CRM – CONCEPT,

APPLICATION AND
ANALYTICS IN BANKING

Deepa Tandan
Common myth about CRM
• Only certain kind of businesses need CRM

• looking at Diversity of our customers disproves the myth

 If you are working with people , if you have
customers that rely on you for something, you
need a CRM system
Concept of CRM
• CRM is a technology for managing all your company’s
relationships and interactions with customers & potential
customers…

• When people talk about CRM, they are usually referring

to a CRM system / software, a tool that helps with
contact management, sales management, productivity
and more

• CRM is a multi-faceted solution

What is CRM ?
• CRM is not a product or service. It is an overall business
strategy that enables companies to effectively manage
relationships with their customers.

• Customers have a lot more choices, and do not have to

be loyal
Customer is king!
• CRM reiterates need for employees to treat customers
with respect

• It is concerned with the creation, development, and

enhancement of individual customer relationship with
carefully targeted customer groups resulting in
maximizing the total customer life time value
Metamorphosis of marketing

Primitive marketing

Mass marketing

4 Ps and STP model

Value based marketing

Relationship marketing
 TRADITIONAL RELATIONSHIP
MARKETING MARKETING
• Focus on single sale • Focus on customer
retention
• Orientation to • Orientation to product
product features benefits

• Limited commitment • High commitment for

for customers customers

• Moderate contact • High contact with

with customers customers

• Quality –Concern of • Quality- Concern of all

product Dept. Depts.
Need for banks
• To manage customer information

• Build strategies for acquiring and retaining customers

• Need to go beyond transactional data to learn more

about their customers

• Need to anticipate customers’ needs

• Need to understand their frustrations

Concept of CRM
• CRM is the process of managing detailed information
about individual customers and carefully managing all
customer “touch points "with the aim of maximizing
customer loyalty
• To turn current and new customers into regularly
purchasing clients and then to progressively move them
through being strong supporters of the company and its
products and finally being active and vocal advocate for
the company in the market
• To establish , maintain and enhance relationships with
customers
Benefits of CRM
Improved Customers retention

Facilitates outstanding support

service

Enhanced customer
satisfaction/ loyalty

Can convert a mere account

holder into a loyal, satisfied
and fruitful customer
Boosted sales
• Assists in sales management with its sales modules

• Helps to identify and convert leads to prospective

customers

• Helps in acquisition of new customers through use of

past track records and value they brought to the banks
More effective marketing
efforts
• Makes marketing efforts more productive

• CRM generates reports highlighting customers’ touch

and data points, purchase behavior, engagement
channels…

• Marketing teams can develop new marketing

opportunities for engagement and retention

• CRM strengthens marketing strategies through proper

segmentation, focused targeting and automation
Increased productivity
• With complete data of customers on a single screen,
bankers can now spend more time on strengthening their
customer relationships than spending on gathering and
organizing data

• Increases productivity by reducing cost through

minimizing or eliminating repetitive tasks

• With right technology Bankers are able to handle more

customers account in less time
Personalized customer
relationships

It is difficult to keep track of and follow up each customer

data and look at trends

CRM overcomes this difficulty

Helps you understand needs, preferences and behavior of

each customer on a single platform and then plan your
marketing strategy
Efficient communication
• Bank call centers are using CRM software for many
purposes

• CRM is automating communication and interactions with

customers

• CRM also helps banks to monitor conversations about

their brand and products across different online media

• It also assists in inter- department communication

Better customer service and
experience

Provides better Assists in knowing

CRM provides
service via quick, what customer
deeper insights
automated desires, furnishing
into customers’
response to quick support,
data, thus
customers’ building personal
enabling greater
queries, relationships and
customer support
facilitating service maintaining an
service
relevant to them ongoing journey
Bring delight into every banking experience!
Ultimate objective
• Allows banks to link with their customers and build long
lasting relationship

• Helping them set apart from competition

• Banks can reap the best out of its customers

• Customers can enjoy the best out of their banks

Using the analytics provided by
CRM…

Customer service can

CRM can improve
evolve to a more
personalization at the
personal and profitable
digital level
level

Tools provided by CRM can be

harnessed to initiate digital
transformation and scale operations to
the demands of customers
segmented marketing
• Banks use CRM to segment customers

• Based on their account information, engagement,

history, types of services they use

• Campaigns can be built with messaging that resonates

• Leads to relevant offering and cross sell opportunities –

thereby retention amidst competition
Rethinking processes for
profits
• CRM can turn instinctual decision making to data backed
decision
• CRM reports reveal services which are profitable and
which are not; number of customers using service “A”,
• Whether an initiative or process is worth it and cost
effective, or to change them
• CRM points out process gaps and also helps standardize
new and more effective processes, automated
workflows, reminders, milestones alerts
Used by relationship managers
• To harness power of face to face interactions

• Especially at the perfect time- alerts major events in

customers life

• Customers can feel valued; opens more opportunities

Banking CRM challenges

• Concern about data security and controlled access

• Integration of CRM with existing systems

Remedies
• CRM security has been beefed up to meet the challenge

• CRM system offer granular, role based permissions for

security and access

• These roles can be set by CRM administrator- for

individuals or teams

• Encrypted transmissions , data center back ups and

session time outs are few ways to ensure security of
cloud data
Beating Integration challenges

Be upfront about your existing

solutions with provider

Ask the provider about integration

options

Find out the cost implications

Benefits of CRM & analytics for
Banks
• Average ROI of banking CRM is $8.71 for every $1 spent
• Build stronger customer relationships
• Create proactive services campaign
• Optimize your digital experiences
• Identify and convert more qualified leads
• Streamline and speed up communication
• Calculated data driven insights on customer behaviors
• Improve customer experiences with your banking services

• Boost customer loyalty and retention

• Reveal buying patterns and customer preferences

• Deliver insights for proactive customer service

• Standardize and streamline processes across departments

• Uncover trends and reveal new marketing opportunities

• Reduce spend on initiatives that aren't working

• Analyze customer profitability

• Define cross sell opportunities faster

• Save sales and services reps time by automating their

processes
Thank you