Crm in Icici Bank

CRM IN ICICI BANKINTRODUCTION OF CRM

CRM, or Customer relationship management, is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. A company will store information that is related to their customers, and they will spend time analyzing it so that it can be used for this purpose.

Some of the methods connected with CRM are automated, and the purpose of this is to create marketing strategies which are targeted towards specificcustomers. The strategies used will be dependent on the information that is contained within the system. Customer relationship management is commonly used by corporations, and they will focus on maintaining a strong relationship with their clients.

There are a number of reasons why CRM has become so important in the last 10 years. The competition in the global market has become highly competitive, and it has become easier forcustomers to switch companies if they are not happy with the service they receive. One of the primary goals of CRM is to maintain clients. When it is used effectively, a company will be able to build a relationship with theircustomers that can last a lifetime. Customer relationship management tools will generally come in the form of software. Each software program may vary in the way it approaches CRM. It is important to realize that CRM is more than just a technology.

Customer relationship management could be better defined as being a methodology, an approach that a company will use to achieve their goals. It should be directly connected to the philosophy of the company. It must

guide all of its policies, and it must be an important part of customer service and marketing. If this is not done, the CRM system will become a failure. There are a number of things the ideal CRM system should have. It should allowthe company to find the factors that interest their customers the most. A company must realize that it is impossible for them to succeed if they do not cater to the desires and needs of theircustomers. Customer relationship management is a powerful system that will allow them to do this.

It is also important for the CRM system to foster a philosophy that is oriented towards the customers. While this may sound like common sense, there are a sizeable number of companies that have failed to do it, and their businesses suffered as a result. With CRM, the customer is always right, and they are the most important factor in the success ofthe company. It is also important for the company to use measures that are dependent on their customers . This will greatly tip the odds of success in their favor. While CRM should not be viewed as a technology, it is important to realize that there are end to end processes that must be created so thatcustomers can be properly served. In many cases, these processes will use computers and software.

Customer support is directly connected to CRM. If a company fails to provide quality customer support, they have also failed with their CRM system. When a customer makes complaints, they must be handled quickly and efficiently.The company should also seek to make sure those mistakes are not repeated. When sales are made, they should be tracked so that the company can analyze them from various aspects. It is also important to understand the architecture of Customer relationship management . The architecture of CRM can be broken down into three categories, and these are collaborative, operational, and analytical. The collaborative aspect of CRM deals with communication between companies and their clients.

The History of CRM :

Customer relationship management is a concept that became very popular during the 1990s. It offered long term changes and benefits to businesses that chose to use it. The reason for this is because it allowed companies to interact with their customers on a whole new level. While CRM is excellent in the long term, those who are looking for short term results may not see much progress.

One of the reasons for this is because it was difficult to effectively track customers and their purchases. It is also important to realize that large companies were responsible for processing tremendous amounts of data. This data needed to be updated on a consistent basis.

In the last few years, a number of changes have been made to Customer relationship management that has allowed it to advance. These capabilities have allowed CRM to become the system that was once envisioned by those who created it. However, the biggest problem with these newer systems is the price. A number of personalized Internet tools have been introduced to the market, and this have driven down the cost of competition. While this may be a bane for vendors who are selling expensive systems, it is a bonanza for small companies that would otherwise not be able to afford CRM programs. The foundation for CRM was laid during the 1980s.

During this time, it was referred to as being database marketing. The term "database marketing" was used to refer to the procedure of creating customer focus groups that could be used to speak to someof the customers of the company. The clients who were extremely valued were pivotal in communicating with the firm, but the process became quite repetitive, and the information that was collected via surveys did not give the company a great of information. Even though the company could collect data through surveys, they did not have efficient methods of processing and analyzing the information. As time went on, companies begin to realize that all they really needed was basic information. They needed to know what their customer purchased, how much they spent, and what did with the products they purchased.

The 1990s saw the introduction of a number of advances in this system. It was during this time that term Customer relationship management was introduced. Unlike previous customer relationship systems, CRM was a dual system.

Instead of merely gathering information for the purpose of using for their own benefit, companies started giving back to thecustomers they served. Many companies would begin giving their customers gifts in the form of discounts, perks, or even money. The companies believed that doing this would allow them to build a sense of loyalty in those who brought their products.

Customer relationship management is the system that is responsible for introducing things such as frequent flyer gifts and credit card points. Before CRM, this was rarely done.Customers would simply by from the company , and little was done to maintain their relationship. Before the introduction of CRM, many companies, especially those that were in the Fortune 500 category, didn't feel the need to cater tothe company. In the minds of the executives, they have tremendous resources and could replaces customers whenever it became necessary. While this may have worked prior to the 1980s, the introduction of the Information Age allowed people to make better decisions about which companies they would buy from, and global competition made it easier for them to switch if they were not happy with the service they were getting.

HISTORY OF CRM IN ICICI BANK:

The CRM initiatives in India’s ICICI Bank hold together its compelling story of growth. Its growth in customer base, channels, and product and service offerings. Since its inception in 1995, the bank has grown to have 15.8 million customers, holding about 17 million accounts. The bank’s network has expanded to 610 branches and standalone counters and over 2,000 ATMs.

CRM has been envisioned by the bank to support its goals in sales, customer service, and analytics. Already, about 30.40% of the bank’s home loans are cross-sold to existing customers. Similar ratios have also been reported in the sale of insurance policies. Ratios of about 50.60% have been seen out of the credit cards and personal loans business. The bank’s stated intention is to take these ratios to as high as 60.75%. ICICI Bank states that these high levels of relationship maximization are made possible by how its CRM system is able to "know and understand the customer better.” which customer is most suitable for what kind of product and at what point in time."

In the area of service, the bank receives as many as 150,000 customer requests per day, a challenge not only to channel capacity but also to how the bank is able to ensure that each request is recorded, tracked, and resolved. Last, customer analytics have been used to support various strategic decisions of the bank. Recent strategic decisions of note are several anti attrition programs, the intended attrition of unprofitable customers, the imposition of fees, and various customer segment tactical initiatives.

ICICI Bank’s CRM capability is built on a “Teradata” data warehouse that integrates data from multiple sources, including the Oracle database and various flat files. The system provides users with information about each customer’s checking accounts, fixed deposits, credit cards, and other financial information. The bank has taken on the end-to-end proposition of SAS for enterprise intelligence, which offers a credible integrated approach to analytics, including data detection, data cleansing, data preparation, event detection, reporting and business intelligence, and campaign analysis. The bank estimates that it is able to track more than 1,200 parameters concerning demographics, transactions made, channel usage, and product relationships. Through Behavior Explorer and views, business users develop customer profiles and run ad hoc queries. Analysts then use the

information to guide product development and marketing campaigns that are intended to address each individual’s total requirements, instead of just pushing a product. The success of cross-selling to existing customers has also been enabled by the bank’s growing capabilities in lead management. The home loans business unit, for example, has built a lead management system rolled out to about 700 users. The system is able to allocate leads, schedule meetings, provide a record of all interactions with the customer, and give reminders for customer follow-ups. A lead generation tool has also been developed in-house to capture and routeProduct applications made over mobile phones.

Why you have been choose CRM?CRM (Customer Relationship Management) software aids inincreasing efficiency, serves to aid the sales department in all of its efforts,manages to boost sales, and fundamentally contributes to the overalldevelopment of the company. It also manages to work towardsorganizational goals. This is achieved through a concise study of potentialcustomers.Their preferences are taken into consideration and used to coordinate and implement a customer centric business strategy that focuses primarily on the customer, yields to recording the importance of his ideasand suggestions and results in increased customer retention.

Opt for CRMCRM solution helps to reduce the time required for sales cycles while hanging onto potential sales leads. Customer retention is also maximized. Sales orders and sales revenues increase as a matter of increased organization growth.CRM facilitates growth in that it aids the reduction of costs and the increased availability of information to the organization - that can be used according to customer information requirements. This information isincreasingly important to an organization and can prove to make thedifference between success and failure.

IS CRM of your bank is different from other banksMost banks have their own databases but because of the huge technological investments done by ICICI the databases in all the branches are integrated, which means they can be accessed from anywhere and at anytime. ICICI bank has tied up with Terradata Company for making their software and is the only bank doing this.The difference can be known through matching tool parameter. This refers to, on the server of ICICI sum standards are set in terms of value of the customer and whenever the customer reaches the set standard, the server automatically informs the department to offer him another product.

How is CRM helping you in retaining and increasing the market share?CRM helps to know the needs and wants of the customer. So, on the basis of this company can decide which product to offer to which customer.More over, under CRM, we have identified that cross – selling is the best weapon. It enhances the relationship value with the customer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the company. This helps in retaining the market share. Now, the satisfied customers help in the word- of – mouth promotion of the bank, which eventually increases our market share.

Does technology helps in practicing CRM?Yes, the whole base for practicing CRM is technology. It helps in collecting the data, processing the data and then according to the available information offering different products to the customer through emails, call centre,pop ups during the transaction in the ATM.

Does your company follow CRM process?AND for what purpose?YES,we follow crm process for for following purpose are as follows :

Targeting customers:It is necessary for banks to identify potential customers for approaching them with suitable offers.The transactional data that is generated through customer interactions and also by taking intoaccount the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. Forexample, a customer interacts with the banks for savings accounts, credit cards, home loans, carloans, demat accounts, etc. the data generated through all

these services needs to be integrated toenable effective targeting. After the integration is done, a profitability analysis of the customerneeds to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers.

Sales reference material:A consolidated information database on all products, pricing, competitor information, salespresentations, proposal templates and marketing collateral should be accessible to all the peopleconcerned. These prove to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instantaneous access to all relevant material as and when it is required (especiallywhen he/she is in a meeting with a client.)

Consistent interface with customers:The communication to customers from various departments like sales, finance, customer support,etc. should be consistent and not contradictory. Therefore, all departments should be privy to aunified view of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal coordination.This is bound to enhance customer satisfaction. The contact centres used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, e-mail, fax, etc.Banks can use the data on customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine “value” for that segment. Accordingly, suitable campaigns can be designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and up-selling.

What Is Your CRM StrategyCustomers are the lifeblood of the business and the way in which a bank can protect and increase its customer base – and ultimately its profitability – is to build strong customer relationships through the delivery of superior quality service and to meet customer needs better than the competitors. The CRMapproach focuses on maximizing value for the customer and the bank.Research has shown that the key drivers of customer loyalty are:Positive staff attitudeHonesty, integrity and reliabilityProactive advice and deliver of promiseConsistent delivery of superior quality serviceSimplicity and ease of doing businessGood after-sales serviceA fair effective complaints resolution policy.

ICICI Bank’s CRM Initiatives

ICICI Bank has to manage more than 13 million customers. The bank has over 550 branches, a network of 2025 ATMs, multiple call centres, Internet banking and mobile banking. Its customers often use multiplechannels, and they are increasingly turning to electronic banking options. Business from the Internet.ATMs and other electronic channels now comprises more than 50 per cent of all transactions.In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers.The Teradata solution focuses on a CRM platform.Information from various legacy and transactionsystems is fed into a single enterprise called wide data warehouse. This allows the bank to generate asingle view of its customers. The warehouse has the capability to integrate data from multiple sourcescomprising Oracle and flat files. The Behaviour Explorer enables profiling of customers and querying on various parameters. These enable the bank staff create suitable campaigns for targeting individual customers on the basis of their requirements.The logistics in the system have also led to other benefits like interactive reports, unearthing cross-sellingopportunities as well as finding out about the channel usage undertaken by a segment. The data access wasfacilitated through the use of Cognos Power Cubes.

ICICI BANK ICICI Bank (BSE: 532174, NYSE: IBN) (formerly Industrial Credit and Investment Corporation of India) is a major banking and financial services organization in India. It is the 4th largest bank in India and the largest private sector bank in India by market capitalization. The bank also has a network of 1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India and presence in 19 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's shares are listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited; its ADRs trade on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 19 countries, including an offshore unit in Mumbai. This includes

wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's CASA ratio increased to 30% in 2008 from 25% in 2007. ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Axis Bank and HDFC Bank — its main competitors.

In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. In 1994, ICICI established Banking Corporation as a banking subsidiary.

Overview of ICICI Bank:The bank, headquartered in Mumbai, has a network of about 1,400 branches and 4,530 ATMs in India and a presence in 18 countries. It offers a wide range of banking products and financial services to corporate and retail customers through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai.

Channels:ICICI Bank has the following channels through which it offers its products and services to its customers.

Branches ATMs Internet Banking Mobile Banking Phone Banking

Products and Services:

ICICI Bank offers a host of products and services to its clients, which include Deposits, Loans, Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.

Deposits:

Following deposits are offered:

Savings Account Advantage Deposit Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits

Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank@Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account

Loans:

ICICI Bank offers following loan facilities:

Home Loans Loan Against Property Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Loan Against Gold Ornaments Pre-approved Loans

Cards :

ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The various cards offered by ICICI bank are as below:

Consumer Cards Credit Cards Travel Cards Debit Cards Commercial Cards Corporate Cards Prepaid Cards Purchase Cards

Investments:

ICICI Bank facilitates a range of investment products including:

ICICI Bank Tax Saving Bonds Mutual Funds Government of India Bonds Initial Public Offers (IPO) by Corporates Foreign Exchange Services ICICI Bank Pure Gold Senior Citizens Savings Scheme, 2004

what is the profitability For you through CRM process: Yes we get profitability through crm process.The profitability are as follows :

Customers’ usage pattern:

ICICI’s CRM data warehouse integrates data from multiple sources and enables users to find out about the customer’s various transactions pertaining to savings accounts, credit cards, fixeddeposits, etc. The warehouse also gives indications regarding the customer’s channel usage.

New product development:

Analysis at ICICI guide product development and marketing campaigns through Behaviour Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customer’s needs and desires, enabling the bank to satisfy customers through better personalization and customization of services.

Central data management:

The initial implementation of CRM allowed ICICI to analyse its customer database, which includes information from eight separate operations systems including retail banking, bonds, fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM.

CRM PROCESS:

The CRM process is the most influential customer oriented strategy of the decade. Despite its humble origins it has evolved into a relatively complex strategy. The essentials of a CRM program include focus, commitment to CRM goals and above all a desire to be customer focused. Here's how the CRM process actually works in an organization.

A look at the steps in the CRM process:

1.Establishing CRM goals.2.Educating other departments.3.Assembling customer information.4.Designing the data model.5.Vendor study .6.Selecting the CRM solution.

7.Establishing authority & responsibility.8.Pilot projects.9.Communication with customers through direct mail , electronicmail etc.10.Customer surveys.11.Customer satisfaction program.12.Collection of customer information.13.Provision of customer information to employees.14.Usage of customer information in the business activities. 15.Feedback.16.Analyze.17.Documenting a new process.18.Implementing final methodology.

CRM PURPOSE:

The purpose for engaging in customer relationship management could be to increase marketing efficiency like achieving lower distribution cost, streamlining order processing or it could be to increase marketing effectiveness by building customer loyalty and commitment, personalizing the market offerings etc. effectiveness means completing the job we set outto efficiency means using the least amount of resources to do the job. It isvery difficult to achieve a balance between the two. Whatever the purpose the organization must decide the need and the specific requirement from the customer relationship management process.

What is processes for delivering CRM in your bank

The tools and the processes are as follow –

• Customer application form.• Centralized software where the whole data is collected.• Wide range of offering.• Cross – selling and • Feedback forms.

Customer application forms :

Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer

wants.

Centralized software where the whole data is collected:The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross –selling.

Wide range of offering:

After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then is offers a more customized service.

Cross – selling:

It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example If customer has savings account with the bank then they offer him a insurance, fixed deposits etc.This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives us, the more are his chances of being special services offered.

Feedback forms:The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used, employee behavior and promptness in solving customer’s problems, are taken and they are analyzed.