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Submitted to Bharati Vidyapeeth Deemed University, Pune
Department of Marketing presents Case Study as a innovative teaching Practices
Prof .M D. Kakade
Institute of Management & Entrepreneurship Development, Pune – 411038 (2011)
Practical training is an essential part of every professional program. It is very helpful in providing knowledge for the practical aspects of academic studies. It is also helpful to go through the actual procedure at workplace.
We got an opportunity to do a project on-
STUDY OF CRM PRACTICES AMONG SERVICE ORGANISATIONS (BANK)
We are thankful to Prof .ACKNOWLEDGEMENT We take it as an opportunity to thank all those who helped us and guided us throughout the completion of this project. without which the report would have not been a reality.D who have been our project guide and supported us with her knowledge and given us opportunity to carry out our project and under her guidance at all times. 4 . We are thankful to all of them who have supported us through this.Kakade M.
Name : POONAM KUMARI : SAVIO D‟SUZA ROLL NO-33 ROLL NO-41 Project : “Study of CRM practices of service organization (bank)” Place : IMED.DECLARATION We hereby declare that the project entitled “ Study of CRM practices of service organization (bank) ” original work prepared by us & is being submitted to the Bharati Vidhyapeeth University of Pune in partial fulfillment of MBA(BA) degree for the academic year 2010-2012. Pune 5 . We hereby declare that the dissertation is a result of our own accounts work and the same has not been submitted to any examination of this University or any other university.
Savio Dsouza and Miss Poonam Kumari is a bonafide student of “Master of Business Administration”.Certificate This is to certify that Mr. programme of IMED. I have undergone this on the topic for study: “CRM Practices on Banking Sector” Teacher Guide Date: Place: 6 . BVU for the year 2010-12 has successfully completed to do his study. As a part of the Marketing Management curriculum.
.......................... EVOLUTION OF CRM……………………………………….....TABLE OF CONTENTS INTRODUCTION (CRM)…………................ QUESTIONNAIRE………………………………………......... NEED…………………………………………………………................. RESEARCH METHODOLOGY……………………………....................... OBJECTIVE………………………………......... Primary data Secondary data Sample Size DATA ANALYSIS AND INTERPRETATION……………................... Graphs and Charts LIMITATIONS………..........……………………………… BIBLOGRAPHY……………………………………………... 7 ...................... REFERENCES.…..
Some of the financial institutes (bank) mainly focusing of gathering information of consumer relations and collect data in detail. customer service and technical support.INTRODUCTION Analytical study of banking practices towards the CRM. Customer Relationship Management is the primary tool for gaining insight which involves of customer using technology to organize. automate. a random sample of 5 banks is to be taken out from the different banks and gather the information. Several banking organization have developed their own method towards the CRM. To prepare a field work paper on the topic given-„Customer Relationship Management ‟. but also those for marketing. 8 . and synchronize business processes—principally sales activities. Monitoring the customer satisfaction has become one of the main focus areas.
9 . Monitor the responses to ensure statistically significant results across the entire bank for specific types of customer (seiner citizen). Three Most Important Aspects of Deploying a customer Satisfaction Survey: Design our survey to provide actionable information. Rigorously evaluating the analysis to ensure that recommendations are made and actions are taken. instead of "feel good" feedback.STUDY OBJECTIVE The main aim of Customer Relation Management survey and data analysis is to make a generalize statement about the customer satisfaction in banking sector with other various other personal details of bank employee and customer.
attract. The overall goals are to find. but also those for marketing.Evolution and introduction of Customer Relationship Management (CRM) Customer relationship management is a widely-implemented strategy for managing a company‟s interactions with customers. clients and sales prospects. customer service. It involves using technology to organize. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. and reduce the costs of marketing and client service. nurture and retain those the company already has. Measuring and valuing customer relationships is critical to implementing this strategy. automate. entice former clients back into the fold. and technical support. and win new clients. and synchronize business processes—principally sales activities. 10 .
commitment and conceptualized now. developing new market share and to create good brand image among the customers. increasing customer expectations. Every organization believes in the significance of knowing the customer. to gain better understanding of the role of CRM in maximizing customer profitability and to serve their customer better and meet their business objectives. a new marketing paradigm and is emerging as the core marketing activity. intensifying attacks on customer information. No wonder that it has emerged as a strategic tool in the hands of marketing people. Customer Relationship Management has been recognized a. 11 .Need Rising competition. particularly when competitive onslaught has been fiercely active. In Marketing Customer Relationship Management have assumed mounting importance in the overall of a Bank. Every bank wants to provide good quality customer service. identifying new marketing opportunities etc. proliferating customer contact. This paper deals with the role of Customer Relationship Management in banking sector. Customer relationship management is more focused on trust. Most of the Banks believe that CRM is one of the best strategies for increasing revenue profit margin. have made Banking Sector to face superior challenges than ever before in executing their Customer management strategies. The current economic environment and financial crisis has most probably led many financial services institutions to focus on their CRM strategies while screening customer relationship as a key to profitability of a retail activity and managing the cost and risk associated with it.
It tries to optimize a firm's profitability. With an effective CRM strategy." explains Krishna Kumar. "The strategy is needed to keep businesses customer centric and to help the company constantly evolve internal processes and technology to acquire and retain customers.CRM Strategy In any organization CRM strategy is a wide-ranging and detailed definition of the scope of' the CRM programmed towards organizational goals. a business can increase revenues by: Providing services and products that are exactly what your customers want Offering better customer service. revenue and customer satisfaction by focusing on a customer centric process. The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behaviour of customers and the value of those customers. CRM is fundamentally a strategy aligned with the superseding corporate strategy. Cross selling products more effectively Helping sales staff close deals faster 13 .
With intensifying competition. India will see foreign banks come in.CRM in banking sector According to a RBI statement. A greater focus on Customer Relationship Management (CRM) is the only way the banking industry can protect its market share and boost growth.the Customer. As such financial companies need to focus shift from product provider to relationship one on core competencies in order to deliver to the value of the customers as shown in the diagram below: 14 . through mergers and acquisition. Financial services are in a structural change whereby competition and customer demands are increasing. deregulations. people and technology and business process. But the success of CRM Strategy depends upon its ability to understand the needs of the customer and to integrate them with the organization's strategy. declining market share. it is imperative that Indian banks wake up to this reality' and re-focus on their core asset . smarter and more demanding customers there is competition between the banks to attain a competitive advantage over one another or for sustaining the survival in competition. In India the banking sector has been operating in a very stable environment from last thirty -forty years. In current scenario of banking sector the raising of interest rates and tough competition between these layers had made Indian bankers to realize that the purpose of their business is to create and retain a customer and to see that the entire business process is consistent with an integrated effort to discover. retain and satisfy customer needs. Therefore. in future India will have a competitive banking market as one of the most attractive market after 2009.
Benefits of CRM A CRM system may be chosen because it is thought to provide the following advantage: Quality and efficiency Decrease in overall costs Decision support Enterprise agility Customer Attention 15 .
Next came the advent of tools for other clientinterface business functions.Challenges OF CRM Successful development. and still are. while others may be pushed aside. and the sales pipeline itself. there are obstacles that obstruct the user from using the system to its full potential. Complexity Tools and workflows especially for large businesses. Software solutions then expanded to embrace deal tracking. These tools have been. offered as on-premises software that companies purchase and run on their own IT infrastructure. complex group of data can become cumbersome and difficult to understand for an ill-trained user. as only certain parts are used and the system is not fully functional. Additionally. This fragmented implementation can cause inherent challenges. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or harm in its use. 16 . The increased use of customer relationship management software has also led to an industrywide shift in evaluating the role of the developer in designing and maintaining its software. as described below. implementation. Instances of a CRM attempting to contain a large. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. opportunities. use and support of customer relationship management systems can provide a significant advantage to the user. territories. but often. causing users to pick and choose which areas of the system to be used.can be complex. an interface that is difficult to navigate or understand can hinder the CRM‟s effectiveness.
The importance of usability in a system has developed over time. thus not allowing the system to work as fully intended. This “ease of service” is paramount for developing a system that is usable. and there is an expectation that the usability of systems should be somewhat intuitive: “it helps make the machine an extension of the way I think — not how it wants me to think. keeping the system from full use and potential. Customers are likely not as patient to work through malfunctions or gaps in user safety. In many cases. implementation can be fragmented or not entirely complete. An overly complex computer system can result in an equally complex and nonfriendly user interface. A series of 1998 research indicates that each item added to an information display can significantly affect the overall experience of the user 17 . Poor usability One of the largest challenges that customer relationship management systems face is poor usability.” An intuitive design can prove most effective in developing the content and layout of a customer relationship management system Two 2008 case studies show that the layout of a system provides a strong correlation to the ease of use for a system and that it proved more beneficial for the design to focus on presenting information in a way that reflected the most important goals and tasks of the user. This bloated software can appear sluggish and/or overwhelming to the user. the growth of capabilities and complexities of systems has hampered the usability of a customer relationship management system. With a difficult interface for a user to navigate. rather than the structure of the organization.
Addressing the fragmentation requires a shift in philosophy and mindset in an organization so that everyone considers the impact to the customer of policy. only employees or partners were aware of it. Some developments and shifts have made companies more conscious of the life-cycle of a customer relationship management system. Systems that start disunited usually stay that way: siloed thinking and decision processes frequently lead to separate and incompatible systems. A fragmented implementation can negate any financial benefit associated with a customer relationship management system. in the past. with a 2002 study suggesting that less than half of CRM projects are expected to 18 . Instead. The challenge of fragmented implementations may be mitigated with improvements in late-generation CRM systems. Fragmentation Often. CRM systems face the challenge of producing viable financial profits. as companies choose not to use all the associated features factored when justifying the investment. upgrades and future editions of software. and dysfunctional processes. Business reputation Building and maintaining a strong business reputation has become increasingly challenging. Even one unhappy customer can deliver a body blow to a business. Additionally. Companies now consider the possibility of brand loyalty and persistence of its users to purchase updates. Human response at all levels of the organization can affect the customer experience for good or ill. poor usability can lead to implementations that are fragmented — isolated initiatives by individual departments to address their own needs. it is important that support for the CRM system is companywide. decisions and actions. The outcome of internal fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the social customer.
In many ways. Research and study show the importance of designing and developing technology that balances a positive user interface with security features that meet industry and corporate standards 2002 study shows. however. Corporations investing in CRM software do so expecting a relative ease of use while also requiring that customer and other sensitive data remain secure. allowing these professionals to become content builders. among others. Security concerns A large challenge faced by developers and users is found in striking a balance between ease of use in the CRM interface and suitable and acceptable security measures and features. This balance can be difficult. a secure CRM system can become more usable. Technical writers can play a large role in developing customer relationship management systems that are secure and easy to use.provide a significant return on investment. In these events. the computer system acted as it should in identifying a file and then. in turn creating a more secure and stable CRM system. Researchers have argued that. as many believe that improvements in security come at the expense of system usability. exposed the computer and network to a harmful virus. following the user‟s orders to execute the file. 19 . Poor usability and low usage rates lead many companies to indicate that it was difficult to justify investment in the software without the potential for more tangible gains. security breaches are the result of user-error (such as unintentionally downloading and executing a computer virus). in most cases. Researchers argue that a more usable system creates less confusion and lessens the amount of potentially harmful errors. need to be more open to flexibility of technical writers. that security and usability can coexist harmoniously. A series of 2008 research shows that CRM systems.
Questionnaire filled by the Branch Manager of some banks with the help of structured questionnaire and personal interview. A survey was conducted through which an analysis was drowned. Sample size A sample of “10” sample was taken for the purpose of study and analysis. Hence descriptive research design used for this study.RESEARCH METHODOLOGY Before examining types of research designs it is important to be clear about the role and purpose of research design. We need to understand what research design is and what it is not. 20 . Sampling unit: Sampling unit consists of both public and private sector banks in Pune. We need to know where design into the whole research process from framing a question to finally analyzing and reporting data. Sampling technique Convenience sampling technique was used for the survey. Research design The purpose of the study to “To Study about the CRM practices on Banking sector.”.
DATA ANALYSIS According to you. what do you mean by CRM? Product Centric Customer Centric 12 10 8 6 4 2 0 Product centric Customer centric Analysis: It shows that every bank or a branch manager perception is that CRM is customer centric not a Product centric. 21 .
it shows that bank are giving attention to CRM. Do you use social CRM activities to analyse the customer sentiment? Yes No 8 7 6 5 4 3 2 1 0 Yes No Analysis-It shows that Bank are using social activities to promote or analyze the customer sentiment. 22 .
Are you satisfying your customer as his/her needs? Yes No Maybe 9 8 7 6 5 4 3 2 1 0 Yes No Maybe Analysis-It shows that branch manager mostly think they satisfy the customer needs and some of them talk practically and say that customer needs are indefinite so we are not able to complete the needs of all the customers. 23 .
Promotional activities they are using: Television Radio Seminar Banner 12 10 8 6 4 2 0 Television Seminar Banner Radio Analysis: It shows that every bank is using Television and Banner as a promotional tool but only 2 & 3 are using Seminar and Radio respectively. 24 .
25 . Means for solving Customer Grievances? Counter Solution Telephone Internet Social Media 12 10 8 6 4 2 0 Countersolution Telephone Internet Social Media Analysis-it shows that every bank is using all solution to solve Customer grievances but there is only 1 bank that is ICICI that is using social media to solve customer grievances.
FINDINGS CRM is Customer centric rather than Product centric. All employees of the bank are given proper training about the CRM. 26 . Now another departments are Made for CRM activities. Banks are giving proper attention to the CRM. Now even bank have understand that CRM is important in banking also so they are giving proper attention.
so we are assuming them to be true. 27 .LIMITATIONS 1. Time constraint of two weeks was not enough. The respondent‟s personal bias may be another factor. therefore. 2. we could not collect and analyse the data of all the bank employee and customer. 3. It is difficult to authenticate. The finding of the survey is strictly based on the responses of the respondents. which is uncontrollable.
Radi Badidi.not just technology. So banks have to improve not only the technology but also the relationship skills of the advisors. How would you define CRM (for banks)? Michael Otto. CRM has to improve the "moment of truth" when the client is with the bank making the contact more efficient and more satisfactory for the customer. Erste Bank: There are many definitions for CRM and all of them are more or less correct. using customer knowledge. it is business. ABN AMRO: We consider CRM to be a business strategy than anything else . but hardly any of them have been successful in actually getting it effective. I would say that optimizing every customer contact by effectively creating value for both your clients and your business. How important is CRM for banks? What benefits can banks hope to achieve through deploying CRM solutions? Michael Otto: CRM is not technology. Neither has the customer felt a real difference nor has it contributed to higher ROI.Industry Discussion The acronym CRM has been around for over half a decade now and has often been overused. customer analytics and campaign-management. at the right time via the right channel‟. It is important that the client not the product is in the centre. 28 .customer service and advice. not just analytics. The CRM definition we use is the following. is the main differentiator compared to non-CRM focused companies. „having the right offer for the right client. not just an impressive story of how customer focused you are. All major banks have invested heavily in technology and infrastructure over the last 5 to 10 years in this area. That is the reason why we tried to improve the following processes and support it with systems .
being a product specialist is hard. Now it is a critical part of the agenda of business managers. Later 29 . banks need to understand that they need to make a beginning. CRM does not solve all the problems a bank has. not the other way round. and the possible impact of CRM. CRM is key because the value of retail banking lies in distribution. In this situation. CRM will not succeed. technology has to make the solution. helps penetrate growth markets and prevents disintermediation by other players. so banks need to make advice rather than product price as the basis of the added value in banking. Further. today customer centric banking means a new way of thinking. and therefore something that should be managed within the technology and systems departments. It protects your business. Banks need to focus on relationship banking rather than traditional transaction banking and realize the importance of SOW share of wallet. Secondly. CRM becomes key and critical. expanding their franchises into growth segments. then prioritize. so first analysed the problems. It requires intense training. a real dialogue between marketing.Jose Olalla : Few years ago. If. Knowing your client is the first requirement of a retailer. Start small. banks thought about CRM as just a new 'magical' software. What are the key aspects that banks need to consider while deploying CRM solutions to achieve a positive ROI? Radi Badidi : Whether CRM only adds to costs or generates revenues is not a technological but a commercial issue. for example marketing and sales do not adopt the CRM challenge. but start. and are really aware of the winning concept of the multi-channel and multi-price approach. In the world of margin pressure. technology departments and all channels. Michael Otto: Business requirements and targets have to be defined. it requires commitment to document customer needs whenever possible and a proactive approach towards using customer intelligence on a continuous basis. Since banks pursue high growth strategies.
based on what we know and anticipate of this client. Second.they can learn and improve. In the future. they will have various channels at their disposal and have more choice than ever to purchase their products and services with a growing variety of general banks and niche players. as our customers use different channels to go to their bank such as the branch. As the customer is more in control. all customer contacts will be moments-of-truth as all these contacts tell the customers who we are and what we want to be . the service centre or the internet. Not just ROI on every contact will be leading. it is very important to communicate. Finally. but the way we want to be perceived as a brand will become more important. This requires different marketing skills and new ways of managing your sales. Now. a lot of effort is put on being there at customers' moments-of-truth. we will want to be "actively ready" in all channels when the customer contacts us. self-service machines. the processes of client retention and improvements in client loyalty are getting more important. in addition to cross selling. How will the CRM landscape in the banking industry develop in the coming days? Michael Otto : First. 30 . Radi Badidi In the coming years there will be more focus on the demand side of customers. CRM goes multi-channel.CRM will help us enable this. The second trend will probably be that CRM will contribute more to branding. train and measure all activities.
1.Questionnaire (Bank) Hello. we are conducting a survey for the banking industry to know the Bank‟s view on Customer Relationship Management and the steps taken to enhance CRM. According to you. Are you successful to in satisfying your customer according to his /her needs? Yes No 31 . Do you use social CRM to analyse the customer sentiment and perception of your bank? Yes No 4. What is the overall percentage of your customer visiting your bank in a month? 100-70 70-50 50-20 Inconsistent 6. what do you mean by CRM? Product Centric Customer Centric 2. Thank you for spending few minutes of your precious time. What types of facilities is being conducted in your bank for satisfaction of your customer? 5. Means for solving customer grievances? On-counter solution Telephone Internet Social Media 3.
What kind of promotional activities is being conducted for promoting CRM of your bank? TV Radio Banner Seminar 8. What do you consider in enhancing CRM while providing credit or loans.7. How familiar are the Bank‟s employees in using CRM? 11. NameDesignationBankDate- 32 . What do you do. to train your employees on the awareness of CRM and its benefits? Thank You Your details please. since most customers are worried about the interest rates and long term uncertainty? 10. How are banks using CRM to deepen their relationship with customers? 9.
wikipedia.Ramaswamy. 3.Wilkinson T.BIBLIOGRAPHY 1. “Methodology and Techniques of Social Research” .com www.scribd.com www. www.Nandakumari . “Research Methodology” 2.S REFERENCES 1. 2. “Marketing management” 3.google.com 33 .Random .
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