Two Day

Seminar Paper On Customer Relationship Management In Banking Industry

Introduction:-Customer focus and relationship management have become fundamental marketing and business philosophies for many companies seeking competitive advantage. Establishing, maintaining and enhancing customer relationships have always been an important aspect of business. Although CRM is considered to be a business philosophy closely related to relationship marketing, it is the linkage with technology that is particularly of great interest. Marketing academics have begun to explore and understand the linkage between CRM technology, relationship marketing and business relationships as providing opportunities for sustainable competitive advantage. Due to rapid development of the Internet, e-commerce and self-service customer support, there are increased expectations from customers for improved, personalized service and immediacy. Marketing practitioners are now using technology to their advantage and working closely to deliver value to the organization and to the customer. This has prompted marketing practitioners to use technology to capture and use customer information in order to better meet customer demands. Customer relationships are considered superior to transactional exchange in their ability to create sustainable competitive advantage and superior business performance.

The service sector is receiving much deserved attention resulting from its inevitable role in a countrys economic de-elopement. Despite all the efforts gaps such as the relationship between technological advances and service development are yet to be revealed from the perspective of new applications that organizations want to develop and implement.Objectives Of The Study: -

1) To understand the benefits related with CRM

2) To study CRM strategy implementation by ICICI Bank3) To understand the need of CRM strategies for banking.Research Methodology: -Research design constitutes the blue print for the collection, measurement and analysis of data. In this research to understand CRM and Banking industry we have taken ICICI bank who already adopted CRM in their business.Sources Of Data: -A case Study on ICICI Bank has been selected for the purpose of conducting study.

Secondary Data:

Secondary data are those data, which are already published. It may be useful for many other people than the researcher who has published it. There are various sources of secondary data collection. Articles on CRM taken from journals, magazines published from time to time.

Through internet.

Magazines

Library Records

Theoretical Background:-Customer relationship management (CRM) is developing into a major element of corporate strategy for many organizations. CRM, also known by other terms such as relationship marketing and customer management, is concerned with creation, development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in maximizing their customer life time value.

Industry leaders are now addressing how to transform their approach to customer management. A new form of cross-functional marketing, i.e. CRM is replacing narrow functionally based traditional marketing. The traditional approach marketing has been continuously questioned in recent years. This approach emphasized on the management of the key marketing mix elements such as product, price, promotion, and place within the functional context of the marketing department.Phases Of CRM:-The three phases in which CRM can help to support the relationship between a business and its customers is explained below:

Acquire: A CRM initiative can help a business in acquiring new customers through excellent contact management, direct marketing, selling and fulfillment.

Enhance: A web-enabled CRM combined with customer service tools offers customers excellent service from a team of trained and skilled sales and service specialists, which offers customers the convenience of one-stop shopping.Why CRM Now?What makes CRM appropriate for todays environment? While there are many number of environmental factors and business advancement that impact and enable the real importance for CRM in todays environment is competitive and differentiation. CRM promises to be competitive and differentiation in todays environment.

Organization today is finding it difficult to compete on the basis of product. Technology advancement has enabled the near immediate replication of product features and functions. It is just a matter of weeks between a product launch and saturation of the market. Just think about it, are there many products out there that are truly unique.Price, which has traditionally been another basis of competitive differentiation, is no longer a means for many to compete. Complex channel networks have caused parity pricing.

Promotion strategies have similarly lessened as a means of differentiation. Clubs abound, special offer are the norm, and sales are continual.

Place of distribution has likewise become less influential in the success or failure of a business. The Internet has created an avenue for even the smallest business to compete.

While all these factors are still important, none of them can alone support the success of most business. CRM the ability to provide a more meaningful sales and service experience promises to be means of differentiating, of providing customers with a reason to frequent your business rather than that of your competitors.

Ownership of customer relationship provides exponentially greater rewards than differences in product, price, promotion or place of distribution could ever offer. All of these factors can even be mitigated if you can serve as the one stop provider that can identify. Quantify, and service customers need.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 comprise 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.

Targeting customers: It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking 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, a profitability 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 material: A 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 customers: The communication to customers from various departments like sales, finance, customer support, etc. should be consistent and not contradictory. Therefore, all departments should be privy to 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.

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 development: Analysis at ICICI guide product development and marketing campaigns through Behavior 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 management: The initial implementation of CRM allowed ICICI to analyze its customer database, which includes information from eight separate operations systems including retail banking, bonds, fixed deposits, and retail consumer loans, credit cards, custodial services, online share trading and ATM.

Some Noteworthy CRM Initiatives Of ICICI BankMobile ATMs: Customers 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.

Bulk Deposits: The 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.

ATMs for the visually challenged: ICICI 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. Prof. Abhishek A. Khadtare

Dr. R.K. Swami

Research Student

Research Guide

References -1. Kotler, Philip and Kevin Lance Keller (2007), Marketing Management, Dorling Kindersley (India) Pvt. Ltd.2. Umesh C.Pattnaik et al. (2006), Bank Marketing, Sonali Publications, New Delhi3. Berry, L. L. (1983), Relationship Marketing of Services:Growing Interest, Emerging Perspectives, Journal of theAcademy of Marketing Science, 23, No.4, PP.236-245.4. Bill Schmarzo (1999), Making Every Customer Relationship Count, Exploring the Business Drivers and Technology Enablers of Customer Relationship Management, IBMNUMA-Q Copyright: International Business MachinesCorporation.5. Buttle, F. (2004), Customer Relationship Management: Concept and Tools, Burlington, MA: Elsevier.6. Shailendra Desai,(Feb. 2010), You can affords to lose key performer, not key customers!, Making Mastermind, Reference # 10M-2010-02-06-107. Shailendra Desai,(Aug. 2010), Customer Reletionship Management The Winning Strategy in a Challenging Economy, Making Mastermind, Reference # 10M-2010-08-02-108. Dr. A.Subbiah and Mr.S.Jeyakumar (2010), Research Methodology for Researchers in Commerce and Management Himalaya Publishing House.

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