PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAEGEMNT IN BANKING

SUBMITTED BY
DEBOSHREE.K.MAJUMDAR TYBBI SEMESTER V

M.L.DAHANUKAR COLLEGE OF COMMERCE VILE PARLE (E), MUMBAI-400057

SUBMITTED TO
UNIVERSITY OF MUMBAI ACADEMIC YEAR: 2008-2009

UNDER THE GUIDANCE OF
MR.AMIT OAK
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DECLARATION

I, Deboshree Majumdar of M.L.Dahanukar College of Commerce TYBBI, hereby declare that I have completed the project on “CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING” during the

Academic Year 2008-2009. The information submitted is original and authentic to the best of my knowledge as a lot of dedication and hard work has been put in by me for the same.

____________________ Signature of the student

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CERTIFICATE

This is to certify that Ms.Deboshree Majumdar has satisfactorily carried out the project work on “CUSTOMER RELATIONSHIP

MANAGEMENT IN BANKING” in partial fulfillment of Bachelor in Banking and Insurance (BBI) as per the curriculum laid down by the UNIVERSITY OF MUMBAI during the Academic Year 2008-2009.

__________________

Mr.Amit Oak (Project Guide)

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I’d like to thank all of them. I’ve been helped and supported by a lot of people whose names if not mentioned. I’m deeply obliged to our college librarian who guided me through the reference books. would be inconsiderate on my part. 6 . without which my project wouldn’t have seen the light of the day. I’d like to thank my guide. Mr. who guided me throughout and has been a helpful guide. Working under his guidance has been a great experience. Amit Oak.ACKNOLEDGEMENT During the course of this project. Most of all. I wish to thank my family for dealing with me patiently and supporting me whilst I was working on this project.

Writing a book wouldn’t have been easy without MS Word.And my sincere thanks to Mr. EXECUTIVE SUMMARY The idea behind Customer Relationship Management is not new. just for being there with me. on those differences and opportunities.right from grammar checks to replace alls-things have become simpler with the advent of this software. CRM is simply a tool & technology used to achieve incremental operational improvement. processes. 7 . And most importantly I thank The Almighty. A vast way of approach to customers. organizational culture and technology solutions that enhance an organization's ability to see the differences in its customers’ and prospects' behavior and needs. metrics. track new opportunities to better serve their customers and act. in an attempt to realize their living style in every field of life and eventually to influence them to change their life style toward their benefitable direction through the company initiating ceaseless communication of indirect. implicative and inspiring suggestion so that the company may attract new customers and bind existing customers steady with the company. CRM is a set of strategies. throughout. instantly and profitably. Bill Gates and MS Corp.

to record and analyze the buying habits of customers. and companies are making bigger and bigger to do just that. so that a company can offer them goods or services in which they are likely to be interested. A customer relation management analyst says CRM is "a buzzword that's really not so new.Recently CRM has taken a center stage in the business world with businesses concentrating on saving money and increasing profits by redefining internal processes and procedures. therefore the value of customer information and management should never be underestimated. Customer Relationship Management refers to the process . CRM includes the storing of customer information in a database (or data warehouse) and using the information in a way that improves the customer's "experience". In additional to all the usual customer care principles. Customers are serious about the service they 8 . Today it’s widely acknowledged how you treat your customer goes long way in determining your future profitability. It is said that “It is seven times more expensive to acquire a new customer than to keep an existing one”.usually depending on sophisticated computer systems . It costs a company dramatically less to retain and grow an existing client. The aim of CRM is optimize the use of technology and human resources for the business to gain insight into the behavior of costumer. than it does to court new ones.

By investing in CRM or e-CRM applications. The role of the customer in any business activity is very important and this can be clearly revealed from this project. This project answers to all the queries regarding what customer relationship management is. which is a part of CRM but stress is on the customer preference on the needs. Relative graphs and diagrams are also included in this project. so that companies can please most of the customers all the time. In this project stress is not on the technology. companies are looking at retaining existing customers and converting potential customers into lifetime customers.should beget and are voting with their wallets based on the experience they receive. 9 . In many industries. Market analysts squabble over the exact figures. but all agree that in the next few years company will pour billions of dollars into CRM solution software and service designed to help the business more effectively manage customer relationships through any direct or indirect channel a customer opts the use. Specially in banking CRM it is very important because bankers have to daily interact with their customers and provide value added services to them. customer retention is a key driver for profitability.

is the most common question at CRMguru. you’ll get five different answers.NO. is the market of CRM technology exploding. SR. 10 . CONTENTS PAGE NO.So why.com “What Is CRM?” because if you ask three CRM experts.

15. 2.1. PROCESS AND STRATEGY OF CRM BANKING ON CUSTOMER FOCUS TECHNOLOGY IN CRM CRM IN BANKING 11-19 20-26 27-35 36-41 42-46 47-56 7. 3. 12. E-CRM THE PAST. SCOPE. 10. PRESENT AND THE FUTURE CRM IN INDIA CONCULSION SURVEY AND MANTRA OF CRM CRM AT STANDARD CHARTERED CASE STUDY 74-84 63-73 57-62 11. 14. RETAIL BANKS PLANNING FOR CRM 8. CRM IN RETAIL BANKING 9. 4. INTRODUCTION BIRTH OF CRM NATURE. 13. 6. 85-89 90-94 95-99 100-101 102-106 107-111 11 . 5.

INTRODUCTION ‘CUSTOMER IS THE KING’ -Toady’s seller. 12 .

What is CRM? Customer Relationship Management (CRM) includes the methodologies. it is not a technology itself. technology and capabilities that help an enterprise manage customer relationships. CRM is a term that is often referred to in marketing. Changes must occur at all levels including policies and processes. employee training. front of house customer service. the three perspectives are: 13 . A successful CRM strategy cannot be implemented by simply installing and integrating a software package and will not happen over night. This is because CRM can be considered from a number perspective. all aspects of the business must be reshaped to be customer driven. marketing. there is no complete agreement upon a single definition. processes and procedures. The general purpose of CRM is to enable organizations to better manage their customers through the introduction of reliable systems. However. Although there are several commercial CRM software packages on the market which support CRM strategy. In summary. Rather. Customer Relationship Management is a corporate level strategy which focuses on creating and maintaining lasting relationships with its customers. a holistic change in an organization’s philosophy which places emphasis on the customer. systems and information management.

CLC is a summary of the key stages in a customer’s relationship with an organization. The diagram below shows the Marketing Teacher Model of CRM and Business Strategy. looks at the products of the services that customer needs throughout their lives. However. CRM from the Business Strategy Perspective The Business Strategy perspective has most in common with many lessons and topics contained on this website. power and money. However. companies often buy into software that will help to achieve their business goals. or an It-based customer management system to support sales people. Essentially. CRM is far more than a new software package. the renaming of traditional customer services. It is marketing orientated rather than product orientated. and so on. and three contextual factors – marketing orientation. IT is vital since it underpins CRM. 14 . For many. Our model contains three key phases – customer acquisition. CLC focuses upon the creation of and delivery of lifetime value to the customer i.CRM from the information Technology Perspective From the technology perspective. and indeed within the field of marketing itself. such as speed. ease of use. and has the payoffs associated with modern technology.e. customer retention and customer extension. CRM from the Customer Life Cycle (CLC) Perspective The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). value creation and innovative IT.

and profits to companies. processes. and technology questions associated with marketing. The relationship delivers value to customers. retention and extension or products. (2002). maintenance and optimization of long term mutually valuable relationships between consumers and organizations. development. and service. Simply stated. getting and retaining customers. Customer Management Relationship (CRM) is: • The art/science of using information to find. Defining Customer Relationship Management (CRM) Here is the compilation of some of the most respected thoughts that can describe CRM. is as follows: Customer Relationship Management is the establishment. solutions or experiences to customers. The business strategy is based upon the recruitment. Simply stated. The relationship is supported (but not driven) by cutting edge IT. customer relationship management (CRM) is finding. So CRM is the building and maintenance of long term customer relationships. This is the core of CRM. • The people.A commonly cited definition of CRM (UK) Ltd. acquire and retain customers. 15 . services. sales.

by technology. A Good CRM Program Needs To: ●Identify customer success factors. • Supported. • Measured by customer retention and referrals as well as the growth of valuable customer segments. CRM involves redesigning of functional activities. 16 . ●Adopt customer-based measures. • Actively deepening the knowledge you have of your customers to meet individual customer needs. not driven. ●Create a customer-based culture.• At the core of ant customer-centric business strategy and culture. • A holistic approach that unifies all points of customer interaction.

●Recommend what to tell a customer with a complaint about a purchase. CRM is iterative in nature. • Possible with remembering that the driving force is often human relationships. 17 . some technology is required to enable a CREM strategy. Aspects of CRM: There are three aspects of CRM which can be implemented with isolation from each other: • Operational CRM: automation or support of customer processes that include a company’s sales or services representative. to be improved on a regular basis.” by Aris Pantazopoulos. “The true value of CRM is to transform strategy. but a journey. ●Track all aspects of selling to customers and prospects as well as customer support. operational processes and business functions in order to retain customers and increase customer loyalty and profitability. Customer Relationship Management (CRM) is NOT: • Just about buying technology. • Not a destination.●Develop an end-to-end process to serve customers. ●Recommend what questions to ask to help a customer solve a problem. • Collaborative CRM: direct communication with the customers that doesn’t include a company’s sales or service representative (“self service”). However.

Customer Extension 18 . Customer Acquisition 2. Customer Retention 3.• Analytical CRM: analysis of customer data for a broad range of purposes. The three key phases are: 1.

We keep them as a customer. 19 . Innovative IT 1. Value Creation 6. 2. or the next level of product or service. Growth – Through market orientation. Customer Retention . innovative IT and value creation we aim to increase the number of customers that purchase from us for the first time. Marketing Orientation 5.The three contextual factors are: 4.Through market orientation. innovative IT and value creation we aim to increase the number of customers that purchase from us for the first time.Our customer returns to us and buys for a second time. We have acquired our customer. This is most likely to be the purchase of a similar product or service. Customer Acquisition – This is the process of attracting our customer for their first purchase. Growth .

innovative 11 and value creation we aim to increase the number of customer that purchase additional supplementary products and services.3.B. but also the core product and its benefit. ‘market’ orientation and ‘marketing’ orientation are not the same. We introduce products and services to our loyal customers that may not wholly relate to their original purchase. supplementary purchases. Marketing Orientation – Means that the whole organization is focused upon the needs of the customers. Of course once our loyal customers have purchases those. and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumer for all three levels of a product. Customer needs are addressed by the Three Levels of a Product whereby the organizations not only not only supplies the actual. 4. our goal is to retain them as customers for the extended products or services. Growth – Through market orientation. These are additional. 20 .) 5. Customer Extension – Our customers are regularly returning to purchase from us. tangible product. (N. Value Creation – Centers on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage.

In some ways.g. also bought another product). speedy and focus upon the needs of customers. Innovative IT – It should be efficient. since every consumer displays different purchasing habits and preferences. it is vital to its success. and try to market products and services to them based upon similar buyer behavior seen in other individuals (e. BIRTH OF CRM 21 . Organizations will track individuals. When Amazon tells you those customers that viewed/bought the same product as you.6. CRM software collects data on consumers and their transactions. Whilst IT and/or software aren’t the entire story for CRM.

-MR. ORANGE. They believed that automation and better management of their sales and customer service process would lead to increased revenue and customer satisfaction. MAHESH DADLANI CUSTOMER RELATIONS. CEO’s tried to distinguish their companies through operational excellence and product innovation. BIRTH OF CRM Throughout the 90s business were focused on improving internal operations. Middle management focused on automating departmental functions such as sales and help desk support. Vendors were all too happy to support this 22 .“CUSTOMER FOR LIFE THROUGH SYSTEMS AND SMILES”.

In response. However.belief and raced to the scene with independent solutions for sales force automation. and they now have the upper hand in most purchase transactions. 23 . rather than adopt a streamlined “YOU WANT IT WE’VE GOT IT” approach sellers have created a marketplace where products and services are sold. the lack of system integration was unavailable to sales and support personnel without jumping from system to system. While many of these applications provided increase in the productivity. today’s customers do their homework. the approach of using independent solutions to address departmental needs served only to create islands of information and database duplication. sellers are bending over backwards to improve offerings and services. With easy access to mountains of information. serviced and marketed in an increasingly fragmented and ultimately frustrating way. By the time customers walk into your business – or log on to your website or call your call sales centers – most already know what they want and how much they’re willing to pay. Furthermore. help desk and customer service functions. This did little to support cross selling opportunities or increase customer satisfaction.

That dream has been slow in coming. While incremental improvements have occurred.Never before has so much “clutter” bombarded consumers from so many online and offline sources. would come increased organizational efficiency and. companies have largely ignored the very piece required to attract customers in the first place. Yes. companies have implemented call centers and sales force automation software and customer sales representative training. CRM has not yet delivered its ultimate promise – the transformed customer experience. increased revenues. It’s the piece that allows the 24 . BUT YOU CAN’T PLEASE ALL OF THE PEOPLE ALL OF THE TIME. It’s the piece that ensures sales and service efforts are effective and integrated. better still. while improving the sales and service components of customer transactions. which swept through the business landscape in the early 1990s. However. sellers face a harsh reality that brings an old adage to life: YOU CAN PLEASE SOME OF THE PEOPLE MOST OF THE TIME AND MOST OF THE PEOPLE SOME OF THE TIME. brought the promise of helping sellers PLEASE MOST OF THE PEOPLE MOST OF THE TIME. Trying to be all things to all buyers. Riding the coattails of customer satisfaction. Customer Relationship management (CRM). It wasn’t supposed to be this way.

Quite the contrary: what began as a solution for providing more efficient customer transactions evolved into a process by which companies could foster more meaningful customer interactions. We’re not saying that the last decade’s investment in CRM has been wasted. Today. the challenge is to take this evolution one step further – to focus on building lasting and profitable customer dialogues at all interaction and transaction touch points to build customer and brand value. This was the right direction to take. However. It’s the piece called “marketing”. companies haven’t reached the end of the CRM road. 25 .seller to segment and analyze their customer information in order to create a more personalized. long-term relationship.

CRM TODAY – FRAGMENTED CUSTOMER EXPIRENCE SERVICE SALES CRM TOMMOROW – TRANSFORMED CUSTOMER EXPERIENCE 26 .

no matter how efficient and service oriented your sales channel. you can’t sell what people don’t want to buy. And as for gathering customer insights. After all. be careful what you wish for.MARKETING SALES SERVICE EVOLUTION OF CRM As CRM evolved. many companies assumed that just bolting on new technology or adding new services would enhance customer relationship. This assumption was pernicious as it was false. Many companies faced the unsettling paradox of having advanced data availability and analytic techniques that quickly 27 .

Transaction based marketing: The volume based marketing which was a single function approach was the first stage. In this next evolutionary phase of CRM. not every conversation will be profitable. Consumer history will be recorded and the expectations of both parties will be met. a profitable relationship. Naturally. The evolution process of CRM has worked as follows 1. information will be exchanged and acted on in real time. in the long run. But the series of conversations and the ongoing knowledge transfer will continue to grow. The belief is that the third wave of CRM will bring about the ultimate transformation of customer experiences – not just by strengthening sales and service or even promoting interaction with your customers – but by creating a series of “Intelligent Conversations” that build over the time into a long term meaningful dialogue. creating a memorable and differentiated customer experience. and.outpaced their ability to absorb and apply the information. The value generation for the vendor was the sole criteria for the success of the business. They were left with sophisticated tools that offered little real value. 28 .

2. This naturally led to acquisition as the only strategy for the business to grow and expansion of customer base 3. The creation of long term relationship with customers by offering value added services and creating long term value for mutual benefit was the key. Customer retention: The factors like fierce competition in growing number of vendors. technological innovations made it necessary for the vendors to adopt strategies for customer retention. Customer Acquisition: was the key for this. commerce. 29 . closing gap in quality and performance. Relationship management: This was the next step in the evolution where for retention and acquisition both factors beyond just the pricing and quality of the products need to be looked into. 4.

NATURE AND SCOPE OF CRM “CRM IS ALL ABOUT GETTING CLOSER TO YOUR CUSTOMER” -MR. Vice President. ICICI NATURE AND SCOPE OF CRM The Customer is King! This credo is more powerful. In a truly customer driven economy. relevant and true today than ever before. Bhaskar Bhaggi Sr. success 30 .

31 . The ultimate goal is to meet and exceed customer expectations. CRM is all about building long term business relationships with your customers. Industry analysts recently reported that CRM expenditures will grow from $2.depends on a company’s ability to be with the customer on a round with clock basis…satisfying all their product and service specific needs. CRM should finally enable “A TARGETED MUTUALLY WITH BENEFICIAL PROFITABLE RELATIONSHIP INDIVIDUALS AND GROUPS”. Simply stated.8 billion in1999 to $11 billion by 2003. create a positive customer experience and build customer loyalty. Customer Relationship Management (CRM) is about finding. CRM solutions empower business to more efficiently and effectively manage the activities that affect their relationship with their customers. getting. It is best described as the blending of internal business process: SALES. and retaining customers. Customer Relationship Management is one of the hottest and most talked about topics in the industry today and for good reason. MARKETING AND CUSTOMER SUPPORT WITH TECHNOLOGY.

Since the customers needs emerge from the products and offerings of the industry. CRM system should respond to the customer needs. 32 . • Maximize Lifetime Value – Exploit up-selling and cross-selling potential. And the same customers’ reaction to a cellular company operator may be quite different as compared to a car dealer.Key CRM Principles: A good CRM solution should allow for: • Differentiate Customers – All customers are not equal. recognize and reward best customers disproportionately. ` DIFFERENTIATING CUSTOMERS Most CRM systems allow for very little freedom to customize to specific industry verticals. • Increase Loyalty – Loyal customers are more profitable. Besides for the same product or a service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. • Differentiate Offerings – Customers appreciate customized offerings. Understanding each customer becomes particularly important. • Keep existing customers – Its 5 to 10 percent cheaper to retain current customers than acquire new ones.

What CRM needs to understand while differentiating customers is • • • • Sensitivities, Tastes, Preferences and Personalities. Lifestyle and age. Culture, background and education. Physical and physiological characteristics.

DIFFERENTIATING OFFERINGS
CRM solution needs to differentiate between a low value customer and a high value customer

• •

Low value customer requiring high value customer offerings. Low value customer with potential to become high value in near future.


High value customer requiring high value service. High value customer requiring low value service

KEEP EXISTING CUSTOMERS Grading customers from very satisfied to very disappointed shall help the organization in always improving its customer satisfaction levels and scores. As the satisfaction level for each customer improves so shall the customer retention with the organization.

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MAXIMIZING LIFE TIME VALUE By identifying life stage and life trigger points by customer, marketers can maximize share of the purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.

INCREASE LOYALTY
It is an endeavor of ant corporate to see that its customers are advocate for the company and its products. Any company will like its mindshare status from being a suspect to being an advocate. Suspect----prospect-----customer client-----supporter-----advocate.

Customers have to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its customers so that remain as advocates on the loyalty curve.

Referral sales invariably are low cost high margin sales. It has also the implication of being not “on time scale”. Besides, referral sales are likely to induce more satisfaction.

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SUMMARIZING CRM ACTIVITIES
The CRM cycle can be briefly described as follows:

1. Learning from customer and prospects. 2. Creating value for customers and prospects. 3. Creating loyalty. 4. Acquiring new customers. 5. Creating profits.

BENEFITS OF CRM
1.

Profitability-Driven Account Planning - Enables commercial

banks to better understand the overall needs of their customers and drive

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and superior service to their customers. Banker Productivity . fee based products to the appropriate customers. 2. Key components include profitability-based customer segmentation and integrated alignment and performance management to allow commercial banks to coordinate their efforts and drive cross-selling of non-interest. Key components include consistent credit request processing and streamlined account origination which helps increase the quality of credit portfolios. Compliance with regulatory procedures (such as Regulation B loan notification requirements) is built into the workflow of the solution set. Relationship-Driven Sales . Efficient product installation improves banker productivity by automating time-consuming manual tasks. 3. efficient.customer profitability. Components such as value-added personalized service and proactive outbound service enable organizations to provide fast. End-to-End Credit Management .Allows commercial banks to increase customer satisfaction and retention. 36 . 4. 5.Includes components such as intelligent client coverage and enterprise call reporting that help commercial banks better coordinate limited sales and product resources to drive revenue growth.Enables the efficient and consistent processing of commercial loans. Customer-centric Service .Includes streamlined proposal and credit document generation.

CRM STRATEGY - The basic CRM strategy is to align an entire organization to service the customer better. Superior encryption techniques with safe data transfer and sharing tools. product and company data and all sales managers can effectively monitor and co-ordinate their team. retain existing customers and to make them referrers.CRM tools are capable of delivering all customer information to everybody in need. CRM SALES MANAGEMENT STRATEGY . CRM CUSTOMER SERVICE STRATEGY . CRM MARKETING STRATEGY . All sales persons will have access to key customer. Detailed customer reports can be accessed with customer service histories. no double entry. CRM DOCUMENT MANAGEMENT STRATEGY . customer preferences and priorities. A wide range of CRM marketing tools are available for this purpose. No duplicate data. 37 . no data loss. Real-time data backup strategy.Banks know that the best ever marketing strategy is to combine all enterprise resources to find new customers.Banks hosts all enterprise data in a web-based centralized always updated CRM database accessible from every where at every time.CRM offers plenty of tools for automating and managing sales processes.

etc. As you know. • Planning marketing management. CRM PROCESS MANAGEMENT INVOLVE THE FOLLOWING STEPS • Getting all key information needed for CRM process.CRM strategy also covers many other business processes. • Delivering appropriate information to users who need. leads sales management and after-sales management management. (CRM) process management tools are specially designed for streamlining small and medium business CRM practices. 38 . • Sorting the key information to find right opportunities. CRM process management tools follow a set of simple customizable rules that helps in planning. sales territories. a satisfied customer can bring many other customers to you. implementing and analyzing CRM processes in the right way. CRM PROCESS Understanding customers’ tastes and requirements with precision and effectiveness and serve them in the way they want. The simplicity in use. open-source features. and web-based CRM allow users to develop right CRM strategies according to their industry. processes. contact management. and CRM is the process of doing it in a planned way. customer preferences.

• Providing real-time reports and analysis about on-going processes BANKING ON CUSTOMER FOCUS 39 . • Regularly keeping the contact with the customers.• Pleasing customers with respect to set rules and plans.

The industry propensity to raise fees to boost non-interest income hasn’t helped either. To improve customer satisfaction US bank marketers are experimenting with new techniques to capture valuable feedback. Consumer surveys continually highlight customer service as a weak spot for financial institutions. many banks have been so absorbed in their own internal issues. that customer service often received short shift. interminable waiting hours. Intensification of competition after liberalization has compelled the banks to get their acts together and focus more on the customer.BANKING ON CUSTOMER FOCUS Long serpentine queues. particularly merger – driven cost – cutting re-engineering. unfriendly staff – till recently. Indian banks can take a cue from this and redefine their strategies. 40 . For the last decade at least. these were the characteristics of Indian banks.

found nearly half of the customers agreeing “it wouldn’t take a lot” for them to move to other bank if the other institution “really treated me well”. and online surveys. Besides annoying customers. 41 . “Banks have realized they are not effective at gathering information about their customers and are trying to figure out how to change that. A survey by New Ground Resources Inc. an analyst. traditional direct mail and telephone surveys are removed in time from the customers’ actual experiences at bank.” says Kimberly Collins. Dischanted customers are voting with their feet says Charlene Stern vice-president at the Chicago based strategic marketing firm.THE RESULT: Banks needlessly lose some of their best customers to other providers. To help stem those defections. The quest for data has bankers turning to a wide variety of information gathering techniques. banks need to improve their customer feedback mechanisms. Such tactics are supplementary with traditional strategic research methods such as market survey and bench marking studies. particularly non-brokerage and mutual fund companies. Through these methods. institutions hope to gain improved insight to devise strategies for returning their loyalty. employee feedback groups. such as complaint data analysis: call center exit surveys.

Hedges says. for e. And the telephone surveys themselves have been revamped to provide fresher. but might annoy customers if they bear too much resemblance to the much despised Internet spam. so 42 . Fleer Boston conducts a five – minute survey of a random selection of customers who connect to the bank’s call center on a toll free line. more immediate information. That’s why experts advise a comprehensive and balanced approach. The key in most cases is to weave queries into ordinary interactions between customers and the institution. wile customer focus groups then help the institution drill down and identify specific service problems.g. Telephone surveys. No one techniques is 100% accurate. Online surveys provide immediate feedback. “Successful approaches vary with the objective of the research. distribution at fleet Boston financial corp. so that feedback can be obtained with a minimum of distraction. can be useful for sporting and tracking broad trends. however and some can actually backfire on the institution.D.The intent of most of the newer techniques is to get closer to the emotions driving customer behavior and to gauge that sentiment closer to the time of the transaction. M.” says Robert Hedges. Instead of calling customers at dinnertime. “Customers don’t want to be bothered. with specific customer groups.

quality leader at JP Morgan chase & Co.” says Michelle convey. In the days when banks focused on their local markets and tellers knew many customers by name. banks had an easier time understanding their customers. EXIT SURVEYS Before the 1980s. in New York City.we have with them. 43 . bank marketers needed only to conduct simple telephone or branch surveys to gauge customer sentiment. when geographic restrictions were liberalized.

D. Cost is one consideration. automated teller machines. what suits to a customer in one area may not appeal to those in another. The increasing use of electronic channels. M. such as direct mails and telephone surveys. This leaves the institution searching for alternating feedback mechanisms. don’t work so well anymore. The strongest demand was for more “humanized” personal service rather than more services or reduced teller lines. telephone call centers and PC banking. 60% cited a need for improved service.The advent of regional and national banking has changed all that when institutions sprawl across multiple regions. Randall Grossman. Customers trash the survey letters without reading them and use voice-mail to screen out unwanted telephone surveys. getting a more accurate data about the customers is becoming more important as evidence accumulates of growing disconnect between banks and their customers. New Ground surveyed 160 banks customers in three cities as to what advice they would give their own banks if those institutions wanted to keep their business. of Bank 44 . Meanwhile. up from 38% in 1997. Bank attempts to improve feedback loops hindered by the fact that traditional data gathering tools. also puts more distance between the customer and the institution. The local branch may not be the best place to sample opinion.

The cost of hosting a traditional customer focus group can reach $5. the survey will let us know whether that change was something positive or negative fro the customer. not including overhead or the cost of designing the survey – compared to as little as $5 per e-mail. 45 . Fleet Boston.g. “If we change the way our reps answer the phone.One Corp’s retail unit in Columbus. allowing Fleet Boston to adjust its procedures quickly. Some of the newer techniques are designed to capture feedback when the customer’s response is fresher.” Hedges say: This gave birth to Customer Relationship Management……. Ohio. for e. Customer responses are tabulated and scored and then sent to call center managers the very next day. estimates a telephone survey of 500 people costs between $20 to $30 per person. Immediacy is also important. Traditional surveys reach customers some time after their service contact at the bank.000 per group. has been Fleet Boston’s Hedges says this kind of survey provides the company with “Immediate Feedback” on its products and services.

SAS TECHNOLOGY IN CRM 46 .BUT A MATTER OF SURVIVAL” -Mr.USE OF TECHNOLOGY IN CRM “CRM IS NOT JUST A GOOD IDEA………. Kiran Pradhan Account Manager.

• People wish products and services around the clock. Some clear trends that can be seen are • More and more individuals will like to be treated as one single person rather than one among the masses. Technology Component of a Total CRM strategy: The technology component of CRM offers bank a comprehensive understanding of its customers through data analysis and data modeling. to support sales and marketing strategies.With technology touching the way we live our lives. Like the television and the PCs revolutionalized our lives in the twentieth century so is wireless communication. • With abundance of product and service offerings. 47 . expectations of individuals is fast changing. internet and pervasive computing going to affect our daily pattern of lives. CRM has become the central focus area which the entire gamut of organizational activities has to revolve around. consumers’ loyalty can be commanded by providing better portfolio of the products. • Speed response and understanding each individual one is the major key issues.

The entire ranges of the technologies used in CRM are known as “Technology 48 . To implement the CRM in the modern day organizations with millions of customers. so as to achieve one-to-one relationships with all the profitable and valuable customers. banks can adopt individual marketing approaches rather than relatively ineffective mass marketing. The Technological Ecosystem: Technology is the essential enabler of the CRM. leveraging on technology is a must. With a closer understanding of customers by small segments. Predictions for profit: Banks can accurately predict which products and services will appeal to the customer. Customer Lifetime Value: Banks can calculate the probable profit of a customer over a lifetime. ensuring that they don’t alienate low-value customers with high – value potential. Personalized services: Business can segment the market into specific targets by demographics or purchase types. and which they are most likely to purchase.Single Customer View: A managed and integrated view of the customer drawn from all contact points and product purchases enables financial institutions to better understand customers and therefore even serve them effectively.

Customer service activities include customer service. and campaign analysis.Ecosystem”. Mobile sales and field service are known as Mobile Office Operations. The sales force automation includes opportunity management. ERP and legacy systems are considered as back office where as sales force automation. sales encyclopedia. marketing and customer service. account management. These comprises of three building blocks. TYPES OF CRM OPERATIONAL CRM The operational CRM includes technologies and business processes that can improve the efficiency and accuracy of day-to-day customer facing activities. They are Operational CRM. front office business processes and the delivery channels and the back office activities. Operational CRM integrates the mobile office. customer support. ANALYTICAL CRM 49 . Supply chain management. sales forecasting. field service and quality management. customer service and marketing are considered as the front office activities. Analytical CRM and the Collaborative CRM. and sales analysis activities. Marketing automation includes activities like marketing campaign planning and execution. These activities include sales.

and intelligent agents. They are used to identify different pattern behavior of customers. 50 . Analytical CRM provides a 360-degree view of customer. e-mail. fax. Web interaction can include self-service.Analytical CRM is used for analyzing customer data to support operational CRM activities. The collaborative technologies include call – centers. web. which is essential to develop and optimize customer relationships. COLLABORATIVE CRM Collaborative CRM includes all the components that manage and integrate activities across the entire customer contact points. and catalog and product configurations. The data mining tools and the OLAP tools perform the analysis of the customer and other organizational data and provide the results to the operational CRM with a view to maximize the outcome of each customer contact. profiling and segmenting the customers using the analysis tools and data warehouses. Collaborative CRM facilitates the customer interaction with organization and also interaction between sales and marketing people with the customer. The interaction can take different forms and diverse media. sales calls. field service. publishing. The interaction points include call centers or customer interaction centers.

customer portals that are meant to provide information to the customers and can also include communications between communities. CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING “BANKS IN THE DAYS TO COME HAVE TO PROVIDE THEIR BROAD BASED SERVICE PACKAGE IN THE MIDST OF STIFF 51 .The interactions also include personalization or one-to-one communications. Finally the interaction between the organizational entities like automated sales forces and marketing with the customer in field comes under the umbrella of collaborative CRM.

deregulation and globalization forever changed the face of banking. THEY HAVE TO SURPASS THEIR RIVALS IN THE AREA OF QUALITY OF THEIR CUSTOMER SERVICES. commoditization. Technology. All else being equal. trading on history and mutual loyalty. You choose the local bank. the bank manager knew you by name. Banks earned customers’ loyalty on the basis of personal relationships. not just an account number. replaced by national and multi-national service providers. where the teller was your neighbor’s sister-in-law.” -UNKNOWN INTRODUCTION In simpler days. and your family had conducted business for years. ATMs. The model of the personalized bank is quaint memory. it was so easy to select your bank. and on faceto-face interactions and long term knowledge of the customer as a person. customers chose an institution because it was convenient and personal. TO ENSURE THEIR COMPETATIVE EDGE IN FUTURE. 52 .COMPETITION.

A typical financial institution has thousands of local. No matter. . national and global competitors. and harder than ever to show profit. appear. say consumers. focusing on ways to gain customers. most players hold a relatively small and unreliable market share. Banks have been doing that all along. For consumers. This new order calls for a new mindset. in the mailbox. In this increasingly fragmented industry. they wage 53 . this competitive scene has brought a wealth of choices.Internet Banking. Retail bankers have to behave more like retail merchants. pre-appeared. . Customers stick around until enticed by the latest short term interest rate or direct mail offer. They spend large advertising budgets on television and print ads to lure new customers. regional. yet it has eliminated the personalized nature of banking. keep them and maximize profitability from each all while streamlining product costs and customer contact channels. none of them fettered by traditional ties of geography and familiarity. Automated call systems and a proliferation of product choices. For banks and other financial institutions this competition makes it difficult or rather impossible to show competitive differentiation. who have traded loyalty for the ability to pick and choose from the latest deals-of-the-day that.

THE CHANGING SCENARIO IN BANKING With opening up of the economy many private sector banks have joined the fray and are offering a plethora of products and services rechristening themselves as ‘financial boutiques’. So what’s the problem? The problem is that these measures fall short of the potential to truly maximize value from the existing customers. not just a series of transactions. Today’s knowledge savvy consumer is challenging the Indian retail banking industry to redefine itself. It’s time to adopt comprehensive view of the customer as a part of continuum. They constantly monitor and seek to increase sales in each product line. Banks need to reconsider their traditional focus on product lines. In the current competitive scenario – for 54 . Knowledge dissemination has been propelled by electronic and mass media campaigns.ambitious campaigns to cross sell services to the existing customers. and can even be self defeating.

A good customer experience 55 .a bank to survive competition. for gaining a greater slice of market share. there is hardly any option but to learn from and actively respond to customers’ needs. The battle of the banks. In the current falling interest scenario. Success of a bank’s strategy towards customer acquisition will depend on its ability to develop customer insights and translate these into effective operating models. In order to bolster their top line banks are increasingly looking at newer ways and means of achieving organic growth through strategies that enable acquisition of new customers and retaining the loyalty of the existing customers. Banks offering retail products need to reorient their strategy from a product centric to a customer centric focus to attract and retain high net worth individuals (HNI) and profitable customers. banks are finding it increasingly difficult to meet the high growth expectations. succeed and make profit. is taking on a new urgency. Ensuring a good customer experience at every customer touch point is the corner stone of a successful growth strategy.

which translates into increased profits. The management of customer relationship in the financial service industry demands special focus.will drive customer acquisition and promote customer retention. Therefore. Emphasis on CRM arises on account of the confronting retail managers – managing multiple customer touch points which sell the burgeoning complex products with the attendant risks and rewards. it is a drain on the existing resources of the bank. With the emphasis on ‘delivering results’ most bankers are resorting to customer grabbing. which can be better deployed for growth initiatives. This in other words is the hallmark of a successful CRM strategy. Moreover. rather than customer cultivation and creation. Incidentally. bankers are fully aware that replacing customers increase the relative cost of new customer acquisition. with the result that customer churn is the order of the day. and managing to sustain and achieve growth and profits. the challenge for the 56 . Bankers are conscious of the relative costs of acquiring new customers. The entire service industry is now metamorphosed to become customer specific.

predict customer behaviors. CRM links business process across the supply chain from back – office functions through all touch points. CRM is a host of analytical data tools that enable banks to fully understand customer segments. model “what-if” scenarios. enabling continuity and consistency across a customer relationship. CUSTOMER CENTRIC ORGANISATION Banks and financials institutions are recognizing that they can no longer look at a customer from a specific product or snapshot perspective but must encompass the entire customer relationship to fully understand a client’s profitability. From an operational standpoint. From a strategic standpoint. and design and track effective marketing campaigns. CRM mobilizes resources around customer’s relationships rather than product groups and fosters activities that maximize the value of lifetime relationships.banks is to retain and deepen the profitability of the existing customer relationships. assess and maximizes lifetime value of each customer. From an analytical standpoint. 57 .

• Fostering greater long term loyalty through relationship building.According to Meridian Research. • Enabling immediate action to retain the most valuable customers. • Enabling the bank to fulfill customer needs at the right time with the right offer. • Increasing the rate of return on marketing initiatives. retail financial services institutions are expected to spend some $6. Those investments will pay off for banks by • Restoring the personal service connotation that previously removed. This should allow the banks to generate a single. 58 . related products and their holding pattern with the bank. • Identifying high risk customers and adjusting service accordingly. With this base. GOALS REQUIRING CRM SOLUTIONS The primary goals of banks that require CRM solutions are: CUSTOMER IDENTIFICATION: It refers to acquiring the customer centric data such as knowledge of customers’ current demographic details. • Maximizing lifetime value of each customer through cross-selling. comprehensive view of every one of its customers.8 billion on CRM in 2001. the banks must identify prime customers who require to be specially treated under CRM.

a savings bank customer may be offered a credit card or a housing loan. a busy business may be offered internet banking etc. This continuous learning process would help banks to bring out better products that target potential as well as existing customers. Every banking representative should have ability to 59 . For example. a minor customer may be offered an educational loan. but also enable banks to offer their customer the additional services they might really want. The operations can be aimed at getting the right customers and then retaining them by extending special treatment under CRM environment. which not only would build customer loyalty and business. Banks should employ a CRM solution that consolidates information from all customer interactions. CRM solution should adopt an integrated approach to customer needs.CROSS-SELLING/UP-SELLING: Cross-selling and Up-selling are huge untapped opportunities for banks. CUSTOMER ACQUISITION: CRM is aimed at optimizing processes and functions related to the customer. CUSTOMER RETENTION: Customer Retention is the most important focus of CRM. whether it is personal contact or inquiries to the call center or the internet it should be kept in mind that it is many times costlier to obtain a new customer than to retain an existing one. All operations can be optimized and systemized to enhance efficiency and effectiveness. on a continuous basis.

the prime ones. if he receives a level of service lower than his expectations. in time. he is satisfied. the banker should make all efforts to improve services on a continuous basis. Hence. it will definitely stem the flow of new customers into the bank. beyond the level of satisfaction. 60 . Else. Banks operate in a very dynamic market and it is important to be proactive to delight a customer.access 360-degree view of any customer. To achieve this. at least. using technology as a tool. he is dissatisfied. A dissatisfied Customer tells at least 10 other people about what went wrong with the bank. to enhance the competitive advantage and customer retention. CUSTOMER SATISFACTION AND DELIGHT: When a customer receives a higher level of service that what he expects. banks must continuously innovate new producers and features. On the contrary. which can trigger an exodus of customers from the bank.

61 . It aimed at providing information to employees and documenting all customer interactions across channels such as personal contacts.CRM TOOLS FOR BANKING CRM Tools can be broadly classified into Operational tools and Analytical tools: OPERATIONAL CRM Provides the software support for business that requires customer contact. telephonic. electronic and wireless.

For e. Analytical CRM can trace this and the banker can offer him a loan with better benefits and in the process benefit himself. It is aimed at utilizing the customer’s potential to the maximum. if an important customer dials to the bank’s call center.For e. the operational CRM can alert the call center of the customer’s account status and other details.g. 62 .g. It helps in tracking the activities of the customer on a real time basis. ANALYTICAL CRM Helps banks make sense of the information collected. it is an indication that the customer is having a loan with that bank. if there is a monthly debit of certain amount in the customer’s account by means of cheques in favor of some other bank.

3. it is necessary for the banks to lay a solid foundation on which the edifice of CRM can be built. Analyze the product environment. 2. Understand the organization environment. Preparing for CRM involves three important steps 1.RETAIL BANKS PLANNING FOR CRM “The prerequisite for successful CRM in banks is to have a thorough understanding of the organizational structure and environment. Understand the bank’s products. 63 .” RETAIL BANKS PLANNING FOR CRM In order to derive maximum advantage.

Inputs received from customer interface staff are executed and delivered by the transaction processing personnel. This holds good for both internal as well as external customers. • Inadequate knowledge about the sphere of operations at different levels. This is common in the case of loan products. customer call centers. Components of customer interface are field sales staff. The reason can broadly be attributed to • Lack of understanding of the line and staff functions and the overall structure and organization. Customer interface executives who do their homework on the above issues are likely to make commitments to the customers which cannot be delivered. Very often we come across a situation where there is dichotomy between what the field staff assures the customer and what the transaction executive delivers. web portals and written queries. While both components are complementary in nature. the skill-set required for the components are unique. 64 .1. Understand the organization environment There are essentially two components to the services provided by banks: CUSTOMER INTERFACE and TRANSACTION EXECUTION. Transaction execution is the forte of the operations staff and IT.

• Failure to judge the idiosyncrasies of superior peers and subordinates.

2. Understand the bank’s products
Despite banks organizing internal campaigns and contests on themes ‘know your products’ experience has shown that expect the winners of the contest, the rest of the pack woefully lacking in product knowledge.

Walk into any private bank or public sector and enquire about demat account operation or the procedure for obtaining cash credit limits. Chances are that the executive would answer one query and refer you another table for the second. Your worst nightmares is when you call the bank for the above information and are informed that the person who can provide the exact details is not in his seat and you are politely requested to cal back again. Improvements in the area of CRM are evident since the executives in some banks ask you to leave your phone number so that the concerned executive can call back.

What is being suggested is not to do away with the policy of having experts to answer customer enquiries but to equip every executive with an in-depth knowledge about his/her ‘baby’ while acquiring adequate

inputs to nurture your colleagues ‘baby’ in his/her absence. Executives must master the art of ‘baby – sitting’. Adequate knowledge about all the

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products of the bank would ensure that the CRM efforts are finally entrenched.

3.

Analyze the product environment

Enhanced service competency and product knowledge are the building blocks in a relationship – building exercise. A ‘professional’ should be equipped with the following adequate information: -Competitors by rank: • Close competitors for the products handled. • Their strength and weakness with respect to each product for which they compete with you.

-Analysis of marketing strategies adopted by competitors’ that catapulted them to the top slots

-The bank’s status vis-à-vis competitors’ as also the relative market niche being created to

-Knowledge of strengths and weakness in relation to the product/organization.

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MANAGEMENT GAME-PLAN OF CRM
Some of the time tested and popular strategies adopted by banks towards relationship building and management efforts range from sending out a greetings message on special occasions, data mining and cross selling to Organizing mega events or ‘melas’. Experience has shown that each interaction at an event may not result in a sale; nevertheless the aim to make every interaction a potentially profitable opportunity to offer additional value to the customer.

Again, banks embarking on event driven marketing strategies are in a better position to feel the pulse of the customers and channel their energies towards meeting customer expectations. The other advantage is that this strategy results in a greater return on marketing investment coupled with reduced marketing costs, lesser cost of communication reaching out to a larger targeted audience and a higher response rate.

Campaign management in retail banks is growing by leaps and bounds from single channel mass campaigns to multi-channel targeted campaigns. Technologies has evolved to such an extent that management can keep a tab on real-time status of a campaign, complete with client history to enable devising an appropriate action plan.

Proliferation of services due to intense competition has turned the banking into a buyers’ paradise. “The more you give the more one wants” seems to be the adage. Consider the introduction of ATM facility that was meant to reduce transaction pressure on daily basis.

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conducts a regular CRM audit and offers suggestions and ideas while filing the ‘CRM performance report’ with the top management. 68 .In their anxiety to reach out to more customers and grab a bigger piece of cake. percolates and permeates all levels of organizations. bank breaches appear to be mushrooming all over the cities. More branches entail deployment of more staff. A CRM focused approach that starts with the top management. Recruitment and deployment of personnel without adequate inputs relating to issues explained above have a detrimental effect on CRM. Success of such a strategy will be possible only when an exclusive CRM team ensures dissemination of the CRM philosophy. is the need of the hour.

FOR THE PEOPLE” 69 .CRM IN RETAIL BANKING. CRM IN PUBLIC SECTOR “OF THE PEOPLE. BY THE PEOPLE.

CRM IN RETAIL BANKING CRM has been in India for over seven years now. The surprising aspect that came out from the study was that though banks were aware of the benefits of CRM. an effort has been made to present a relative weight age among various factors that goes into making the vendor selection decision which can additionally be used by software vendors and its analysis and methodology used for arriving at the same has not been detailed herein. The root cause for this is the astonishing delving deeper into the CRM retail banking application and finding out any hidden undercurrents that have been affecting the CRM adoption in the said segment. Additionally. It is found in a research that the cost of acquiring a new customer is over 5 times the cost 70 . they were skeptical about its applicability to their organization. a key differentiator for retail banks is the way their customers view them: how satisfied/dissatisfied they are from their respective bank services – in short how loyal the customers are towards their banks. But its penetration into the industry in general and that into the financial services market in particular has been rather uninspiring. Benefits that banks can look forward to form CRM In highly competitive and dynamic market landscape.

71 . the less likely that person is to leave it. • Increased productivity of managerial executives. • Giving customers the ability to transact through multiple channels. the adoption of CRM philosophy and its tools leads to the following benefits: • Real time forecasting for true sales pipeline visibility and more accurate decisions owing to the ability to predict what all products the customers are expected to purchase over a period of time. one cannot be complacent as far as customer satisfaction is concerned. • Reduced training costs. Cross selling to existing customers produces incremental underwriting accuracy.of retaining an existing customers. • Streamlining of the business process across different functions aligned to the best practices. this makes cross selling and up selling easier. • Providing an integrated view of customers across companies and channels. Apart from enhancing customer satisfaction. sales and customer service staff. Research shows the more products a customer buys from a firm.

proliferating customer contact channels. As banks strive to create and manage customer relationships. Today.• Turn around time (TAT) for closing leads. opening accounts and closing service requests can be drastically improved. • Campaign definition and performance tracking on a periodic basis (for different financial programs). more than ever before. These trends reflect a fundamental change in the way banks interact with the customers they have – and those they want to acquire. Intensifying competition. rising customer expectations and capitalizing on new market opportunities are at the top of every bank executive’s agenda. the ability to maximize customer loyalty through close and durable relationships is critical to retail banks’ ability to grow their business. escalating attacks on customer information. 72 . Retail banks are facing greater challenges than ever before in executing their customer management strategies. several emerging trends affect the approach and tools banks employ to achieve sustainable growth.

for e. as well as business managers that rely on the delivery channels to their service products. These channels can. however. IT managers within the bank. know deep down that integrating the channel is the right thing to do because some benefits of channel integration are intuitive if not scientifically provable. a handful of retail banks boast of globally integrated delivery channels that are built on standard technology principles. Quantifying the effects of fixing this problem proves to be tricky. deliver consistent architecture..g.IMPROVING CRM MANAGEMENT IN BANKING WITH INTEGRATED DELIVERY CHANNELS The capability to integrate two or more delivery channels through shared technology has only recently been deployed in any significant way. The example of inconsistent account balance information is one that integrated delivery channels can solve and that most bankers agree is a source of frustration for the customer. 73 . however. Today. No institution. can claim to have all channels working on a common platform or claim even to share information or process across all channels.

integrated delivery channel architectures based on these soft benefits as well as on the goal of maintaining and deepening the customer relationship in the face of competitive pressures. both of which traditionally have had low response rates. marketing and product line managers have benefited greatly from a relatively plentiful source of analytics systems in the market. these rates have improved somewhat with the improved customer knowledge in hand. 74 . or are in the process of designing. On the sales side. Although. predict propensity to buy. The implementation of integrated delivery channels has to date focused on the service side of the relationship equation.SERVICES AND SALES PROCESSES MADE MORE PREDICTABLE Many banks have implemented. But the actual use of the information from these systems has been limited to mail campaigns and outbound telemarketing. even recognize attrition behavior thanks to the segmentation and focus of solution providers in the analytics markets. Customer knowledge databases and analytic engines have made the selling process more predictable then ever before. Bankers are getting better at knowing how to calculate customer profitability.

To build on the full strength of this collaboration. channels. or through some integrated channel management architecture. banks need to completely understand the issues surrounding the use of knowledge. account. and then tread lightly. neither the chicken nor the egg came first. Data acquisition through customer interaction is determined by the delivery channels. The opportunities to combine these powerful capabilities are built in to the very systems that enable them individually. perhaps. Both arrived at the same time. technology is not the problem. themselves. But the marriage of integrated delivery channels and customer knowledge is not a trivial arrangement. 75 .Thus. For once. EFFECTIVE USE OF INFORMATION BUILDS KEY CUSTOMER BENEFITS The issues surrounding the collaboration of knowledge and delivery have to do with the management of the data and the processes involved as well as some very emotional aspects of the customer’s relationship with the bank and the extent to which individual customers perceive the bank as a threat to their privacy. for banks. Institutions are already collecting most of the available information today such as identity.

transactions performed. Along with the use of transactional information by the systems that perform the basic units of work. there seems to be no need to collect information that is not currently acquired. For now. to give insight into customer behavior. 76 . So if a customer has an unresolved problem. that information is available at all appropriate channels. What is required is the use of the data in managing the relationship with the customer in a more fulfilling way. specialized applications collect and analyze information about the customer interaction. and all the pieces of information that have some value to the institution. Such basic information is included in the transactions that are sent to the core of the banking system such as a credit processor. time of the day. itself. The shift to the existing use of data comes in the form of the centralized acquisition of this information outside of the transactional sense. Banks can also collect and store information about nontrivial transactions to provide continuity among customer contacts.

this management of information from the delivery channels offers many benefits to the institution and the customer. This is done by having recent problem reports or unresolved account applications available at all delivery channels to present the agent with what may be peripheral yet important information about the current state of customer relationship. • Using customer preference to understand the individual customer’s favorite channels for specific transactions. 77 . the next step includes analysis of the customer’s behavior across in a broader context. A FEW EXAMPLES OF THIS INFORMATION MANAGEMENT STRATEGY • Using channel analysis to model and predict demand at the delivery channels after marketing campaigns or to gauge the impact of channel downtime on service or revenue. This information can also be made available to the automated channels to keep the customer aware of the status of problems or account applications. analysis of all external providers of service. By itself.While many institutions are currently performing such analysis with a given channel. and analysis of how customer uses these products. • Keeping certain transactions open – ended to maintain continuity of service. tying to a quantified loss. But the real value in the effective use of customer information at the point of interaction comes from the customer knowledge systems that are becoming pervasive in most retail banks.

The deployment of powerful customer knowledge systems will also increase as more and more useful information can be distilled from the myriad of resources in the bank IT network. As the capability to build on this flow of information grows.POWERFUL CUSTOMER KNOWLEDGE SYSTEMS FOR THE FUTURE The pace of implementation of integrated delivery channel architectures will quicken and eventually prevail at top banks. With most of the technology in place. so. As these two infrastructures evolve. many institutions use information gleaned from the customer knowledge systems to suggest new products to the customers at the branch teller. Relationship training is more important 78 . it has the potential to out space the customer’s acceptance of the bank’s knowledge. banks must begin from strategies around the use of information in the day – to – day contact with the customers. not entirely rational. The use of information between the knowledge systems and the delivery channels has yet to be fully realized. the integration between them will also increase. Already. Privacy is an emotional issue and. Technology and policy can only go so far in ensuring that the use of information at the point of contact is not intrusive to the customer’s comfortable level of privacy.

But for many. Companies can get a lot of mileage out of effective CRM practices. Most companies consider themselves customer focused and believe that in being so they are servicing the customer. the management of customer information at the point of interaction is about service. and doing it in way that does not sacrifice the customer’s long term well being. Some facts to chew before we get started: 79 . it’s about trust as a result of knowing the customer and not as an excuse for misusing information. about keeping the customer. dependable and convenient interaction with customers in every encounter. It’s about increasing the bank’s benefit as well. not a business practice. CRM: Do you get along with your customers? Most companies say they do.than before as banks begin to learn more about their customers and use that information to bring financial value to them. Finally. being customer focused means to have a consistent. But essentially. simply put. CRM is just a philosophy to be bandied about in boardrooms. and. It’s about strengthening the relationship and showing the customer that the bank’s knowledge can lead to real benefit. about keeping the customer happy. Ultimately.

CRM is an integrated framework. the suppliers. Out of this comes electronic customer relationship management (eCRM).• It costs six times more to sell to a new customer than to sell an existing one. and putting it in to place will require a set of integrated applications that will address every aspect of business of function and the customer. what they like. and what they do… 80 . CRM is typically defined as an integrated sales. E-CRM goes a step ahead and adopts Web – centric approach that synchronizes customer relationships across communication channels. marketing and service strategy that precludes lone existence and depends on coordinated actions among the customer. • A company can boost profits but 85% percent by increasing annual customer retention by just 5%. business functions and audiences. • 70% of customers will do business with the company again if it quickly takes care of a service. or a business strategy. partners and vendors. CRM tools help companies understand their customers from a multi faceted perspective: who they are.

ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT (E-CRM) 81 .

It describes improved and increased communication between an organization and its clients by creating and enhancing customer interaction through innovative technology. E-CRM. attract and retain an organization’s customers.“CRM IS A CORE ELEMENT IN ANY CUSTOMER CENTRIC EBUSINESS” -ANONYMOUS ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT E-CRM is an integrated online sales. making it an important tool for all small and medium businesses. is according to Paul Greenberg (2000). marketing and service strategy that is used to identify. is 82 . E-CRM software provides profiles and histories of each interaction the organization has with its customers.

by understanding customer’s needs and personal preferences. It provides organizations with tools for a high level of interaction communications with the customers with personalized messages. E-CRM shares all the philosophy of CRM and the only difference is the underline technological architecture. the traditional and latest technology based.g. using the internet technologies. New technologies mean availability of additional faster means of communication between the customer and the organization. if the customer prefers to use emails and not telephone. E-CRM integrates all the communication from and to the customer from various channels both. E-CRM provides a high degree of self service to the customers..CRM on line. E-CRM implies interaction with the customer using these new technologies. This definition dispels all the doubts people might be having about E-CRM. For e. the organization will ensure this while dealing with the customer. EVOLUTION OF E-CRM Database marketing Behavior based marketing E-CRM 83 .

Though the core of E-CRM remains to be cross channel integration and optimization.Single channel Multiple channels Single enterprise view of customer integration of customer channels Outbound Campaign ROI metrics Many campaigns running simultaneously Higher effectiveness rates Opt-in-principle Strong customer metrics Many simultaneous campaign Very high response rates Leveraging customer information for specialized value proposition Out bound only Simple metrics <25 campaigns a year 2% average response rates 20% customers deliver 100%profits The SIX “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. The six “e” in E-CRM can be used to frame alternative definitions of E-CRM based upon the channels which E-CRM utilizes. the issues which it impacts and other factors. the six “E’s” of E-CRM are briefly explained as followed: 84 .

which channel. 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. valuable information that a customer accepts in exchange of his/her attention. 3.1. 4. Economics: An E-CRM strategy ideally should concentrate on customer economics. interactive and economic communication. services and corner offices whose occupants need to understand and assess customer behavior. which drive smart asset-allocation decisions. E-CRM thrives on these electronic channels. directing efforts at individuals likely to provide the greatest return on customer communication initiatives. Electronic channels: New electronic channels such as the web and personalized e-messaging have become the medium for fast. 85 . at what frequency? An E-CRM solution must be structured to deliver timely pertinent. 2. challenging companies to keep pace with this increased velocity. Enterprise: Through E-CRM a company gains the means to touch and a shape a customers experience through sales.

5. • Retention (increasing the amount of time that customer stays customers). Evaluation: Understanding customer economics relies on a company’s ability to attribute customer behavior to market programs. and compare anticipated ROI against actual returns through customer analytic reporting. External information: The E-CRM solution should be able to gain leverage information from such sources as third party information networks and web page profiler application. 6. ONE MUST ADDRESS CUSTOMER OPTIMIZATION ALONG THREE DIMENSIONS • Acquisition (increasing the number of customer). evaluate customer interactions along various customer touch point channel. • Expansion (increasing portability by encouraging customer to purchase more products and service). An E-CRM strategy must be able to identify the expansion potential for each customer. A company should be able to identify the opportunities to cross sell and up sell to the same set of customers. 86 .

• Productivity – consistent sales and service procedures to create efficient work processes.ECRM solution should also establish a central mechanism to determine which customer should receive which investment at relationship level. more complete customer information. This will improve the customer’s overall experience in dealing with the organization. WHAT ARE THE BUSINESS BENEFITS OF ECRM? Implementation of E-CRM system enables an organization to streamline process and provide sales. • Customer satisfaction – Automatic customer tracking and detection will ensure enquires are met and issues are managed. marketing and service personnel with better. A DIRECT BENEFIT OF AN E-CRM SYSTEM INCLUDES • Service level improvements – Using an integrated database to deliver consistent and improved customer responses. The result is that an E-CRM organization to build more profitable customer relationships and decrease operating costs. • Revenue growth – Decreasing cost by focusing on retaining customers and using interactive service tools to sell additional products. 87 .

Opportunity management.• Automation – E-CRM software helps automatic campaign including Telemarketing. • Marketing organization can increase campaign response rates and marketing driven revenue while simultaneously decreasing lead generation and customer acquisition costs. effective CRM is a strategic imperative for corporate growth and survival • Sales organizations can shorten the sales cycle and increase e-sales performance metrics such as revenue per sale representative. Telesales. • Customer service organizations can increase service agent productivity and customer detention while decreasing service cost. response time and request resolution times. Lead tracking and response. 88 . Quotes and order configuration. Direct mail. Across every sector and industry. average order size and revenue per customer.

dealers and partner networks. products and performance results using real time information across your business. customers interact with an organization via multiple communication channels – the World Wide Web. The E-CRM system does this by creating a central repository for customer records and providing a portal on each employee’s computer system allowing access to customer information by any member of the organization at any time. E-CRM gives you the ability to know more about customers. Through this system. field sales people. unified organization that recognizes them every step of the way. E-CRM system enables customers to do business with the organization the way the customer wants – anytime. Many organizations also have multiple lines of business that interact with the same customers. call centers. via any channels. 89 . in any language or currency – and to make customers feel that they are dealing with a single.HOW DOES E-CRM WORK In today’s world.

Speed of processing the transaction through e. • Transaction security. • • Convenience. • Personalized services or one – to – one services.response. • Using e-mail for business communication. 90 . • Service quality and trust. • Website to market product or services.E-CRM BENEFITS TO BANKS • Relationship with customers. E-CRM BENEFITS TO CUSTOMERS • Customer interaction and satisfaction.

According to a recent study by McKinsley. In certain industries. Companies that have fewer than 100 employees can now adopt and implement these applications. with the advent of new technologies. solution 91 . Today. Various studies have reflected that the CRM industry is poised to grow at an exponential rate. even the small and medium businesses have realized the importance of customer related activities and are adopting these technologies at a fast rate.CRM EVERYWHERE By investing in CRM or e-CRM applications companies are looking at retaining existing customers and converting potential customer into lifetime customers. advancement and choice of technology have permitted the cost of these technologies to fall to an affordable rate. with competition being the ‘key’ word in every industry. customer retention is a key driver for profitability. only enterprises thought of such applications as part of their business processes. it is critical for any business to meet the expectations of the customers (that is changing ever so fast…) For long. Also. Also not to ignore.

clean. stored in a format that makes it easily accessible for analysis and then analyzed by statisticians so that meaningful information regarding customer behavior. friends and attitudes can be extracted. making the process 92 .based on e-CRM already account for a third of the $100-billion global market for customer care. GUIDELINES FOR A SUCCESSFUL E-CRM SOLUTION Customer data needs to be collected. It is this ability to transform raw data into actionable customer understanding that defines analytical e-CRM.

millions and solutions overrun budget become impossible to deploy. let alone provide the desired results.indispensable to marketers in developing targeted initiatives and to management needing near term project. E-CRM initiatives are often implemented with to many business objectives in mind and managed by departments with different priorities and conflicting politics. 93 . few of the multi million dollars initiatives ever see the light of the day. In many instances. When it comes to an enterprise e-CRM solutions.

94 . “As the years have gone by CRM has gained global importance. PRESENT AND THE FUTURE OF CRM CRM means many different things to different people. By CRM it’s possible to develop a greater understanding of it by looking at its origin and the principles that drove its development.THE PAST.” -Anonymous THE PAST. PRESENT AND THE FUTURE OF CRM.

we can see the following clearly developments and progression over the last few decades: 1960’s – The era of mass marketing. In addition to this. 1970’s – Saw the beginning of segmentation. the explosion of telemarketing and call centers all setup to develop relationships with the customers. the recognition of the true value of retention and the use of lifetime value as a business case. a number of key marketing concepts can also be used to see where CRM has developed from: • Satisfying needs. 95 . THE PAST Looking back at a snapshot history of marketing. customer orientation. direct mail campaigns and clearly telemarketing. By looking at the future of CRM. it is possible to understand more clearly how it could be applied to our business.By then examining the present day definitions of what it means. 1980’s – Where niche marketing made millionaires of those who were best at it. 1990’s – Relationship marketing. we more clearly see where the benefits may be derived and we where we should see CRM developing over the next few years.

analysis and tracking of customers direct response behavior over time…in order to develop future marketing strategies for long term customer loyalty and to ensure continued business growth.” DIRECT MARKETING “The planned recording.• The organization needs to be arranged so that all functions contribute. MARKETING “Determining the needs and want of target markets and delivering the desired satisfaction more efficiently and effectively than the competition.” THE PRESENT 96 . • Profit must be the consequence of delighting customers. It is possible to draw further information definition of marketing and direct marketing.

What we are finding is that the organizations are now moving through several stages of CRM. STAGE SATISFACTION BASED STATE RE-ACTIVE CULTURE Meet customer needs. Continuous improvements. Identify customer retention COMMITMENT BASED VERY PRO-ACTIVE factors. Respond to complaints. Evaluate customer needs. Minimal evaluation of PREFORMANCE BASED PRO-ACTIVE customer service level.The key differences between the concepts of marketing and direct marketing is that CRM is about change throughout the organization (focused around customer) and that technology developments are enabling the concept. 97 . Evaluate customer perception.

• Develop end to end customer processes. at least not for the foreseeable future. they need to look beyond this to the changes in customer expectations. volume. remuneration. • Recognize customer individuality. • Use your people. • Make the best possible use of customer information – particularly when you are transacting with them. transaction types). email/web/e-commerce). 98 .THE FUTURE So what does the future hold? The astronomic development rates of technology are what many people see the key driver. • Technology will consolidate (fixed and mobile telephone. In terms of what the future holds • Customers will play a significant role in managing relationships service models will continue to change (skills. • Be interactive. • The web will create globalization but will replace the need for people. However.

CRM IN INDIA “INDIA IS A BIG MARKET FROM CRM” -DAKSH INDIAN CRM CO-SOURCING COMPANY 99 .

It is a matter of continuous improvement. 1.e. Corporates began to realize that in the face of increasing competition. e-mail (e-CRM). They problem lay in convincing the sales guy who believed in his personal abilities. Sales automation results in more accurate predictions as well. irrespective of whether the communication is from operations. This is one of the key steps of CRM implementation. sales force automation is critical. CRM optimizes processes and functions related to the customer: All operations can be optimized and systematized to enhance efficiency and effectiveness. fax. CRM gives a complete set of tools that are required to improve efficiency. the company is aware of the interaction. Sales operations organizations have to make customer – facing systems more efficient and effective. In order to get a complete picture these must be integrated and tracked. Personal Data Assessments and many other wireless devices. This is why sales force automation became important and critical. systems. 2. telephone. It offers a 360-degree view: A company should have a clear understanding of clients and their needs. It means that whoever the company speaks to. 100 . finance or support.CRM IN INDIA In India CRM satisfies three basic objectives for companies that are keen on retaining customers and increasing market share. There are numerous channels of communication i. sales.

The interaction will help an organization to bring out better products that target potential and existing customers. This varies from customer to customer.3. The whole idea is that if you know your customer better. 101 . • The high cost of implementation and low awareness of benefits is going to prove a major deterrent. SURVEY REPORT ON INDIAN CRM MARKET • The need for improved customer service and high global adoption shall drive the Indian market. Their operations are aimed at getting the right customer and then retaining them by giving them the service they require. To learn from integration: The learning process should be focused on bettering marketing. All these differences lead to the importance and need for CRM. Some customers have preferred channels of communicating. you can target him better. sales and any other function that interacts with the customer. Some customers may not like to transact over the net but may prefer physical transaction.

ACCEPTANCE OF CRM IN INDIA
MARKET DRIVERS
• Reduced Product Differentiation – 18% Response • Media Attention – 12% Response • High Global Adoption – 23% Response • Capabilities Of New Technology – 16% Response

Need For Improved Customer Services – 31% Response

MARKET INHIBITORS
• • • • • •

Lack Of Information About CRM Market – 12% Response Lack Of Success Stories – 8% Response Poor IT Infrastructure – 19% Response Low Awareness Of Benefits – 22% Response High Cost Of Implementation – 22% Response Lack Of Customer Orientation – 17% Response
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CRM IN BANKS – INDIAN SCENARIO
One industry best suited for the implementation of CRM is the Indian banking and financial service, which has the highest growth potential and accounts for 22% of CRM license revenue in 2002. Banks such as ICICI bank, HDFC bank and Citibank are using CRM products. ICICI bank, in fact, has won the DM review World Class Solution Award in 2003 in the business intelligence category for its Teradata enterprise data warehouse solutions.

However, CRM market in India is still in a nascent stage. Indian banks haven’t yet seen big results from CRM solutions, probably because of improper implementation. Being short – sighted, they have adopted new technology without a clear understanding of how to integrate it with the existing system and processes.

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Indian Banking Industry should aim to formulate strategies incorporating people, processes and technology issues. In accordance with the strategies, current and future IT initiatives can be formulated, prioritizing the related activities and their feasibility. Once this is done, implementation in a phased manner will definitely lead to organization’s success in achieving the goals.

CONCLUSION

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CONCLUSION It used to be that one could think of marketing as totally separate form the rest of the business enterprise. the company customizes its service to be a bit more closely suited to the customer needs. This is an inherently integrated operation. the dynamics have changed.” -TOBY DETTER CRM HEAD. One of the benefits of CRM is that it would make a company’s customers more loyal. and customizing your business for them. But with the advent of CRM or OneTo-One marketing or loyalty. Every time a company interacts with the customer. CRM involves knowing your customers individually and having some mechanism for interacting with them or hearing from them.“CRM is not simply about a system. The company is getting a little higher up on the 105 . it is about serving our customers. SHELL EUROPE. delivering on what we promised and having a shared vision on what it means having World Class Customer Service.

This is possible if CRM is implemented in its true spirit. The key is to develop and nurture a close relationship with customers by understanding their needs and preferences and catering to their requirements. ‘Dog Eats Dog’ competition in banking has almost made CRM an in evitable solution. Moreover the companies are making the product more and more valuable to the customer. the diversity and range of products and services on offer form the banks are widening continually. Customers of today demand “UNIVERSAL BANKING”. the jury is still out on whether CRM has fulfilled its promises. The banking industry in India has undergone volatile changes during the last decade and one of the major areas of change has been Customer Service. Despite this. The relationship with the customer is developing in its own context. That not only means listening carefully to what customers have to say. Much has been written about customer relationship management (CRM). technology. but also following through with an improved organizational approach. employees and information across an enterprise to attract and retain profitable customers. 106 . The challenge for the banks is to work towards ensuring that the customers prefer their products and services vis-à-vis that of their competitors. With customer expectations becoming increasingly demanding.customers learning curve. It has been called a strategic tool that combines business processes.

insurance providers and telcos. sometimes even fledgling organisations with better planned systems and processes. have grabbed some of their customers. ICICI Lombard. have suffered because of a lack of understanding of their clientele in terms of behaviour. Has CRM in India been reduced to an empty buzzword that’s tossed around so that a company appears to be keeping up with the industry? Not entirely. because organisations like Standard Chartered Bank. All of us have received unsolicited calls and mail from financial companies and telcos asking us to buy products that we don’t need and sometimes already have! Companies. BPL Telecom and Air-India have successfully used these tools—and benefited.Banks and telcos still create silos of information with little scope for sharing information. Rivals. needs. It is a combination of technology and process change that has worked. especially those focussed on retail such as banks. 107 . and causes of dissatisfaction. The difference lies in the way CRM has been deployed at these organisations. spending patterns.

Customer mentalities are always growing. 2. customer pleasure. Businesses with wealthy CRM approaches and applications will result in a large raise in sales. 3. They must continually invent new products and services in the light of envisaged changes. and business services should increase along with these potentials. and merely the overall achievement of the business. 4. the definition of CRM can be stated as a way through which companies can interact with their customers and so serve them better. Here. They need to satisfy customer needs that are complex and difficult to manage. They need to address the demands based on supply chain. The challenge that lies ahead for banks is Four Fold 1. They need to face up to increased competition from within the sector and from new entrants coming into the financial services market. CRM BASICALLY IS: 108 .

Entirely customizable to get desired result. Always free updated to keep you on top. Extremely mobile with mobile/PDA/wireless Editions. Web based easy to use interface accessible from anywhere.CRM Vs Traditional CRM • • • • • • • • • • • • • • No in-house infra structure requirement. Integration with office and web-based systems and programs. 360 degree customer visibility and automated lead management. Better sales pipeline visibility. Scalability and adaptability. 30 day free trial. Better protection to enterprise data. Open-source CRM software made up of modules. RECENT SURVEY ON CRM 109 . No requirement of in-house technical persons. Centralized well sorted enterprise database.

a Harris Interactive study sponsored by Right Now Technologies. 80% of consumers will never go back to an organization after a bad customer experience. Converso. The survey commissioned by outsourced contact centre.000 Consumers.According To The Second Annual Customer Experience Impact Report. if I meant it was easier to contact a customer service representative for enquiries. would seriously consider changing a provider. rather than be faced by a recorded telephone message or no facility to speak to a live operator. also found a disgruntled 86% of Brits said they find themselves constantly saying yes or no to an answer phone rather than actually talking to someone. 110 . The Majority (96%). up form 68% in 2006 According To A Survey Of 25.

but thinking about CRM solely in technological terms is wrong. It is now a reliable process that combines business and technology to power a customer-focussed organisation. responsiveness and market trends.focussed and develop stronger relationships with its clientele. evolved and matured over the years. sales. CIOs and even CEOs are asked to repeat this mantra: “CRM is a business initiative and is not about technology. To create successful customer-centric organisations. It is not about solving a technology problem. it is a process that aligns your business around your customers’ needs. It helps piece together information about customers.” CRM is a management strategy that enables an organisation to become customer . 111 .THE MANTRA FOR CRM SUCCESS For companies that use CRM and those that plan to. it is important to understand that CRM technology has developed. Technology can play a significant role in CRM being an enabler. marketing effectiveness.

India Commercial Banking. It was an enlightening experience for me. How do you segment and identify your customers? --Basically we have three segments of customers they being PLATINUM. 1. She gave me all the valuable information regarding the various CRM strategies adopted by SCB and the various techniques adopted by the bank to manage its customers effectively. Also based on their A/C No. Customer-attrition is a serious threat to the bank and efficient CRM strategies can help to reduce customer attrition. as it is easy to identify them. etc. Standard Chartered. Is customer satisfaction a part of your banks vision? 112 . We use some caller verification code. Head. KEY and CORE. and easy to access.Shyamala Borkar. we are going from the manual to the web based system as a part of SCB group strategy. We have (CIC) Client Identification Code which is unique. which is user friendly. 2.CRM AT STANDARD CHARTERED My discussion regarding CRM in Banking was with Ms. What are the CRM Strategies that Standard Chartered Bank follows? Why is it essential? --To address the drawback of the current query system. Client Services Group . Address. 3. PAN card No.

4. Comprehensive pricing. • Specialized services 6. for KEY clients. • Proactive calling with clients. SCB tracks all complaints on a daily basis. such as customized services and normal services. Customer visits and Service reviews. • Dedicated key service managers. Strategies followed to enhance customer loyalty --Segregation of services based on KEY and CORE client segments. We have • Dedicated telephone No. it is very imperative. We have (TAT) Turn Around Time which enables us to solve the complaints within 8hrs time. 7. Our Complaint and Feedback system is called as COMMAND. Do you maintain a complaint management / feedback system? --Yes. our vision is to have customer delight and “To be a service partner with our clients delivering simply first class service”.--Yes. What strategies Standard Chartered Bank follows for customer retention? --Best of service. Do you pay attention to all your customers effectively? 113 . 5. We believe in going beyond Call of Duty.

We visit the client along with operations and sales team. wants. 114 . 11. 9. ideas and complaints? --Yes. Its via our website. 10.--Yes we pay a lot attention and cover all the segments of our clients. calling up our clients etc. enhance loyalty. we distinguish our services based on (CR) Client Relationship Key and Core Coverage Model. 8. absolutely.1%. Do you regularly make up an inventory of all the needs and expectations of your customers? --Yes. It enables us SCB to retain customers. Hence SCB does not lose a customer time and again. and pitch the wallet share. Do you make recommendations to customers about the products and services that suit their needs? --Yes. Do you know what it costs when you lose a customer? --We believe in a well-built strategy that helps SCB to retain its existing customers. Do you organize meetings with customer groups to learn about their needs. It is about 0. We conduct a visit on regular basis (Covering all segments). this happens during monthly service review visits and feedback from our sales team. advertisement. its our deep-seated priority.

13. 95% of complaints are solved within 8hrs and 5% are Holding Reply as they are investigation related but are solved within 2 days time. 14. It is based on • Nature of business • Authorized signatory • Source of business • Line of business etc. Do you identify where improvements are needed from the customers perspective? --Yes. Improvement areas are identified by the way of 115 .12. Are customer complaints replied to within a day and solved with within a day or two? --Yes. we do. our system is a core system which covers all the profile and characteristics of our clients and it is stored in this system. Do you have an up-to-date databank in which all characteristics of your customers are registered? --Yes. SCB has (TAT) Turn Around Time with the help of which complaints are solved within 8 working hours.

• Service review • Command system • Feedback from sales team • Customer visits 15. all the employees are involved in complaint management process and personally handle the complaints of customers and are registered in the Command system. Its even better than what they expect. Are products and services delivered within the period expected by the customer? --Yes. 16. infact we try our level best to deliver it before the period expected by our clients. Does top level management also personally handle complaints of your customers? --Yes. SCB is a multinational bank and all the products and services are immediate. 116 .

117 . which included total earnings. fee income. which is the key to survive in the fiercely competitive financial marketplace. It answered the financial queries and generated reports at a broad portfolio level. The objective was to analyze new business opportunities.CASE STUDY: STANDARD CHARTERED CRM BANKING ON CUSTOMER RELATION Standard Chartered Bank was looking for a tool that would help it analyze the huge volumes of data captured by its OLTP systems. debt situation. cost. interest income. The system was reliable but provided little scope for in-depth customer analysis. provide better customer service. and boost profitability. and profits. IMPEDIMENT Standard Chartered Bank (SCB) previously used Online Transaction Processing (OLTP) system. which facilitated and managed transactionoriented applications.

It went for the SAS Customizable CRM Solutions. SCB decided to use a suite of products from SAS. the bank had to implement a data warehouse and analytical solution. They wanted a solution that can perform analytics on the valuable customer data to answer queries across divisions.The bank realized that it needed to go a step further and deploy a solution which it can use to analyze the huge volumes of data captured by its OLTP systems. After evaluating a number of vendor offerings. It was clear that in order to achieve the desired benefits. The answers would then enable them to proactively service customers and thereby ensure customer loyalty and retention. This information can help a bank take critical business decisions in the dog-eat-dog financial world. RESOLUTION The bank's IT team looked at the business requirement in detail and deduced that the organization needed a data warehousing and analytical solution that would help analyze customer data to enable fact-based decision making in areas ranging from acquisition and risk management to cross-selling and portfolio management. 118 . The idea was to search for crucial nuggets of information from the vast amounts of transactional data at its disposal to get the right information. to the right executive and at the right time. This exercise is a must for survival in a fiercely competitive environment.

This unit was responsible for deriving and implementing strategies to analyze and exploit customer data. The company evaluated a number of solutions and SAS was chosen as the preferred solution partner and SCB today relies on SAS solutions across Asia for its customer analytics. It means that fundamental decisions on strategy and resource allocation must be based on a detailed and accurate understanding of customers and the overall market.The bank created a team of 25 people in Bangalore and called it a Business Intelligence Unit. Standard Chartered Bank uses SAS Customizable CRM Solution to adopt a truly customer-centric approach to manage its business. and a test and learn culture they know the likelihood of customers to take a new product. The customizable CRM solution provided SCB with: 119 . This has resulted in more focused marketing campaigns and reduced costs with improved customer satisfaction. Using analytics. It was easier for them to run targeted campaigns and elicit substantially higher returns since they perform profit modeling for each account. SCB now knows which member is more likely to avail a service or product. This also enables micro-segmentation.

Hence the bank's vision was to champion fact-based strategic business decisions using best-in-class analytics. • Combine business rules and analytic models to accurately segment and profile customers. tailor data for efficient access and analysis. and construct a personalized strategy for each group. eliminate data errors and redundancies. • Deliver customer intelligence into front office systems to enable Combine behavioral insights derived from analytics with attitudinal smarter customer interactions through various channels. The bank was looking forward to the following broad benefits: • The ability to exploit changing and widening markets. and credit risk. • data obtained from online and offline customer surveys. • Anticipate customer expectations and predict customer behavior like. and reduce the complexity of data management. The objective was to enhance the organization's competitive advantage and boost profits. • for purchasing particular combinations of products and services. Allow to cross-sell and up-sell.• Integrate information from multiple sources. 120 . and focus the marketing efforts on a more receptive audience. It can help identify the best candidates propensity to purchase. lifetime profitability.

and debt capital markets.• The ability to implement a customer-centric approach focused on The ability to concentrate on financial budgeting. • 121 . IN A NUTSHELL • THE COMPANY Standard Chartered Bank has over 2. • and shareholder value by effectively managing consumer relationships. Its products and services include cash management. and To look for new ways to minimize costs. custody. to the right people. cost control. in order to carry out a number of critical business activities and provide excellent customer service. foreign exchange. interest rate management. • risk management.3 million credit card customers nationwide.2 million retail customers and over 1. • • THE NEED The bank needed to manage and analyze the huge volumes of data captured by its OLTP systems. at the right time. lending. It had to get the right information. while increasing profitability optimizing the lifetime value of the customer.

com www. cost control. implement a customer-centric approach.com www. while increasing profitability and shareholder value.• THE SOLUTION SCB decided to go for SAS Customizable CRM Solutions to address its business needs. concentrate on financial budgeting. • • THE BENEFITS The bank can now exploit changing and widening markets.com www.crmguru.crmnext. and figure out new ways to minimize costs.google.crmtoday. and risk management.com MAGAZINES The Week Business Today 122 . BIBILOGRAPHY WEBSITE www.com www.crmadvocate.

Mint BOOKS CRM IN BANKING – By V V GOPAL UNDERSTANDING CRM – By R S PRASAD NEWSPAPERS Economic Times DNA Money 123 .

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