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



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)


4 .

5 .

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

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

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

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

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



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

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

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

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

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

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

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

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

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

ORANGE. 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. They believed that automation and better management of their sales and customer service process would lead to increased revenue and customer satisfaction. -MR.“CUSTOMER FOR LIFE THROUGH SYSTEMS AND SMILES”. Vendors were all too happy to support this 22 . Middle management focused on automating departmental functions such as sales and help desk support. MAHESH DADLANI CUSTOMER RELATIONS.

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

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

It’s the piece called “marketing”. 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. long-term relationship.seller to segment and analyze their customer information in order to create a more personalized. This was the right direction to take. However. 25 . Today. companies haven’t reached the end of the CRM road. 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. We’re not saying that the last decade’s investment in CRM has been wasted.


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

The value generation for the vendor was the sole criteria for the success of the business. Naturally. Consumer history will be recorded and the expectations of both parties will be met.outpaced their ability to absorb and apply the information. 28 . Transaction based marketing: The volume based marketing which was a single function approach was the first stage. In this next evolutionary phase of CRM. The evolution process of CRM has worked as follows 1. not every conversation will be profitable. 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. They were left with sophisticated tools that offered little real value. But the series of conversations and the ongoing knowledge transfer will continue to grow. information will be exchanged and acted on in real time. a profitable relationship. creating a memorable and differentiated customer experience. in the long run. and.

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. 29 . technological innovations made it necessary for the vendors to adopt strategies for customer retention.2. commerce. 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 Acquisition: was the key for this. Customer retention: The factors like fierce competition in growing number of vendors. closing gap in quality and performance.

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

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

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

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.

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.


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.

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.


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.


Profitability-Driven Account Planning - Enables commercial

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


Key components include consistent credit request processing and streamlined account origination which helps increase the quality of credit portfolios.Enables the efficient and consistent processing of commercial loans. 5. and superior service to their customers. 2. efficient. Relationship-Driven Sales . 4. fee based products to the appropriate customers. Compliance with regulatory procedures (such as Regulation B loan notification requirements) is built into the workflow of the solution set.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. Efficient product installation improves banker productivity by automating time-consuming manual tasks. 3.Allows commercial banks to increase customer satisfaction and retention. 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. Components such as value-added personalized service and proactive outbound service enable organizations to provide fast.Includes streamlined proposal and credit document generation.customer profitability. 36 . End-to-End Credit Management . Banker Productivity . Customer-centric Service .

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

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

• 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.

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

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

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

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

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

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. Ohio. for e. Some of the newer techniques are designed to capture feedback when the customer’s response is fresher. allowing Fleet Boston to adjust its procedures quickly.g. 45 . Customer responses are tabulated and scored and then sent to call center managers the very next day. Immediacy is also important. estimates a telephone survey of 500 people costs between $20 to $30 per person. Fleet Boston. “If we change the way our reps answer the phone.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.One Corp’s retail unit in Columbus. not including overhead or the cost of designing the survey – compared to as little as $5 per e-mail. Traditional surveys reach customers some time after their service contact at the bank.” Hedges say: This gave birth to Customer Relationship Management…….


• With abundance of product and service offerings. Like the television and the PCs revolutionalized our lives in the twentieth century so is wireless communication. internet and pervasive computing going to affect our daily pattern of lives. • Speed response and understanding each individual one is the major key issues. 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. 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. • People wish products and services around the clock.With technology touching the way we live our lives. to support sales and marketing strategies. 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. expectations of individuals is fast changing. 47 .

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

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

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

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. 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. customer portals that are meant to provide information to the customers and can also include communications between communities.

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

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

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’. In the current competitive scenario – for 54 . So what’s the problem? The problem is that these measures fall short of the potential to truly maximize value from the existing customers. Knowledge dissemination has been propelled by electronic and mass media campaigns. Banks need to reconsider their traditional focus on product lines. not just a series of transactions. 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. and can even be self defeating. Today’s knowledge savvy consumer is challenging the Indian retail banking industry to redefine itself.ambitious campaigns to cross sell services to the existing customers.

The battle of the banks. A good customer experience 55 . Ensuring a good customer experience at every customer touch point is the corner stone of a successful growth strategy. banks are finding it increasingly difficult to meet the high growth expectations. is taking on a new urgency. for gaining a greater slice of market share. 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. there is hardly any option but to learn from and actively respond to customers’ needs. 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.a bank to survive competition. succeed and make profit. 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.

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

enabling continuity and consistency across a customer relationship.banks is to retain and deepen the profitability of the existing customer relationships. 57 . 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. and design and track effective marketing campaigns. CRM links business process across the supply chain from back – office functions through all touch points. model “what-if” scenarios. assess and maximizes lifetime value of each customer. predict customer behaviors. From an operational standpoint. From a strategic standpoint. CRM mobilizes resources around customer’s relationships rather than product groups and fosters activities that maximize the value of lifetime relationships. CRM is a host of analytical data tools that enable banks to fully understand customer segments. From an analytical standpoint.

retail financial services institutions are expected to spend some $6.8 billion on CRM in 2001. 58 . related products and their holding pattern with the bank. • Enabling the bank to fulfill customer needs at the right time with the right offer.According to Meridian Research. With this base. • Fostering greater long term loyalty through relationship building. This should allow the banks to generate a single. • Identifying high risk customers and adjusting service accordingly. • Enabling immediate action to retain the most valuable customers. • Increasing the rate of return on marketing initiatives. the banks must identify prime customers who require to be specially treated under CRM. 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. Those investments will pay off for banks by • Restoring the personal service connotation that previously removed.

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

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

electronic and wireless. 61 .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. It aimed at providing information to employees and documenting all customer interactions across channels such as personal contacts.

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

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

1. The reason can broadly be attributed to • Lack of understanding of the line and staff functions and the overall structure and organization. • Inadequate knowledge about the sphere of operations at different levels. This is common in the case of loan products. web portals and written queries. Understand the organization environment There are essentially two components to the services provided by banks: CUSTOMER INTERFACE and TRANSACTION EXECUTION. While both components are complementary in nature. Transaction execution is the forte of the operations staff and IT. customer call centers. 64 . Components of customer interface are field sales staff. the skill-set required for the components are unique. 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. 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.

• 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


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


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.


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.


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


But its penetration into the industry in general and that into the financial services market in particular has been rather uninspiring. Additionally.CRM IN RETAIL BANKING CRM has been in India for over seven years now. 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. Benefits that banks can look forward to form CRM In highly competitive and dynamic market landscape. 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. 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. 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. The surprising aspect that came out from the study was that though banks were aware of the benefits of CRM.

of retaining an existing customers. • Streamlining of the business process across different functions aligned to the best practices. • Giving customers the ability to transact through multiple channels. this makes cross selling and up selling easier. • Reduced training costs. Research shows the more products a customer buys from a firm. Cross selling to existing customers produces incremental underwriting accuracy. Apart from enhancing customer satisfaction. 71 . • Providing an integrated view of customers across companies and channels. sales and customer service staff. 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. the less likely that person is to leave it. • Increased productivity of managerial executives. one cannot be complacent as far as customer satisfaction is concerned.

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

however. 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. a handful of retail banks boast of globally integrated delivery channels that are built on standard technology principles.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. Quantifying the effects of fixing this problem proves to be tricky. No institution. 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. however.. Today. can claim to have all channels working on a common platform or claim even to share information or process across all channels.g. 73 . deliver consistent architecture. for e. as well as business managers that rely on the delivery channels to their service products. These channels can. IT managers within the bank.

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

perhaps. or through some integrated channel management architecture. 75 . neither the chicken nor the egg came first. account. Both arrived at the same time.Thus. for banks. Institutions are already collecting most of the available information today such as identity. banks need to completely understand the issues surrounding the use of knowledge. For once. technology is not the problem. 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. channels. But the marriage of integrated delivery channels and customer knowledge is not a trivial arrangement. To build on the full strength of this collaboration. and then tread lightly. The opportunities to combine these powerful capabilities are built in to the very systems that enable them individually. themselves. Data acquisition through customer interaction is determined by the delivery channels.

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

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. and analysis of how customer uses these products. By itself. tying to a quantified loss.While many institutions are currently performing such analysis with a given channel. 77 . 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. analysis of all external providers of service. This information can also be made available to the automated channels to keep the customer aware of the status of problems or account applications. the next step includes analysis of the customer’s behavior across in a broader context. this management of information from the delivery channels offers many benefits to the institution and the customer. • Keeping certain transactions open – ended to maintain continuity of service. 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.

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

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

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


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

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

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 issues which it impacts and other factors. The six “e” in E-CRM can be used to frame alternative definitions of E-CRM based upon the channels which E-CRM utilizes. Though the core of E-CRM remains to be cross channel integration and optimization. the six “E’s” of E-CRM are briefly explained as followed: 84 .

Enterprise: Through E-CRM a company gains the means to touch and a shape a customers experience through sales.1. which channel. 3. Economics: An E-CRM strategy ideally should concentrate on customer economics. valuable information that a customer accepts in exchange of his/her attention. challenging companies to keep pace with this increased velocity. services and corner offices whose occupants need to understand and assess customer behavior. directing efforts at individuals likely to provide the greatest return on customer communication initiatives. 4. which drive smart asset-allocation decisions. 85 . 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. E-CRM thrives on these electronic channels. Electronic channels: New electronic channels such as the web and personalized e-messaging have become the medium for fast. 2. interactive and economic communication. at what frequency? An E-CRM solution must be structured to deliver timely pertinent.

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

This will improve the customer’s overall experience in dealing with the organization. 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. • Customer satisfaction – Automatic customer tracking and detection will ensure enquires are met and issues are managed. more complete customer information. A DIRECT BENEFIT OF AN E-CRM SYSTEM INCLUDES • Service level improvements – Using an integrated database to deliver consistent and improved customer responses. WHAT ARE THE BUSINESS BENEFITS OF ECRM? Implementation of E-CRM system enables an organization to streamline process and provide sales.ECRM solution should also establish a central mechanism to determine which customer should receive which investment at relationship level. marketing and service personnel with better. 87 . • Productivity – consistent sales and service procedures to create efficient work processes.

Lead tracking and response. Telesales. 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.• Automation – E-CRM software helps automatic campaign including Telemarketing. response time and request resolution times. • Customer service organizations can increase service agent productivity and customer detention while decreasing service cost. • Marketing organization can increase campaign response rates and marketing driven revenue while simultaneously decreasing lead generation and customer acquisition costs. 88 . Across every sector and industry. Opportunity management. Quotes and order configuration. Direct mail. average order size and revenue per customer.

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

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

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

clean.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. friends and attitudes can be extracted. making the process 92 . stored in a format that makes it easily accessible for analysis and then analyzed by statisticians so that meaningful information regarding customer behavior. It is this ability to transform raw data into actionable customer understanding that defines analytical e-CRM.

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

PRESENT AND THE FUTURE OF CRM.THE PAST. 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. “As the years have gone by CRM has gained global importance. 94 .” -Anonymous THE PAST.

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

” THE PRESENT 96 .” DIRECT MARKETING “The planned recording. It is possible to draw further information definition of marketing and direct marketing. • Profit must be the consequence of delighting customers.• The organization needs to be arranged so that all functions contribute. 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. MARKETING “Determining the needs and want of target markets and delivering the desired satisfaction more efficiently and effectively than the competition.

Evaluate customer perception. 97 . Continuous improvements. Identify customer retention COMMITMENT BASED VERY PRO-ACTIVE factors. STAGE SATISFACTION BASED STATE RE-ACTIVE CULTURE Meet customer needs. Respond to complaints.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. Minimal evaluation of PREFORMANCE BASED PRO-ACTIVE customer service level. What we are finding is that the organizations are now moving through several stages of CRM. Evaluate customer needs.

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


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

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

• 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

• • • • • •

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

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.


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.



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

The relationship with the customer is developing in its own context. Customers of today demand “UNIVERSAL BANKING”.customers learning curve. Moreover the companies are making the product more and more valuable to the customer. 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. This is possible if CRM is implemented in its true spirit. 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. but also following through with an improved organizational approach. the jury is still out on whether CRM has fulfilled its promises. That not only means listening carefully to what customers have to say. Much has been written about customer relationship management (CRM). Despite this. the diversity and range of products and services on offer form the banks are widening continually. technology. 106 . It has been called a strategic tool that combines business processes. With customer expectations becoming increasingly demanding. 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. employees and information across an enterprise to attract and retain profitable customers.

BPL Telecom and Air-India have successfully used these tools—and benefited. especially those focussed on retail such as banks. have grabbed some of their customers. have suffered because of a lack of understanding of their clientele in terms of behaviour. ICICI Lombard. sometimes even fledgling organisations with better planned systems and processes. needs. 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. Rivals. insurance providers and telcos. 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.Banks and telcos still create silos of information with little scope for sharing information. The difference lies in the way CRM has been deployed at these organisations. It is a combination of technology and process change that has worked. and causes of dissatisfaction. spending patterns. 107 . because organisations like Standard Chartered Bank.

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

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

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

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

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

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

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

our system is a core system which covers all the profile and characteristics of our clients and it is stored in this system. 13. SCB has (TAT) Turn Around Time with the help of which complaints are solved within 8 working hours. 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. Do you identify where improvements are needed from the customers perspective? --Yes. It is based on • Nature of business • Authorized signatory • Source of business • Line of business etc. 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. Do you have an up-to-date databank in which all characteristics of your customers are registered? --Yes. we do.

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

117 . debt situation. The system was reliable but provided little scope for in-depth customer analysis. cost. fee income. and boost profitability. and profits.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. IMPEDIMENT Standard Chartered Bank (SCB) previously used Online Transaction Processing (OLTP) system. It answered the financial queries and generated reports at a broad portfolio level. which facilitated and managed transactionoriented applications. which is the key to survive in the fiercely competitive financial marketplace. interest income. provide better customer service. which included total earnings. The objective was to analyze new business opportunities.

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. 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. 118 . This exercise is a must for survival in a fiercely competitive environment. They wanted a solution that can perform analytics on the valuable customer data to answer queries across divisions. This information can help a bank take critical business decisions in the dog-eat-dog financial world. the bank had to implement a data warehouse and analytical solution. It went for the SAS Customizable CRM Solutions.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. 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. to the right executive and at the right time. After evaluating a number of vendor offerings. SCB decided to use a suite of products from SAS.

It was easier for them to run targeted campaigns and elicit substantially higher returns since they perform profit modeling for each account. The customizable CRM solution provided SCB with: 119 .The bank created a team of 25 people in Bangalore and called it a Business Intelligence Unit. and a test and learn culture they know the likelihood of customers to take a new product. 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. This also enables micro-segmentation. Using analytics. This has resulted in more focused marketing campaigns and reduced costs with improved customer satisfaction. Standard Chartered Bank uses SAS Customizable CRM Solution to adopt a truly customer-centric approach to manage its business. 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. SCB now knows which member is more likely to avail a service or product. This unit was responsible for deriving and implementing strategies to analyze and exploit customer data.

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

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

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


124 .

125 .

Sign up to vote on this title
UsefulNot useful