PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAEGEMNT IN BANKING

SUBMITTED BY
DEBOSHREE.K.MAJUMDAR TYBBI SEMESTER V

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

SUBMITTED TO
UNIVERSITY OF MUMBAI ACADEMIC YEAR: 2008-2009

UNDER THE GUIDANCE OF
MR.AMIT OAK
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DECLARATION

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

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

____________________ Signature of the student

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CERTIFICATE

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

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

__________________

Mr.Amit Oak (Project Guide)

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

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

usually depending on sophisticated computer systems . Today it’s widely acknowledged how you treat your customer goes long way in determining your future profitability. The aim of CRM is optimize the use of technology and human resources for the business to gain insight into the behavior of costumer. It is said that “It is seven times more expensive to acquire a new customer than to keep an existing one”. Customers are serious about the service they 8 . so that a company can offer them goods or services in which they are likely to be interested. 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". Customer Relationship Management refers to the process . In additional to all the usual customer care principles. and companies are making bigger and bigger to do just that. 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.to record and analyze the buying habits of customers. than it does to court new ones.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 costs a company dramatically less to retain and grow an existing client.

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

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

2. 14. 5. 10. CRM IN RETAIL BANKING 9. E-CRM THE PAST. 13. 6. RETAIL BANKS PLANNING FOR CRM 8. PRESENT AND THE FUTURE CRM IN INDIA CONCULSION SURVEY AND MANTRA OF CRM CRM AT STANDARD CHARTERED CASE STUDY 74-84 63-73 57-62 11. SCOPE.1. INTRODUCTION BIRTH OF CRM NATURE. 12. 85-89 90-94 95-99 100-101 102-106 107-111 11 . PROCESS AND STRATEGY OF CRM BANKING ON CUSTOMER FOCUS TECHNOLOGY IN CRM CRM IN BANKING 11-19 20-26 27-35 36-41 42-46 47-56 7. 3. 15. 4.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• •

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


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

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

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

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

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

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

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

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

BENEFITS OF CRM
1.

Profitability-Driven Account Planning - Enables commercial

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

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

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

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

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

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

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

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

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

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

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

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

• People wish products and services around the clock. to support sales and marketing strategies. 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. 47 . 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. expectations of individuals is fast changing. Like the television and the PCs revolutionalized our lives in the twentieth century so is wireless communication. • With abundance of product and service offerings. • Speed response and understanding each individual one is the major key issues. CRM has become the central focus area which the entire gamut of organizational activities has to revolve around.With technology touching the way we live our lives. internet and pervasive computing going to affect our daily pattern of lives. consumers’ loyalty can be commanded by providing better portfolio of the products.

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

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

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

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 . customer portals that are meant to provide information to the customers and can also include communications between communities.The interactions also include personalization or one-to-one communications.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3.

Analyze the product environment

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

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

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

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

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

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

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

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

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

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

But its penetration into the industry in general and that into the financial services market in particular has been rather uninspiring. It is found in a research that the cost of acquiring a new customer is over 5 times the cost 70 . 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. Benefits that banks can look forward to form CRM In highly competitive and dynamic market landscape. The surprising aspect that came out from the study was that though banks were aware of the benefits of CRM. they were skeptical about its applicability to their organization. Additionally. 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.CRM IN RETAIL BANKING CRM has been in India for over seven years now. 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.

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

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

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. 73 . however. Today. as well as business managers that rely on the delivery channels to their service products. 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. 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. can claim to have all channels working on a common platform or claim even to share information or process across all channels..g. however. Quantifying the effects of fixing this problem proves to be tricky. IT managers within the bank. a handful of retail banks boast of globally integrated delivery channels that are built on standard technology principles. deliver consistent architecture. for e. These channels can.

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

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

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

By itself. the next step includes analysis of the customer’s behavior across in a broader context. A FEW EXAMPLES OF THIS INFORMATION MANAGEMENT STRATEGY • Using channel analysis to model and predict demand at the delivery channels after marketing campaigns or to gauge the impact of channel downtime on service or revenue. • Using customer preference to understand the individual customer’s favorite channels for specific transactions. 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. This information can also be made available to the automated channels to keep the customer aware of the status of problems or account applications.While many institutions are currently performing such analysis with a given channel. 77 . 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. analysis of all external providers of service. tying to a quantified loss. and analysis of how customer uses these products. 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.

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

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

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

ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT (E-CRM) 81 .

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

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

Though the core of E-CRM remains to be cross channel integration and optimization.Single channel Multiple channels Single enterprise view of customer integration of customer channels Outbound Campaign ROI metrics Many campaigns running simultaneously Higher effectiveness rates Opt-in-principle Strong customer metrics Many simultaneous campaign Very high response rates Leveraging customer information for specialized value proposition Out bound only Simple metrics <25 campaigns a year 2% average response rates 20% customers deliver 100%profits The SIX “E’s” OF E-CRM The “e” in E-CRM not only stands for electronic but also can be perceived to have many other connotations. The six “e” in E-CRM can be used to frame alternative definitions of E-CRM based upon the channels which E-CRM utilizes. the six “E’s” of E-CRM are briefly explained as followed: 84 . the issues which it impacts and other factors.

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

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

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

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

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

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

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

making the process 92 . clean. GUIDELINES FOR A SUCCESSFUL E-CRM SOLUTION Customer data needs to be collected. friends and attitudes can be extracted.based on e-CRM already account for a third of the $100-billion global market for customer care. 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.

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

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

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

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

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

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

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

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

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

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

Need For Improved Customer Services – 31% Response

MARKET INHIBITORS
• • • • • •

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

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

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

CONCLUSION

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

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

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

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

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

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. The Majority (96%). 110 . up form 68% in 2006 According To A Survey Of 25. 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.According To The Second Annual Customer Experience Impact Report. 80% of consumers will never go back to an organization after a bad customer experience. rather than be faced by a recorded telephone message or no facility to speak to a live operator. The survey commissioned by outsourced contact centre. Converso. would seriously consider changing a provider.

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

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

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

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

Are customer complaints replied to within a day and solved with within a day or two? --Yes. 14. Do you have an up-to-date databank in which all characteristics of your customers are registered? --Yes. 13.12. our system is a core system which covers all the profile and characteristics of our clients and it is stored in this system. SCB has (TAT) Turn Around Time with the help of which complaints are solved within 8 working hours. we do. Do you identify where improvements are needed from the customers perspective? --Yes. Improvement areas are identified by the way of 115 . It is based on • Nature of business • Authorized signatory • Source of business • Line of business etc. 95% of complaints are solved within 8hrs and 5% are Holding Reply as they are investigation related but are solved within 2 days time.

all the employees are involved in complaint management process and personally handle the complaints of customers and are registered in the Command system. 16. 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. 116 . Are products and services delivered within the period expected by the customer? --Yes. SCB is a multinational bank and all the products and services are immediate.• Service review • Command system • Feedback from sales team • Customer visits 15. Its even better than what they expect.

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

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. They wanted a solution that can perform analytics on the valuable customer data to answer queries across divisions. SCB decided to use a suite of products from SAS. the bank had to implement a data warehouse and analytical solution. to the right executive and at the right time. After evaluating a number of vendor offerings. It was clear that in order to achieve the desired benefits. The answers would then enable them to proactively service customers and thereby ensure customer loyalty and retention. 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. It went for the SAS Customizable CRM Solutions. This exercise is a must for survival in a fiercely competitive environment. 118 . This information can help a bank take critical business decisions in the dog-eat-dog financial world.

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

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

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

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

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

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