Customer relationship

management
IN

ACKNOWLEDGEMENT

We express our immense gratitude to our Associate Professor Pranay Varma who
not only guided us throughout the project but also gave us an opportunity to be
acquainted with the present scenario and enhance our practical knowledge. His
motivation and constant mentoring has helped us in the completion of the project.
Mutual understanding and coordination amongst the group members is also highly
appreciated.

Contents
Introduction of crm
Introduction of HDFC Bank
Why CRM in HDFC Bank
CRM Solution
Importance of CRM
Benefits from CRM
Six frame-work model
Hexagon Model
IDIC Model
Results of implementing CRM
Competitive Advantage
Recommendations

Introduction of C.R.M
The term CRM stands for Customer Relationship Management. Customer
relationship management (CRM) is a broadly recognized, widely-implemented
strategy for managing and nurturing a companys interactions with customers,
clients and sales prospects. It is a process or a methodology used to learn more
about customers' needs and behaviors in order to develop stronger relationships
with them. CRM is as a process that will help bring together lots of pieces of
information about customers, sales, marketing effectiveness, responsiveness
and market trends. This process helps businesses use technology and human
resources to gain insight into the behavior of customers and the value of those
customers.
It involves using technology to organize, automate, and synchronize business
processes principally sales activities, but also those for marketing, customer
service, and technical support. The overall goals are to find, attract, and win
new clients, nurture and retain those the company already has, entice former
clients back into the fold, and reduce the costs of marketing and client service.
When an implementation is effective, people, processes, and technology work
in synergy to increase profitability, and reduce operational costs.

INTRODUCTION OF HDFC BANK

Profile
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

Business Focus
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite.

Distribution
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of 1,725 branches spread in 780 cities across India. All branches are
linked on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank's expansion plans take into
account the need to have a presence in all major industrial and commercial centers
where its corporate customers are located as well as the need to build a strong retail
customer
base
for
both
deposits
and
loan
products.
The Bank also has 4,393 networked ATMs across these cities. Moreover, HDFC
Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

Why crm in HDFC Bank

The challenges
With HDFC Banks success and rapid growth, it needed an effective way to
increase customer profitability through deeper, stronger customer
relationships.
It also needed a way to detect important events in a customers life so that
targeted communications could be sent at the right time to build
relationships and increase profit.
A central, automated process was required to access data across systems as
well as plan, design, test, optimize and execute marketing efforts across
channels including direct mail, email, SMS and call centers.
Huge competition with other private and public banks.
Data integration now days HDFC Bank is providing various other facilities
like security trading, insurance, etc. so for these the data integration is
required. The employees relating to these departments can have the account
information and deal with the customers.
Cross selling - hdfc bank wants that the customers uses the various products
and services of their bank. So for this they require information about the
customer and then find the needs and requirement and then sell to them.
Customization different customers have different needs and wants. So as to
understand it and design the product for them is a difficult job without a crm
solution.

CRM solution
Implementing a customer relationship management (CRM) system at a bank takes
careful planning. Banks need to involve key employees in the vendor decision so
that they choose a system which will give them the most for their investment. Ease
of use and ability to view information quickly are equally important to employees
and managers.
After evaluating several vendors, HDFC Bank selected UNICAS AFFINIUM
solution for enterprise marketing management. Affinium was chosen for its ease of
use, quick implementation as well as its robust modeling, customer analysis, and
right-time interaction management capabilities.

Importance of crm in Banking sector

Campaign management - HDFC Bank needs to indentify customers, tailor products

and services to meet their need and sell the products to them. CRM helps the bank
to do this by Campaign Management through internal and external information
collected by bank. It then forms profile of each customer according to their
lifestyle, income, requirements. Then from these profiles bank comes to know
which customers are to be targeted and what to do for them.
Customer information consolidation Instead of storing information in product
centric manner i.e. different information for savings a/c and for credit cards they
follow customer centric manner, storing all the information which is required at
one place so that it can be used by various department to serve the same customer.
This is called data integration.

360` view of company means that who so ever the bank speaks to, irrespective of
whether he is from marketing, finance or support, the bank is aware of the
interaction. CRM helps in inconsistency in data, thereby making the client
interaction process easy and smooth. This helps in relation building.
Personalized home page - CRM provides a single view where the sales department
can view all the information at one place, including opportunity account, news, and
expense report information. This helps in fast decision making.
Activity management - crm helps managers to assign and track the activity of
various members. This improves transparency and efficiency.
Operational inefficiency removable crm helps in strategy formulation which
eliminates operational inefficiency. An effective crm solution supports all channels
of communication i.e. telephonic, fax, e-mail, internal portal, ATM, face to face
contact with the employee. It also connects all these customer touch points with
operation center and operation center with internal and external partners.
Enhance productivity crm helps HDFC bank in enhancing productivity of
employee, partners and customers. It enables customer service agents to provide
uniform services with all medium such as telephone, internal portals, face to face
contact, fax, etc.
Crm with business intelligence - HDFC Bank needs to analyze the performance of
customer relationship, uncover trends in customer behavior and to understand the
true business value of their customer. Crm with business intelligence allow bank to
asses customer segments, which helps them to calculate net present value (NPV)
of a particular segment over a period to find customers lifetime value. Customers
can be evaluated within a given framework. With this bank can easily target the
most profitable customer and reengineer the unprofitable one.

Benefits of C.R.M.
These CRM initiatives have been shown to help companies attain the following
objectives:
To provide better customer service.
To increase customer revenues.
To discover new customers.
To cross sell/up sell products more effectively.
To help sales staff close deals faster.
To make call centers more efficient.
To simplify marketing and sales processes.
The advantages can also be summarized according to the domain it contributes to:
Marketing
To make intelligent business decisions with enhanced customer insights.
To increase marketing velocity and speed to market.
To maximize visibility into and control of your entire marketing process.
To drive customer demand up.
To increase returns on the marketing investments
Sales
To grow profitable relationships.
To maintain focus on productive activity.
To eliminate barriers to productivity.
To improve sales efficiency service.
To transform service into a profitable line of business.
To increase customer loyalty.
To increase the sales revenue.
T reduce costs of customer service and field service
To decrease service giveaways
Web channel enablement
To drive revenue and extend market reach;
To reduce the cost of sales and support
To increase customer convince and satisfaction;

 To increase sales and service profitability

To build lasting customer loyalty;
Running and customer interaction

To increase customer satisfaction;

To improve creditability with your customers;
To increases productivity and revenue;
To manage the customer interaction life cycle

DRAW a 6 market frame work

Internal market the employees of the bank are very crucial for success. For
customer the employee is the bank as he tract with him daily. If the staff are not
satisfied or in good mood then that will be reflected in the services they provide.
So the banks policy should be that they try to keep all the employees satisfied.
Recruitment marketing selecting right person for a right job is a difficult task.
HDFC Bank has to plan all the requirements and job specification, according to
that they have to select the employee. As said earlier in banking sector employee
play a key role in success.
Referral market the word of mouth marketing works a lot. When a customer is
satisfied, he tells his friends, relatives and known that HDFC Bank services are
good, their interest rate of loan is not high, the deposit rates are high. This helps the
bank increase customer base and profits.
Influence marketing ruling body of bank i.e. RBI, policy plays an important role
in functioning of banks. They lay all the important policy which the banks have to
follow. The lending rate, deposit rates all are affected by the policy of RBI.
Supplier Market the raw material in banks are computers, software, furniture, etc.
So the bank has to put focus on all the suppliers of these commodities. In bank
performance enhancement technology plays a vital role. The bank should be
updated with technologies.

DRAW HEXAGON PROFILE MODEL

In HDFC Bank the initial customers are less as compared to repeat customers. This
is because if customers are satisfied with the services they keep on doing business
with banks. They do regular transactions. The bank tries to do cross selling. If
customers is saving a/c holder they try to sell insurance policy, demat a/c, credit
and debit card, etc.
There are many customers who would like to give suggestions to bank for
improvement in product and services. Their valuable insights are important for
bank, and they are used for product development. These types of customers are
called the advocates.

IDIC MODEL
Identify ( learn about customers) HDFC Bank has to first learn about the
customers. In banking the very important thing while opening an a/c is KYC i.e.
Know Your Customers. The bank has to first know about the customers. They
should know the name, age, sex, address, family, etc. Along with all these they
should also know their past and present status of the customers, their needs and
wants.
Differentiate HDFC Banks have many products and services. They have to
differentiate the customers according to their income, status, needs and
requirements. They then have to plan and develop products catering to a specific
group of people. This is the type of differentiation banks are following.
Interact there are various touch points where customers can interact. They can
retrieve and send information from telephone, e-mail, internal portals, fax, face to
face interaction with employee. The banks collects all the information about the
customer they can. They try to develop a good relationship with the clients. They
try to maintain all personal information also so that better relationship can be
developed.
Customize HDFC bank develop many products according to the income, status,
needs and requirement. They have wealth manager who cater the requirements of
the clients. They focus on high net worth individuals. They plan and suggest the
customers where to invest and how much to invest.

Results
Crm helped HDFC Bank to become the 3rdbest bank in India.
With Affinium , HDFC Bank has boosted customer retention by four
percent, and executed acquisition campaigns, which resulted in reduction of
acquisition cost by 60 percent due to effective targeting and channel
optimization.
Following the implementation of Affinium, the campaign volume increased
by over 200 percent
The credit card activation campaign has achieved an incremental activation
rate of 30 percent compared to activation efforts without predictive
modeling.
Debit card early activation program resulted in incremental response of five
percent over the normal activation rates.
Now HDFC Bank could provide various facilities to its customers like
demat a/c, insurance policy, bills payment facilities, etc. other than its core
business of providing loans and keeping deposits of customers;
CRM solution gave HDFC Bank an upper edge in fighting with its
competitors.

Competitive advantage
HDFC Bank comes in 3rd ranking of all commercial banks in India. It has a great
competitive advantage over all other banks. This is because the relationship which
they with their customers is too good. They have been focusing on it from the
beginning. The parameters on which HDFC Bank has given maximum weight age
to build business are
Employees they have very good front end employees, who deal with customers
on regular basis. They have been trained in such a way that they always maintain
good relationship with clients. They always have a smile on their face and treat
customers as their family members.
Technology HDFC Bank tries to be updated in technology department. They use
all the new technology which will be beneficiary for them to deal with customers.
They try to make transaction and system easy for customers.
Customer Realtionship bank has always maintained a policy of knowing the
customer well. Their first aim is to understand the customer plan, need and
requirement. For this they need to know the financial position and status of the
customers. They always try to maintain good relationship with them.

Recommendations
Make the customer relationship building more strong try to improve the
relationship, so that customers dont ever think to shift to other banks.
Provide wealth manager to valuable customers, so that they design their
investment policy. This helps in strong relation building and retaining
customers.
Try to do more cross selling CRM solution helps in cross-selling. Try to
target the customers for using more and more products.
Introduce more loyalty programs like giving more schemes and offers on
credit cards.
Improve ways to reduce customer grievances HDFC Bank should work on
reducing customer problems, if they face. Try to solve all the problems as
quick as possible because small issues can lead to big problems and make
customer dissatisfied.
Take customer feedback regularly and work on it.