DESING OF THE STUDY Objectives To study customer relationship
management of ICICI bank To find general working of bank and how
staff members response to customer. Limitations The project is only
limited to the study of CRM of ICICI bank. CRM of other banks are
not disclosed. CRM strategies of banks are not compared with each
other. Time, length, and depth of the study are limited as per the
requirements of Mumbai University. Scope The project begins with a
brief mention of what CRM is and its need and importance in banks.
It further goes on to show the CRM strategy of ICICI bank
EXECUTIVE SUMMARYCustomer relationship management is a broad
approach for creating, maintaining and expanding customer
relationships. CRM is the business strategy that aims to
understand, anticipate, manage and personalize the needs of an
organizations current and potential customers. At the heart of a
perfect strategy is the creation of mutual value for all parties
involved in the business process. It is about creating a
sustainable competitive advantage by being the best at
understanding, communicating, and delivering and developing
existing customer relationships in addition to creating and keeping
new customers. So the concept of product life cycle is giving way
to the concept of customer life cycle focusing on the development
of products and services that anticipate the future need of the
existing customers and creating additional services that extend
existing customer relationships beyond transaction The intense
competition which banks have come to face, both as a consequence of
growth of non-banking financial institutions as well as
securitization has created the fear of high risk and has increased
the attention towards Customer Relationship Management.Customer
relationship management (CRM) is a multifaceted process, mediated
by a set of information technologies that focuses on creating
two-way exchanges with customers so that firms have an intimate
knowledge of their needs, wants, and buying patterns. In this way,
CRM is intended to help companies understand, as well as
anticipate, the needs of current and potential customers.The
project is a detail study of Process Involved in Planning of
Customer Relationship Management and Need for Customer Relationship
Management
IntroductionToday, many businesses such as banks, insurance
companies, and other service providers realize the importance of
Customer Relationship Management (CRM) and its potential to help
them acquire new customers retain existing ones and maximize their
lifetime value. At this point, close relationship with customers
will require a strong coordination between IT and marketing
departments to provide a long-term retention of selected customers.
This paper deals with the role of Customer Relationship Management
in banking sector and the need for Customer Relationship Management
to increase customer value by using some analytical methods in CRM
applications.CRM is a sound business strategy to identify the banks
most profitable customers and prospects, and devotes time and
attention to expanding account relationships with those customers
through individualized marketing, repricing, discretionary decision
making, and customized service-all delivered through the various
sales channels that the bank uses. Under this case study, a
campaign management in a bank is conducted using data mining tasks
such as dependency analysis, cluster profile analysis, concept
description, deviation detection, and data visualization. Crucial
business decisions with this campaign are made by extracting valid,
previously unknown and ultimately comprehensible and actionable
knowledge from large databases. The model developed here answers
what the different customer segments are, who more likely to
respond to a given offer is, which customers are the bank likely to
lose, who most likely to default on credit cards is, what the risk
associated with this loan applicant is. Finally, a cluster profile
analysis is used for revealing the distinct characteristics of each
cluster, and for modeling product propensity, which should be
implemented in order to increase the sales.
Customer Relationship Management: Introduction
INTRODUCTION: C.R.MThe term CRM stands for Customer Relationship
Management. Customer relationship management (CRM) is a broadly
recognized, widely-implemented strategy for managing and nurturing
a companys interactions with customers, clients and sales
prospects. It is a process or a methodology used to learn more
about customers' needs and behaviors in order to develop stronger
relationships with them. CRM is as a process that will help bring
together lots of pieces of information about customers, sales,
marketing effectiveness, responsiveness and market trends. This
process helps businesses use technology and human resources to gain
insight into the behavior of customers and the value of those
customers. It involves using technology to organize, automate, and
synchronize business processes principally sales activities, but
also those for marketing, customer service, and technical support.
The overall goals are to find, attract, and win new clients,
nurture and retain those the company already has, entice former
clients back into the fold, and reduce the costs of marketing and
client service. When an implementation is effective, people,
processes, and technology work in synergy to increase
profitability, and reduce operational costs.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 specific customers. 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 for customers 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 their customers
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 allow the 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 their customers. 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 of the 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 that
customers can be properly served. In many cases, these processes
will use computers and software. Defining C.R.M:Customer
Relationship Marketing is a practice that encompasses all marketing
activities directed toward establishing, developing, and
maintaining successful customer relationships. The focus of
relationship marketing is on developing long-term relationships and
improving corporate performance through customer loyalty and
customer retention. Customer Relationship Management (CRM) as the
name suggests, the primary focal point is placed on the customer.
The key objective is to increase customer value over time by
increasing customer loyalty. If a company develops better customer
relationships, it also improves business processes as well as its
profits. In general, CRM is a more efficient automated method used
to connect and improve all areas of business to focus on creating
strong customer relationships. All forces are coupled together to
save, improve, and acquire greater business to customer
relationships. The most common areas of business that are
positively affected include marketing, sales, and customer service
strategies. CRM helps create time efficiency and savings on both
sides of the business spectrum. Through correct implementation and
use of CRM solutions, companies gain a better understanding of
their strongest and weakest areas and how they can improve upon
these. Therefore, customers gain better products and services from
their businesses of choice. In order to achieve better insight on
CRM, it is essential to consider all of its components.
CRM- Meaning:Customer relationship management (CRM) is a
business strategy that spans your entire organization from front
office to back-office. It is a commitment you make to put customers
at the heart of your enterprise. The right CRM strategy and
solutions can help you securely, reliably and consistently delight
your customers every time they interact with your business by
empowering them with anytime, anywhere, and any channel access to
accurate information and more personalized service. Reach more
customers more effectively, increase customer retention and boost
customer loyalty by leveraging opportunities to up-sell and
cross-sell and driving repeat business at lower cost Drive
improvements in business performance by providing your customers
with the ability to access more information through self-service
and assisted-service capabilities when it is convenient for them.
Enable virtualization in your enterprise as more of your people and
resources extend beyond your offices and around the world Balance
sophisticated functionality with rapid implementation and effective
support for a faster return on your CRM investment. Todays
customers face a growing range of choices in the products and
services they can buy. They base their choices on their perception
of quality, value, and service. Each Consumer has a specific
behavior. But buying habits are sometimes difficult to understand.
Therefore companies always want to gain some insight about consumer
behavior and habits in order to better control this behaviour.
Having an impact on consumer behavior means being able to change
consumers perception of the product or service, to establish a
relation between the company and its clients.
CRM IN BANKING SECTOROver the last few decades, technical
evolution has highly affected the banking industry. For more than
200 years, banks were using branch based operations. Since the
1980s, things have been really changing with the advent of multiple
technologies and applications. Different organisation got affected
from this revolution; the banking industry is one of it (Sherif,
2002). In this technology revolution, technology based remote
access delivery channels and payment systems surfaced. ATM
displaced cashier tellers, telephone represented by call centers
replaced the bank branch, internet replaced the mail, credit cards
and electronic cash replaced traditional cash transactions, and
interactive television will replace face-to-face transactions
(Sherif, 2002). In recent years, banks have moved towards marketing
orientation and the adoption of relationship banking principles.
The key motivators for embracing marketing principles were the
competitive pressure that arose from the deregulation of the
financial services market particularly in India. This essentially
exposed clearing banks and the retail banking market to increased
competition and led to a blurring of boundaries in many traditional
product markets (Durkin, 2004). The bank would need a complete view
of its customers across the various systems that contain their
data. If the bank could track customer behaviour, executives can
have a better understanding, a predicative future behaviour and
customer preferences. The data and applications can help the bank
to manage its customer relationship to continue to grow and evolve
(Dyche, 2001). According to Stone et al. (2002) most sectors of the
financial services industry are trying to use CRM techniques to
achieve a variety of outcomes. In the area of strategy, they are
trying to: Create consumer-centric culture and organisation Secure
customer relationships; Maximize customer profitability; Integrate
communications and supplier customer interactions across channels;
Identify sales prospects and opportunities; Support cross and
up-selling initiatives; Manage customer value by developing
propositions aimed at different customer segments; Support channel
management, pricing and migration.CRM is a sound business strategy
to identify the banks most profitable customers and prospects, and
devotes time and attention to expanding account relationship with
those customers through individualized marketing, reprising,
discretionary decision making, and customized service through the
various sales channels that the bank uses. Any financial
institution seeking to adopt a customer relationship model should
consider six key business requirements (Chary & Ramesh, 2012),
they are: Create a customer-focused organisation and
infrastructure. Gaining accurate picture of customer categories.
Assess the lifetime value of customers. Maximize the profitability
of each customer relationship. Understand how to attract and keep
the best customers. Maximize rate of return on marketing
campaigns.A greater focus on CRM is the only way the banking
industry can protect its market share and boost growth. With
intensifying competition, declining market share, deregulations,
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 falling of
interest rates and tough competition between these players 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. But the success of' CRM Strategy
depends upon its ability to understand the needs of the customer
and to integrate them with the organizations strategy, people,
technology and business process. Financial services are in a
structural change whereby competition and customer demands are
increasing.
CRM Objectives in Banking SectorThe idea of CRM is that it helps
businesses use technology and human resources gain insight into the
behavior of customers and the value of those customers. If it works
as hoped, a business can: provide better customer service, make
call centers more efficient, cross sell products more effectively,
help sales staff close deals faster, simplify marketing and sales
processes, discover new customers, and increase customer revenues.
It doesn't happen by simply buying software and installing it. For
CRM to be truly effective an organization must first decide what
kind of customer information it is looking for and it must decide
what it intends to do with that information. For example, many
financial institutions keep track of customers' life stages in
order to market appropriate banking products like mortgages or IRAs
to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information
about customers comes into a business, where and how this data is
stored and how it is currently used. One company, for instance, may
interact with customers in a myriad of different ways including
mail campaigns, Web sites, brick-and-mortar stores, call centers,
mobile sales force staff and marketing and advertising efforts.
Solid CRM systems link up each of these points. This collected data
flows between operational systems (like sales and inventory
systems) and analytical systems that can help sort through these
records for patterns. Company analysts can then comb through the
data to obtain a holistic view of each customer and pinpoint areas
where better services are needed. In CRM projects, following data
should be collected to run process engine: Responses to campaigns,
Shipping and fulfillment dates, Sales and purchase data, Account
information, Web registration data, Service and support records,
Demographic data, Web sales data.
Need of CRM in banks:CRM primarily caters to all interactions
with the customers or potential customers, across multiple touch
points including the Internet, bank branch, call centre, field
organization and other distribution channels.
CRM can help banks in following ways:
Campaign Management: Banks need to identify customers, tailor
products and services to meet their needs and sell these products
to them. CRM achieves this through Campaign Management by analyzing
data from banks internal applications or by importing data from
external applications to evaluate customer profitability and
designing comprehensive customer profiles in terms of individual
lifestyle preferences, income levels and other related criteria.
Based on these profiles, banks can identify the most lucrative
customers and customer segments, and execute targeted, personalized
multi-channel marketing campaigns to reach these customers and
maximize the lifetime value of those relationships.
Customer Information Consolidation: Instead of customer
information being stored in product centric silos, (for e.g.
separate databases of savings account & credit card customers),
with CRM the information is stored in a customer centric manner
covering all the products of the bank. CRM integrates various
channels to deliver a host of services to customers, while aiding
the functioning of the bank.
Marketing Encyclopedia: Central repository for products, pricing
and competitive information, as well as internal training material,
sales presentations, proposal templates and marketing collateral. 4
360-degree view of company This means whoever the bank speaks to,
irrespective of whether the communication is from sales, finance or
support, the bank is aware of the interaction. Removal of
inconsistencies of data makes the client interaction processes
smooth and efficient, thus leading to enhanced customer
satisfaction.
Personalized sales home page: CRM can provide a single view
where Sales Mangers and agents can get all the most up-to-date
information in one place, including opportunity, account, news, and
expense report information. This would make sales decision fast and
consistent.
Lead and Opportunity Management: These enable organizations to
effectively manage leads and opportunities and track the leads
through deal closure, the required follow-up and interaction with
the prospects
Activity Management: It helps managers to assign and track the
activities of various members. Thus improved transparency leads to
improved efficiency. 8 Contact Centre It enables customer service
agent to provide uniform service across multiple channels such as
phone, Internet, email, Fax.
Operational Inefficiency Removal: CRM can help in Strategy
Formulation to eliminate current operational inefficiencies. An
effective CRM solution supports all channels of customer
interaction including telephone, fax, e-mail, the online portals,
wireless devices, ATMs, and face-to-face contacts with bank
personnel. It also links these customer touch points to an
operations Centre and connects the operations center with the
relevant internal and external business partners. CRM with Business
Intelligence: Banks need to analyze the performance of customer
relationships, uncover trends in customer behaviour, and understand
the true business value of their customers. CRM with business
intelligence allows banks to assess customer segments, which help
them calculate the net present value (NPV) of a customer segment
over a given period to derive customer lifetime value. Customers
can be evaluated within a scoring framework. Combining the
behaviour key figure and frequency to monetary acquisition analysis
with a marketing revenue quota can optimize acquisition costs and
cut the number of inefficient activities.
With such knowledge, banks can efficiently allocate resources to
the most profitable customers and reengineer the unprofitable ones.
Data warehousing solutions have been implemented in Citibank,
Reserve Bank of India, State Bank of India, IDBI, ICICI, MaxTouch,
ACC, National Stock Exchange and PepsiCo. And Business Intelligence
players hope many more will follow suit.
Objective of Customer Relationship Management in Banks
The push towards better CRM technologies is natural result of
the search by business of greater productivity and efficiency in
customer facing operations like sales, marketing, customer service
and support. E.g. in sales, companies need IT system that provides
greater control and efficiency. This means improved forecasting and
to capability, greater visibility into sales performance across a
variety of channels increased productivity by external sales forces
and reduced sales costs, meanwhile, companies must meet customer
demands for better quality timeless and customization in the
service they deliver. Companies also need technologies that help
them approach customers in a rational way. E.g. remember a customer
address from one transaction to another and carefully choreograph
contact between its, sales force and customers. In addition to
being wasteful and inefficient
The internet dramatically accelerate the focus on CRM by making
customer interactions more cost-efficiency. In addition, the web
has established a more direct sales channel that supports rapid
customers interaction and short sales cycles. Using internet
technologies, customer can interact with information from a wide
variety of sources without special training.
The idea of CRM is that it helps businesses use technology and
human resources gain insight into the behaviour of customers and
the value of those customers. If it works as hoped, a business can:
provide better customer service, make call centers more efficient,
cross sell products more effectively, help sales staff close deals
faster, simplify marketing and sales processes, discover new
customers, and increase Customer revenues. It doesn't happen by
simply buying software and installing it. For CRM to be truly
effective an organization must first decide what kind of customer
information it is looking for and it must decide what it intends to
do with that information. For example, many financial institutions
keep track of customers' life Stages in order to market appropriate
banking products like mortgages or IRAs to them at the right time
to fit their needs. Next, the organization must look into all of
the different ways information about customers comes into a
business, where and how this data is stored and how it is currently
used.
ADVANTAGES OF CUSTOMER RELATIONSHIP MANAGEMENTA. BENEFITS OF CRM
TO BANKS : The change from the profit direction of a business to
customer centric unit has lead to the flow of CRM inculcation in
the modern business scenario. Gone are those days when a business
was just a hub of wealth creation. These days it is impossible for
a business to survive, without being focused upon the needs and
expectations of the customers.
1. An enhanced CRM process provides companies a better way to
understand the changing needs of their customers and to respond to
these quickly. Because CRM managers have the information ready at
hand, they are able to analyze the data and come up with quick
responses. This is only one of the benefits of customer
relationship management.2. Customer Relationship Management or CRM
is a procedure by which companies get to know what customers
require from their service/products. The process also enables
organizations to track complaints and act on them immediately
before situations spill over from bad to worse. Indeed, the
possibilities and benefits of customer relationship management are
endless.
3. The information coming CRM should not be static. It should be
updated regularly to help companies track their customers' spending
habits and changing tastes. Thus, they can respond quickly to the
shifting trends before they lose their loyal customers. The
benefits of customer relationship management's updated facts and
statistics are driving companies to look for software solutions to
ease the management and acquisition of data.
4. The old-fashioned data banking or storing of information,
such as customers names, mailing addresses, and phone numbers are
no longer sufficient. Companies and organizations need to track
what their customers are buying, where they are buying, and how
frequently do they purchase items from their stores and from
competition. Acquisition of the information follows national and
international guidelines, so there should not be any problem about
this.
5. A bank gets to enjoy the several add-on enhancements from
CRM. Imagine what your CRM people can do using the software. They
will be able to collect customer information anytime when needed,
share the information and collaborate with customer-related
in-house staff, and come up with quick analysis on the consolidated
data gathered from various sources. All these features increase
your workers' productivity.
6. Because banks are able to catch on with the changes, One can
immediately strategize to keep their faithful customers and attract
new ones. One is redesigning CRM program to retain its customers
and get new clientele. Increased revenue is another of the many
benefits of customer relationship management.
7. Work within the company becomes well-organized, systematic,
and coordinated, thereby eliminating waste of funds on unnecessary
projects - when CRM information is used to analyze trends and
shared with the people who directly or indirectly have to do with
CRM.B. BENEFITS OF CRM TO CUSTOMERS :Customer relationships are
becoming even more important for banks as market conditions get
harder. Competition is increasing, margins are eroding, customers
are becoming more demanding and the life-cycles of products and
services are shortening dramatically. All these forces make it
necessary for banks to intensify the relationship with their
customers and offer them the services they need via the channels
they prefer.
CRM helps banks to provide lot of benefits to their customers;
some key benefits are as follow.1. Service provisioning throughout
the entire life cycle of the corporate customer, from the initial
stages to the establishment of a close, long-term relationship with
profitable clients,2. Optimization of the use of bank resources,
such as alternative channels of distribution(internet and home
banking),3. Significant reduction in and limitation of operational
costs through system automation and standardization,4. Low
maintenance and expansion costs owing to the use of modern
administration tools which allow bank employees to make a wide
range of modifications to the system5. CRM permits businesses to
leverage information from their databases to achieve customer
retention and to cross-sell new products and services to existing
customers.6. Companies that implement CRM make better relationships
with their customers, achieve loyal customers and a substantial
payback, increased revenue and reduced cost.7. CRM when
successfully deployed can have a dramatic effect on bottom-line
performance. For example, Lowes Home Improvement Warehouse, in a
span of 18months, achieved a 265 percent return on investment (ROI)
on its $ 11m Reinvestment.8. According to a study conducted in the
sector of banking, convenience of location, price, recommendations
from others and advertising are not important selection criteria
for banks. From customers point of view, important criteria are:
account and transaction accuracy and carefulness, efficiency in
correcting mistakes and friendliness and helpfulness of personnel.
Thus, CRM, high-quality attributes of the product / service and
differentiation proved to be the most important factors for
customers.9. another study conducted in a European bank shows that
with CRM, the bank was able to focus on profitable clients through
efficient segmentation according to individual behavior.
Information about who buys what and how much enabled the bank to
have a commercial approach based on the client and not solely on
the product. Thus, the bank was able to better satisfy and retain
its customers. Eventually, CRM results both in higher revenues and
lower costs, making companies more effective and efficient:
effective in targeting the right customer base with the right
services via the right channels, and efficient in doing this at the
lowest costs. For example, those banks that are moving transactions
from the more expensive channels to a less costly channel like the
call centre or Internet are therefore able to save money.
METHOD OF EFFECTIVE CRM IMPLEMENTATIONBanks can take several
steps to strengthen their customer relationship management in an
effective manner.1. Acknowledge Email Enquiries :At the very
minimum, banks should send out an automated email response that
acknowledges receipt of a customer's email and lets the sender know
when to expect a more complete response. It is then vital to get
back to the customer within the promised time frame. Banks can earn
more customer goodwill if they respond faster than the imposed
deadline. To handle significant volumes of email, banks need
adequate routing technology. Many banks regard a voice call centre
as a cost of doing business, but they don't look at it the same way
with email.
2.Develop The Right Contact Strategy :By knowing which offers
and incentives to offer to which customers and when, banks will not
annoy customers with unwanted marketing offers, building customer
loyalty along the way. Such goals can be at least as important as
realizing cross-sell opportunities.
3. Providing Online `Chatting' : An alternative to telephone
support, online chatting is providing a service via emails or any
other form of immediate response. This service also offers some of
the immediacy of the phone but primarily allows customers to remain
online. With online chatting, service agents can usually handle
between one and three customer inquiries at once.Given that the
average call lasts about four minutes, a customer-service
representative can handle 10 to 12 customers per hour using "chat",
compared with six to eight per hour over the telephone. One of
chat's important advantages is that it keeps customers in an online
store environment where they remain exposed to merchandise and
promotions.
4. Reduce Costs By Improving Website Design And Self-Service :
Email, telephone support, and chat all involve considerable
staffing costs. But to reduce these expenses a site should
anticipate customer needs. Sites that is difficult to navigate and
don't provide needed information chase away some customers and
force those who stay to resort to more expensive channels to
satisfy their service needs.
5. Analyses The Project's Scope : Before recommending or
embracing CRM, bank executives must analyses the business issues,
the customer relationship model and the exact nature of customer
interactions and how they tie together. Banks should not embrace
top-line growth as an objective until they can understand precisely
how CRM technology will provide those new revenues.
6. Know The Limitations:Many CRM implementations are severely
limited because they fail to provide a complete and meaningful view
of the customer. CRM is primarily a business program, and it
requires a genuine partnership between various departments to
ensure that both business and technology issues are managed
effectively. Furthermore, CRM not only takes existing business
processes and makes them more efficient, but it also requires these
processes to be modified. For a CRM implementation to be
successful, decision makers within the bank need to make sure that
all the stakeholders understand and support the required process
changes.7.Change Accounts Into Customer : Traditionally banks have
closely associated customers with accounts, to the point of calling
the account the customer and vice versa. Customers will tend to
feel alienated when they are treated like a number instead of a
person. A conventional account structure usually contains very
little information about customers and their needs, or their
relationship with competitors or other divisions within the
bank.
The way ahead Banks have excellent reasons to adopt
comprehensive CRM strategies to grow a lifetime customer
relationship. As banks move from transaction-centric to a
relationship-centric business approach, effective leveraging of
customer relationship becomes all the more critical.Today,
customers are expecting even more individual attention,
responsiveness and product customization, yet are unwilling to pay
a premium for these services. They are willing, however, to build a
long-term relationship with banks that offers differentiated and
more personalized services.This is where electronic banking can
offer a competitive advantage. Successful CRM implementation in
electronic banking needs to integrate data from all customer touch
points, employee feedback and even shareholders' perceptions. If
used effectively and in an innovative way, this approach will
enable banks to develop a strategy to deliver to the customer the
most appropriate products and services.
IMPLEMENTATION OF CRM IN INDIAN BANKSAlthough CRM as a concept
is of recent origin its tenets have been around for some time.
Field officers in the banks have always promoted close
relation-ship with customers, but the focus on customer orientation
rather than product orientation as a commitment has been on the
Indian banking scene for nearly a decade. But the fact remains that
implementing customer relationship management is not easy.
There are really very few organizations that are actually
optimizing customer experiences at all points of contacts. It is
necessary to understand who customers are and what they value,
select customer carefully, design products and services that
deliver the desired value, design effective sales channels and
customer touch points, recruit and equip employees to deliver and
increase customer value, and constantly refine your value
proposition to ensure customer loyalty and retention (Forsytyh 1997
and Goldenberg 1998). With the advancement of banking technology
and computerization and networking of bank branches, banking
customers are becoming more and more dynamic and less loyal in
their behaviour. The development of the Internet is further adding
to this trend and the whole market becomes trans-parent and
customers are in a position to move easily from one bank to
another. In such a situation, customer satisfaction is the key to
bank marketing, which aims at retention of the old customers and
their bringing in new customers.
CRM deserves differential treatment to different class of
customers at times. Service can be given to customers either
personally through individuals such as customer service manager or
the process can be automated by using computers. These different
approaches are adopted depending on the value of relationship with
the customer. Personal management of relationship is extended to
business customers and high value personal customers and automated
relationship management to lower margin mass- market segments.
CRM system can open up new channels of delivery, which are most
cost effective. We can cite example of the Internet and call
centers. According to an estimate, cost per transac-tion through
these modes can be reduced by 90 per cent when compared to cost of
transaction at branch. To offer better and extended services to
custom-ers new technology platforms are being created through huge
investment in Information Technology in banking sector. The recent
development in this field is the introduction of CBS (Core Banking
Solutions). A CBS helps in centralizing the transactions of
branches and different banking channels and the customers start
banking with the bank instead of at different branches. This is the
only way to offer seamless transactions across different channels
(branches, the Internet, the telephone and Automated Teller
Machines or ATMs). As such nowadays a customer is called a customer
of the bank rather than of a branch.
Another problem generally faced by a bank in implementing CRM is
resistance to change. The banking industry is passing through a
radical transformation, from a sellers market to a customers
market, a regulated economy to a more liberalized and open economy,
advancement in technology and a lot of other developments. These
complex changes are forcing the banks to change the way they do
business. A change denotes making things in a different manner. It
should be planned properly, proactive and goal oriented. It
requires two things: Firstly, the ability of the organization to
adapt changes in the business environment is to be increased.
Secondly, the mindset of the employees has got to be changed in the
development of right attitude, skills, expectations, perceptions
and behaviour. Implementation of CRM in Indian banking is still in
its initial stage and has to go a long way to develop and raise it
to the global standards. But the Indian banks including the public
sector banks are coming in a big way to address this issue to
remain competitive with their counterpartsthe foreign and private
sector banks.
Customers Relationship Management A new mantra in Indian banking
Nowadays banks have to work keeping in mind the position of the
financial market and anticipate change in the market place and
prepare themselves accordingly. They have to make new resolutions
to build further on their own strengths to explore new avenues of
Customers Relationship Management. This is the only strategic
weapon to be pursued for excellence in the pursuit of performance
and achievement. Both the retention of old business as well as to
search for new business, CRM is the only choice. CRM, being the
essence of modern banking, a sound understanding of the key
principles, its theories and practices should be revisited and
redefined to provide a road map to new ideas and techniques in the
field. Over the years, banking institutions have been feeling the
pressing need of putting up greater thrust on this initiative for
improving their operations and appearances.
The FOCUS ON CRM
The profitability of a bank depends to a large extent on its
ability to deploy its fund in high yielding loan portfolios of
their customers. But with the increasing competition of lowering
interest rates by different banks, interest spread is touching the
low ebb every day. The demand for credit from the corporate sector
is diminishing due to more efficient management of working capital,
availability of cheaper funds from other routes etc. According to
the Centre for Monitoring Indian Economy (CMIE), during 2000-01,
the working capital cycle of manufacturing companies fell to 21
days compared to 60 days a year ago. In the year 2001- 02, the
cycle further reduced to 14 days and became negative during
2002-03. Taking as a percentage on sales, working capital ratio had
dropped to three per cent from a level of 13 per cent over the last
five years in case of 4,000 selected manufacturing industries. The
demand for working capital will be in the declining stage in the
years to come. Further, there is lack of investment demand in the
market. These developments have led the banks to go in search of
new business opportunities where they can put their resources and
earn a reasonable margin to add to their bottom lines. After a lot
of exercise and considerable thought, they identify the retail
sector and commit for considerable retail lending as a means to
serve their ends.
Customer Relationship Management:INICICI BANK
CUSTOMER RELATIONSHIP MANAGEMENT: STUDY OF ICICI BANK
INTRODUCTION OF ICICI BANKProfileICICI Bank is India's
second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at March 31, 2010 and profit after tax Rs. 40.25
billion (US$ 896 million) for the year ended March 31, 2010. ICICI
Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly-owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public
offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000. ICICI Bank is
also the largest issuer of credit cards in India. Business Focus
ICICI wants to leverage their people, technology, speed and
financial capital to: Be the banker of first choice for our
customers by delivering high quality, world-class products and
services. Expand the frontiers of our business globally. Play a
proactive role in the full realization of Indias potential.
Maintain a healthy financial profile and diversify our earnings
across businesses and geographies. Maintain high standards of
governance and ethics. Contribute positively to the various
countries and markets in which we operate. Create value for our
stakeholders.
DistributionICICI Bank is headquartered in Mumbai. The Bank at
present has an enviable network of 2,528 branches and 6000 ATMs in
India. All branches are linked on an online real-time basis.
Customers in over 500 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to
have a presence in all major industrial and commercial centers
where its corporate customers are located as well as the need to
build a strong retail customer base for both deposit and loan
products.Moreover, ICICI Bank's ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro,
Plus/Cirrus and American Express Credit/Charge cardholders.
Why CRM in ICICI Bank?The environment within which financial
institutions operate has changed in recent years. It is now one of:
Increased competition Growing product commoditization, and
Diminishing margins
Banking customers have also changed in recent years. Customers
today are more knowledgeable, sophisticated and assertive than ever
before. They demand higher levels of customer service, are less
loyal, and more inclined to switch to a competitor. Modern
customers thus necessitate flexibility in hours of operation,
greater convenience, customization, transparency, accessibility and
control.This has led to a shift in business focus from
transactional to relationship marketing.
The use of CRM in ICICI bank has been essentially done for the
following purposes: Targeting customersIt 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 into account 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. For example, a customer interacts
with the banks for savings accounts, credit cards, home loans, car
loans, demat accounts, etc. the data generated through all these
services needs to be integrated to enable effective targeting.
After the integration is done, aprofitability analysis of the
customer needs to be undertaken to acquire an understanding of the
profit-worthiness of the customer before targeting him with new
offers.
Sales reference materialA consolidated information database on
all products, pricing, competitor information, sales presentations,
proposal templates and marketing collateral should be accessible to
all the people concerned. 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
(especially when he/she is in a meeting with a client.)
Consistent interface with customersThe 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 a unified 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 co-ordination. 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.
ICICI Banks CRM InitiativesICICI Bank has to manage more than 13
million customers. The bank has over 550 branches, a network of
2025 ATMs, multiple call centers, Internet banking and mobile
banking. Its customers often use multiple channels, 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 transaction systems is fed
into a single enterprise called wide data warehouse. This allows
the bank to generate a single view of its customers. The warehouse
has the capability to integrate data from multiple sources
comprising Oracle and flat files. The Behavior 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-selling opportunities as well
as finding out about the channel usage undertaken by a segment. The
data access was facilitated through the use of Cognos Power
Cubes.
CRM working of ICICI BANKCRM, according to ICICI consists of
following approaches:A. Getting personalized information on
customers.B. What is the value of the relationship?C. Customized
offerings to the customers D. Converting a prospective customer
into a true customer.
[A] GETTING PERSONALIZED INFORMATION ON CUSTOMERS:The bank
collects all the information about the customers for processing.
ICICI bank has mainly 4 service offerings viz: loan account, saving
account, current account and fixed deposits. Moreover, the bank has
many customers in each category. So, they collect the data on one
server and thus the company gets the personalized information on
each customer by asking them to fill the information in customer
application form.
[B] WHAT IS THE VALUE OF THE RELATIONSHIP?After the collection
of the personalized information on every customer, the department
checks out the value of the relationship with each and every
customer. Later, they decide how to approach the customer for
knowing what his needs and wants are? After this is done, the
company offers him the customized product.
[C] CUSTOMIZED OFFERINGS TO THE CUSTOMER:The step which comes
after deciding the value of the customer is that the company offers
the person the customized product. Moreover, they also practice a
concept called cross- selling over here. Cross selling refers to
offering another product from the service offering of the bank to
the customer which he has not gone for. [D] CONVERTING A
PROSPECTIVE CUSTOMER INTO A TRUE CUSTOMER:The last approach of CRM
according to ICICI bank is that they try to convert the prospective
Customer into a true customer. Right from the moment the inquiry
comes, they follow- up the customer and then make him to come to
the bank occasionally and then regularly.The processes for
delivering CRM-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
forms1. 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.2.
Centralized software where the whole data is collectedThe 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.3. Wide
range of offeringAfter 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.
4. Cross sellingIt 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.5. Feedback formsThe bank
distributes feedback forms at all its branches. The customer
feedbacks on the service, technology used, employee behavior and
promptness in solving customers problems, are taken and they are
analyzed.
The Benefits of CRM Customers usage pattern:ICICIs CRM data
warehouse integrates data from multiple sources and enables users
to find out about the customers various transactions pertaining to
savings accounts, credit cards, fixed deposits, etc. The warehouse
also gives indications regarding the customers channel usage.
New product developmentAnalysis at ICICI guides 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 customers
needs and desires, enabling the bank to satisfy customers through
better personalization and customization of services.
Central data managementThe 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.
Some Noteworthy CRM Initiatives of ICICI Bank
Mobile ATMsCustomers of ICICI Bank can access their bank
accounts through mobile ATMs. These ATMs are kept in vans and
parked at locations that have a high traffic of bank customers such
as the commercial areas in a city or upmarket residential areas
ICICI Bank now provides standard ATM facilities through ATM vans.
This facility has been tried at Mumbai, Chandigarh and various
places in Kerala during specified timings.TimingsLocations
9.00 am to 10.00 amJunction of Nehru Road and M.O. Road, near
Ram temple, Vile Parle (E)
11.00 am to 12.00 noonOpp.J.W. Marriott Hotel, Juhu
1.00 pm to 2.00 pmLokhandwala Circle, Andheri (W)
3.30 pm to 5.00 pmOutside Vasanth Sagar, 120 ft. Road, Hakur
Village, Khandivali (E)
Bulk DepositsThe ICICI Banks Bulk Deposit ATMs enable customers
to deposit large amounts at one time. Unlike conventional ATMs,
which are able to accept only 30 notes at a time, these ATMs allow
the deposit of huge amounts. The Bulk Deposit ATM is available in
Mumbais Vashi sector branch office of ICICI.The bulk deposit
facility can be availed of by select customers who need to deposit
huge amounts of cash. ICICI Bank issues a special card called the
`Deposit Only Card to facilitate this service. This card allows for
deposit transactions only. The service is further facilitated by
the provision of special bags at ATMs in which a customer can put
his money. After the deposit slip is filled, the bag can be
inserted in the ATM. The transaction slip is then generated by the
ATM as an acknowledgement of the deposit.ICICI Bank also has cash
pick-up service for business customers under the business banking
segment.
ATMs for the visually challengedICICI Bank has launched ATMs
with special voice-guided systems, which guide a visually
challenged person to access ATMs without any help. The jack on the
terminal enables headphones to be connected to it and voice
commands enable the customer to transact business. Customers may
choose a suitable language to get voice commands. After the
language selection is done, the customer is guided to ensure that
the ATM card is inserted in the right slot and thereafter, guidance
is provided for entering the PIN by using the keypad. A raised
button is provided on number 5 to enable users to identify the
numbers easily through touch. The slot for cash collection has such
raised `pips that enable easy identification through touch.
Other Services through ATMsApart from the usual transactions
involving the bank, some other services can also be availed of by
ICICI Bank customers. These include: Prepaid mobile recharge Buying
and renewing Internet packs (such as those of TATA Indicom Internet
service provider, Sify and VSNL). Making donations for Tirupati
Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi
shrine. Mutual fund transactions, and Bill payments
Mobile phone as a Virtual WalletThe mobile phone has been
transformed into a virtual wallet a new innovation in mobile
commerce. On September 19, 2005, Airtel, ICICI Bank and VISA
announced the launch of mChq a revolutionary new service which is a
credit card using the mobile phone. This is the first
mobile-to-mobile payment option which enables Airtel customers and
ICICI Bank Visa cardholders to pay for their purchases with their
Airtel Mobile phones. The service has eliminated the need for
carrying physical cash for making a purchase and also the problems
associated with the point of sale (POS) terminal since the mobile
phone services as a secure POS and a payment mechanism.
Social EventsICICI Bank organized the largest domestic
invitational amateur golf event for HN1 (high-net-worth
individuals) customers. This nation-wide golf tournament had over
one lakh high-net-worth clients of ICICI Banks private banking
division participating in the event.
Mobile Banking BenefitsMobile banking enables the customer to
avail of many facilities by just sending an SMS. These facilities,
which are currently offered free of cost, are as follows: Locating
ATM Locating branch Locating drop box Alert facilities like salary
credit, account debit/credit, cheque bounce, etc., and Queries on
banking, cards and demat account CUSTOMER RETAINTIONThere are
various components of CRM like customer information, sales,
Marketing trends and marketing efficacy that acted in tandem to
improve relationship between ICICI and its consumers. ICICI
captured customer data and analyzed them while dealing with
customers at these very touch points. A CRM solution from Siebel
was implemented for the Automation of customer handling in all key
retail products of the Group. The solution allows Customer service
agents to track all customer complaints and requests. It also
allows target setting and centralized tracking of turnaround times
for request ful fillment.The solution went live in phases during
fiscal 2002. The Bank has also undertaken a retail data warehouse
initiative to achieve customer integration at the back-office. This
central view of the total customer relationship is being used
extensively for identifying opportunities to cross-sell new
products and services to the existing customer base. Its technology
strategy emphasizes enhanced level of customer services through
24x7availability, multi-channel banking and straight through
processing, and cost efficiency through optimal use of electronic
channels, wider and focused market reach and opportunities for
cross-selling. The company offers the person the customized
product. Moreover, they also practice a concept called cross-
selling over here. Cross selling refers to offering another product
from the service offering of the bank to the customer which he has
not gone for. Example if customer has saving account with the bank
then we offer him loan, insurance and other investments.
RELATIONSHIP MANAGEMENT:- Know Your Customer:Know Your Customer is
about understanding your individual customer's value and needs.
This understanding comes only from collecting information that
customers provide in their interactions with your company, and
developing a 360-degree view of customer behavior across all touch
points. As you begin a dialogue with individual customers, you
create a learning relationship with your customers; each
interaction becomes an opportunity to build and extend your
relationship with that customer. The more extensive the learning
relationship, the more invested the customer becomes in the
relationship and the more difficult it will be for the customer to
switch to a competitor. The bank collects all the information about
the customers for processing. ICICI bank has mainly 4 service
offerings viz: loan account, saving account, current account and
fixed deposits. Moreover, the bank has many customers in each
category. So, they collect the data on one server and thus the
company gets the personalized information on each customer by
asking them to fill the information in customer application form.
After the collection of the personalized information on every
customer, the department checks out the value of the relationship
with each and every customer. Later, they decide how to approach
the customer for knowing what his needs and wants are? After this
is done, the company offers him the customized product.
Reach Your Customer:Reach Your Customer is about reaching the
right customers with the right offer at the right time through the
right channel. Based on your knowledge of each customer, you are
able to reach specific customers with targeted offers, information,
products, and services. You reach each customer with a personalized
message based on his or her needs, behaviors, and value.
Grow Your Customer:Grow Your Customer refers to your company's
ability to effectively execute Marketing strategies based on your
knowledge of customer share and customer lifetime value. You must
use scarce investment dollars to target your efforts to your best,
most valuable customers. Increasing the total value of your
customer base by retaining and growing your best customers, is
significantly less expensive than trying to generate the same
amount of value by acquiring new customers. Focusing on your best
customers requires you to re-examine and re-allocate total
Marketing and sales investments from less profitable customers and
the acquisition of new customers.
DRAW a 6 market frame workInternal market the employees of the
bank are very crucial for success. For customer the employee is the
bank as he tract with him daily. If the staff are not satisfied or
in good mood then that will be reflected in the services they
provide. So the banks policy should be that they try to keep all
the employees satisfied.Recruitment marketing selecting right
person for a right job is a difficult task. ICICI Bank has to plan
all the requirements and job specification, according to that they
have to select the employee. As said earlier in banking sector
employee play a key role in success.Referral market the word of
mouth marketing works a lot. When a customer is satisfied, he tells
his friends, relatives and known that ICICI Bank services are good,
their interest rate of loan is not high, the deposit rates are
high. This helps the bank increase customer base and
profits.Influence marketing ruling body of bank i.e. RBI, policy
plays an important role in functioning of banks. They lay all the
important policy which the banks have to follow. The lending rate,
deposit rates all are affected by the policy of RBI.Supplier Market
the raw material in banks are computers, software, furniture, etc.
So the bank has to put focus on all the suppliers of these
commodities. In bank performance enhancement technology plays a
vital role. The bank should be updated with technologies.
DRAW HEXAGON PROFILE MODELIn ICICI Bank the initial customers
are less as compared to repeat customers. This is because if
customers are satisfied with the services they keep on doing
business with banks. They do regular transactions. The bank tries
to do cross selling. If customers is saving a/c holder they try to
sell insurance policy, demat a/c, credit and debit card, etc. There
are many customers who would like to give suggestions to bank for
improvement in product and services. Their valuable insights are
important for bank, and they are used for product development.
These types of customers are called the advocates. IDIC
MODELIdentify (learn about customers) ICICI Bank has to first learn
about the customers. In banking the very important thing while
opening an a/c is KYC i.e. Know Your Customers. The bank has to
first know about the customers. They should know the name, age,
sex, address, family, etc. Along with all these they should also
know their past and present status of the customers, their needs
and wants.Differentiate ICICI Banks have many products and
services. They have to differentiate the customers according to
their income, status, needs and requirements. They then have to
plan and develop products catering to a specific group of people.
This is the type of differentiation banks are following. Interact
there are various touch points where customers can interact. They
can retrieve and send information from telephone, e-mail, internal
portals, fax, face to face interaction with employee. The banks
collect all the information about the customer they can. They try
to develop a good relationship with the clients. They try to
maintain all personal information also so that better relationship
can be developed.Customize ICICI bank develop many products
according to the income, status, needs and requirement. They have
wealth manager who cater the requirements of the clients. They
focus on high net worth individuals. They plan and suggest the
customers where to invest and how much to invest.
Results CRM helped ICICI Bank to become the 3rdbest bank in
India. With Affinium, ICICI Bank has boosted customer retention by
four percent, and executed acquisition campaigns, which resulted in
reduction of acquisition cost by 60 percent due to effective
targeting and channel optimization. Following the implementation of
Affinium, the campaign volume increased by over 200 percent The
credit card activation campaign has achieved an incremental
activation rate of 30 percent compared to activation efforts
without predictive modeling. Debit card early activation program
resulted in incremental response of five percent over the normal
activation rates. Now ICICI Bank could provide various facilities
to its customers like demat a/c, insurance policy, bills payment
facilities, etc. other than its core business of providing loans
and keeping deposits of customers; CRM solution gave ICICI Bank an
upper edge in fighting with its competitors
Competitive advantageICICI Bank comes in 3rd ranking of all
commercial banks in India. It has a great competitive advantage
over all other banks. This is because the relationship which they
with their customers is too good. They have been focusing on it
from the beginning. The parameters on which ICICI Bank has given
maximum weight age to build business areEmployees they have very
good front end employees, who deal with customers on regular basis.
They have been trained in such a way that they always maintain good
relationship with clients. They always have a smile on their face
and treat customers as their family members.Technology ICICI Bank
tries to be updated in technology department. They use all the new
technology which will be beneficiary for them to deal with
customers. They try to make transaction and system easy for
customers.Customer Relationship bank has always maintained a policy
of knowing the customer well. Their first aim is to understand the
customer plan, need and requirement. For this they need to know the
financial position and status of the customers. They always try to
maintain good relationship with them. Recommendations Make the
customer relationship building more strong try to improve the
relationship, so that customers dont ever think to shift to other
banks. Provide wealth manager to valuable customers, so that they
design their investment policy. This helps in strong relation
building and retaining customers. Try to do more cross selling CRM
solution helps in cross-selling. Try to target the customers for
using more and more products. Introduce more loyalty programs like
giving more schemes and offers on credit cards. Improve ways to
reduce customer grievances ICICI Bank should work on reducing
customer problems, if they face. Try to solve all the problems as
quick as possible because small issues can lead to big problems and
make customer dissatisfied. Take customer feedback regularly and
work on it
CONCLUSION:Banking can be mysterious for consumers and how they
interact with their finances can be a complex matter. The
challenges faced by banks and their customers are many but the
trick lies in de-mystifying complex financial relationships.
Technical solutions deployed by banks today are flexible,
user-friendly and meant to facilitate specific workflow and
requirements in implementation processes. In order to simplify
lives, banks have begun to implement end-to-end technologies
through all departments with the intention of removing human error
from processes. Previously existing manual environments could not
have been adequate for future visions, growth plans and strategies.
In this day and age, customers enjoy complete luxury in terms of
customized technical solutions and banks use the same to cement
long-term, mutually-beneficial relationships. For a bank to succeed
in adopting a CRM philosophy of doing business, bank management
must first understand CRM as a holistic concept that involves
multiple, interlocking disciplines, including market knowledge,
strategic planning, business process improvement, product design
and pricing analysis, technology implementation, human resources
management, customer retention, and sales management and
training.Turning the business strategy into actionable items is a
difficult undertaking. For which Customer Relationship Management
works a magic wand.
Thus, we see that a focused and customer centric approach helped
ICICI Bank become #2 bank in India (till recently, as PNB has taken
over it as the No 2 bank in India now).ICICI has used CRM not only
as a tool but also as a strategy to gain competitive advantage over
other new generation private banks. It has invested a lot in ICT
and spared no pains in giving best to the customers. Its
multi-pronged approach towards managing customer relationship is
paying dividends constantly and as a result we see millions of
happy satisfied customers determined to make it one of the most
successful banks in India. Thus after grabbing details of CRM in
ICICI bank we can say that ICICI bank is well ahead of other banks
as far as Customer Relationship Management is concern. However at
the same time keeping intense completion in to account, ICICI bank
should involve technology more in CRM in terms of Mobile Banking,
Competitive products and Services to all the segments.