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IILM ACADEMY OF HIGHER LEARNING
JAIPUR

CUSTOMER RELATIONSHIP MANAGEMENT

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Course Leader: SONAL KATEWA

Email: sonal.katewa@iilm.ac.in

© IILM Academy of Higher Learning, Jaipur

 ICICI BANK
ICICI Bank (BSE: 532174, NYSE: IBN) (formerly Industrial Credit and Investment
Corporation of India) is a major banking and financial services organization in India. It is
the 4th largest bank in India and the largest private sector bank in India by market
capitalization. The bank also has a network of 1,700+ branches (as on 31 March 2010)
and about 4,721 ATMs in India and presence in 19 countries, as well as some 24 million
customers (at the end of July 2007). ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and specialization subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI
Bank's shares are listed on the stock exchanges at Kolkata and Vadodara, Mumbai and
the National Stock Exchange of India Limited; its ADRs trade on the New York Stock
Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches
and representatives offices in 19 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the Hi SAVE savings brand is operated), offshore banking units in
Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong
and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia,
South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is
targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in
total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
The bank's CASA ratio increased to 30% in 2008 from 25% in 2007. ICICI Bank is one
of the Big Four Banks of India, along with State Bank of India, Axis Bank and HDFC
Bank ² its main competitors.

In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development financial
institution for providing medium-term and long-term project financing to Indian
businesses. In 1994, ICICI established Banking Corporation as a banking subsidiary.
m
 
 of ICICI Bank:
The bank, headquartered in Mumbai, has a network of about 1,400 branches and 4,530
ATMs in India and a presence in 18 countries. It offers a wide range of banking products
and financial services to corporate and retail customers through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management. The bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain,
Hong Kong, Sri Lanka, Qatar and Dubai.

Chann
:

ICICI Bank has the following channels through which it offers its products and services
to its customers.

r Branches
r ATMs
r Internet Banking
r Mobile Banking
r Phone Banking

Poduct and S
 c
:

ICICI Bank offers a host of products and services to its clients, which include Deposits,
Loans, Cards, Investments, Insurance, De-mat, NRI Services and Online Services etc.

D
ot:

Following deposits are offered:

r Savings Account
r Advantage Deposit
r Special Savings Account
r Life Plus Senior Citizens Savings Account
r Fixed Deposits
r Security Deposits
r Recurring Deposits
r Tax-Saver Fixed Deposit
r Young Stars Savings Account
r Child Education Plan
r Bank @ Campus
 r Salary Account
r Advantage Woman Savings Account
r EEFC Account
r Resident Foreign Currency (Domestic) Account
r Privilege Banking
r No Frills Account
r Rural Savings Account

Êoan:

ICICI Bank offers following loan facilities:

r Home Loans
r Loan Against Property
r Personal Loans
r Car Loans
r Two Wheeler Loans
r Commercial Vehicle Loans
r Loans Against Securities
r Loan Against Gold Ornaments
r Pre-approved Loans

Cad:

ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards.
The various cards offered by ICICI bank are as below:

r Consumer Cards
r Credit Cards
r Travel Cards
r Debit Cards
r Commercial Cards
r Corporate Cards
r Prepaid Cards
r Purchase Cards
In
tm
nt:

ICICI Bank facilitates a range of investment products including:

r ICICI Bank Tax Saving Bonds

r Mutual Funds

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r Government of India Bonds

r Initial Public Offers (IPO) by Corporates

r Foreign Exchange Services

r ICICI Bank Pure Gold

r Senior Citizens Savings Scheme, 2004

CRM IN ICICI BANK

INTRmDUCTImN m CRM
CRM, or Customer relationship management, is a number of strategies and
technologies that are used to build stronger relationships between companies and their
customers. A company will store information that is related to their customers, and they
will spend time analyzing it so that it can be used for this purpose.

Some of the methods connected with CRM are automated, and the purpose of this is to
create marketing strategies which are targeted towards specificcustomers. The
strategies used will be dependent on the information that is contained within the system.
Customer relationship management is commonly used by corporations, and they will
focus on maintaining a strong relationship with their clients.

There are a number of reasons why CRM has become so important in the last 10 years.
The competition in the global market has become highly competitive, and it has become
easier for customers to switch companies if they are not happy with the service they
receive. One of the primary goals of CRM is to maintain clients. When it is used
effectively, a company will be able to build a relationship with theircustomers that can
last a life time. Customer relationship management tools will generally come in the form
of software. Each software program may vary in the way it approaches CRM. It is
important to realize that CRM is more than just a technology.

Customer relationship management could be better defined as being a methodology, an

approach that a company will use to achieve their goals. It should be directly connected
to the philosophy of the company. It must guide all of its policies, and it must be an
important part of customer service and marketing. If this is not done, the CRM system
will become a failure. There are a number of things the ideal CRM system should have.
It should allow the company to find the factors that interest their customers the most. A
company must realize that it is impossible for them to succeed if they do not cater to the
desires and needs of their customers. Customer relationship management is a powerful
system that will allow them to do this.

It is also important for the CRM system to foster a philosophy that is oriented towards
the customers. While this may sound like common sense, there are a sizeable number
of companies that have failed to do it, and their businesses suffered as a result. With
CRM, the customer is always right, and they are the most important factor in the
success of the company. It is also important for the company to use measures that are
dependent on their customers. This will greatly tip the odds of success in their favor.
While CRM should not be viewed as a technology, it is important to realize that there
are end to end processes that must be created so that customers can be properly
served. In many cases, these processes will use computers and software.

Customer support is directly connected to CRM. If a company fails to provide quality

customer support, they have also failed with their CRM system. When a customer
makes complaints, they must be handled quickly and efficiently. The company should
also seek to make sure those mistakes are not repeated. When sales are made, they
should be tracked so that the company can analyze them from various aspects. It is
also important to understand the architecture of Customer relationship management .
The architecture of CRM can be broken down into three categories, and these are
collaborative, operational, and analytical. The collaborative aspect of CRM deals with
communication between companies and their clients.
Th
Hto of CRM:
Customer relationship management is a concept that became very popular during the
1990s. It offered long term changes and benefits to businesses that chose to use it. The
reason for this is because it allowed companies to interact with their customers on a
whole new level. While CRM is excellent in the long term, those who are looking for
short term results may not see much progress.

One of the reasons for this is because it was difficult to effectively track customers and
their purchases. It is also important to realize that large companies were responsible for
processing tremendous amounts of data. This data needed to be updated on a
consistent basis.

In the last few years, a number of changes have been made to Customer relationship
management that has allowed it to advance. These capabilities have allowed CRM to
become the system that was once envisioned by those who created it. However, the
biggest problem with these newer systems is the price. A number of personalized
Internet tools have been introduced to the market, and this have driven down the cost of
competition. While this may be a bane for vendors who are selling expensive systems, it
is a bonanza for small companies that would otherwise not be able to afford CRM
programs. The foundation for CRM was laid during the 1980s.

During this time, it was referred to as being database marketing. The term "database
marketing" was used to refer to the procedure of creating customer focus groups that
could be used to speak to some of the customers of the company. The clients who were
extremely valued were pivotal in communicating with the firm, but the process became
quite repetitive, and the information that was collected via surveys did not give the
company a great of information. Even though the company could collect data through
surveys, they did not have efficient methods of processing and analyzing the
information. As time went on, companies begin to realize that all they really needed was
basic information. They needed to know what their customer purchased, how much they
spent, and what did with the products they purchased.

The 1990s saw the introduction of a number of advances in this system. It was during
this time that term Customer relationship management was introduced. Unlike previous
customer relationship systems, CRM was a dual system. Instead of merely gathering
information for the purpose of using for their own benefit, companies started giving back
to the customers they served. Many companies would begin giving their customers gifts
in the form of discounts, perks, or even money. The companies believed that doing this
would allow them to build a sense of loyalty in those who brought their products.
Customer relationship management is the system that is responsible for introducing
things such as frequent flyer gifts and credit card points. Before CRM, this was rarely
done. Customers would simply by from the company, and little was done to maintain
their relationship. Before the introduction of CRM, many companies, especially those
that were in the Fortune 500 category, didn't feel the need to cater to the company. In
the minds of the executives, they have tremendous resources and could replace
customers whenever it became necessary. While this may have worked prior to the
1980s, the introduction of the Information Age allowed people to make better decisions
about which companies they would buy from, and global competition made it easier for
them to switch if they were not happy with the service they were getting.

HISTmRY m CRM IN ICICI BANK:

The CRM initiatives in India's ICICI Bank hold together its compelling story of growth. Its
growth in customer base, channels, and product and service offerings. Since its
inception in 1995, the bank has grown to have 15.8 million customers, holding about 17
million accounts. The bank's network has expanded to 610 branches and standalone
counters and over 2,000 ATMs.

CRM has been envisioned by the bank to support its goals in sales, customer service,
and analytics. Already, about 30.40% of the bank's home loans are cross-sold to
existing customers. Similar ratios have also been reported in the sale of insurance
policies. Ratios of about 50.60% have been seen out of the credit cards and personal
loans business. The bank's stated intention is to take these ratios to as high as 60.75%.
ICICI Bank states that these high levels of relationship maximization are made possible
by how its CRM system is able to "know and understand the customer better.´ which
customer is most suitable for what kind of product and at what point in time."

In the area of service, the bank receives as many as 150,000 customer requests per
day, a challenge not only to channel capacity but also to how the bank is able to ensure
that each request is recorded, tracked, and resolved. Last, customer analytics have
been used to support various strategic decisions of the bank. Recent strategic decisions
of note are several anti attrition programs, the intended attrition of unprofitable
customers, the imposition of fees, and various customer segment tactical initiatives.

ICICI Bank's CRM capability is built on a ³Teradata´ data warehouse that integrates
data from multiple sources, including the Oracle database and various flat files. The
system provides users with information about each customer's checking accounts, fixed
deposits, credit cards, and other financial information. The bank has taken on the end-
to-end proposition of SAS for enterprise intelligence, which offers a credible integrated
approach to analytics, including data detection, data cleansing, data preparation, event
detection, reporting and business intelligence, and campaign analysis. The bank
estimates that it is able to track more than 1,200 parameters concerning demographics,
transactions made, channel usage, and product relationships. Through Behavior
Explorer and views, business users develop customer profiles and run ad hoc queries.
Analysts then use the information to guide product development and marketing
campaigns that are intended to address each individual's total requirements, instead of
just pushing a product. The success of cross-selling to existing customers has also
been enabled by the bank's growing capabilities in lead management. The home loans
business unit, for example, has built a lead management system rolled out to about 700
users. The system is able to allocate leads, schedule meetings, provide a record of all
interactions with the customer, and give reminders for customer follow-ups. A lead
generation tool has also been developed in-house to capture and route Product
applications made over mobile phones.