to provide personalized and one to one effective service.

The organizations have made it certain that latest and updated information is available in their organization website.

Latest techniques and measure and E-CRM were used to improve and maintain transaction security of the customers.

5.3 How can the benefits of e-CRM for banks customers be described Almost all of the customers considered customers interaction and satisfaction as an important benefits provide by the banks through the usage of E-CRM, they emphasized the importance of good response to the customer queries, providing assistance to the customers, exchange of business information and employees having excellent knowledge about the offerings and services of the bank. All the customer perceived convenience factor a vital benefit provided by E-CRM. All of the customer considered location of the bank, friendliness of the bank staff their services as important benefits for building good relationship. Most of the customers considered speed of processing transaction through e-response as an important benefit though few did not consider it as an important benefit. Speed of processing the transaction through e-response was found to be an important advantage perceived by most of the customer. But few customers were found to

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have partially negative feeling towards the speed at which their transactions have been processed. Quality in the products and services of the bank is an important benefit perceived by the customer. Reliable employees of the organization responsive rate of bank personal availability of the latest information technology were found to be the most important determinant advantages perceived by the customers. Trust in the services all the customers in their respectful bank found activities of the organization. Confidence in the banks personal their effectiveness in handling the accounts of the customers were seen as some of the factors enhancing the trust factor of the customer. This is an essential benefit that improves customer’s relationship with the organization.

Conclusions • Customer interaction and satisfaction is found to be an important benefit provided by banks using E-CRM. • • Convenience is a major benefit provided to the customer of the banks. Speed at which the transactions have been processed and their rate of accuracy is an advantage provided by banks through the usage of E-CRM.

Reliable employee’s availabilities of the latest information technology were some of the added benefits provided by banks to its customers.

Trust in all overall services of the organization is an important benefit provided to the customers.

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RECOMMENDATIONS
Banking CRM needs to improve
“A new report indicates that banks are moving towards a customer-centric approach and investing in CRM technology - but that it is a slow process. What's holding them back and what lessons still need to be learned”

Banks are facing increased competition, credit crunch consolidation and a need to improve brand image, so you'd think that CRM would be a major priority, helping them to identify and retain profitable customers. And it is – up to a point. According to a report commissioned by SAP and conducted by the European Financial Management and Marketing Association (EFMA), banks are moving towards a customer-centric approach, but it is proving to be a very slow process. More than half of banks in Europe and the Middle East claim to view customer-centric activities as a strategic differentiator and plan to invest in CRM technology, but also cite many challenges including price competition, pressure to lower operating costs, fragmentation of customer segments and channel proliferation. "In the current economic climate, it is more important than ever for banks to have as much insight as possible into the financial needs and behaviors of their customers and prospects "In recent months, SAP has experienced the investment banks are making in standardized software for their core processes," said Julian Johnson, senior vice president, industry business solutions, Global Field Operations, SAP."As the survey results support, a bank's customer-facing activities are now an integral part of its business and included in its criteria for selecting standardized software. The value this brings to a bank is seamless integration of its back-office functions, which will provide a true end-to-end view of the customer." The report also found that CRM at a typical bank is driven by individual departments and is primarily a front-end process, rather than extended across the enterprise and that once implemented, banks have limited information to measure the success or otherwise of their CRM deployments. Respondents to the survey said that their CRM strategies are still primarily frontend focused and situated on old legacy systems that lack the flexibility and scalability needed to look across the enterprise and connect customers in different lines of business to each other. Martha Bennett, research director, financial services technology at Data monitor, said: "Providing a level of service that makes the client feel well-looked after and valued is as critical as the ability to offer the most optimal product at the right time. In order to achieve this, banks need to ensure that they have systems and processes in place that allow a view across distribution channels and avoid organizational silos.

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REFERENCES
1. WWW.Google.Com 2. WWW.Wikipedia.Com 3. “CRM in Banking” edited by- V.V. Gopal 4. “Effective CRM” edited by- Braj Mohan Chaturvedi 5. “E-MARKETING- The Emerging Trends” ICFAI

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