CRM Project
CRM Project
CRM Project
SUBMITTED BY
DEBOSHREE.K.MAJUMDAR
TYBBI
SEMESTER V
SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR: 2008-2009
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DECLARATION
____________________
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CERTIFICATE
__________________
Mr.Amit Oak
(Project Guide)
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ACKNOLEDGEMENT
During the course of this project, I’ve been helped and supported by a lot of
people whose names if not mentioned, would be inconsiderate on my part.
I’d like to thank all of them.
I’d like to thank my guide, Mr. Amit Oak, who guided me throughout and
has been a helpful guide. Working under his guidance has been a great
experience.
I’m deeply obliged to our college librarian who guided me through the
reference books, without which my project wouldn’t have seen the light of
the day.
Most of all, I wish to thank my family for dealing with me patiently and
supporting me whilst I was working on this project.
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And my sincere thanks to Mr. Bill Gates and MS Corp. Writing a book
wouldn’t have been easy without MS Word- right from grammar checks to
replace alls-things have become simpler with the advent of this software.
And most importantly I thank The Almighty, just for being there with me,
throughout.
EXECUTIVE SUMMARY
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Recently CRM has taken a center stage in the business world with
businesses concentrating on saving money and increasing profits by
redefining internal processes and procedures. It costs a company
dramatically less to retain and grow an existing client, than it does to court
new ones. It is said that “It is seven times more expensive to acquire a new
customer than to keep an existing one”, therefore the value of customer
information and management should never be underestimated.
In additional to all the usual customer care principles, CRM includes the
storing of customer information in a database (or data warehouse) and using
the information in a way that improves the customer's "experience".
Today it’s widely acknowledged how you treat your customer goes long way
in determining your future profitability, and companies are making bigger
and bigger to do just that. Customers are serious about the service they
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should beget and are voting with their wallets based on the experience they
receive.
Market analysts squabble over the exact figures, but all agree that in the
next few years company will pour billions of dollars into CRM solution
software and service designed to help the business more effectively manage
customer relationships through any direct or indirect channel a customer
opts the use. Specially in banking CRM it is very important because bankers
have to daily interact with their customers and provide value added services
to them.
This project answers to all the queries regarding what customer relationship
management is. In this project stress is not on the technology, which is a part
of CRM but stress is on the customer preference on the needs, so that
companies can please most of the customers all the time. Relative graphs
and diagrams are also included in this project. The role of the customer in
any business activity is very important and this can be clearly revealed from
this project.
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So why, is the market of CRM technology exploding, is the most common
question at CRMguru.com “What Is CRM?” because if you ask three CRM
experts, you’ll get five different answers.
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1. INTRODUCTION 11-19
CONCULSION 95-99
13.
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INTRODUCTION
-Toady’s seller.
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What is CRM?
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CRM from the information Technology Perspective
From the technology perspective, companies often buy into software that
will help to achieve their business goals. For many, CRM is far more than a
new software package, the renaming of traditional customer services, or an
It-based customer management system to support sales people. However, IT
is vital since it underpins CRM, and has the payoffs associated with modern
technology, such as speed, ease of use, power and money, and so on.
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A commonly cited definition of CRM (UK) Ltd. (2002),
is as follows:
Customer Relationship Management is the establishment, development,
maintenance and optimization of long term mutually valuable relationships
between consumers and organizations.
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• At the core of ant customer-centric business strategy and culture.
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●Develop an end-to-end process to serve customers.
●Recommend what questions to ask to help a customer solve a problem.
●Recommend what to tell a customer with a complaint about a purchase.
●Track all aspects of selling to customers and prospects as well as customer
support.
Aspects of CRM:
There are three aspects of CRM which can be implemented with isolation
from each other:
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• Analytical CRM: analysis of customer data for a broad range of
purposes.
1. Customer Acquisition
2. Customer Retention
3. Customer Extension
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The three contextual factors are:
4. Marketing Orientation
5. Value Creation
6. Innovative IT
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3. Customer Extension – Our customers are regularly returning to
purchase from us. We introduce products and services to our loyal
customers that may not wholly relate to their original purchase. These are
additional, supplementary purchases. Of course once our loyal customers
have purchases those, our goal is to retain them as customers for the
extended products or services.
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6. Innovative IT – It should be efficient, speedy and focus upon the
needs of customers. Whilst IT and/or software aren’t the entire story
for CRM, it is vital to its success. CRM software collects data on
consumers and their transactions. In some ways, since every consumer
displays different purchasing habits and preferences. Organizations
will track individuals, and try to market products and services to them
based upon similar buyer behavior seen in other individuals (e.g.
When Amazon tells you those customers that viewed/bought the same
product as you, also bought another product).
BIRTH OF CRM
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“CUSTOMER FOR LIFE THROUGH SYSTEMS AND SMILES”.
BIRTH OF CRM
Throughout the 90s business were focused on improving internal
operations. CEO’s tried to distinguish their companies through
operational excellence and product innovation. Middle management
focused on automating departmental functions such as sales and help
desk support. They believed that automation and better management of
their sales and customer service process would lead to increased revenue
and customer satisfaction. Vendors were all too happy to support this
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belief and raced to the scene with independent solutions for sales force
automation, help desk and customer service functions.
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Never before has so much “clutter” bombarded consumers from so many
online and offline sources. Trying to be all things to all buyers, sellers
face a harsh reality that brings an old adage to life: YOU CAN PLEASE
SOME OF THE PEOPLE MOST OF THE TIME AND MOST OF
THE PEOPLE SOME OF THE TIME, BUT YOU CAN’T PLEASE
ALL OF THE PEOPLE ALL OF THE TIME.
attract customers in the first place. It’s the piece that ensures sales and
service efforts are effective and integrated. It’s the piece that allows the
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seller to segment and analyze their customer information in order to
create a more personalized, long-term relationship. It’s the piece called
“marketing”.
We’re not saying that the last decade’s investment in CRM has been
wasted. Quite the contrary: what began as a solution for providing more
efficient customer transactions evolved into a process by which
companies could foster more meaningful customer interactions. This was
the right direction to take. However, companies haven’t reached the end
of the CRM road. Today, the challenge is to take this evolution one step
further – to focus on building lasting and profitable customer dialogues at
all interaction and transaction touch points to build customer and brand
value.
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CRM TODAY – FRAGMENTED CUSTOMER
EXPIRENCE
SERVICE SALES
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MARKETING SALES
SERVICE
EVOLUTION OF CRM
As CRM evolved, many companies assumed that just bolting on new
technology or adding new services would enhance customer relationship.
This assumption was pernicious as it was false. After all, you can’t sell
what people don’t want to buy, no matter how efficient and service
oriented your sales channel. And as for gathering customer insights, be
careful what you wish for. Many companies faced the unsettling paradox
of having advanced data availability and analytic techniques that quickly
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outpaced their ability to absorb and apply the information. They were left
with sophisticated tools that offered little real value. The belief is that the
third wave of CRM will bring about the ultimate transformation of
customer experiences – not just by strengthening sales and service or
even promoting interaction with your customers – but by creating a series
of “Intelligent Conversations” that build over the time into a long term
meaningful dialogue.
which was a single function approach was the first stage. The value
generation for the vendor was the sole criteria for the success of the
business.
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2. Customer Acquisition: This naturally led to acquisition as the
only strategy for the business to grow and expansion of customer base
was the key for this.
evolution where for retention and acquisition both factors beyond just
the pricing and quality of the products need to be looked into. The
creation of long term relationship with customers by offering value
added services and creating long term value for mutual benefit was
the key.
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NATURE AND SCOPE OF CRM
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depends on a company’s ability to be with the customer on a round with
clock basis…satisfying all their product and service specific needs.
Simply stated, Customer Relationship Management (CRM) is about
finding, getting, and retaining customers.
CRM is all about building long term business relationships with your
customers. It is best described as the blending of internal business
process: SALES, MARKETING AND CUSTOMER SUPPORT
WITH TECHNOLOGY. CRM solutions empower business to more
efficiently and effectively manage the activities that affect their
relationship with their customers. The ultimate goal is to meet and exceed
customer expectations, create a positive customer experience and build
customer loyalty.
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Key CRM Principles: A good CRM solution should allow for:
• Differentiate Customers – All customers are not equal; recognize and
reward best customers disproportionately.
DIFFERENTIATING CUSTOMERS
Most CRM systems allow for very little freedom to customize to
specific industry verticals. Since the customers needs emerge from the
products and offerings of the industry, CRM system should respond to
the customer needs.
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What CRM needs to understand while differentiating customers is
DIFFERENTIATING OFFERINGS
CRM solution needs to differentiate between a low value customer and
a high value customer
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MAXIMIZING LIFE TIME VALUE
By identifying life stage and life trigger points by customer, marketers
can maximize share of the purchase potential. Thus the single adults shall
require a new car stereo and as he grows into a married couple his needs
grow into appliances.
INCREASE LOYALTY
It is an endeavor of ant corporate to see that its customers are advocate
for the company and its products. Any company will like its mindshare
status from being a suspect to being an advocate. Suspect-----
prospect-----customer client-----supporter-----advocate.
Referral sales invariably are low cost high margin sales. It has also the
implication of being not “on time scale”. Besides, referral sales are likely
to induce more satisfaction.
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SUMMARIZING CRM ACTIVITIES
The CRM cycle can be briefly described as follows:
BENEFITS OF CRM
1. Profitability-Driven Account Planning - Enables commercial
banks to better understand the overall needs of their customers and drive
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customer profitability. Key components include profitability-based
customer segmentation and integrated alignment and performance
management to allow commercial banks to coordinate their efforts and
drive cross-selling of non-interest, fee based products to the appropriate
customers.
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CRM STRATEGY - The basic CRM strategy is to align an
entire organization to service the customer better.
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CRM strategy also covers many other business processes. The
simplicity in use, open-source features, and web-based CRM allow
users to develop right CRM strategies according to their industry,
customer preferences, sales territories, etc.
CRM PROCESS
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• Pleasing customers with respect to set rules and plans.
• Regularly keeping the contact with the customers.
• Providing real-time reports and analysis about on-going processes
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BANKING ON CUSTOMER FOCUS
Long serpentine queues, interminable waiting hours, unfriendly staff –
till recently, these were the characteristics of Indian banks. Intensification
of competition after liberalization has compelled the banks to get their
acts together and focus more on the customer.
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THE RESULT: Banks needlessly lose some of their best customers
to other providers, particularly non-brokerage and mutual fund
companies. A survey by New Ground Resources Inc; found nearly half of
the customers agreeing “it wouldn’t take a lot” for them to move to other
bank if the other institution “really treated me well”. Dischanted
customers are voting with their feet says Charlene Stern vice-president at
the Chicago based strategic marketing firm.
The quest for data has bankers turning to a wide variety of information -
gathering techniques, such as complaint data analysis: call center exit
surveys; employee feedback groups; and online surveys. Such tactics are
supplementary with traditional strategic research methods such as market
survey and bench marking studies. Through these methods, institutions
hope to gain improved insight to devise strategies for returning their
loyalty.
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The intent of most of the newer techniques is to get closer to the
emotions driving customer behavior and to gauge that sentiment closer to
the time of the transaction. No one techniques is 100% accurate, however
and some can actually backfire on the institution. Online surveys provide
immediate feedback, for e.g. but might annoy customers if they bear too
much resemblance to the much despised Internet spam.
Telephone surveys, Hedges says, can be useful for sporting and tracking
broad trends, wile customer focus groups then help the institution drill
down and identify specific service problems. And the telephone surveys
themselves have been revamped to provide fresher, more immediate
information. Instead of calling customers at dinnertime, Fleer Boston
conducts a five – minute survey of a random selection of customers who
connect to the bank’s call center on a toll free line.
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we have with them,” says Michelle convey, quality leader at JP Morgan
chase & Co. in New York City.
EXIT SURVEYS
Before the 1980s, when geographic restrictions were liberalized, banks
had an easier time understanding their customers. In the days when banks
focused on their local markets and tellers knew many customers by name,
bank marketers needed only to conduct simple telephone or branch
surveys to gauge customer sentiment.
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The advent of regional and national banking has changed all that when
institutions sprawl across multiple regions, what suits to a customer in
one area may not appeal to those in another. The increasing use of
electronic channels, automated teller machines, telephone call centers and
PC banking, also puts more distance between the customer and the
institution. The local branch may not be the best place to sample opinion.
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One Corp’s retail unit in Columbus, Ohio, estimates a telephone survey
of 500 people costs between $20 to $30 per person, not including
overhead or the cost of designing the survey – compared to as little as $5
per e-mail.
The cost of hosting a traditional customer focus group can reach $5,000
per group. Immediacy is also important. Traditional surveys reach
customers some time after their service contact at the bank. Some of the
newer techniques are designed to capture feedback when the customer’s
response is fresher. Fleet Boston, for e.g. has been
Fleet Boston’s Hedges says this kind of survey provides the company
with “Immediate Feedback” on its products and services.
Customer responses are tabulated and scored and then sent to call center
managers the very next day, allowing Fleet Boston to adjust its
procedures quickly. “If we change the way our reps answer the phone,
the survey will let us know whether that change was something positive
or negative fro the customer,”
Hedges say:
This gave birth to Customer Relationship Management…….
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USE OF TECHNOLOGY IN CRM
TECHNOLOGY IN CRM
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With technology touching the way we live our lives, expectations of
individuals is fast changing. Like the television and the PCs
revolutionalized our lives in the twentieth century so is wireless
communication, internet and pervasive computing going to affect our daily
pattern of lives.
• More and more individuals will like to be treated as one single person
rather than one among the masses.
CRM has become the central focus area which the entire gamut of
organizational activities has to revolve around.
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Single Customer View: A managed and integrated view of the
customer drawn from all contact points and product purchases enables
financial institutions to better understand customers and therefore even
serve them effectively.
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Ecosystem”. These comprises of three building blocks. They are
Operational CRM, Analytical CRM and the Collaborative CRM.
TYPES OF CRM
OPERATIONAL CRM
The operational CRM includes technologies and business processes that
can improve the efficiency and accuracy of day-to-day customer facing
activities. These activities include sales, marketing and customer service.
ANALYTICAL CRM
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Analytical CRM is used for analyzing customer data to support operational
CRM activities. They are used to identify different pattern behavior of
customers, profiling and segmenting the customers using the analysis tools
and data warehouses.
COLLABORATIVE CRM
Collaborative CRM includes all the components that manage and integrate
activities across the entire customer contact points. The collaborative
technologies include call – centers, web, e-mail, fax, and intelligent agents.
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The interactions also include personalization or one-to-one
communications; customer portals that are meant to provide information to
the customers and can also include communications between communities.
Finally the interaction between the organizational entities like automated
sales forces and marketing with the customer in field comes under the
umbrella of collaborative CRM.
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COMPETITION. TO ENSURE THEIR COMPETATIVE EDGE IN
FUTURE, THEY HAVE TO SURPASS THEIR RIVALS IN THE
AREA OF QUALITY OF THEIR CUSTOMER SERVICES.”
-UNKNOWN
INTRODUCTION
In simpler days, it was so easy to select your bank. You choose the local
bank, where the teller was your neighbor’s sister-in-law, the bank manager
knew you by name, and your family had conducted business for years.
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Internet Banking, Automated call systems and a proliferation of product
choices, none of them fettered by traditional ties of geography and
familiarity.
For consumers, this competitive scene has brought a wealth of choices, yet
it has eliminated the personalized nature of banking. No matter, say
consumers, who have traded loyalty for the ability to pick and choose from
the latest deals-of-the-day that, appear, pre-appeared, in the mailbox.
This new order calls for a new mindset. Retail bankers have to behave
more like retail merchants, focusing on ways to gain customers, keep them
and maximize profitability from each all while streamlining product costs
and customer contact channels.
Banks have been doing that all along. . . They spend large advertising
budgets on television and print ads to lure new customers; they wage
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ambitious campaigns to cross sell services to the existing customers. They
constantly monitor and seek to increase sales in each product line. So
what’s the problem?
The problem is that these measures fall short of the potential to truly
maximize value from the existing customers, and can even be self
defeating. Banks need to reconsider their traditional focus on product lines.
It’s time to adopt comprehensive view of the customer as a part of
continuum, not just a series of transactions.
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a bank to survive competition, succeed and make profit, there is hardly any
option but to learn from and actively respond to customers’ needs.
Banks offering retail products need to reorient their strategy from a product
centric to a customer centric focus to attract and retain high net worth
individuals (HNI) and profitable customers.
The battle of the banks, for gaining a greater slice of market share, is
taking on a new urgency. In the current falling interest scenario, banks are
finding it increasingly difficult to meet the high growth expectations.
In order to bolster their top line banks are increasingly looking at newer
ways and means of achieving organic growth through strategies that enable
acquisition of new customers and retaining the loyalty of the existing
customers.
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will drive customer acquisition and promote customer retention, which
translates into increased profits. This in other words is the hallmark of a
successful CRM strategy.
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banks is to retain and deepen the profitability of the existing customer
relationships.
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According to Meridian Research, retail financial services institutions are
expected to spend some $6.8 billion on CRM in 2001. Those investments
will pay off for banks by
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CROSS-SELLING/UP-SELLING: Cross-selling and Up-selling
are huge untapped opportunities for banks. CRM solution should adopt an
integrated approach to customer needs, which not only would build
customer loyalty and business, but also enable banks to offer their
customer the additional services they might really want. For example, a
minor customer may be offered an educational loan; a savings bank
customer may be offered a credit card or a housing loan, a busy business
may be offered internet banking etc.
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access 360-degree view of any customer, in time, to enhance the
competitive advantage and customer retention.
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CRM TOOLS FOR BANKING
CRM Tools can be broadly classified into Operational tools and Analytical
tools:
OPERATIONAL CRM
Provides the software support for business that requires customer contact.
It aimed at providing information to employees and documenting all
customer interactions across channels such as personal contacts,
telephonic, electronic and wireless.
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For e.g. if an important customer dials to the bank’s call center, the
operational CRM can alert the call center of the customer’s account status
and other details.
ANALYTICAL CRM
Helps banks make sense of the information collected. It is aimed at
utilizing the customer’s potential to the maximum. It helps in tracking the
activities of the customer on a real time basis.
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RETAIL BANKS PLANNING FOR CRM
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1. Understand the organization environment
There are essentially two components to the services provided by banks:
CUSTOMER INTERFACE and TRANSACTION EXECUTION.
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• Failure to judge the idiosyncrasies of superior peers and subordinates.
Walk into any private bank or public sector and enquire about demat
account operation or the procedure for obtaining cash credit limits.
Chances are that the executive would answer one query and refer you
another table for the second. Your worst nightmares is when you call the
bank for the above information and are informed that the person who can
provide the exact details is not in his seat and you are politely requested
to cal back again. Improvements in the area of CRM are evident since the
executives in some banks ask you to leave your phone number so that the
concerned executive can call back.
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products of the bank would ensure that the CRM efforts are finally
entrenched.
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MANAGEMENT GAME-PLAN OF CRM
Some of the time tested and popular strategies adopted by banks towards
relationship building and management efforts range from sending out a
greetings message on special occasions, data mining and cross selling to
Organizing mega events or ‘melas’. Experience has shown that each
interaction at an event may not result in a sale; nevertheless the aim to
make every interaction a potentially profitable opportunity to offer
additional value to the customer.
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In their anxiety to reach out to more customers and grab a bigger piece of
cake, bank breaches appear to be mushrooming all over the cities. More
branches entail deployment of more staff.
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CRM IN RETAIL BANKING.
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CRM IN RETAIL BANKING
CRM has been in India for over seven years now. But its penetration into
the industry in general and that into the financial services market in
particular has been rather uninspiring. The surprising aspect that came
out from the study was that though banks were aware of the benefits of
CRM, they were skeptical about its applicability to their organization.
The root cause for this is the astonishing delving deeper into the CRM
retail banking application and finding out any hidden undercurrents that
have been affecting the CRM adoption in the said segment. Additionally,
an effort has been made to present a relative weight age among various
factors that goes into making the vendor selection decision which can
additionally be used by software vendors and its analysis and
methodology used for arriving at the same has not been detailed herein.
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of retaining an existing customers; one cannot be complacent as far as
customer satisfaction is concerned.
• Real time forecasting for true sales pipeline visibility and more
accurate decisions owing to the ability to predict what all products the
customers are expected to purchase over a period of time.
• Providing an integrated view of customers across companies and
channels, this makes cross selling and up selling easier. Research shows
the more products a customer buys from a firm; the less likely that person
is to leave it. Cross selling to existing customers produces incremental
underwriting accuracy.
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• Turn around time (TAT) for closing leads, opening accounts and
closing service requests can be drastically improved.
Retail banks are facing greater challenges than ever before in executing
their customer management strategies. Intensifying competition,
proliferating customer contact channels, escalating attacks on customer
information, rising customer expectations and capitalizing on new market
opportunities are at the top of every bank executive’s agenda.
Today, more than ever before, the ability to maximize customer loyalty
through close and durable relationships is critical to retail banks’ ability
to grow their business. As banks strive to create and manage customer
relationships, several emerging trends affect the approach and tools banks
employ to achieve sustainable growth. These trends reflect a fundamental
change in the way banks interact with the customers they have – and
those they want to acquire.
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IMPROVING CRM MANAGEMENT IN BANKING
WITH INTEGRATED DELIVERY CHANNELS
The capability to integrate two or more delivery channels through shared
technology has only recently been deployed in any significant way.
Today, a handful of retail banks boast of globally integrated delivery
channels that are built on standard technology principles. These channels
can, for e.g., deliver consistent architecture. No institution, however, can
claim to have all channels working on a common platform or claim even
to share information or process across all channels.
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SERVICES AND SALES PROCESSES MADE
MORE PREDICTABLE
Many banks have implemented, or are in the process of designing,
integrated delivery channel architectures based on these soft benefits as
well as on the goal of maintaining and deepening the customer
relationship in the face of competitive pressures. The implementation of
integrated delivery channels has to date focused on the service side of the
relationship equation.
On the sales side, marketing and product line managers have benefited
greatly from a relatively plentiful source of analytics systems in the
market. Bankers are getting better at knowing how to calculate customer
profitability, predict propensity to buy, even recognize attrition behavior
thanks to the segmentation and focus of solution providers in the
analytics markets.
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Thus, for banks, neither the chicken nor the egg came first. Both arrived
at the same time. The opportunities to combine these powerful
capabilities are built in to the very systems that enable them individually.
But the marriage of integrated delivery channels and customer
knowledge is not a trivial arrangement. For once, perhaps, technology is
not the problem.
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transactions performed, time of the day, and all the pieces of information
that have some value to the institution.
Such basic information is included in the transactions that are sent to the
core of the banking system such as a credit processor. For now, there
seems to be no need to collect information that is not currently acquired.
What is required is the use of the data in managing the relationship with
the customer in a more fulfilling way.
The shift to the existing use of data comes in the form of the centralized
acquisition of this information outside of the transactional sense. Along
with the use of transactional information by the systems that perform the
basic units of work, specialized applications collect and analyze
information about the customer interaction, itself, to give insight into
customer behavior.
Banks can also collect and store information about nontrivial transactions
to provide continuity among customer contacts. So if a customer has an
unresolved problem, that information is available at all appropriate
channels.
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While many institutions are currently performing such analysis with a
given channel, the next step includes analysis of the customer’s behavior
across in a broader context, analysis of all external providers of service,
and analysis of how customer uses these products.
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POWERFUL CUSTOMER KNOWLEDGE
SYSTEMS FOR THE FUTURE
The pace of implementation of integrated delivery channel architectures
will quicken and eventually prevail at top banks. The deployment of
powerful customer knowledge systems will also increase as more and
more useful information can be distilled from the myriad of resources in
the bank IT network.
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than before as banks begin to learn more about their customers and use
that information to bring financial value to them.
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• It costs six times more to sell to a new customer than to sell an
existing one.
E-CRM goes a step ahead and adopts Web – centric approach that
synchronizes customer relationships across communication channels,
business functions and audiences.
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ELECTRONIC CUSTOMER RELATIONSHIP
MANAGEMENT
(E-CRM)
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“CRM IS A CORE ELEMENT IN ANY CUSTOMER CENTRIC E-
BUSINESS”
-ANONYMOUS
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CRM on line. This definition dispels all the doubts people might be having
about E-CRM.
E-CRM shares all the philosophy of CRM and the only difference is the
underline technological architecture. New technologies mean availability of
additional faster means of communication between the customer and the
organization. E-CRM implies interaction with the customer using these new
technologies. It provides organizations with tools for a high level of
interaction communications with the customers with personalized messages.
E-CRM provides a high degree of self service to the customers, using the
internet technologies, by understanding customer’s needs and personal
preferences. E-CRM integrates all the communication from and to the
customer from various channels both, the traditional and latest technology
based. For e.g., if the customer prefers to use emails and not telephone, the
organization will ensure this while dealing with the customer.
EVOLUTION OF E-CRM
Database marketing Behavior based E-CRM
marketing
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Single channel Multiple channels Single enterprise view
of customer integration
of customer channels
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1. Electronic channels: New electronic channels such as the web
accommodate consumers who now have the power to decide when and
how to communicate with the company. Through, which channel, at what
frequency? An E-CRM solution must be structured to deliver timely
pertinent, valuable information that a customer accepts in exchange of
his/her attention.
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5. Evaluation: Understanding customer economics relies on a
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ECRM solution should also establish a central mechanism to determine
which customer should receive which investment at relationship level.
will ensure enquires are met and issues are managed. This will improve
the customer’s overall experience in dealing with the organization.
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• Automation – E-CRM software helps automatic campaign including
Telemarketing.
Telesales.
Direct mail.
Lead tracking and response.
Opportunity management.
Quotes and order configuration.
• Sales organizations can shorten the sales cycle and increase e-sales
performance metrics such as revenue per sale representative, average
order size and revenue per customer.
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HOW DOES E-CRM WORK
In today’s world, customers interact with an organization via multiple
communication channels – the World Wide Web, call centers, field sales
people, dealers and partner networks. Many organizations also have
multiple lines of business that interact with the same customers.
E-CRM system enables customers to do business with the organization the
way the customer wants – anytime, via any channels, in any language or
currency – and to make customers feel that they are dealing with a single,
unified organization that recognizes them every step of the way.
The E-CRM system does this by creating a central repository for customer
records and providing a portal on each employee’s computer system
allowing access to customer information by any member of the
organization at any time.
Through this system, E-CRM gives you the ability to know more about
customers, products and performance results using real time information
across your business.
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E-CRM BENEFITS TO BANKS
• Relationship with customers.
• Transaction security.
• Convenience.
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CRM EVERYWHERE
By investing in CRM or e-CRM applications companies are looking at
retaining existing customers and converting potential customer into
lifetime customers. In certain industries, customer retention is a key
driver for profitability.
Also, with the advent of new technologies, it is critical for any business
to meet the expectations of the customers (that is changing ever so
fast…)
Various studies have reflected that the CRM industry is poised to grow at
an exponential rate. According to a recent study by McKinsley, solution
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based on e-CRM already account for a third of the $100-billion global
market for customer care.
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indispensable to marketers in developing targeted initiatives and to
management needing near term project.
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THE PAST, PRESENT AND THE FUTURE OF
CRM.
“As the years have gone by CRM has gained global importance.”
-Anonymous
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By then examining the present day definitions of what it means, it is
possible to understand more clearly how it could be applied to our
business. By looking at the future of CRM, we more clearly see where
the benefits may be derived and we where we should see CRM
developing over the next few years.
THE PAST
Looking back at a snapshot history of marketing, we can see the
following clearly developments and progression over the last few
decades:
1960’s – The era of mass marketing.
1970’s – Saw the beginning of segmentation, direct mail campaigns and
clearly telemarketing.
1980’s – Where niche marketing made millionaires of those who were
best at it.
1990’s – Relationship marketing, the explosion of telemarketing and call
centers all setup to develop relationships with the customers, the
recognition of the true value of retention and the use of lifetime value as
a business case.
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• The organization needs to be arranged so that all functions contribute.
MARKETING
“Determining the needs and want of target markets and delivering the
desired satisfaction more efficiently and effectively than the
competition.”
DIRECT MARKETING
“The planned recording, analysis and tracking of customers direct
response behavior over time…in order to develop future marketing
strategies for long term customer loyalty and to ensure continued
business growth.”
THE PRESENT
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The key differences between the concepts of marketing and direct marketing
is that CRM is about change throughout the organization (focused around
customer) and that technology developments are enabling the concept. What
we are finding is that the organizations are now moving through several
stages of CRM.
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THE FUTURE
So what does the future hold? The astronomic development rates of
technology are what many people see the key driver. However, they need to
look beyond this to the changes in customer expectations.
• The web will create globalization but will replace the need for people,
at least not for the foreseeable future.
• Be interactive.
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CRM IN INDIA
-DAKSH
INDIAN CRM CO-SOURCING COMPANY
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CRM IN INDIA
In India CRM satisfies three basic objectives for companies that are keen
on retaining customers and increasing market share.
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3. To learn from integration: The learning process should be focused
on bettering marketing, sales and any other function that interacts with
the customer. The interaction will help an organization to bring out better
products that target potential and existing customers. The whole idea is
that if you know your customer better, you can target him better. Their
operations are aimed at getting the right customer and then retaining
them by giving them the service they require. Some customers have
preferred channels of communicating. Some customers may not like to
transact over the net but may prefer physical transaction. This varies from
customer to customer. All these differences lead to the importance and
need for CRM.
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ACCEPTANCE OF CRM IN INDIA
MARKET DRIVERS
• Reduced Product Differentiation – 18% Response
MARKET INHIBITORS
• Lack Of Information About CRM Market – 12% Response
• Lack Of Success Stories – 8% Response
• Poor IT Infrastructure – 19% Response
• Low Awareness Of Benefits – 22% Response
• High Cost Of Implementation – 22% Response
• Lack Of Customer Orientation – 17% Response
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CRM IN BANKS – INDIAN SCENARIO
One industry best suited for the implementation of CRM is the Indian
banking and financial service, which has the highest growth potential and
accounts for 22% of CRM license revenue in 2002. Banks such as ICICI
bank, HDFC bank and Citibank are using CRM products. ICICI bank, in
fact, has won the DM review World Class Solution Award in 2003 in the
business intelligence category for its Teradata enterprise data warehouse
solutions.
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Indian Banking Industry should aim to formulate strategies incorporating
people, processes and technology issues. In accordance with the
strategies, current and future IT initiatives can be formulated, prioritizing
the related activities and their feasibility. Once this is done,
implementation in a phased manner will definitely lead to organization’s
success in achieving the goals.
CONCLUSION
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“CRM is not simply about a system, it is about serving our customers,
delivering on what we promised and having a shared vision on what it
means having World Class Customer Service.”
-TOBY DETTER
CRM HEAD, SHELL EUROPE.
CONCLUSION
It used to be that one could think of marketing as totally separate form
the rest of the business enterprise. But with the advent of CRM or One-
To-One marketing or loyalty, the dynamics have changed. CRM involves
knowing your customers individually and having some mechanism for
interacting with them or hearing from them, and customizing your
business for them. This is an inherently integrated operation.
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customers learning curve. Moreover the companies are making the
product more and more valuable to the customer. The relationship with
the customer is developing in its own context.
The banking industry in India has undergone volatile changes during the
last decade and one of the major areas of change has been Customer
Service. Customers of today demand “UNIVERSAL BANKING”. This
is possible if CRM is implemented in its true spirit. ‘Dog Eats Dog’
competition in banking has almost made CRM an in evitable solution.
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Banks and telcos still create silos of information with little scope for
sharing information. All of us have received unsolicited calls and mail
from financial companies and telcos asking us to buy products that we
don’t need and sometimes already have!
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Customer mentalities are always growing, and business services should
increase along with these potentials. Here, the definition of CRM can
be stated as a way through which companies can interact with their
customers and so serve them better. Businesses with wealthy CRM
approaches and applications will result in a large raise in sales,
customer pleasure, and merely the overall achievement of the business.
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CRM Vs Traditional CRM
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According To The Second Annual Customer Experience Impact
Report, a Harris Interactive study sponsored by Right Now
Technologies, 80% of consumers will never go back to an organization
after a bad customer experience, up form 68% in 2006
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THE MANTRA FOR CRM SUCCESS
For companies that use CRM and those that plan to, it is important to
understand that CRM technology has developed, evolved and matured
over the years. It is now a reliable process that combines business and
technology to power a customer-focussed organisation.
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CRM AT STANDARD CHARTERED
My discussion regarding CRM in Banking was with Ms.Shyamala
Borkar, Head, Client Services Group - India Commercial Banking,
Standard Chartered. It was an enlightening experience for me. She gave
me all the valuable information regarding the various CRM strategies
adopted by SCB and the various techniques adopted by the bank to
manage its customers effectively. Customer-attrition is a serious threat to
the bank and efficient CRM strategies can help to reduce customer
attrition.
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--Yes, our vision is to have customer delight and “To be a service
partner with our clients delivering simply first class service”. We
believe in going beyond Call of Duty.
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--Yes we pay a lot attention and cover all the segments of our clients;
we distinguish our services based on (CR) Client Relationship Key
and Core Coverage Model.
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12. Do you have an up-to-date databank in which all characteristics
13. Are customer complaints replied to within a day and solved with
customers perspective?
--Yes, we do. Improvement areas are identified by the way of
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• Service review
• Command system
• Feedback from sales team
• Customer visits
15. Are products and services delivered within the period expected
by the customer?
--Yes, infact we try our level best to deliver it before the period
expected by our clients. SCB is a multinational bank and all the
products and services are immediate. Its even better than what they
expect.
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CASE STUDY: STANDARD CHARTERED CRM
IMPEDIMENT
Standard Chartered Bank (SCB) previously used Online Transaction
Processing (OLTP) system, which facilitated and managed transaction-
oriented applications. The system was reliable but provided little scope
for in-depth customer analysis, which is the key to survive in the fiercely
competitive financial marketplace. It answered the financial queries and
generated reports at a broad portfolio level, which included total
earnings, debt situation, interest income, cost, fee income, and profits.
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The bank realized that it needed to go a step further and deploy a
solution which it can use to analyze the huge volumes of data captured
by its OLTP systems. The idea was to search for crucial nuggets of
information from the vast amounts of transactional data at its disposal to
get the right information, to the right executive and at the right time.
This information can help a bank take critical business decisions in the
dog-eat-dog financial world.
It was clear that in order to achieve the desired benefits, the bank had to
implement a data warehouse and analytical solution. They wanted a
solution that can perform analytics on the valuable customer data to
answer queries across divisions. The answers would then enable them to
proactively service customers and thereby ensure customer loyalty and
retention. This exercise is a must for survival in a fiercely competitive
environment.
RESOLUTION
The bank's IT team looked at the business requirement in detail and
deduced that the organization needed a data warehousing and analytical
solution that would help analyze customer data to enable fact-based
decision making in areas ranging from acquisition and risk management
to cross-selling and portfolio management. After evaluating a number of
vendor offerings, SCB decided to use a suite of products from SAS. It
went for the SAS Customizable CRM Solutions.
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The bank created a team of 25 people in Bangalore and called it a
Business Intelligence Unit. This unit was responsible for deriving and
implementing strategies to analyze and exploit customer data.
The company evaluated a number of solutions and SAS was chosen as
the preferred solution partner and SCB today relies on SAS solutions
across Asia for its customer analytics.
It was easier for them to run targeted campaigns and elicit substantially
higher returns since they perform profit modeling for each account. This
also enables micro-segmentation. Using analytics, and a test and learn
culture they know the likelihood of customers to take a new product.
SCB now knows which member is more likely to avail a service or
product. This has resulted in more focused marketing campaigns and
reduced costs with improved customer satisfaction.
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• Integrate information from multiple sources, eliminate data errors and
redundancies, tailor data for efficient access and analysis, and reduce the
complexity of data management.
• Anticipate customer expectations and predict customer behavior like,
propensity to purchase, lifetime profitability, and credit risk.
• Allow to cross-sell and up-sell. It can help identify the best candidates
for purchasing particular combinations of products and services, and
focus the marketing efforts on a more receptive audience.
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• The ability to implement a customer-centric approach focused on
optimizing the lifetime value of the customer.
• The ability to concentrate on financial budgeting, cost control, and
risk management.
• To look for new ways to minimize costs, while increasing profitability
and shareholder value by effectively managing consumer relationships.
IN A NUTSHELL
• THE COMPANY
Standard Chartered Bank has over 2.2 million retail customers and
over 1.3 million credit card customers nationwide. Its products and
services include cash management, custody, lending, foreign
exchange, interest rate management, and debt capital markets.
•
• THE NEED
The bank needed to manage and analyze the huge volumes of data
captured by its OLTP systems. It had to get the right information, to
the right people, at the right time, in order to carry out a number of
critical business activities and provide excellent customer service.
•
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• THE SOLUTION
SCB decided to go for SAS Customizable CRM Solutions to address
its business needs.
•
• THE BENEFITS
The bank can now exploit changing and widening markets; implement
a customer-centric approach; concentrate on financial budgeting, cost
control, and risk management; and figure out new ways to minimize
costs, while increasing profitability and shareholder value.
BIBILOGRAPHY
WEBSITE
www.google.com
www.crmguru.com
www.crmnext.com
www.crmadvocate.com
www.crmtoday.com
MAGAZINES
The Week
Business Today
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Mint
BOOKS
CRM IN BANKING – By V V GOPAL
UNDERSTANDING CRM – By R S PRASAD
NEWSPAPERS
Economic Times
DNA Money
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