Escolar Documentos
Profissional Documentos
Cultura Documentos
PROJECT REPORT
ON
(SEMESTER V)
PREPARED BY:
SWAPNIL GAWALI
ROLL NO:1625003
UNDER THE GUIDANCE OF
UNIVERSITY OF MUMBAI
2016-2017
1
Customer Relationship Management (BMS).
DECLARATION
(SWAPNIL GAWALI)
{T.Y.BMS}
2
Customer Relationship Management (BMS).
ACKNOWLEDGEMENT
My project is a result of the inspiring and thoughtful guidance and supervision of
my project guide PROF. ANJU CHHABRIA, I am deeply indebted to her
whose help, time, support, inspiration, stimulating suggestions and
encouragement helped me in all the times of research and writing of this report.
This project has widened my horizon to various areas under general knowledge
regarding the practical and real aspects of CUSTOMER RELATIONSHIP
MANAGEMENT IN BANK REFERNCE TO ICICI BANK.
3
Customer Relationship Management (BMS).
OBJECTIVES OF STUDY
To research and an applied sampling in selecting ICICI bank in Thane and Mumbai.
The secondary data for the study from annual report of banks, bulletins and policy
guidelines of RBI and other related websites, journals, magazines and books.
Providing services and products that are exactly what your customer want.
The idea of CRM is that it helps business use technology and human resources to gain
insight into the behavior of customer and the value of those customers.
4
Customer Relationship Management (BMS).
EXECUTIVE SUMMARY
All these changes have made todays producer shift from traditional marketing to modern
marketing. Modern marketing calls for more than developing a product, pricing it,
promoting it and making it accessible to target customer. It demands building trust, a
binding force and value added relationship with the customers.
Today, many businesses such as banks, insurance companies, and other service providers
realize the importance of Customer Relationship Management (CRM) and its potential to
help them acquire new customers retain existing ones and maximize their lifetime value.
At this point, close relationship with customers will require a strong coordination
between IT and marketing departments to provide a long-term retention of selected
customers. This project deals with the role of Customer Relationship Management in
banking sector and the need for Customer Relationship Management to increase customer
value by using some analytical methods in CRM applications.
5
Customer Relationship Management (BMS).
INDEX
CHAPTER 1.
INTRODUCTION OF CRM
Organisations worldwide are adopting customer centric strategies, programs, tools and
technology for efficient and effective customer relationships.
Companies are realising the need for in-depth and integrated customer knowledge in order to
build close cooperative and partnering relationships with their customers
CRM tools promise to individualise and personalise the relationships with customers by
providing vital information at every point in the interface with the customer
7
Customer Relationship Management (BMS).
CRM is thus a strategic use of information, processes, technology and people to manage the
customers relationship with the organisation across the whole customer life cycle.
CRM Uses
Power People
InformationIt is a key raw material for CRM. The key steps include data identification,
marketing data, listing of data and overlay of data.
PeoplePeople are the energy source of the CRM and must be set right for the entire system to
work.
List data Name and address collected by third party which can be bought or leased
Overlay data Customer profile data collected by a third party which can be leased and
appended to existing customer records
8
Customer Relationship Management (BMS).
CRM is a sound business strategy to identify the banks most profitable customers and
prospects, and devotes time and attention to expanding account relationships with
Banking Industry in India has undergone a rapid changes followed by a series of
fundamental developments. Those customers through individualized marketing, re-
pricing, discretionary decision making, and customized service-all delivered through the
various sales channels that the bank uses. Under this case study, a campaign management
in a bank is conducted using data mining tasks such as dependency analysis, cluster
profile analysis, concept description, deviation detection, and data visualization. Crucial
business decisions with this campaign are made by extracting valid, previously unknown
and ultimately comprehensible and actionable knowledge from large databases. The
model developed here answers what the different customer segments are, who more
likely to respond to a given offer is, which customers are the bank likely to lose, who
most likely to default on credit cards is, what the risk associated with this loan applicant
is. Finally, a cluster profile analysis is used for revealing the distinct characteristics of
each cluster, and for modeling product propensity, which should be implemented in order
to increase the sales.
Therefore it is necessary for the banks to adopt the changes in the market through
tracking the customer wants and the needs. This is possible only when the organization
has a close contact with its customers. Since customer is the life blood of any business
organization and customer creation cost is costlier than customer retention cost, thus
bank adopt CRM techniques for maintaining
9
Customer Relationship Management (BMS).
life relationship and by which they ensures customer loyalty and retention. Thus the
banking sector moves from a transaction centric to a relationship centric business
approach by focusing through build good relationship and the profitable transaction
will follow automatically.
The core theme of all CRM and relationship marketing perspectives is its focus on co-
operative and collaborative relationships between the firm and its customers, and/or other
marketing actors. CRM is based on the premise that, by having a better understanding of
the customers needs and desires we can keep them longer and sell more to them.
10
Customer Relationship Management (BMS).
The banking sector is entering a new world and exciting developments are changing the
face of banking. The globalization of banking operations along with high competition,
continuing deregulation and technological advancements has significantly altered the face
and scope of banking. The process of economic liberalization and finance sector reforms
has brought the issue of customer focus to the forefront. Therefore there exists a strong
need for maintaining CRM in the banks to understand the customers and to meet their
expectations. The scope of CRM is very wide including different aspects like customer
satisfaction, service quality, relationship quality, market orientation, trust, loyalty,
commitment, customer retention etc. To survive, banks have to redesign their strategy in
delivering quality services to attract and maintain customers. The only strategy that is
perceived to make sense in this emerging marketing environment requires marketers to
learn and practice CRM. This study aims to identify the areas of research in CRM with
special reference to banking industry.
CRM aims at focusing all the organizational activities towards developing long term
collaborative relationship with customers to develop them as lifetime customers. CRM in
banking is a key element that allows a bank to develop its customer base and sales
capacity. The goal of CRM is to manage all aspects of customer interactions in a manner
that enables banks to maximize profitability from every customer. Retaining customers is
a major concern for banking institution which shows the importance of CRM. Banks have
to come out with innovative measures to satisfy the needs of both the present and
potential customers and at the same time they must adopt procedures to bring back the
lost customers trough establishing an excellence in customer relationship. Hence the
present study has been carried out to examine the CRM techniques adopted in the ICICI
banks in Mumbai & Thane dist
11
Customer Relationship Management (BMS).
There are four key steps for putting Step 1: Identify your customers
To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers. It is
crucial to know the customer details as much as possible, not just their names or address,
but their habits, preferences and so forth.
Customers are different in two principal ways, they represent different levels of value and
have different needs. Once the company identifies its customers differentiating them will
help the company to focus its efforts to gain the most advantage with the most valuable
customers.
Ultimately to lock a customer into a relationship a company must adapt some aspect of its
behavior to meet customers individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product.
12
Customer Relationship Management (BMS).
CHAPTER 2
REVIEW OF LITERATURE
Kamath in his thesis entitled Marketing of bank services with special reference to
branches in Bombay city of syndicate bank has concluded that quicker and better service
offered by bank will be the most important variable in attracting and retaining customer.
S.G Shah in his article has stated that quality of customer service in bank has to very sink
to very low and poor levels because of two vastly different reasons. The first is that even
the simple routine service have broken down. The second area in which customer service
is lagging is that of special situation.
T.S Ravisankar in his study Marketing strategies and planning for business growth in
banks stressed that the marketing plan for banking service be supported by appropriate
marketing strategies. He suggests that the marketing strategy for banks must be oriented
to customer current and potential.
Knox, address that CRM is a strategic approach designed to improve stakeholder value
(the value the customer receives, the value the organization receives, and the customer
retention and its economics) through developing appropriate relationships with key
customers and customer segments and through channel and media integration (channel
and media suitability, channel and media structure, and multichannel and multimedia
integration). CRM unites the potential of IT and relationship marketing to deliver
profitable, long-term relationships.
John Brooks former president and chairman of the council of the charted institute of
Bankers, London states Customer care is emerging as a critical factor in the banking
13
Customer Relationship Management (BMS).
industry and bankers are fully conscious of the need for attaining international standard
for service.
Das Kallol, (2009) explores the association between deployment of CRM best practices
and loyalty of profitable customers in Indian retail banking. They developed the best
CRM practices which may be helpful to the organizations toward achieving
comprehensive CRM deployment. The study reveals that State Bank of India and Bank of
Baroda are lagging behind their counterparts from other sectors regarding deployment of
the best practices.
Dr. B.C. Saraswathy in her article has stated that the mail objectives of CRM are
building long term, sustaining relations with customers by delivering superior customer
value and satisfaction. Instead of trying to maximize profit for each every transaction,
CRM focuses on maximizing profits over the lifetime value of customers. Undoubtedly,
CRM is a potential tool in sustaining and boosting sales in this era of hyper competitive
world.
14
Customer Relationship Management (BMS).
CHAPTER 3
KEY COMPONENTS OF CRM
InformationIt is a key raw material for CRM. The key steps include data identification,
marketing data, listing of data and overlay of data.
PeoplePeople are the energy source of the CRM and must be set right for the entire system to
work.
List data Name and address collected by third party which can be bought or leased
Overlay data Customer profile data collected by a third party which can be leased and
appended to existing customer records
People are reset through various change management tools and support mechanisms
New Tools
All customers are not equal; recognize and reward best customers disproportionately.
Understanding each customer becomes particularly important. And the same customers
reaction to a cellular company operator may be quite different as compared to a car
dealer. Besides for the same product or the service not all customers can be treated alike
and CRM needs to differentiate between a high value customer and a low value customer.
16
Customer Relationship Management (BMS).
Differentiating Offerings
Low value customer with potential to become high value in near future
Grading customers from very satisfied to very disappoint should help the organization in
improving its customer satisfaction levels and scores. As the satisfaction level for each
customer improves so shall the customer retention with the organization.
Exploit up-selling and cross-selling potential. By identifying life stage and life event
trigger points by customer, marketers can maximize share of 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.
3. Increase Loyalty
Loyal customers are more profitable. Any company will like its mind share status to
improve from being a suspect to being an advocate. Company has to invest in terms of its
product and service offerings to its customers. It has to innovate and meet the very needs
of its clients/ customers so that they remain as advocates on the loyalty curve. Referral
sales invariably are low cost high margin sales.
17
Customer Relationship Management (BMS).
3. Creating loyalty.
5. Creating profits.
18
Customer Relationship Management (BMS).
CHAPTER 4
1) To examine the opinion of the customers as to CRM of the banks with respect
to service quality management.
2) To analysis the opinion of the customers as to CRM of the banks with respect
to customer interaction management.
3) To study the opinion of the customers as to CRM of the banks with respect to
customer retention management.
The idea of CRM is that it helps businesses use technology and human resources gain
insight into the behavior of customers and the value of those customers. If it works as
hoped, a business can: provide better customer service, make call centers more efficient,
cross sell products more effectively, help sales staff close deals faster, simplify marketing
and sales processes, discover new customers, and increase customer revenues. It doesn't
happen by simply buying software and installing it. For CRM to be truly effective an
organization must first decide what kind of customer information it is looking for and it
must decide what it intends to do with that information. For example, many financial
institutions keep track of customers' life stages in order to market appropriate banking
products like mortgages or IRAs to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information about customers comes
into a business, where and how this data is stored and how it is currently used. One
19
Customer Relationship Management (BMS).
company, for instance, may interact with customers in a myriad of different ways
including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales
force staff and marketing and advertising efforts. Solid CRM systems link up each of
these points. This collected data flows between operational systems (like sales and
inventory systems) and analytical systems that can help sort through these records for
patterns. Company analysts can then comb through the data to obtain a holistic view of
each customer and pinpoint areas where better services are needed.
In CRM projects, following data should be collected to run process engine:
1) Responses to campaigns,
4) Account information,
7) Demographic data,
The Data warehouse is the core of any decision support system and hence of the CRM. In
implementing its Data Warehouse ICICI Bank has selected an incremental approach,
where the development of information systems is integrated with the business strategy.
Instead of developing a complete design of a corporate Data Warehouse before
implementing it, the bank has decided to develop a portion of the Data Warehouse to be
used for customer relationship management and for the production of accurate and
consistent management reports. Here we are not concerned with the latter goal, but are
concentrating on the former. The Data Warehouse has been designed according to the
IBM BDW (Banking Data Warehouse model) that has been developed as a consequence
of the collaboration between IBM and many banking customers. The model is currently
being used by 400 banks worldwide. The ICICI Bank Data Warehouse is regularly
20
Customer Relationship Management (BMS).
Populated both from operational systems and from intermediate sources obtained by partial
preprocessing of the same raw data.
The Analytical Data mart is customer centric and contains the following data:
CHARACTERISTICS OF CRM
21
Customer Relationship Management (BMS).
Ability to remember and recognize customers and tailor your offering to their preferences
22
Customer Relationship Management (BMS).
23
Customer Relationship Management (BMS).
CHAPTER 5
MARKETING AND CUSTOMER SERVICE
Better scoring opportunities by undertaking at the right time at the right relationships
Effective cross sell of other products on the basis of a better understanding of the customer
24
Customer Relationship Management (BMS).
CRM systems are customer relationship management platforms. The goal of the system is
to track, record, store in databases, and then determine the information in a way that
increases customer relations (predominantly increased ARPU, and decreased churn). The
CRM codifies the interactions between you and your customers so that you can maximize
sales and profit using analytics and KPIs to give the users as much information on where
to focus their marketing and customer service to maximize revenue and decrease idle and
unproductive contact with your customers. The contact channels (now aiming to be omni-
channel from multi-channel) use such operational methods as contact centers. The CRM
software is installed in the contact centers, and help direct customers to the right agent or
self-empowered knowledge. CRM software can also be used to identify and reward loyal
customers over a period of time.
25
Customer Relationship Management (BMS).
CHAPTER 6
IMPLEMENTING CRM TO THE COMPANY
1) Make a strategic decision on what problems you want your CRM system to
address, what improvements or changes it should bring in the business processes
of the organization.
4) Empower team members with the required authority to complete the tasks.
5) Select the correct implementation partner. They must have both vertical and
horizontal business knowledge, as well as technical expertise.
26
Customer Relationship Management (BMS).
Often referred to as "on-demand" software, SaaS based software is delivered via the
Internet and does not require installation on your computer. Instead, you'll generally
access the software via your web browser. Businesses using the software do not purchase
the software, and typically pay a subscription fee to the software vendor.
For small businesses a CRM system may simply consist of a contact manager system
which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.
CRM systems available for specific markets (legal, finance) frequently focus on event
management and relationship tracking as opposed to financial return on investment
(ROI).
CRM often makes use of social media to build up customer relationships. Some CRM
systems integrate social media sites like Twitter, LinkedIn and Facebook to track and
communicate with customers sharing their opinions and experiences with a company,
products and services. Enterprise Feedback Management software platforms such as
Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified
through social media to allow businesses to make more accurate decisions on which
products to supply.
Systems for non-profit and also membership-based organizations help track constituents,
fund-raising, Sponsors demographics, membership levels, membership directories,
volunteering and communication with individuals.
27
Customer Relationship Management (BMS).
28
Customer Relationship Management (BMS).
CHAPTER 7
CUSTOMER-CENTRIC RELATIONSHIP MANAGEMENT (CCRM)
7.1 Introduction
Customer centric organizations help customers make better decisions and it also helps
drive profitability. CCRM adds value by engaging customers in individual, interactive
relationships.
tailored marketing
retaining customers
Subscription billing
Rewards
29
Customer Relationship Management (BMS).
The CRM Paradox, also referred to as the "Dark side of CRM", entails favoritism and
differential treatment of some customers. This may cause perceptions of unfairness
among other customers' buyers. They may opt out of relationships, spread negative
information, or engage in misbehavior that may damage the firm. CRM fundamentally
involves treating customers differently based on the assumption that customers are
different and have different needs. Such perceived inequality may cause dissatisfaction,
mistrust and result in unfair practices. A customer shows trust when he bonds in a
relationship with a firm when he knows that the firm is acting fairly and adding value.
However, customers may not trust that firms will be fair in splitting the value creation pie
in the first place. For example, Amazons test use of dynamic pricing (different prices for
different customers) was a public relations nightmare for the company.
7.4 TRENDS
In the Gartner CRM Summit 2010 challenges like "System tries to capture data from
social networking traffic like Twitter, handles Facebook page addresses or other online
social networking sites" were discussed and solutions were provided which would help in
bringing more clientele. Many CRM vendors offer subscription-based web tools (cloud
computing) and software as a service (SaaS). Some CRM systems are equipped with
mobile capabilities, making information accessible to remote sales staff. Salesforce.com
was the first company to provide enterprise applications through a web browser, and has
maintained its leadership position. Traditional providers have recently moved into the
cloud-based market via acquisitions of smaller providers: Oracle purchased Right Now in
October 2011 and SAP acquired Success Factors in December 2011.
The era of the "social customer" refers to the use of social media (Twitter, Facebook,
LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.) by
customers. CR philosophy and strategy has shifted to encompass social networks and
user communities.
Sales forces also play an important role in CRM, as maximizing sales effectiveness and
increasing sales productivity is a driving force behind the adoption of CRM. Empowering
30
Customer Relationship Management (BMS).
sales managers was listed as one of the top 5 CRM trends in 2013.
In 2001, Doug Laney developed the concept and coined the term 'Extended Relationship
Management' (XRM). Laney defines XRM as extending CRM disciplines to secondary
allies such as the government, press and industry consortia.
CRM futurist Dennison De Gregor describes a shift from 'push CRM' toward a 'customer
transparency' (CT) model, due to the increased proliferation of channels, devices, and
social media.
Capterra Inc. Ranked the Top CRM Software Solutions in 2013 based on total number of
customers, total number of users and social presence.
31
Customer Relationship Management (BMS).
32
Customer Relationship Management (BMS).
CHAPTER 8
ICICI BANK
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom,
Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri
Lanka, Qatar and Dubai International Finance Centre; and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
Indonesia. The company's UK subsidiary has also established branches in Belgium and
Germany.
In March 2013, Operation Red Spider showed high-ranking officials and some employees
of ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank
suspended 18 employees and faced penalties from the Reserve Bank of India in relation
to the activity.
33
Customer Relationship Management (BMS).
8.2 HISTORY
ICICI Bank was established by the Industrial Credit and Investment Corporation of India
(ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian
industry. The bank was initially known as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank.
The parent company was later merged with the bank.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering
of shares in India in 1998, followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura
Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a demand
book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.
34
Customer Relationship Management (BMS).
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumors of adverse financial position of ICICI Bank.
The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank
to dispel the rumors.
8.3 ACQUISITIONS
1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-
bank financial firm that engaged in hire, purchase, and leasing operations.
At the time of being acquired, ITC Classic had eight offices, 26 outlets,
and 700 brokers.
35
Customer Relationship Management (BMS).
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank,
founded in 1916, and 30% owned by the Bahte family. Its headquarters
were in Sangli in Maharashtra, and it had 198 branches. It had 158 in
Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh,
Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split
between metropolitan areas and rural or semi-urban areas.
2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in
2010 for 30 billion. RBI was critical of BOR's promoters not reducing
their holdings in the company. BOR has since been merged with ICICI
Bank.
8.4 ICICIS ROLE IN INDIAN FINANCIAL INFRASTRUCTURE
36
Customer Relationship Management (BMS).
Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has
facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as
a company that would provide technology solutions and services to reach
the underserved and under banked population of the country. Using
cutting edge technologies like smart cards, biometrics and a basket of
support services, FINO enables financial institutions to conceptualize,
develop and operationalise projects to support sector initiatives in
microfinance and livelihoods.
37
Customer Relationship Management (BMS).
Credit Information Bureau of India Limited - ICICI Bank has also helped
in setting up Credit Information Bureau of India Limited (CIBIL), India's
first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and
consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions, state
financial corporations, non-banking financial companies, housing finance
companies and credit card companies.
In September 2013, ICICI Bank launched a one of its kind app on Facebook 'Pockets by
ICICI Bank' to enable customers to carry out a wide range of financial transactions on
Facebook Customers can access the ICICI Bank app by logging into their Facebook
account and then going to the official ICICI Bank Facebook page, and clicking on the tab
for Pockets by ICICI Bank. The customer then registers online with their debit card
number and PIN, and selecting a new four digit PIN for subsequent logins. Through the
38
Customer Relationship Management (BMS).
app, customers can make payments to friends, recharge prepaid mobile and book movie
tickets. One can also carry out non-financial transactions such as accessing a mini
statement of their savings bank account, getting demat holding statements, opening fixed
or recurring deposit, order a cheque book, stop a cheque payment, upgrade debit card,
among others.
MY SAVINGS REWARDS
ICICI Bank has rolled-out the program 'My Savings Rewards' from 1 September 2012,
where reward points are offered to individual domestic customers for a variety of
transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying
utility bills with Internet banking and auto-debit from savings account towards equated
monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are
required to maintain a monthly average balance of 15,000 or more.
iWish is a flexible recurring deposit product launched by ICICI Bank for its savings
account customers. Unlike a traditional recurring deposit, iWish allows customers to save
varying amounts of money at any time of their choice. Customers can create several goals
and track their progress on an online interface.
ICICI Bank has developed this product in collaboration with Social Money.
39
Customer Relationship Management (BMS).
GO GREEN INITIATIVE
The Go Green Initiative is an organization wide initiative that moves beyond moving
people, processes and customers to cost effective automated channels to build awareness
and consciousness of our environment, our nation and our society.
It is the platform that brings together all alternate channels under one umbrella and gives
customers the option of banking through Internet banking, i-Mobile banking, IVR
Banking. On 22nd September 2014 ICICI Bank launched Four New Next Generation
Mobile Banking Apps.
VEHICLE FINANCE
Auto loans offer 50% waiver on processing fee on car models which uses alternate mode
of energy. The models identified for the purpose are, Maruti's LPG version of Maruti
800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars,
Tata Indica CNG and Mahindra Logan CNG versions.
Inputs include region, user input of the distance traveled in a particular medium of
transport daily, electricity consumed per month and LPG cylinder/piped natural gas used
per month. It calculates the net carbon footprint to create awareness and sensitize people
about the environment. It also shows the world's and India's average carbon footprint.
SUBSIDIARIES
Domestic
ICICI Prudential Life Insurance Company Limited
40
Customer Relationship Management (BMS).
INTERNATIONAL
8.6 AWARDS
2004
Best Bank in India Award presented by Euro money Magazine
2007
ICICI Bank has been conferred the Euro money Award 2007 for the
Best Bank in the Asia-Pacific Region
41
Customer Relationship Management (BMS).
2009
ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the
Dun & Bradstreet Banking awards
2011
ICICI Bank is the only Indian brand to figure in the Brand Z Top 100
Most Valuable Global Brands Report, second year in a row
2012
Airtel, ICICI among 'top 100 global brands'
2013
ICICI Bank has been adjudged winner at the Express IT Innovation Award
under the Large Enterprise category
2014
According to the Brand Trust Report 2014, ICICI Bank was ranked 28th
among India's most trusted brands, a research conducted by Trust
Research Advisory.
42
Customer Relationship Management (BMS).
The steps that banks follow in implementing Customer Relationship Management (CRM)
are:
Customer Relationship Management (CRM) has been deployed in retail banking. The
challenges in managing customer relations in retail banking are due to the multiple
products being offered and the diverse channels being used for the distribution of the
products. Customer expectation from banks can be summed up as:
Aggressive marketing and promotions on the part of the banks have resulted in most
customers happily switching loyalties to enjoy better privileges, thereby making the task
of retaining them more difficult for the banks.
43
Customer Relationship Management (BMS).
Banks can use the data on customers to effectively segment the customers before
targeting them. Proper analysis of all available data will enable banks to understand the
needs of various customer segments and the issues that determine value for that
segment. Accordingly, suitable campaigns can be designed to address the issues relevant
for that segment and to ensure higher loyalty from these customers. When data
a n a l y s i s is done in the right manner, it helps in generating opportunities for cross-
selling and up- selling.
45
Customer Relationship Management (BMS).
Most banks have their own databases but because of the huge technological investments
done by ICICI the databases in all the branches are integrated, which means they can be
accessed from anywhere and at anytime. ICICI bank has tied up with Terra data
Company for making their software and is the only bank doing this. The difference can
be known through matching tool parameter. This refers to; on the server of ICICI sum
standards are set in terms of value of the customer and whenever the customer reaches
the set standard, the server automatically informs the department to offer him another
product.
46
Customer Relationship Management (BMS).
Bank Branch, ATM, Phone Banking, Internet Banking, Insta Banking, Mobile Banking,
Call Centre. ICICI Bank offers a host of products and services to its clients, which
include Deposits, Loans, Cards, Investments, Insurance, Demat, NRI Services and Online
Services etc.
Interact and Deliver: To foster a strong customer relationship ICICI ensured that
all areas of the bank have easy access to relevant, actionable customer
information and employees should be trained on how to use customer information
to tailor interactions based on both customer needs and potential customer value.
Acquire and Retain: CRM helped ICICI to figure out valuable customers and
made it easy to formulate retention strategies for them. It also helped it cope up
with the change in customers life cycle and offer services accordingly
The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to
47
Customer Relationship Management (BMS).
The company first tries to determine who are likely prospects i.e. the people who have a
strong potential interest in the product and ability to pay for it. The company hopes to
convert many of its qualified prospect into first time customers and then to convert those
first time customers into repeat customers. Then the company tries to convert these repeat
customers into clients they are those people who buy only from the company in the
relevant product categories. The next challenge for the company is to convert these
clients into advocates. Advocates are those clients who praise the company and
encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers
and the clients work actively together to discover ways of getting mutual benefit.
Thus in CRM the key performance figure is not just current market share but share of life
time value by converting customers into partners.
In CRM the company tries to identify that small percentage (20%) of key account holders
whos contribution to the company revenues is high (80%). So from this point of view,
CRM is also known as KEY ACCOUNT MANAGEMENT
48
Customer Relationship Management (BMS).
ANNEXURES
49
Customer Relationship Management (BMS).
Options Percentage
Yes 80%
No 20%
20%
Yes
No
80%
Interpretation:
ICICI bank succeeds in understanding the customers needs and problems. 80% of the
customers response positive towards the service provided by the bank and 20% of
customers still need more focus from bank.
50
Customer Relationship Management (BMS).
Options Percentage
Yes 60%
No 40%
40%
60% Yes
No
Interpretation:
Surveys conducted by bank regularly. 60% of customers are happy with such survey, were
as 40% of customer thinks that bank doesnt expend time for customer satisfaction surveys.
51
Customer Relationship Management (BMS).
Options Percentage
Yes 90%
No 10%
10%
Yes
No
90%
Interpretation:
The ICICI Bank seeks customer complaints and comments as a priority and 90% of
customers happy with this service of bank. Remaining 10% still complaint about delays
in solving problems.
52
Customer Relationship Management (BMS).
Options Percentage
12% 5%
48% Face to face interview
Toll free numbers
35% Formal surveys
Other means
Interpretation:
ICICI Bank takes initiative to communicate with customers and it was found out that
direct face to face interactions were used maximum by customers for complaints and
comments. Toll free numbers, formal surveys are other ways of communication between
bank and customers.
53
Customer Relationship Management (BMS).
Options Percentage
Yes 95%
No 05%
5%
Yes
No
95%
Interpretation:
Banks one of the best offering are credit facilities. ICICI Bank provides the credit
facility to its customers when ever demanded. 95% of customers know about this offering
and takes benefits of it.
54
Customer Relationship Management (BMS).
Options Percentage
Yes 55%
No 45%
45%
55% Yes
No
Interpretation:
It seems like ICICI Bank doesnt discriminate in service providing to new and old
customers. 55% customers says that they get special attention from bank because of long
time attachment were as 45% of customers says there is no difference of service from
bank between new and old customers.
55
Customer Relationship Management (BMS).
Options Percentage
Yes 70%
No 30%
30%
Yes
70% No
Interpretation:
ICICI Bank remains active in taking feedback from customers. Feedback helps them to
formulate new services or improvement in processes. 70% of customers say that bank
take feedback from them were as 30% of customers says they never encountered with
such feedback activity of bank.
56
Customer Relationship Management (BMS).
Options Percentage
Yes 65%
No 35%
35%
Yes
65%
No
Interpretation:
65% of customers say that they get services as they needed from bank were as 35% of
customers complaints that they not get service as they required from bank. ICICI Bank
for its current account holders provides large credit facility and personal call for future
requirements of services from bank.
57
Customer Relationship Management (BMS).
Options Percentage
Yes 60%
No 40%
40%
Yes
60%
No
Interpretation:
ICICI Bank always take initiative to communicate with customers and its seems that 60%
of customers take part in that, were as 40% of customers says that bank doesnt take
initiative to communicate with them. Bank needed to review their process because 100%
of customers needed to be cover.
58
Customer Relationship Management (BMS).
Options Percentage
1%
19%
Interpretation:
Computers are now playing a major role in banking sector. 80% of customers says that
maximum work needed to be done on computer were as 19% says that without computers
the bank can work but computer needed.
59
Customer Relationship Management (BMS).
Options Percentage
Yes 90%
No 10%
10%
Yes
No
90%
Interpretation:
The banking sector has changed rapidly from last 10 years, the automation of process has
made the bank activities easier than ever before. In the case of ICICI Bank 90% of
customers says that the services has improved much then before but 10% still says that
services not improved in bank.
60
Customer Relationship Management (BMS).
Options Percentage
Yes 55%
No 45%
45%
55% Yes
No
Interpretation:
A customer retention and loyalty program helps the bank to continue the customer. 55%
of customer says that they are happy with the loyalty programs by bank, were as 45%
customers say that there is no such program to retain the customers.
61
Customer Relationship Management (BMS).
Options Percentage
Yes 85%
No 15%
15%
Yes
No
85%
Interpretation:
According to 85% of customers the working environment of ICICI Bank are good, values
and principles were followed. 15% of customers still feel that the working environment
can be better.
62
Customer Relationship Management (BMS).
14) Does the staff have capability and knowledge to solve customer
complaints and problems?
Options Percentage
Yes 75%
No 25%
25%
Yes
75% No
Interpretation:
75% of customers say that the staff know the solutions of the general problems and
complaints, were as 25% of customers say that the staff doesnt aware of the solutions to
the problems and complaints.
63
Customer Relationship Management (BMS).
15) regularly?
Options Percentage
Yes 20%
No 80%
20%
Yes
No
80%
Interpretation:
80% of the customers complaint that the bank doesnt disclose the survey results to them,
were as 20% of customers claim that they know the results of surveys provided
information from notice boards and bank portal.
64
Customer Relationship Management (BMS).
We can see that the benchmarks set by ICICI are definitely of world class and
clearly values customers precious time, a focused and customer centric approach
helped ICICI Bank become No. 2 bank in India.
ICICI Bank has used CRM not only as a tool but also as a strategy to gain
competitive advantage over other new generation private banks. It has invested a
lot in ICT and spared no pains in giving best to the customers.
Its multi-pronged approach towards managing customer relationship is paying
dividends constantly and as a result we see millions of happy satisfied customers
determined to make it one of the most successful banks in India.
It is identified that the most of respondents are satisfied with CRM. Among
respondents mostly are satisfied with CRM practices.
The study also implies that there is positive correlation between the Customer
interaction management practices, Customer retention management practices,
Customer service strategies, Customer attitude on factors contributing service
quality.
The most important factor which influenced the attitude of customers towards
CRM practices is high safety on the banking transactions.
Thus this study helps the bankers to identify the extent to which they are able to
maintain customer relations and the measures they can take to improve their
relationship.
65
Customer Relationship Management (BMS).
Bankers should educate and inform customers about the various services offered
to the customer through customer meets.
Bank personnel should be willing and ready to serve the customers.
Personnel should be knowledgeable and Skillful and the same should be reflected
in their behavior.
Employees should be properly equipped with communication facilities for easy
access.
Awareness programs should be provided and must take effective steps to attract
people of all ages.
Bank employees have to be friendly with customers without diluting the rules and
regulations of the bank.
Banks must introduce new ways and means that makes its customer highly delighted
with its quality of services.
Banks have to identify, analyze and solve the problems faced by the customers while
availing the services within a short span of time to win over the confidence of
customers.
Personnel should be polite, respectful, flexible, friendly and accommodating.
The results of the study reveal that a relevant gap exists between the customers
expectation and customers perception regarding selected CRM practices in banking
industry, which means that in todays competitive environment, customers expectations
are reaching the heights that bankers are unable to predict. To overcome this, banks
have to strive to attract and retain existing and new customers by innovating and
developing differentiated products and services.
Banks should interact or communicate with the customers consistently and take their
feedback with regard to their problems and complaints.
66
Customer Relationship Management (BMS).
CRM SOLUTIONS
CRM Solutions come with many features and tools and it's important for a company to
choose a product based on their specific organizational needs. Most vendors will present
information on their respective websites:
Features
These are what the product actually does and what value it can provide to an
organization.
Support
Many CRM vendors have a basic level of support which generally only
includes email and/or access to a support forum. Telephone support is
often charged in either an annual or ad hoc pricing strategy. Some
companies offer on-site support for an extra premium.
67
Customer Relationship Management (BMS).
CONCLUSION
From this study it can be concluded that the customer relationship management in Bank
is satisfactory. The Bank is using various CRM practices like customization of the
product, maintaining interaction with the customers regularly and providing good quality
product etc. Customer relationship management has a certain impact on the profitability
of the Bank. Customer response rate towards marketing activities is also improving.
There are various factors affecting the customer relationship management like working
environment of the Bank, support from top management and coordination among the
departments of the Bank. Information technology is used as much as it should be. The
Bank is using traditional as well as modern tools of CRM like quantitative research,
personal interviews, social websites, online services etc.
The present study provides some guidelines for customer relationship management
satisfied customers are loyal customer, their retention rate is much higher and so is their
overall profitability for the bank. CRM offers the most holistic route for banks to enhance
customer relationships. Banks can enhance customer retention, profitability and loyalty
and get an increased share of banks from their customers. Banks need to embrace CRM
as a principle and adopt a strategy for managing customer relationships that effectively
addresses three key areas, customers, processes and technology. Finally banks should
take actions such as recognition and delegation of work, freedom to handle customers
grievances and managements approval to take decision according to the situations.
68
Customer Relationship Management (BMS).
Bibliography
www.icicibank.com
www.crm.insightexec.com
www.crmguru.com
www.searchcrm.techtarget.com
www.Wikipedia.com
Banking Industry
69
Customer Relationship Management (BMS).
70
Customer Relationship Management (BMS).
71
Customer Relationship Management (BMS).
72