CRM IN ICICI CRM IN ICICI BANKBANK

Ravi Jagannath SharmaRavi Jagannath Sharma

Retail Management 3Retail Management 3rdrd Sem Sem

University of LucknowUniversity of Lucknow

ICICI BANKICICI BANK ICICI was set up as a development bank ICICI was set up as a development bank

to provide products and services for the to provide products and services for the corporate segment.corporate segment.

It diversified into the retail segment of the It diversified into the retail segment of the financial markets in the early 1990s while financial markets in the early 1990s while transforming itself into a technology transforming itself into a technology intensive financial service group.intensive financial service group.

In the mid-nineties, ICICI raised debt In the mid-nineties, ICICI raised debt from the retail market.from the retail market.

Since then it has been trying to increase Since then it has been trying to increase its reach to this segment by mobilizing its reach to this segment by mobilizing resources and offering quality investor resources and offering quality investor service through ICICI Infotech Services, a service through ICICI Infotech Services, a subsidiary of ICICI.subsidiary of ICICI.

In 1994, it established ICICI Bank as a In 1994, it established ICICI Bank as a commercial bank that is flexible, commercial bank that is flexible, innovative and prompt in meeting innovative and prompt in meeting customer requirements.customer requirements.

It also offers other retail initiatives such as It also offers other retail initiatives such as personal services, capital services, Web personal services, capital services, Web trade, life insurance and other services.trade, life insurance and other services.

ICICI- RETAIL STRATEGYICICI- RETAIL STRATEGY ICICI’s retail strategy was centred ICICI’s retail strategy was centred

around intensive deployment of around intensive deployment of technology to help reduce cost of technology to help reduce cost of service, increase customer retention, service, increase customer retention, help in cross selling and up-selling help in cross selling and up-selling while improving process efficiencies.while improving process efficiencies.

The bank looked towards allowing the The bank looked towards allowing the customers use multiple electronic customers use multiple electronic channels including internet, ATMs, call channels including internet, ATMs, call centers, contact centers, desktops, centers, contact centers, desktops, kiosks, mobiles and other hand held kiosks, mobiles and other hand held devices for conducting financial devices for conducting financial transactions.transactions.

CRM- THE ICICI CRM- THE ICICI EXPERIENCEEXPERIENCE

CRM at ICICI involves increased CRM at ICICI involves increased communication between the virtual communication between the virtual universal bank and its customers and universal bank and its customers and prospects as well as within the group prospects as well as within the group itself.itself.

The underlying idea is to enhance every The underlying idea is to enhance every instance of contact with the customer.instance of contact with the customer.

ICICI believes that a true customer-ICICI believes that a true customer-centric relationship can only be centric relationship can only be accomplished by considering the unique accomplished by considering the unique perspectives of every single customer of perspectives of every single customer of the organization. the organization.

CRM ROAD MAP OF CRM ROAD MAP OF ICICIICICI

CRM is viewed as a discipline as well as a set of CRM is viewed as a discipline as well as a set of discrete software technologies, which will focus on discrete software technologies, which will focus on automating and improving the business processes automating and improving the business processes associated with managing customer relationships associated with managing customer relationships in the areas of sales, marketing, customer service in the areas of sales, marketing, customer service and support.and support.

The organizations aims to achieve the end goal of The organizations aims to achieve the end goal of one-to-one marketing.one-to-one marketing.

The CRM Software applications will facilitate the The CRM Software applications will facilitate the

coordination of multiple business functionscoordination of multiple business functions.. Coordinate multiple channels of communication Coordinate multiple channels of communication

with the customer to carry out customer with the customer to carry out customer management more efficiently.management more efficiently.

It should allow ICICI to engage in one-to-It should allow ICICI to engage in one-to-one marketing by tracking complete one marketing by tracking complete customer life-cycle history.customer life-cycle history.

To begin with, it will automate process-To begin with, it will automate process-flow tracking in the product sales process, flow tracking in the product sales process, and be able to generate customized and be able to generate customized reports and promote cross selling.reports and promote cross selling.

It will also enable efficient campaign It will also enable efficient campaign management by providing a software management by providing a software interface for definition, tracking, interface for definition, tracking, execution and analysis of campaigns.execution and analysis of campaigns.

THE CRM BUSINESS THE CRM BUSINESS CYCLECYCLE

COMPONENTS OF CRM COMPONENTS OF CRM CYCLECYCLE

Understand and Differentiate.Understand and Differentiate. Develop and Customise.Develop and Customise. Interact and Deliver.Interact and Deliver. Acquire and Retain.Acquire and Retain.

Understand and Understand and DifferentiateDifferentiate

Organisations need to understand their Organisations need to understand their customers in order to have a relationship with customers in order to have a relationship with them.them.

Profiling to understand demographics, Profiling to understand demographics, purchase patterns and channel preference.purchase patterns and channel preference.

Primary research to capture needs and Primary research to capture needs and attitude.attitude.

Customer valuation to understand Customer valuation to understand profitability, as well as lifetime value or long-profitability, as well as lifetime value or long-term potential.term potential.

The ICICI Group’s customers need to see that The ICICI Group’s customers need to see that the firm is differentiating service and the firm is differentiating service and communications, based on their learning communications, based on their learning independently and on the customer independently and on the customer expectation and the expected values expected. expectation and the expected values expected.

Develop and CustomiseDevelop and Customise In a customer-focused world, product and In a customer-focused world, product and

channel development has to follow the channel development has to follow the customer’s lead, identify customer’s wants, customer’s lead, identify customer’s wants, determine the value and desire of the determine the value and desire of the customer, etc.customer, etc.

Organizations are increasingly developing Organizations are increasingly developing products and services, and even new products and services, and even new channels based on customer needs and channels based on customer needs and service expectations.service expectations.

ICICI believes that the extent of ICICI believes that the extent of customization should be based on the customization should be based on the potential value delivered by the customer potential value delivered by the customer segment.segment.

Interact and Deliver Interact and Deliver To foster relationships, organizations need to To foster relationships, organizations need to

insure that:insure that: All areas of the organization have easy access All areas of the organization have easy access

to relevant, actionable customer information. to relevant, actionable customer information. All areas are trained how to use customer All areas are trained how to use customer

information to tailor interactions based on information to tailor interactions based on both customer needs potential customer value.both customer needs potential customer value.

ICICI is strongly of the opinion that value is not ICICI is strongly of the opinion that value is not just based on the price of the product or the just based on the price of the product or the discounts offered but are based on a number of discounts offered but are based on a number of factors including the quality of products and factors including the quality of products and services, convenience, speed, ease of use, services, convenience, speed, ease of use, responsiveness, and service excellence.responsiveness, and service excellence.

Acquire and RetainAcquire and Retain The more ICICI learns about customers, the The more ICICI learns about customers, the

easier it is to pinpoint those that are easier it is to pinpoint those that are producing the greatest value for the producing the greatest value for the organization.organization.

They aim to continue to learn more about They aim to continue to learn more about each customer segment and use it for each customer segment and use it for successful customer retention.successful customer retention.

As ICICI moves step further in CRM they As ICICI moves step further in CRM they hopes to gain insight and understanding hopes to gain insight and understanding that enhance the subsequent efforts. The that enhance the subsequent efforts. The organization shall become increasingly organization shall become increasingly sophisticated in the implementation of CRM sophisticated in the implementation of CRM processes, and over a period of time shall processes, and over a period of time shall become increasingly profitable by doing so.become increasingly profitable by doing so.

Successful customer retention is based on Successful customer retention is based on the organization's ability to constantly the organization's ability to constantly deliver, based on three principles:deliver, based on three principles: Maintain interaction; never stop Maintain interaction; never stop

listening.listening. Continue to deliver on the customer’s Continue to deliver on the customer’s

definition of value.definition of value. Customers change as they move Customers change as they move

through differing stages of their lives, through differing stages of their lives, which implies that the firm needs to be which implies that the firm needs to be alert for changes and to modify its alert for changes and to modify its services and value propositions as they services and value propositions as they change.change.

IMPLEMENTING CRMIMPLEMENTING CRM There are five interrelated areas:There are five interrelated areas:

Business Focus.Business Focus. Organizational Structure.Organizational Structure. Business Metrics.Business Metrics. Marketing Focus.Marketing Focus. Technology.Technology.

The key to building the CRM action plan was in The key to building the CRM action plan was in understanding with the organization that stood understanding with the organization that stood relative to each of the five aspects of change.relative to each of the five aspects of change.

Interviews with key individuals throughout the Interviews with key individuals throughout the organization helped identify different initiatives organization helped identify different initiatives that have been launched, all focused on CRM.that have been launched, all focused on CRM.

The next step in the process was a The next step in the process was a ‘Gap Analysis’, this analysis helped ‘Gap Analysis’, this analysis helped identify the CRM organizational identify the CRM organizational holes:holes: Marketing, sales and service practices.Marketing, sales and service practices. Collection, capture, processing and Collection, capture, processing and

deployment of customer information.deployment of customer information. Distribution and operations Distribution and operations

effectiveness at customer touch points.effectiveness at customer touch points.

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