CUSTOMER RELATIONSHIP MANAGEMENT

What is CRM (customer relationship management)? CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. According to one industry view, CRM consists of:
y

Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team.

Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices)

Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service.

Providing employees with the information and processes necessary to know their customers understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners.

Many organizations turn to CRM software to help them manage their customer relationships. CRM technology is offered on-premise, on-demand or through Software as a Service.

CRM Benefits - How much do organizations stand to gain? The popularity of CRM is due to its fundamental and increased focus on customers. CRM benefits include its ability to help to ensure excellent customer service as it is aware of customer needs and is able to react to them effectively. It enables an organization to anticipate and respond to its customers needs in the right way.

Some of the benefits of CRM are: y It is a business strategy that applies to almost every organization; therefore almost all organizations stand to gain from its use.
y

Customers are motivated to return again and again as they receive good customer service and continue to do business

Since acquiring a new customer is far more costly than retaining an existing customer more and more companies are turning to CRM as it is able to achieve this. Companies need this in order to stay competitive.

Many forms of advertising are not as effective as they need to be. CRM enables a company to target their audience more precisely and gain customer retention, all at a lesser cost. CRM helps your business as it lets you do more for your customer and gain more from them.

Since every organization needs to understand the importance of cross-selling and since CRM does that they are able retain their customers for longer periods.

y y y y

CRM delivers company-wide access to customer information. Using CRM applications can lead to increases in revenue from almost all areas. Reductions in operating costs are a byproduct of CRM implementation. Simplification of marketing and sales processes is achieved in organizations implementing CRM by their understanding of customer needs.

Better customer service is achieved through improved responsiveness and understanding. This builds customer loyalty and decreases customer loss.

CRM enables a company to build a database about its customers so that management, salespeople etc could access information, match customer needs with plans and offerings, render better customer service etc.

y y y

It enables an organization to create detailed profiles such as customer likes/dislikes etc. CRM gains the trust of customers by meeting their needs in a more personalized way. CRM delivers personalized, informed service that customers expect. This is because of a system that contains and provides a complete profile of the customer, including all past and present behavior patterns.

y y

A higher percentage of cross-selling is possible in companies opting for CRM. With globalization CRM offers companies a chance at increased customer loyalty, higher margins and customer retention

Companies achieve more success in attracting new customer on account of their quicker and more efficient responses to customer leads and customer information.

y y

CRM helps an organization to develop better communication channels. CRM helps an organization to collect vital data, like customer details etc. This data can be used for customer interaction.

y y

Companies opting for CRM find it easy to identify new selling opportunities. The traditional systems used by Customer Service, Sales and Marketing can now be done away with and the gaps filled with CRM implementation

Customer relationship management is gaining importance as a management tool globally and is ranked as the second most important management tool. On account of CRM benefits, its position as the customer centric strategy of the decade is slowly gaining ground. Despite the huge costs involved companies prefer to opt for it on account of the tremendous benefits of CRM.
3

Role of CRM in Improving your Business:

All businesses are there to support its clients for it to achieve success. The focus of all the companies should be on their clients. In order to know the customer preferences, you will have to collect, group and analyze customer details, a tool that aids you in doing all these process is called as CRM Tool (Customer Relationship Management Tool). By knowing the likings and disliking of your customer will help you build a strong bond with existing clients and also to attract many more new clients. This strategy not only applies to conventional multinational companies even to small businesses that entail dealing directly with clients like cleaning franchises.

The customer data and information will be stored in a central site, and with the help of CRM tools you can access these details, manipulate them and make your decision from anyplace in the world at all times. The customer targeted scheme will help companies build a strong link with their customers and thus increasing its stronghold with its customer, giving a profitable Return of Investments thru the business.

Managing different types are business activates are made easy because of these CRM tools.
y y y y

Billing and Expense Sales and Marketing Human Resources Project Management

Features of CRM:

Customer Relationship Management has 3 key features, namely, y y y Operational CRM Collaborative CRM Analytical CRM.

Collaborative CRM - Having a direct communication with the clients without any interference from service or sales representatives. Analytical CRM - Investigating Customer Data with a huge volume of functions and reasons, as a perspective. Operational CRM - Offering full front end support for marketing, sales and other related service.

Boosting Customer Loyalty - How it's done

Customer retention is imminently important for organization success as the cost of acquiring a new customer is greater than holding onto an old customer. It is obvious that the most profitable customers in any organization account for almost 30% of a firms profitability. Looking at these staggering statistics it is no wonder that customer retention is high up on the list of organization essentials. The customer centric strategy of the decade - CRM achieves customer loyalty with ease. This is because in CRM customer relationship is the focal point of success.

Types of Customer Retention Programs:

Discount ProgramsIn this type of program the customer receives a discount when he makes a repeated purchase. This is profitable as it encourages customers to keep buying as they want to avail of the lower price.

Card ProgramsIn this type of program the customer is provided with a swipe card which he can use while purchasing and avail of any discount or benefit.

Loyalty ProgramsHere customers are given the option of gaining points when they make a purchase. These points can be redeemed and exchanged for gifts or further discount coupons. This also serves as a stimulator for customer retention.

Benefits of Customer Retention Programs: y y y They permits the collation of important customer data They allow the usage of this data in the understanding and dealing of customers The data collected from customer retention programs is often used while making valuable customer decisions. y y They assist in making the customer feel special They boost customer service and thereby increases customer loyalty

Pitfalls of Customer Retention Programs: The main inhibition in this area is the cost factor. Customer Retention programs can often involve huge costs to the organization and therefore most firms are reluctant to embark on this. In this respect it is important to focus on the possible returns rather than the cost involved as customer retention is a direct stimulator for profitability and growth.

E-Business is CRM's New Area of Application:

E-Business is a phrase most commonly used to describe electronic business. In simple terms it means any business that utilizes a computer and carries out its activities through the Internet. The best tools for E-business success and link building. It involves selling products and services online. This enables a business to easily reach a greater number of customers than before.

The traditional trader has very little to offer when compared to the online merchant. The market for e-Business started when in order to increase their customer base and serve their existing customers better, customers were introduced to the idea of online technical support. E-Business does have its own difficulties though. It is a lot more complex than that what people think it is. In order to succeed at e-Business an organization needs to basically figure out just how it wants to do its business, what products it wants to sell, what are its key objectives and who are its targeted customers.

E-Business transactions have crossed the billion marks and are scheduled to hit $1 trillion in the year 2006. With such astounding statistics, it is but clear that the advantages that it offers have far surpassed company expectations and have roped in users rapidly. Ignoring the phenomenal growth of e-Business is futile. Companies preferring to stick to traditional methods and processes will without a doubt be left behind in the rat race. Since the 'Internet' explosion globally, consumers prefer e-Business as it smacks of ease of usage. e- Business is a term that is basically used to describe a business that runs on the Internet and that makes use of the existing Internet technologies to increase the profitability and efficiency of the business.

CRM business tips:  Formulate special CRM strategies based on your business plans.  Choose the better partner when you start up investing into CRM.  Proper guidance and training is essential to make your employees suited for the business dealings.  Improvise the customers service with the help of perfectly designed CRM system for specific business categories.  Keep hold of organizations user interface terms as planning plays a major role in every stage of CRM functionality.  Make manageable changes in the business organizations gradually focusing from the high prioritized category of dealings to that of lower returns.  Understand the technology terms in the right sense on its features, workability capacity and technology trends today.  Keep a watch on the business processes on systematizing internal and external flow of business dealings.  Keep up safety and care while you start to make the changes in the process of CRM organization process.  Quality of the data and information passed must be handled with care and responsibility of uniqueness.

YES BANK- Experience Our Expertise Invest in a Prospering India, Say Yes to Growth

YES Bank is a state of the art high quality, customer centric, service driven, private Indian bank catering to the future business of India, and is a outcome of the professional and entrepreneurial of Rana Kapoor, Founder, Managing Director & CEO. As the professionals Bank of India, YES Bank has exemplified creating and sharing value for its entire stakeholder, and has created a differential banking paradigm. Since inception, YES Bank has tried to play a catalytic role in bridging the infrastructure and knowledge gap in various sunrise sector of the economy. As part of the differentiated strategy, YES Bank has had a strong focus on development banking, as is evident from the cutting-edge work that the bank has done in the area of food & agribusiness, infrastructure, microfinance and sustainability which in most cases has been first of its kind in India. Our focus on governance and good corporate citizenship, actualized through YES Banks strategic vision. Since inception in 2004, YES Bank has fructified into a Full Service Commercial Bank that has steadily built Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking and Wealth Management business lines across the country and is well equipped to offer a range of products and services to corporate and retail customers. YES Bank offers a full range of client focused corporate banking services, including working capital finance, specialized corporate finance, trade and transactional services, treasury risk management services, investment banking solution and liquidity management solutions among others to a highly focused client base. The bank also has a widespread branch network of over 325 branches across 200 cities, with over 312 ATMs and 2 National Operating Centers in Mumbai and Gurgaon. Since inception, YES Bank has adopted innovative and creative technologies that facilitate robust systems and processes and facilitate in the delivery of world class banking solutions that significantly improve the business and financial efficiency of our clients.

YES Bank has been recognized amongst the top and the fastest growing bank in various Indian banking league tables by prestigious media houses and global advisory firms, and has received national and international honors for our various business including corporate finance, investment banking, treasury, transaction banking and sustainable practices through responsible banking. The bank has received recognitions for our world class IT infrastructure and payments solutions as well as excellence in Human Capital. The sustained growth of YES Bank is based on the key pillars of Growth, Trust, Technology, Human Capital, Transparency and Responsible Banking. YES Bank is committed towards building the Best Quality Bank of the World in India resting on the strengths of its six key pillars and differentiation built through exemplary customer services, to ensure that it provides the finest banking experience to its customers.

Our Objectives
y y y

To build a strong employer brand. To attain a preferred employer status in the Banking and Financial Services industry. To ensure that the Bank is able to attract, engage and retain high quality human capital for its long-term success.

Our Focus The focus of the Human Capital function at YES BANK is to build a world-class team, based on professional recruitment methodologies, and attract the best talent in the industry. While our immediate hiring has primarily been lateral, to bring the relevant skills, competencies and experience into the organization, our focus is on building the requisite talent bench strength to support the business plans of the Bank. We are making a concerted effort towards building learning and development solutions that continuously enhance employee value, in line with the growth plans of the Bank.

10

Our Culture & Processes Building a high performance culture is another key prerogative of the HR function. We envisage a credible and transparent performance management process that helps in aligning individual goals with corporate objectives, both quantitative and qualitative, and encourages cross sell and team spirit. Our performance management process will be supported by a robust rewards and recognition strategy for each business and a market based compensation structure that is flexible, responsive and helps retention through asset building and wealth creation for top performers. Our Promoters believe that a broad employee ownership of the shares of the company has a positive impact on performance. Therefore, our stock option scheme covers a large cross-section of our employees. The HR function at YES BANK is working closely with leading international consultants, including Hewitt and Korn Ferry, to operationalize this strategy and ensure that the organizational architecture of the Bank is operational and adequately supports its business plans.

CRM of YES Bank: Having analyzed YES Banks requirements, InfoAxon recognized that an off-the-shelf CRM solution could not fit YES Banks business model which was demand-based and hence very fluid. What YES Bank required was open standards based, flexible, scalable, and Frameworkbased CRM solution which could be easily changed and adapted with the banks business needs.

InfoAxon decided to go ahead with a Java J2EE based Open Source CRM framework. InfoAxon consultants leveraged its Continuous Integration Methodology to create an Integrated Open Source CRM Stack for YES Bank. The Integrated CRM Stack is a single deployable stack which provided open source CRM application integrated with infrastructure components (Redhat Linux, JBoss, PostgreSQL, Apache) to deliver cost effective, flexible, and extensible open source CRM solution stack.

11

The CRM Stack delivered all CRM dependencies on a single stack with turnkey install and flexible multitier configurations. The CRM stack was tested, performance tuned and deployed in YES Bank Data Center. The deployment consists of Staging and Production areas on virtualized Redhat OS Server.

The Open Source CRM stack covered all the processes right from customer acquisition through to customer servicing. It included following CRM modules: 1. Sales and Leads Management 2. Personalized Dashboards with Activities Planner 3. Help Desk 4. Marketing Management 5. Document Management

InfoAxon used its Agile and Iterative development methodologies to enhance the existing CRM Framework to include additional functionalities such as: 1. Integration with Core Banking Solution iFlex 2. Trouble Ticket Escalation management based on Service Level 3. Automatic Routing of customer complaints 4. Flexible Workflow to accommodate changing business rules 5. Automated addition of Banking Products 6. Customization of Lead and Pipeline Module to accommodate YES Bank customer acquisition process 7. Customization of Dashboards as per Sales Team requirements 8. Customized Reporting Environment

12

Value Delivered

InfoAxons leveraged its experience of working with similar Banking vertical and its open source integration & development expertise to deliver a cost effective, flexible, and extensible open source CRM solution stack. The open source CRM solution at YES Bank has already started reflecting positively in following ways: 1. Drastic Improvement in customer acquisition. As per recent information there is servicing of 1 million leads and around half-a-million service requests per year. 2. Customer Service improved by 60% and turnaround time for its processes by almost 70%. 3. Helped achieve greater service excellence, capturing all customer queries, complaints and their feedback into the common system. It helped the Bank understand its customer better which resulted in better customer retention. 4. Cross-selling of products substantially surged after the implementation. 5. The centralized repository of reports generated numerous benefits for the bank. Data loss was prevented. Also it allowed the bank to analyze data and take proactive actions to improve customer experience and products.

YES Bank is getting benefitted by the open source nature of the CRM Stack in various forms such as much lower TCO, flexible, scalable, and open architecture. YES Bank has plans to integrate various enterprise applications with the stack and taking the solution online to banks end customers.

Basically in Bhubaneswar branch they are depending upon software technology for maintaining customer relationship management. They have divided it into two parts such as y y CRM for sales CRM for services

For Sales they are using software in which the sales people who are working directly for the customer are collected all the data and in this software all necessary data has been recorded. The client relationship partner and Relationship team leader will play a lead role in this process. So
13

through these data they are able to connect with the customer directly and on the basis of these data they will go for segmentation to retain the customer for a longer period of time. They are very much service oriented so they are following CQMS software to provide service to the customer at right time and right cost..This is basically a computer and telephonic server means when you are talking with a client in telephone in a certain while you will avail the information about the customer in computer through this software..Here customers data are used as different categories such as Warm& Cool & Hot. So mainly this software works to provide better services to the customer. VERSION 2.0 which is a new software used by Yes bank for all their day to day activities and the main focus here is to OUT THINK,OUT DO,OUT PERFORM. We have built the Foundation; our best is yet to come YBL Version 2.0

14

Technology Showcase

CUSTOMER VALUE As we know for every organization this plays a very important role and this is also a very vast process and in this process for Yes bank the main focus is to retain the customer for a longer period of time by having a very good relationship with them. They basically go for segmentation on the basis of customers data like how many accounts they have and are they old customers etc. Also they are depending on door to door service to have a direct contact with the customer. Customer value is a very vast and important part of Yes bank so they are following various strategies for that which is quite difficult to explain but their main focus is to have a good relationship with the customer and to provide them a better service so that they will be satisfied.
15