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Introduction of crm
CRM (customer relationship management) is an information
industry term for methodologies, software, and usually Internet
capabilities that help an enterprise manage customer
relationships in an organized way. For example, an enterprise
might build a database about its customers that described
relationships in sufficient detail so that management, salespeople,
BUSINESS STRETEGY
of the bank. Maintain good relation with the customers is the main
services known. However, the first use of CRM is customer loyalty. With the increasingly
stiff competition, to retain customers gets very complicated. In addition, the customer is
freer to select his partner companies, products and services. Therefore, it is more costly
for a company to gain new customers than to maintain their loyalty. Indeed, a 5% rise
customer loyalty rates can increase from 25 to 100% the value of the average
customer, according to the Revue franaise de gestion (French Management Review
February 2000). In addition, a loyal customer may also recommend the brand name and
the company. CRM allows the company to be always present with the customer, to meet
his needs, if possible to anticipate these needs and to propose offers that the
clients may not have even thought about.Furthermore, customers who feel that they are
given special treatment by a company are more likely to deal again with this company
for
the
services
delivered
to
them.
Customer relationship management is a tool that can also serve as quality service.
Following the sale of the product or service, it may be a good idea to turn to the
customer in order to realize his satisfaction with his product expectation and with what
has been delivered to him. This approach enables the company to review its technical
practice, marketing or selling techniques in order tobetter correspond to the customer's
expectations, in cases in which he would have been disappointed, to make an offer to
compensate him and to remain a company present in his customer's life. Today, new
means of communication such as social media are good tools to discuss, to nurture the
relationship with the customer and to measure his satisfaction.
Research Design:
Research refers to the systematic method consisting of
enunciating the problem, formulating a hypothesis, collecting the
facts or data, analyzing the facts and reaching certain conclusions
either in the form of solutions towards the concerned problem or
in certain generalizations for some theoretical formulation. The
study is descriptive in nature, thus it follows descriptive research
design.
Types OF DATA
Data used of this report is mainly primary data, which are collected first hand by Survey in the
field. In some area secondary data may also be taken into consideration.
WEAKNESSES
STRENGTH
Right strategy for the
right products.
Superior
certain sectors.
customer
accreditations.
insufficient.
satisfaction.
Good place to work
Lower
with
response
time
efficient
and
effective service.
Dedicated workforce
aiming at
making a
cover
Sectoral growth is
constrained by low
unemployment levels and
competition for staff
long-term career in
the field.
Opportunities
Threats
broadly.
Very
high
competition
Vulnerable to reactive
deals.
Fast-track
development
career
opportunities
Lack of infrastructure in
on an industry-wide basis.
Importance of CRM:
Improve the quality of customer service, beautiful care, lack of stress in terms of
customer benefits of CRM are money today, the price increase `CRM Customer
Empowerment ultimate solution for both the customer is becoming as , is a highly
competitive business world, organizations as well. Any organization that he loses his
clients should have a clear idea as to why. It is active and the only way to avoid or at
least will tell. CRM approach from the point of view of organizations has attached
great importance to the following:
Reduction in customer recruitment costs
Generation of more and more loyal customers
Expansion of customer base
54 | P a g e
Chapter 2
Conceptual framework
ADVANTAGES OF CRM
The advantages of carrying out a proper business CRM are many and varied:
- First of all, it is a good way to expand the customer's portfolio. By contacting prospects, it is most
likely that many of them are interested in the company activity, in its products and services. It is
obvious that if the company does not initiate a process to go towards the customer, then the
customer will not come to the company, unless he experiments a specific and urgent need.
A good CRM associated with a good tool ensures companies to have a good
view over the list of customers and prospects, to know where it stands with
relationship management, when to contact them again, etc. Furthermore, an
improved customer and prospect insight ensures a better and more targeted
communication.
4. DISADVANTAGES OF CRM
However, despite the significant advantages of CRM, there are several disadvantages:
First, a mistaken tool choice may make CRM more complicated. This is why
you need to consider in advance what kind of tools would be appropriate to your
structure in order to follow its relationship with its customers and prospects.
CRM is not easy to put in place, attention must be given to the choice of tools,
but also to the effective implementation of CRM process that will be undertaken
by the company.
at their fingertips. They have become more cost conscious and value driven with equal
or better offers are contacted by a legion of competitors. Accordingly, reactive
marketing of basic marketing practices for marketing and relationship marketing has
shifted again. CRM, thus, repeated purchases with customers to promote profitable,
long-term relationship building process. For its successful implementation, CRM but a
mere short-term marketing tool to boost sales in the organization must be seen as
cutting a philosophy.
According to Madhu Jasola (2008), Customer relationship management in today's
competitive environment has emerged as a popular business strategy. The companies
identify their most profitable customers and enable you to target a discipline. CRM
retain existing customers, but also acquiring new customers, which not only includes
the new and advanced marketing strategies.
Semih Onut & Bora Hosver discuss that Important satisfaction dimensions and the
private bank sector specific preferences and expectations with customer groups
focused on determining the evaluation of CRM in banking sector. Data analysis and
interpretation of the methodological approach used for modeling and multi-criteria are
Modeling is based on the principles of preference disaggregation. Together noted was
the key to long-term success of the firm? It also provides social interaction and
customer relationship management, focused on long-term relationships that help
develop cooperative and profitable affiliates based on the equity in the firm.
Tuesday, July 01, 2014: HDFC Bank has been recognised as the winner of the Best Sales
Effectiveness award during the tenth Gartner & 1to1 Media CRM Excellence Awards
Programme. It won the award for implementing CRMnext, a leading global CRM (Customer
relationship Management) product, which has delivered high impact results boosting its
sales and operational efficiency. The awards ceremony was held in conjunction with Gartner
Customer 360 Summit in Orlando, one of the years flagship events where solutions
providers across globe meet to craft their customer experience vision and strategy, vet their
plan against the best in the business and leverage new channels and technologies to seize
growth opportunities.
by the banks (Seema Girdhar, 2009). Any bank that wishes to either grow in size
of its banking operation or improve its profitability must consider the challenges
affecting its customer relationship (Ashok Kumar M. & Rajesh R., 2009)
Chapter 3
Observation
It is an continuous process, more the services will be offered more the customer
base will grow and more the customers grow more the services has to be offered .
Instead of having broad customer base, the banks aim is to get broad loyal
customer base and the same is achieved by offering better service quality and
customer relationship management to its customers. CRM is an important catalyst
for the growth of the HDFC bank. The bank is able to attain growth as a whole due
to its emphasis on the customer centricity as a key objective. As the bank is
providing multi-channel services through ATMs, internet, phone, and mobile banking
in addition to its expanding branching network and deeper penetration in untapped
areas, the customer base is increasing and hence the banks profitability is
increasing. This ensures the banks growth.
Chapter 4
Findings
Customer Relationship Management (CRM) is an organizational strategy that can assist a bank to
build lasting relationship with its clients and improve its performance by increasing revenue and
productivity. CRM in the banking industry is of great importance. Today, banking is more customercentric, unlike the yester when it was transaction-centric. CRM is essential and vital function of
customer oriented marketing. However there is more to CRM than just client management. CRM is a
broad approach to create, maintain, and expand relationship with customers. It is a strategic plan
that aims in understanding, anticipating, managing and personalizing the organizational needs of
current as well as potential customers. The idea behind this is that it would help the bank to
effectively utilize technology and other resources to gain insight into the clients behaviour and
customers values. If adapted and implemented successfully, CRM can help banks provide better
customer service, make banking operations more efficient and simplify selling and marketing
processes. CRM is a comprehensive approach to cater, maintain and expand customer
relationships. It is important for banks to use CRM strategy that aims to understand, anticipate,
manage and personalize the needs of banks current and potential customers. CRM applications
deliver many benefits across organizational processes and functions. It reshapes the workplace
environment and influences the ways business being carried. Successful integration or adaption of
CRM system in the banks may not be as easy as it looks. Every concept has limitations such as
limitation of finance, resistance to change, government regulations, etc.; so does the CRM in banks.
Banks can overcome many of the limitations by efficiency managing CRM and adapting some
comprehensive CRM model along with effective CRM software. Managers play an important role to
minimize risks. CRM manager is a key factor who can effectively manage the issues related to CRM.
It is vital for banks that their CRM applications and systems are supported and controlled by qualified
and experienced manager. Bringing together trained and professional staff, encouraging
communication and coordination among them, promoting team working and instructing ways in
quality service, are some of the duties managers have to perform in order for CRM to work efficiently
and harvest benefits.
The banks need CRM to survive as it is impossible nowadays not to focus upon the customer
expectations. CRM is needed because of ever changing technology and highly competitive banking
sector in India. The importance of CRM can be assessed by evaluating CRM that provides enhanced
opportunities to use data and information to both understand customers and create value. The
ultimate purpose of the CRM is to improve performance and to assess how well the bank needs are
met by CRM adaption and implementation.
Suggestion
Recommendations
HDFC Bank has achieved almost all its objectives by introducing CRM technology and processes
within the bank. They have received better response from employees and customers than expected.
But they still lack in some areas such as cooperation and coordination, effective integration, and
efficient use of latest technology. The bank can improve further by updating its CRM policies and
procedures. After gathering data and doing analysis, the researcher noticed and considered few
drawbacks in the bank system and policies and the approach it has taken. Following are some
important recommendations:
Recommendation 1: The bank can improve its performance and can better evaluate the results if it
has set objectives. It must also ensure that the CRM has defined and documented objectives. It
must be properly aligned to other banking systems and functions and must also be part of bank
mission statement and bank strategies. By doing this, bank can make the working environment
effective and promote flexibility.
Recommendation 2: The results provide some information about the service provided by the
employees to customers. Although the customers agree that the service has improved but few have
complaints. Even the employees feel that service should be improved. The bank must concentrate
on employee training and continuous development especially in the ever changing and constantly
updating technological environment. The bank is committed in employee development but they must
focus on soft skills areas of training. Employees must be taught how to effectively use and apply
CRM technology to provide quality service to customers. Training and development can provide
necessary skills and make employees, more experienced and competent.
Recommendation 3: CRM is still developing stages in the bank. The management can show
commitment by developing a personal bank strategy regarding the use of CRM system, processes,
procedures, tools and CRM policies. The management need to focus on bank mission and, strategic
vision and ethical stance when designing CRM strategy. Incorporating CRM related issues in
strategic planning; the bank can increase the trust of all stakeholders and satisfy them that the bank
is interested in their well-being.
Recommendations 4: The bank can never ignore the environmental factors that may influence and
negatively affect the CRM related decisions. The factors include social and cultural issues as the
bank cannot adapt the CRM without taking into account the Indian environment and its
requirements; legal and political issues, and other technological issues.
Recommendation 5: By empowering employees and involving them in decision making process can
increase their morale and satisfaction. They will feel more motivated and will work more effectively
serving customers to the best of their abilities. They will enthusiastically learn the latest CRM
technology and will apply it successfully. By providing them facilities to deal with customers queries
will help the bank to improve the customer relationship management.
Recommendation 6: Evaluation of the CRM requirements, its use and its effects can help identify
whether it is working efficiently. It will also help fulfil CRM needs and will solve problems thus
improving bank performance.
There are many other recommendations that can be provided but the bank must focus on major
issues first. Other recommendation may include 24/7 call centre where customers can contact for
services, central database for employees to get all the information, providing feedback on the
website, etc.
Conclusion
The aim of this dissertation was to examine the importance of CRM for HDFC Bank. To achieve this
aim, following objectives were set: To analyze the effectiveness and efficiency of CRM services
provided by the HDFC Bank, to examine the effects of CRM on business performance and
operational effectiveness and to evaluate the improvements in customer service due to it, to assess
the awareness of the bank employees to the concept of CRM and its benefits for the organization, to
determine the extent of customer satisfaction level by conducting interviews, distributing
questionnaire and carrying out a survey in HDFC Bank, to gather relevant data and critically
analyzing it using a vast variety of sources and research tools. The researcher believes that each
and every objective has been achieved. The researcher applied most relevant research tools and
applications to gather valid and reliable data. The data collected from secondary sources like books,
latest journals and articles, websites, etc. has been critically analyzed by taking into account
theories, concepts, arguments and debates on CRM and related issues by various academic
scholars. The data collected by applying primary resources has been analyzed and presented in
data analysis section. The researcher ensured that the data collected is valid and relates to literature
review and aim and objectives of the dissertation.
The results produced by the research provides information on how effectively HDFC Bank has
managed to use CRM system and applications and how efficient it has been in applying CRM tools,
processes and strategy. By incorporating CRM effectively, the bank has improved its performance as
well as the performance of its employees. Bank profitability has increased and the so does the
customer satisfaction. Changes produced by CRM are intense. CRM has helped the bank to access
ideas and experiences from variety of sources. CRM applications have delivered many benefits
across bank operations, organizational processes and functions. CRM has improved information and
increased knowledge management. It helped to reduce costs of transaction and increased speed
and reliability of transactions. CRM technology has also improved effective communications and
service quality. In conclusion, CRM is important as it has positively influenced every business
function which helped in improving the customer service and relations.