CRM – Case Study

GROUP 5

Shreyam Gupta – 2022JULB07052

Shaima Nishaat – 2022JULB07054
Sumit Kumar – 2022JULB07027
Akash Mohan – 2022JULB01047
Abhinav Mishra – 2022JULB01119
Piyush Chhatpuria – 2022JULB02014
 IS IT COMPULSORY FOR ARAGON TO CONSIDER ALL APPLICANTS’
APPLICATIONS? WHY OR WHY NOT?

• Aragon should consider all the applications of the applicants and for
managing this she should work out evaluation criteria for these
applications and then decide the allocation of the funds to the
applicants. Also, she should first consider the existing customers and
focus on retaining them so as to meet her KPIs and the bank’s
expectations of her by retaining the existing customers and also work
on raising the customer base, reducing the high customer churn rate,
and enhancing the image of MSBP among the residents. As the top
management was not able to support her with a higher amount due
to competing lending opportunities at the Davao branch she needed
to come up with an acquisition plan to accommodate the increasing
number of applicants at her branch as soon as possible and make
quick decisions.
 HOW MUCH MONEY SHOULD ARAGON LOAN TO EACH OF THE
APPLICANTS?

• Johnny Mendoza
Johnny Mendoza should receive the full amount of loan required, which is
1.5 million peso as he has a condition of disability and is in dire need of
capital. Further he has a collateral by mortgaging his father’s building.
• Arnie Reyes
Arnie Reyes should be provided with a loan of 3 million peso as he only
wants to upgrade his existing warehouse and increase his additional
working capital. Further his loan is collateralized by his modest warehouse.
• Joshua Rodriguez
Joshua Rodrigues should be provided with the loan of 7 million peso, as he
will put this money in the booming Information Technology industry and is
a long standing customer of MSBP Bank. He also has his condo for collateral
towards the loan.
• Lorena Obias
Lorena Obias should be given a loan of 3 million peso. She has proven to be of
good and noble character as she is a famous social worker in the city and requires
this money for a very noble cause. Further she can provide title of the land and the
school building as collateral.
• Chris Romolador
Chris Romolador should be given a loan of 3 million peso instead of the asked
amount of 5 million peso as he only wants this loan to increase his retail outlet
size. His repayment capacity seems to be fine as his business is generating
consistent profits and is in the booming retail industry.
• Donna Tutor
Donna Tutor should be given a loan of only 50000 peso instead of 1.5 million peso,
as she belongs from an affluent family thus can get the from her parents. Further
she is not entering into a business which is booming in Davao region.
  WHAT OTHER MEASURES CAN ARAGON TAKE TO STRENGTHEN
CUSTOMER RELATIONSHIPS AT MSBP’S DAVAO BRANCH?

Aragon can consider several measures to strengthen customer relationships at

MSBP’s Davao branch:
• Customer service training for employees to improve their communication and
interpersonal skills with customers.
• Implementing a customer feedback system to understand customer satisfaction
and address their concerns.
• Offering personalized services and promotions to retain customers and increase
their loyalty.
• Developing a robust digital platform to provide customers with easy access to
products and services.
• Building a strong community of customers through events, workshops, and
networking opportunities.
• Regularly assessing and improving customer experience by conducting customer
surveys and analysing customer data.
• Offering incentives for customers who refer new business to MSBP..
 DISCUSS THE DIFFERENT MEASURES THAT CAN BE USED BY THE BANK TO
EVALUATE THE SUCCESS OF ITS CRM PRACTICES

Banks can use the following measures to evaluate the success of their CRM
practices:
• Customer Churn: The percentage of customers who leave the bank and switch to a
competitor.
• Net Promoter Score (NPS): This measures customer loyalty and the likelihood of
customers to recommend the bank to others.
• Customer Acquisition Cost (CAC): The cost of acquiring a new customer, including
marketing and sales expenses
• Lead Conversion: The percentage of leads that are converted into paying customers.
• Sales and Revenues: The amount of revenue generated from CRM initiatives,
including new sales and repeat business from existing customers.
• Customer Retention: The percentage of customers who continue to do business
with the bank over time.
• Customer Lifetime Value (CLV): The estimated revenue a customer will generate for
the bank over their lifetime.
 SUGGEST A NEW ACQUISITION PLAN FOR INCREASING THE NUMBER OF
CUSTOMERS AT MSBP’S DAVAO BRANCH.

• Good customer service

• Increased number of ATMs with lesser downtime

• New digital services so that the waiting time can be reduced

• Services should be provided in such a way that crowding is

reduced

• New schemes should be introduced so that more high-income

customers are attracted
 SUGGEST A MODEL (WITH EVALUATION CRITERIA) TO MANAGE THESE
LOAN

The credit evaluation procedure uses the five Cs to evaluate borrowers'

willingness and ability to repay in an effort to reduce the risk of default.

• Character - Character is evaluated by carefully reviewing the credit records

and scores for both personal and business credit, the market reputation
for operating a steady business, and reference checks.
• Capacity - Capacity is determined in terms of cash flow, or the cycle of
income and expenditure, it refers to determining a person's capacity to
repay the loan.
• Capital - Capital is the sum of money that has been already put into the
business as well as the sum which is intended to be invested.
• Collateral - Loans with collateral are considered secured loans because lenders have the
power to seize and sell them in the event of default.

• Conditions - Conditions are the limitations placed on the loan and how they could be
adjusted in response to changes in the economy.