A Study on Customer Relationship Management for ING Vysya Bank

A Summer Internship Project Report Submitted in partial fulfillment of The Master of Business Administration Degree under Biju Patnaik University of Technology, Rourkela. By

Suraj Kumar Panda Roll No. # MBA 200710707 Regd. No. 0706202055

September - 2008

Under the guidance of

Mr. B. Balaram

NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY Palur Hills, Berhampur, Orissa 761008, India

ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to my project guide, Mr. B. Balaram, faculty, NIST for his valuable guidance and useful suggestions, which helped me in completing the project work. I also would like to thank Mr. Ratnakar Mishra, project coordinator MBA, NIST for being supportive and for being a helping hand from the beginning till to the end of the completion of the project. I take immense pleasure in thanking Mr. Shom Prasad Das, Course Coordinator MBA, for having permitted me to carry out this project work. The boosting from our honorable director, Prof. Sangram Mudali, once in a while is really worth mentioning. Words are inadequate in offering my thanks to the Project Trainees and Project Assistants of ING VYSYA BANK for their encouragement and cooperation in carrying out the project work. Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends/classmates for their help and wishes for the successful completion of this project.

Suraj Kumar Panda

LIST OF TABLES
Table 1.1 Banks Currently Present in India................................................14 Table 2.1 Events in Banks History............................................................26 Table 2.2 Performance over the decades..................................................28 Table 2.3 Board of Directors (updated as of 23.07.2008)..........................32 Table 2.4 Executive Management Council (in alphabetical order) (updated as of 01.03.08).......................................................................................... 33 Table 3.1 Strategy Adopted in Field Work.................................................44 Table 4.1 Ranking given by the customers according to the importance of below factors in ING Vysya bank. .............................................................49

LIST OF FIGURES
Figure 2.1 Mission Statement of ING Vysya...............................................29 Figure 4.1 Reason to Choosing ING Vyasya Bank......................................46 Figure 4.2. Most number of customers belongs to.....................................47 Figure 4.3 Do you want to access online services? ...................................47 Figure 4.4 Customers describe the bank most suitably as a whole...........48 Figure 4.5. Quality of customer support given by the bank.......................48 Figure 4.6. Banks environment.................................................................49 Figure 4.7 Product/services preferred by most customers........................49 Figure 4.8 Assistance ................................................................................50 Figure 4.9 Office Environment...................................................................51 Figure 4.10 Administratio Procedure.........................................................51 Figure 4.11 Post Purchase Behaviour........................................................52 Figure 4.12 Behaviour of Employees.........................................................52 Figure 4.13 Timeliness............................................................................... 53

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TABLE OF CONTENTS
ACKNOWLEDGEMENT.................................................................................. 2 LIST OF TABLES............................................................................................ i LIST OF FIGURES.......................................................................................... ii TABLE OF CONTENTS.................................................................................. iii 1. INTRODUCTION........................................................................................ 6 1.1. General of Indian Banking Industry...................................................6 1.1.1 Introduction ................................................................................. 6 1.1.2 Financial Development ................................................................7 1.1.3 Indian Banking Industry...............................................................8 1.1.4 Reserve Bank of India (RBI)........................................................10 Functions of RBI.................................................................................. 10 1.2 Purpose of Study..............................................................................15 1.3. Scope of the Study .........................................................................15 1.4. Objective of the Study.....................................................................15 1.5. Area of Study...................................................................................15 1.6. Customer Relationship Management...............................................16 1.6.1 Operational CRM........................................................................17 1.6.2 Collaborative CRM......................................................................17 1.6.3 Analytical CRM...........................................................................17 1.6.4 Benefits of CRM..........................................................................18 1.6.5 Why do Companies go for CRM Strategies?...............................19 1.6.6 Customer Retention...................................................................20 1.6.7 The Service Marketing Triangle..................................................20 1.6.8 Technology Considerations........................................................21 1.6.9 Privacy and Data Security..........................................................22 1.6.10 Customer Relationship Management Software........................22

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1.6.11 Customer Relationship Management in ING Vysya..................23 1.6.12 Conclusion ............................................................................... 24 2. COMPANY PROFILE................................................................................ 26 2.1 Introduction...................................................................................... 26 2.2. History............................................................................................. 26 2.2.1 The origin of ING Group..............................................................28 2.2.2 Profile......................................................................................... 29 2.2.3 Mission....................................................................................... 29 2.2.4 The New Identity .......................................................................29 2.2.5 Corporate Social Responsibility .................................................30 2.2.6 Who is who in the Company? ..................................................32 2.2.7 Organization Structure...............................................................34 2.3. Operational Detail of ING Vysya Bank.............................................36 2.4. SWOT Analysis.................................................................................38 2.4.1 S-strength of ING Vysya Bank....................................................38 2.4.2 W-eakness of ING Vysya Bank....................................................40 2.4.3 O-opportunity of ING Vysya Bank...............................................40 2.4.4 T-threat of ING Vysya Bank........................................................40 3. METHODOLOGY..................................................................................... 41 3.1. Design of Study...............................................................................41 3.2. Data Collection Source & Method....................................................41 3.3. Sampling ........................................................................................ 42 3.4. Field Work....................................................................................... 42 3.4.1 On the Training .........................................................................42 3.4.2 Objectives of Training................................................................42 3.4.3 Target/Task Assigned by the Company......................................43 3.4.4 Targets Achieved.......................................................................43 3.4.5 Strategies Adopted.....................................................................43

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3.4.6 Learnings................................................................................... 44 3.5. Limitations of Study.........................................................................45 4. INTERPRETATION & FINDINGS...............................................................46 4.1. Interpretation .................................................................................46 4.2 Findings............................................................................................ 53 5. CONCLUSION & RECOMMENDATIONS....................................................54 5.1 Conclusion........................................................................................ 54 5.2 Recommendations............................................................................54 REFERENCES ............................................................................................. 55 ANNEXURE ................................................................................................ 56

1. INTRODUCTION
1.1. General of Indian Banking Industry
THE STRUCTURE OF THE FINANCIAL SYSTEM 1.1.1 Introduction The development involves not merely economic change but also social and institutional changes. In many developing and under-developed countries it calls for new set of value and new concept of society and government. As a continuous process, it call for structural adjustment, innovation as well as new institution to fulfill the aspiration of the people as well as national objective. For more than four decade there has been growing awareness of the development process associated with certain aspect of economic growth. Challenges of persistent poverty degradation of natural resources are leading to radically new way of assessing economic development. The direction of global thinking is towards sustainable development. The brundtland commission defines sustainable development. A process of change in which the exploitation of resources, the direction of investment, the orientation of technological development and institutional change are all harmony and enhance Both current and future potential to meet human need and aspiration. The concept of economic development is itself complex include not only simply growth in total monetary production but also additional concerns for equity, the quality of life and less tangible human aspiration for education, security and aesthetic values.

1.1.2 Financial Development The economic development depends upon a multiplicity of factors. Amongst these varied factors the rate of capital is one of the rates of growth of an economy it is one of the key input of development. The economic development of a country depends inter alia on its financial structure. In the long run the larger the proportion of the financial asset to real assets the greater will be the scope for economic growth. To sustain the growth continuous investment in the growth process is necessary since finance is an important in the growth processes its play a crucial role in the economy more efficient composition of real wealth is obtained by the promotion of financial form. An increasing rate of savings correlates with the increase in the proportion of saving held in form of the financial assets- relative to tangible asset. A major function of the financial institution whether short term or long term is to provide the maximum financial convenience to the public. This can be done in three ways: 1. 2. Promotion of the overall saving in the economy by an authentic widening of the financial structure. Purveying the existing saving in a more effective manner so that those in greater need from the social and economic point of view, gets priority in allotment. 3. Monetary financial institutions assist by creating credit and deposit money and facilitating trade, production, and distribution in economy. The financial sector plays a major role in the mobilization and allocation of financial in the economy and in facilitating fund flow among the various sectors. Financial institution and the financial market together act to transfer financial resources from the net saver to net borrower. The resultant gain to the real sector of the economy depends on the efficiency of the financial sector to perform the function of the financial intermediation.

1.1.3 Indian Banking Industry The instigation of Banks in India began in the eighteenth century with General Bank of India in 1786. Among the present day banks, State Bank of India holds the title of the oldest. The State Bank was established in 1806 in Calcutta as the Bank of Bengal. The 18th century was the British Era in India. Calcutta being a major business hub and most active trading port was the obvious choice for sowing the banking seeds in India. Allahabad Bank was the first completely Indian ownership Bank, which came into existence in 1865. Three decades later Lahore witnesses Punjab National Bank and then came Bank of India. Both of them were privately owned. As the number of banks increased, there arose a need for centrally regulating the banking system in India. This need gave birth to the Reserve Bank of India (RBI) in 1935. The First and Second World Wars acted as eclipses for the Banks in India. Inspite of a boost in the Indian Economy, as many as 94 banks collapsed. People lost their savings and also the interest in depositing more money in the banks. The situation stabilized post-independence. The Reserve Bank of India was nationalized in 1948 and then given the power "to regulate, control, and inspect the banks in India." a year later. This somehow gave a firm support to the banking in India. In 1969, 14 largest commercial and privately owned Banks were nationalized. Then again in 1980, six more banks were nationalized on the pretext of controlling the credit delivery in India. A decade later the new generation IT Banks came into being. These were UTI Bank (now Axis Bank), ICICI Bank and HDFC Bank. The Banks in India referred to as Scheduled Commercial Banks (SCB) are categorized into three on the basis of the government stake holding. These are:

Public Sector Banks Private Banks Foreign Banks

The Banks in India have flourished not just in numbers but also in their services, products and client base. They have succeeded in reaching out to Rural India through the Mobile ATM's, special rural branches and specialized finance options for the farmers, rural women and the Small-Scale Industries (SSI's). The mortgage rates and interest rates are slashed to attract the masses to the banking facilities. In the urban cities like the country capital New Delhi, trade capital Mumbai, IT capitals - Bangalore and Hyderabad, NCR's prime cities Gurgaon, Noida, Mumbai's sister city Pune and the metro cities of Kolkata and Chennai, all the major Banks have multiple branches. Personalized services like Special Bank Accounts to cater to individual needs, Mobile and Internet Banking, doorstep banking and multi city or international banking have attracted customers in exponential multiplication. The banks offer plenty mortgage options with most pocket-friendly interest rates on loans - home loans for the housing needs, personal loan, auto loans for private and commercial vehicles, education loans for educational pursuits, corporate loans for business and other projects and loans against property and securities. The money deposited is safe and secure and offers prospects of growth to the customers. Investment Opportunities by Banks come in the form of Deposits - fixed deposits and recurring deposits and mutual funds and bonds. Special services to NRI's and senior citizens pensions and special savings accounts are also a regular with most banks. The Banking Solutions itself employee a large number of people and provide numerous job opportunities to many people. Finance, Banking and Customer Care are some of most preferred profile in bank jobs. The policies differ from bank to bank but the core remains the same - to provide the most convenient and safe banking options to the people. There are around 88 SCB in India with an extensive network of over 53,000 branches and 17,000 ATM counters combing every inch of the country. There is an active Indian Banks Association that provides you with the complete and updated list of banks in India, their ratings or ranking for your personal referral. 9

Below are the listings of some of the major banks with information available on each bank about their branch network, the products and services offered, their official sites and their ATM's.

1.1.4 Reserve Bank of India (RBI) The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 2, 20,000. Reserve Bank of India was nationalized in the year 1949. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability. To operate the credit and currency system of the country to its advantage.

Functions of RBI The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. 1. Bank of Issue: U/S 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government.

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The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Post world war 2 nd, i.e. since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Rs. 200 crores, of which at least Rs. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system. 2. Banker to Government: The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters. 3. Bankers' Bank and Lender of the Last Resort: The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilities and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by 11

rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis, the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. 4. Controller of Credit: The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a license from the Reserve Bank of India to do banking business within India, the license can be cancelled by the Reserve Bank if certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. As supreme banking authority in the country, the Reserve Bank of India, therefore, has the following powers: It holds the cash reserves of all the scheduled banks. It controls the credit operations of banks through quantitative and qualitative controls. It controls the banking system through the system of licensing, inspection and calling for information. 12

It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

5. Custodian of Foreign Reserves: The Reserve Bank of India has the responsibility to maintain the official rate of exchange. Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the RBI has the responsibility of administering the exchange controls of the country. 6. Supervisory functions: In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realization of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation. 7. Promotional functions: With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing 13

agencies. Accordingly, the Reserve Bank has helped in the

set up the Deposit

Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilize savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Bank's role in this field has become extremely important. The Bank has developed the co-operative credit movement to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.
Table 1.1 Banks Currently Present in India

Public Sector Banks State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Allahbad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank Syndicate Bank

Private Sector Banks Axis Bank Bank of Rajasthan Catholic Syrian Bank Centurion Bank of Punjab City Union Bank Develop Credit Bank Dhanalaxmi Bank Federal Bank HDFC Bank ICICI Bank Indusind Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Lord Krishna Bank Nainital Bank Ratnakar Bank Sangli Bank SBI Com & INTL Bank South Indian Bank Tamilnad Mercantile Bank 14

UCO Bank Union Bank of India United Bank of India Vijaya Bank

Yes Bank

1.2 Purpose of Study

To know about the banking industry. To know the customers perceived value about the company. To know about the product/service specification. To know about the customer handling strategy of the company.

1.3. Scope of the Study

To inform the public about the company and its products, To create positive consumer response towards the products of the company. To know the marketing and other activities related to the sales and post purchase behavior of the consumers.

1.4. Objective of the Study

To have knowledge on how to persuade a prospect. To frame out the SWOT analysis of the bank. To have a clear understanding about the adoption pattern of the consumers. To help the prospects in erasing his doubts and fears and motivating him in opening an account by proving him sufficient knowledge. To find out the level of satisfaction of the customer towards the bank.

1.5. Area of Study

My area of study is on customer relationship management of ING Vysya bank. My study comprises of to find out the level of satisfaction of the customer from the

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service provided by the company. And also to understand the different strategies adopted by the company for their customers.

1.6. Customer Relationship Management

Customer Relationship Management puts the business focus back on the customer where it belongs. CRM combines business process and technology to create a better understanding of customers. Consequently, Customer Relationship Management is also known as Client Relationship Management. CRM helps to identify new customers and retain existing customers. To reach consumers who will truly benefit from your services, it's important that marketing campaigns define clear objectives and goals directed at an appropriate audience. The audience is defined through CRM. The Marketing Team of a company uses CRM to identify commonalities among clients. With this information the company's marketing strategy becomes more focused and effective. Sales Team as a consequence notices the number of new customers and profits from existing customers' increases as the company improves its ability to meet client needs. CRM allows you to customize relationships with individuals to provide a higher level of service. An effective CRM system will help you exceed your customers' expectations by offering them what they need - before they have to ask for it. CRM can create a personalized approach. It can also create a personal approach to customer service. CRM can ease the exchange of information throughout every department in a company, personalize interactions with consumers to increase customer satisfaction, assist in pinpointing potential clients and monitoring relationship with the current clients. In a nutshell, CRM will assist you in identifying new customers and retaining existing customers. It will streamline information exchange, and it will customize relationships with individuals to provide a higher level of service. There are three or more aspects of CRM, each of which can be implemented in isolation: 16

1. 2. 3.

Operational CRM: The automation or support of customer processes involving sales or service representatives. Collaborative CRM: Direct communication with customers not involving sales or service representatives (self service) Analytical CRM: The analysis of customer data for a broad range of purposes.

1.6.1 Operational CRM Operational CRM provides support to "front office" business processes / teams, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve and update information on customers from the database as necessary. Data gathered on customers can be used to determine how a customer is handled. Data may include profitability, contact history and products purchased. Staff members are able to access this data when servicing customers or making a sales pitch. 1.6.2 Collaborative CRM Collaborative CRM covers the direct interaction with customers. This can include a variety of channels, such as the Internet, whether through a website or e-mail, or automated telephone systems. It can generally be equated with self service. One of the latest trends in collaborative CRM is behavioral e-marketing which is focused on building an ongoing relationship with customers through online mediums (emails, RSS Feeds, XML, Vlogs, Blogs, etc.). The objectives of Collaborative CRM can be broad, including cost reduction and service improvements. 1.6.3 Analytical CRM Analytical CRM analyzes customer data for a variety of purposes, including: design and execution of targeted marketing campaigns to optimize marketing effectiveness

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design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development, etc) management decisions, e.g. financial forecasting and customer profitability analysis Prediction of the probability of customer defection (churn). Analytical CRM generally makes heavy use of Predictive analytics.

1.6.4 Benefits of CRM Quite simply, modern CRM makes customer facing staff more efficient. And being more efficient means they can concentrate on generating leads, developing marketing campaigns, closing more sales, delivering better customer service and making better decisions. Here are 15 ways CRM systems impact a variety of job functions on an everyday level: Sales, service and support staff deals more effectively with customers because they have instant access to a complete view of all customer interactions. Management improves as the CRM system makes it quick and easy to produce accurate key reports. Sales and marketing start winning more business through better lead tracking and management. Business processes become more proficient as data in the CRM system is inherently well organized. More customers return for repeat business because staff deals with their queries quickly and efficiently. Sales bring in more revenue by keeping a solid grasp on potential sales opportunities. Because the modern CRM software is powerful, fast, user-friendly and reliable, staffs throughout the company waste far less time.

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Purchasing improves and costs reduce because of better forecasting and scheduling. Efficiency and cash flow increase as better pipeline management accurately predicts manufacturing and production requirements. Sales teams are developed more effectively through comprehensive analysis of conversion ratios from lead to opportunity to win or lose. Marketing run far more successful and cost-effective marketing campaigns through better targeting. A greater understanding of customers develops through a single, comprehensive view of all customer touch points and information. Marketing campaigns bring in higher quality leads through better prospecting, market intelligence and profiling. A closer team environment develops as staff share information and gains a better understanding of other areas of the company. Management decision making becomes more informed thanks to an in-depth understanding of the way the business functions.

1.6.5 Why do Companies go for CRM Strategies? Its difficult to share customer information in a team environment and see a reliable and holistic view of all customer interactions. It takes a lot of effort to produce or get hold of key management reports. Sometimes you wish you could track leads more efficiently. You may have lost revenue because of mishandling or losing potential sales opportunities. Youd like to be able to take advantage of bulk discounts when ordering products for resale, but youre forecasting and pipeline management has let you down in the past. Youd like to be sure which of your customers are the most profitable. There isnt a single, overall view of all customer touch points across your organization. You or your staff have lost or cant easily find valuable customer information. Your company needs to respond faster to enquiries. 19

Although they were ok for a while, your company is outgrowing applications such as Microsoft Outlook and Excel. Its difficult to profile and target customers for marketing campaigns. Theres repetitious, multiple entry of information across different software applications. You have very little real-time accurate information and data. Youre finding it hard to develop your sales team through lack of accurate, comprehensive and up to date KPI and analysis. You find it time consuming to analyze, and may not be convinced of the accuracy of sales team data, such as conversion ratios from lead to opportunity to win or lose. Youre unable to confidently predict cash flow or manufacturing and production requirements because your forecasting and pipeline management isnt always right.

1.6.6 Customer Retention There are a number of benefits for selection of the right customer for an organization: It reduces cost It increases profitability It helps create goodwill for your organization It gets you good word-of mouth publicity It improves the possibility of greater customer satisfaction and loyalty

Thus, it's needless to say - select the right customer, have the right understanding of their needs and evolve a right way to satisfy them. 1.6.7 The Service Marketing Triangle The Service Marketing Triangle shows the relationship and linkage between three elements of service marketing - Company, Customers and Employees. Three types of marketing happen between these 3 elements. Company to customers: External Marketing Company to employees: Internal Marketing 20

Employees to customers: Interactive Marketing

1. External Marketing: It is a promise a company makes to a customer about the service and its delivery. External marketing uses all the elements of communicating and reaching the customers through advertising, sales promotion, selling, merchandising and all. 2. Internal Marketing: It is all about applying marketing concepts to your own employees. You should be able to first convince or market your concept to your own employees and enable them to deliver the service of the customers. For this it is important to identify and fulfill your internal customers i.e. employee needs. Internal marketing is thus a key to meeting the promises made through interactive marketing. 3. Interactive Marketing: Service flows from people to people. The delivery or the actual service experience happens between service employees and customers. Interactive marketing thus means keeping the promises made by the external marketing and completing the servicemarketing triangle. It is through the moments of truth that happen during the interaction the service delivery is made. 1.6.8 Technology Considerations The technology requirements of a CRM strategy can be very complex and far reaching. The basic building blocks include:

A database to store customer information. This can be a CRM specific database or an enterprise data warehouse. perational CRM requires customer agent support software. Collaborative CRM requires customer interaction systems, e.g. an interactive website, automated phone systems etc. Analytical CRM requires statistical analysis software, as well as software that manage any specific marketing campaigns. Support CRM systems require interactive chat software to provide live help and support to web site visitors. 21

1.6.9 Privacy and Data Security The data gathered as part of CRM must respect customer privacy and data security. Customers want the reassurance that their data will not be shared with third parties without their consent or accessed illegally by anyone. Customers also want to benefit when their information is used by companies. For instance, an increase in unsolicited telemarketing calls is generally resented by customers while a small number of relevant offers are generally appreciated. 1.6.10 Customer Relationship Management Software Customer relationship management software is comprised of both business management and automation of the front-office divisions of an organization. CRM software is essentially meant to address the needs of Marketing, Sales and Distribution, and Customer Service and Support divisions within an organization and to allow the three to share data on prospects, customers, partners, competitors and employees. The purpose of CRM software is to manage the customer through the entire lifecycle, i.e. from prospect to qualified opportunity to order. CRM software automates many of the needs of Marketing, Sales and Support users, such as Telephony, or the ability to conduct phone calls and manage call data, and tools to capture, share and manage automated alerts on lead data as it passes through the sales pipeline. CRM software provides a standard framework for pushing leads through a sales pipeline and managing it amongst many stakeholders in real time, in order to provide better customer relations and grow revenues by creating more sales, and losing fewer customers Sales force management systems are information systems used in marketing and management that automate some sales and sales force management functions. They are frequently combined with a marketing information system, in which case they are often called customer relationship management systems.

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Sales Force Automation Systems (SFA), typically a part of a companys customer relationship management system, is a system that automatically records all the stages in a sales process. SFA includes a contact management system which tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required. This ensures that sales efforts wont be duplicated eliminating the risk of irritating customers. SFA also includes a sales lead tracking system, which lists potential customers through paid phone lists, or customers of related products. Other elements of a SFA system can include, sales forecasting, order management and product knowledge. More developed SFA systems have features where customers can actually model the product to meet their required needs through online product building systems. This is becoming more and more popular in the automobile industry, where patrons can customize various features such as color and interior features such as leather vs. upholstered seats. An integral part of any SFA system is company wide integration among different departments. If SFA systems arent adopted and properly integrated to all departments, there might be a lack of communication which could result in different departments contacting the same customer for the same purpose. In order to mitigate this risk, SFA must be fully integrated in all departments that deal with customer service management. 1.6.11 Customer Relationship Management in ING Vysya Following are steps taken by ING Vysya to make its customer relationship management an effective one: Its computerized system has smoothened the banking operations. Now customers can save their time without waiting in a queue for long hours. Unlike earlier times, bank does not take the effort to update passbooks. Here the customers go for a print-out from either the bank or ATM center. This is a very quick system and more acceptable to the customers. Internet is a major medium of communication. The customer can carry out his/her transactions through internet which is not that cumbersome as incase of standing in queues. Moreover even if the customer misses his/her courier he/she can receive it through their email service. 23

Earlier shopping was a headache for the customers. It was unsafe for them to carry huge sum of money to the market. But thanks to its debit cards and credit cards through which shopping became easier. Instead of doing payment through cash, now customers prefer payment through the debit and credit cards. Not only through services, is CRM also maintained through relations that is the relation between the customers and the employees. ING Vysya takes care of this also. It considers customers as their prime assets and tries that a customer should never be disappointed by the staff at least. Maintaining relations is not only through words. It has to be also shown through ones deeds. And banks are trying their best to show their deeds by providing the best services to the customers. A customer binds to a bank only when it finds the bank profitable in all sense. And this should be a joint effort. It means that along with the value added services, the environment and working culture of the bank should also prove friendly towards the customer. CRM is a term used for customers satisfaction. The success of the bank lies in exploiting new technologies; attempt to better understand customers expectations and problems and then delivering value in a superior fashion in tune with their expectations. An analysis of the problems is not complete without a look at the sacrifices made by the customer in the process of availing the service.

1.6.12 Conclusion In today's increasingly competitive marketplace, more and more organizations are turning to CRM as a means of driving corporate performance. Many of these organizations, however, wrongly assume that CRM is about technology. In reality, technology is merely an enabler of CRM. A complete CRM strategy must address each of the following areas: Effective customer segmentation. Companies must have a total customer view and divide their customer populations into discrete groups that share similar characteristics.

24

Integrated multichannel strategy. Organizations need to synchronize their channels and balance the cost of each channel against other factors, including value to the customer, the customer's preferences, and each channel's profit potential. Well-defined business processes. Organizations must ensure that business processes are clearly defined and are based on customers' perspectives and needs. The right skill sets and mindset. Organizations must carefully manage change and provide the right training and incentives to bring about the desired behaviors. The right technology. Organizations require technology that provides a single view of customer information across all customer touch points, addresses specific industry requirements, works seamlessly with other technologies, supports multiple devices, scales easily, and provides support for global operations.

The key to creating business value with CRM is remembering that business strategy and technology strategy are inextricably linked. Companies that fall into the trap of thinking they can implement CRM capabilities based only on technology will fail. Those that take a more holistic approach will be able to achieve the greatest success in driving greater customer satisfaction, and ultimately, share holders value.

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2. COMPANY PROFILE
2.1 Introduction
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of visionaries came together to found a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present-day banking activity and has carved a distinct identity of being India's Premier Private Sector Bank.

2.2. History
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank Stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.
Table 2.1 Events in Banks History

1930 1948 1985 1987 1988 1990 1992 1993 1996

Set up in Bangalore Scheduled Bank Largest Private Sector Bank The Vysya Bank Leasing Ltd. Commenced Pioneered the concept of Co branding of Credit Cards Promoted Vysya Bank Housing Finance Ltd. Deposits cross Rs.1000 crores Number of Branches crossed 300 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion 26

Cash Management Services, & commissioning of VSAT. Golden Peacock 1998 Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal June 1998) State -of - the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ING Vysya Life Insurance Company ING-Vysya commenced life insurance business. The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, 2002 personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card 2002 2002 2003 2004 2005 2006 and the mi-b@nk net banking service. ING takes over the Management of the Bank from October 7th , 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans Introduced Protected Home Loans - a housing loan product Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow Banking

2000 2001

27

In terms of pure numbers, the performance over the decades can better be appreciated from the following table: Rs. in millions
Table 2.2 Performance over the decades

Year 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008

Net worth 0.001 1.40 1.60 3.00 11.50 162.10 5900.00 6527.00 6863.24 7067.90 7473.20 7094.00 10196.70 11101.90 14260.00

Deposits 0.400 5.30 20.10 91.50 1414.30 8509.40 74240.00 81411.10 80680.00 91870.00 104780.00 125693.10 133352.50 154185.70 204980.00

Advances 0.400 3.80 13.50 62.80 813.70 4584.80 39380.00 43163.10 44180.00 56120.00 69367.30 90805.90 102315.20 119761.70 146500.00

Profits 0.001 0.09 0.13 0.74 1.13 50.35 443.10 371.90 687.50 863.50 590.01 (381.80) 90.6 889.0 1569.00

Outlets 4 16 19 39 228 319 481 484 483 456 523 536 562 626 677*

*Outlets comprises of 407 branches, 39 ECs, 28 Satellite Offices and 203 ATMs as of March 31st 2008. Additionally bank also has Internet Banking, mi-b@nk and Customer Service Line for Phone Banking Service. 2.2.1 The origin of ING Group On the other hand, ING group originated in 1990 from the merger between National Nederland NV the largest Dutch Insurance Company and NMB Post Bank Groep NV. Combining roots and ambitions, the newly formed company called International Nederland Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V..

28

2.2.2 Profile ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of nonwage benefits, such as pension plans for companies and their employees. 2.2.3 Mission ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of financial services through the distribution channels of the clients preference in markets where ING can create value.

Figure 2.1 Mission Statement of ING Vysya

2.2.4 The New Identity The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of global financial services giant, with total assets of 1313 billion Euros, net profit of 9.24 billion Euros for the year ended December 2007.Further, the presence of the group in over 50 countries, employing over 120000, serving over 75 million 29

customers across the globe, only multiplies the credibility, not only across the country but also across the globe. The pride of this global identity, the back up of a financial power house and the status of being the first Indian International bank, would also greatly enhance productivity, profitability resulting in improved performance for the bank to translate into higher returns, to all the stake holders. 2.2.5 Corporate Social Responsibility 1. ING Vysya Foundation ING Vysya Foundation was set up almost three years ago actively supported by the three business units of ING Vysya (ING Vysya Bank, ING Vysya Life Insurance and ING Vysya Mutual Fund) to promote its Corporate Social Responsibility. The mandate for the Foundation is to promote primary education for under privileged children. This fits in well with ING Groups global vision of empowering children through education and INGs partnership with UNICEF. Accordingly, ING Vysya Foundations commitment to empower children through primary education has been the focus in the last three years. In a country with an estimated 50 million children deprived of basic primary education and health care, enormous support, dedication and firm belief is necessary to make a difference and to change the scenario. The foundation's efforts have very successful in reaching out to underprivileged children and providing them with a platform to learn, grow and achieve through partnerships with 4 non profit organizations located in India. 2. ING Chances for Children - Global initiative Background: ING Chances for Children is an ING worldwide corporate program that aims to give 50,000 children in India, Brazil and Ethiopia access to education before the end of 2007 and to improve the quality of education in the local communities in which ING businesses are active.

30

Targets and Objectives: The key objective of the ING Chances for Children program is to improve the wellbeing of children aged 4-12 worldwide by giving them access to free, compulsory basic schooling that aims to develop each child's ability to the fullest. ING Chances for Children will be doing this by giving children access to education, by providing the necessary skills and through investment in educational organizations. The main targets of the ING Chances for Children program are: To provide primary education for 50,000 children over a period of three years. By starting local community development initiatives with ING employees and by working together with organizations such as UNICEF, the ING Chances for Children program aims to contribute to the goal of achieving primary education for all children, as stated in both the United Nations Millennium Development Goals and the Convention on the Rights of the Child. UNICEF Partnership The ING Chances for Children program has joined forces with UNICEF, the United Nations Childrens Fund, to achieve the target of giving 50,000 children access to education. The program will be supporting educational UNICEF projects in India, Brazil and Ethiopia. The partnership with UNICEF will also enable the local ING business units to team up with local UNICEF offices and take advantage of each others unique positions at a community level. A range of other projects and partnerships with other organizations will be started, both internationally and locally. ING Chances for Children - India initiative In India, along with the ING Vysya Foundation, the ING and UNICEF partnership is focused to provide quality education for working children in Tamil Nadu. 15,000 children will benefit from quality education in 200 learning centers for former child workers under the National Child Labor Elimination Project (NCLP). The project focuses on strategies to provide quality education for children who are either already working in low-paid, low-skilled industries or who are out-of-school and therefore extremely vulnerable to becoming child laborers. In Tamil Nadu the 31

project emphasizes on child-friendly schools, quality education, community involvement and responsibility in ensuring children can learn and build a solid foundation for a hopeful future and make a strong basis for ensuring that children remain in school and complete a course in primary education. Activities will especially focus on preventing child labor, protecting childrens rights and promoting quality education. 600 teachers will be reinvigorated through capacity building and professional training pedagogy and motivation. Through workshops with some 180 staff from government departments, UNICEF will cultivate and reinforce supportive alliances in ensure quality education through to working children. 2.2.6 Who is who in the Company?
Table 2.3 Board of Directors (updated as of 23.07.2008)

Name (Sri) K R Ramamoorthy, Non-Executive Part-time Chairman Vaughn Richtor, MD & CEO Arun Thiagarajan, Director Aditya Krishna, Director Philippe Damas, Director Wilfred Nagel Director Richard Cox, Director Ryan Andrew Padgett, Director Ramakrishnan Subramanian, Director Santosh Ramesh Desai, Director M. Damodaran, Director

32

Table 2.4 Executive Management Council (in alphabetical order) (updated as of 01.03.08)

Names Ashok Rao B

Designation

SBU/Function Legal and Compliance, Vigilance and Special Projects

Place

Office Address 22, M G Road, Bangalore 560 001.

Chief of Staff

Bangalore

Bishwajit Mazumder Don Koch Jan VanWellen

Chief Corporate Audit Group Chief Operating Officer Chief Risk Officer, Country Head -

Internal Audit Department Operations Credit Operational & Market Risk Treasury & Wholesale Banking

Bangalore

22, M G Road, Bangalore 560 001. 22, M G Road,Bangalore 560 001. 22, M G Road,Bangalore 560 001. 702-B, Poonam Chambers, "A" Wing, 7th Floor, Dr A B Road,Worli, Mumbai - 400 018 22, M G Road,Bangalore 560 001. 22, M G Road,Bangalore 560 001. ING Vysya Bank Ltd Private Banking 17, Lincoln Lodge Alta Mount Road,Mumbai 400 036. 22, M G Road, Bangalore 560 001 22, M G Road, Bangalore 560 001

Bangalore Bangalore

Janak Desai

Wholesale Banking

Mumbai

Jayant Mehrotra Prasad J M

Chief Finance Officer Chief - Human Resources Country Head Private Banking Country Head Retail Banking MD & CEO

Finance & Accounts Bangalore Human Resources Bangalore

Samir Bimal Uday Sareen Vaughn Richtor

Private Banking

Mumbai

Retail Banking

Bangalore Bangalore

33

1. About Customer Generally, 'customer' refers to an individual who has obtained one of ING vysya bank products for personal, family or household purposes and who has an ongoing relationship with us. For example, an individual who owns a life insurance policy, mutual fund or bank product is a customer. ING HAVE 5 types of customer. 1. Individual 2. HUF: Hindu undivided family 3. Non-individual 4. Power of attorney 5. NRI 2. Environment Environment of ING vysya bank is divided in to two parts 1. Micro (inside the organization) 2. Macro (out side the organization)

2.2.7 Organization Structure 1. MICRO Environment ING vysya Bank consists of a group of individual working in coordination at different level of authority and in different areas of specialization for the purpose of achieving the goal and its objectives. The organization structure of ING vysya provides a well defined set up for the employee to work; both formal and informal groups coexist in ING vysya bank. The formal group: it has defined set up roles for the achievement of organizational goals and objectives .Hear the reporting channels and work relations are pre defined and accountability and responsibility are fixed for all the roles. This is the basic frame work according to which the work flows. So much care is to be taken during the design of formal organization to ensure that no bottlenecks are created in the work flow.

34

The informal organization: this group is formed by the employees of ING vysya without any formal goals or objectives. Here the collection of employees is ad-hoc and random and follow no structural rule or produce. The employees get together in an informal environment and share common interest, ideas and informations. These informal groups however indirectly contribute towards the achievement of goals of ING vysya bank. The organization structure of ING vysyas bank is tall which is designed at the central office. This bank deals with the span of supervisors and the number of hierarchical level in it. The decision making power lies with the branch in charge and this pubs him in a position of power over his subordinates. Every employee is answerable to the branch in charge in case any problem arises in the bank. The total bank is divided into some department like Insurance, Customer care, accounts, cashier etc. But the total control of the bank lies in the hands of the BRANCH MANAGER. Each dept has its own team leader under whom some team member are there. These team leaders have a active participation on the working of the organization. The team leaders have a close supervision on the employees and provide continuous interaction when and where required. 2. MACRO Environment Macro organization structure of ING vysya bank consists of its customers, investors, policy holders, government who are spread throughout the world. For example:-this year RBI announced that from next year onwards there will be free access of ATM to every bank. So this policy will have a great effect on ING vysya bank. 35

3. Technology In this changing scenario competition is more in terms of the product and service which is provide by an organization. So every organization wants to differentiate their product and service by providing some advance and new technology which help the organization to attract more customers and build a brand value. this new and advance technology help customer in terms of time that means as we all know time is precious for everybody so each individual want to consume time, as ING is a banking sector so here customer want with in minimum time the cheque clearance and anything related to bank will be done. so for that purpose ING uses following softwares. The technology which ING uses for E- mail is Microsoft outlook. The software which they are using for banking is Sanchez it is a Netherlands group. 4. Terminology ING vysya bank have used different kind of term in their bank to differentiate their product as well as service from other banks. Some of the examples are: ORANGE SAVING ACCOUNT-as w all know it is a Nederland company so there the national color is orange so they use orange as term in their product name. PGK-pre generated kit PGN-pre generates account number KYC-know your customer RTGS-real time gross settlement CIF-customer information form

2.3. Operational Detail of ING Vysya Bank

ACCOUNTS AND DEPOSITS General Savings Account Saral Savings Account Orange Savings Account Solo Saving Accounts NRE/NRO Savings Accounts 36

RFC Savings Account Advantage Salary Account Orange Salary Account Freedom Accounts Current Accounts NRE/NRO Current Accounts Demat Accounts Fixed Deposits NRE/NRO Fixed Deposits RFC Fixed Deposits Cumulative Fixed Deposits Tax Advantage Deposits FCNR - B Fixed Deposit RFC Akshaya Deposit

LOANS Personal Loan Home Loan Home Equity Loan NRI Home Loan Loan Against Deposits, Mutual Funds And Other Securities Working Capital Finance Trade Finance Loans For Small & Medium Enterprises Agricultural Loans

CARDS Credit Card Debit Card (ATM Card)

PAYMENT PRODUCTS 37

Demand Drafts Pay Orders Payable at Par Cheques Telegraphic Transfers RTGS Utility Bill Payments Bill Pay Services for telephone, mobile phone, electricity and insurance bills.

OTHER SERVICES Cheque Collection Safe Deposit Lockers Nomination Facilities Wealth Management Portfolio Management For Large Corporates Asset Liability Management Advisory Services Foreign Exchange Remittances

2.4. SWOT Analysis

2.4.1 S-strength of ING Vysya Bank One of its very good features is that it provides ATMs cards, which is accessible in almost 16 banks and that too without any charges. It issues PAP cheque books to the customers, which is totally free of cost. They provide PGK to their customer on the spot which contain 25 leaf cheque books, ATM card with code number. They provide international banking, SMS banking, and debit card facility to their customers. Mi-b@nk and customer service line for phone banking services. Bank provides 9.5% interest rate P.A. for 1 year deposit. 38

39

2.4.2 W-eakness of ING Vysya Bank Services charges are more as compared to public sector banks. Initial amount to open an account is high i.e. Rs.5000/-. Fewer branches are available in India. Lack of awareness about the company because of less advertisement. The bank is neither provides any loan facility nor provides any insurance on savings account. 2.4.3 O-opportunity of ING Vysya Bank The main opportunity for the bank is to establish more number of their branch in rural as well remote area. If loan facility is provide by the bank, it will increase the number of customer. Insurance benefits on savings account will help to capture more number of customers. By minimize QAB help to increase the number of customer.

2.4.4 T-threat of ING Vysya Bank Numbers of branches are very few in comparison to other banks. Its competitors provide loan facility on savings account. Other bank provides insurance facility on their savings account.

40

3. METHODOLOGY
3.1. Design of Study
Preparation of questionnaires. Reach to the market for survey. Collecting data from the customer through questionnaires (face to face). Collecting data from the customers through questionnaires about the companys products which they having (simple random sampling). Analyze the collected data.

3.2. Data Collection Source & Method

This study is totally based on through primary sources, so looking at the nature of study most of the data are collected on primary sources.Certain methods were adopted in order to reach a conclusion about the said topic. Though the best efforts have been taken to reach the right conclusion but the fact cannot be altogether denied that there do certain lacunae still exist. The data collected for the project work are based upon two sources, i.e., Primary data sources: It includes data collected through filling of questionnaires and interacting with the customer. Questionnaires: This is prime source of data collection and through every questionnaire it has been tried to understand and know the respondents current status and his views, so that as a whole we can see a clear picture. Secondary data sources: It includes data in form of pamphlets, newspaper and internet etc published by the organization.

41

3.3. Sampling
I have taken the sample size of 50. I used simple random sampling for the survey. This is most convenience method of data collection. Random sampling is more suitable in more homogeneous and comparatively larger groups.

3.4. Field Work

3.4.1 On the Training In a training student undertake assignments/jobs along with day-to-day functions of the Company at assistance and execution level. Students in-turn gains a deeper understanding of work, culture, deadlines, pressure etc. of an organization. He/she gets direct exposure to execution and support functions of the department. It gives a flavor of team working, organizational culture, team dynamics, organizational pressures, complexities in achieving desired results, etc. It involves teamwork, goal orientation and managing interpersonal relationships. It helps students develop the qualities required in an executive/manager. A good summer internship undertaken with all the seriousness provides an excellent learning opportunity to the student intern. 3.4.2 Objectives of Training To learn corporate culture. To find out the customer satisfaction. Adaptability in the changing market scenario. To learn time and stress management. To learn the buying pattern of the consumers. To bring win-win situation both for the company and the customers by giving them right customer and right service.

42

3.4.3 Target/Task Assigned by the Company To open 30 orange saving accounts of ING VYSYA Bank in 45 days. Apart from that other task given by company is dealing with different day today activity of ING vysya Bank, like preparing database, handling customers query, at the end submit a report on daily performance and work done. 3.4.4 Targets Achieved In the end of 6th week the target fulfilled by me is opening of 24 orange saving accounts. Till date I always lead in my company as a highest target achiever in terms of no. of account. 3.4.5 Strategies Adopted Selling Through Reference: It may not be easy to find a potential customer but it is always recommended to take reference of potential customers from the people whomever we approach. Even though this list has less number of customers, it gives us a good lead. So as much as possible we have to satisfy our existing customer and I also planned to take 2-3 lead as reference from my each customer. So this is easy for me get more customer with a small time. Basically most of my business i.e. around 62% is generated by this way only. Personal Selling: This is a form of selling where the product is directly sold to the customer by explaining or demonstrating him/her the features of the product. This form of selling involves different types of customers with different ideologies. In this form of selling one should not only know about his/her own company and its products thoroughly but also about its competitors product. Many times customer knowingly puts us the queries, which will make us, confuse. So its better to do our homework before taking up this task. Public Relations: There is always a chance of converting a satisfied customer to delighted customer through good public relations. It is sometimes easy to sell a product through this method. By having mutual understanding with the customers more business can be made through them. These people not only 43

give good references but also contact again for their further plans like going for fixed deposits, insurance policies, mutual funds, etc. I also have a nice experience through this kind of selling. 3.4.6 Learnings Through knowledge about different product and process of ING vysya bank. The importance of 4Ps in the practical field. About own responsibility regarding the job. Patience is the only weapon to generate business.

1. Strategy Adopted in Field Work The table below shows the sequence in which my work was carried on and the number of sales that I made through my strategies.
Table 3.1 Strategy Adopted in Field Work

Sl. No. 1 2 3 4

Strategy Selling to friends Selling through reference Personal Selling Public relations

No. of sales 2 12 6 4

2. Analysis: Knowledge before Training started: Summer training is a platform given to me to prove my talents and capabilities. It helps me to bridge the gap between theory and practical. In this period I work under the company and sell its products. Knowledge gained during this period: It gave me an exposure to the corporate culture. I came to know how things go in a corporate, the levels of competition, changing situations, busy life. I have given an opportunity to prove my worth.

44

3. Limitations Though the present study aims to achieve the above-mentioned objectives and target in full earnest and accuracy, it may be hampered due to certain limitations. Some of the limitations of this study may be summarized as follows:4. Product Limitations: The limitations in the product also created a problem for us. They are: QAB maintenance: - Rs.660 will be charged on the customer if he/she fails to maintain the average quarterly balance of Rs.5000/-. Location disadvantage: -Since the bank is far from the market, business people disagree upon it. KYC rule: - The documentation part of the Bank is very strict according to the guidelines of RBI. Though some people are interested but due to absence of documentation, they cannot open an account. Absence of loan and insurance facilities on saving account : - Customers always compare the products with its competitors. In Berhampur market ICICI bank is the main competitor for ING VYSYA and since ICICI bank provides loan facility, it becomes a drawback for ING VYSYA and also they dont provide any insurance facility but previously they do that.

3.5. Limitations of Study

Due to the constraints of time, it was not possible to study various aspects of the organization in detail. As this is a general study the hypothesis could not be drawn. Customers as well as employees were apprehensive of secrecy of data and therefore hesitated in disclosing all the data regarding some of the points concerning to this study.

45

4. INTERPRETATION & FINDINGS

4.1. Interpretation
The bar diagrams are drawn according to the views and suggestion of different type of customers of berhampur. 1. Reason to choose ING Vysya bank:-

30 25 20 15 10 5 0
Better & Easy to reach Trusty worthy Quick service

28

13

9 0
Others

Figure 4.1 Reason to Choosing ING Vyasya Bank

Most of the customers are choosing ing vysya bank for its better and quick service because its provides pre-generated kit (PGK) on opening of saving account immediately.

46

2. Most number of customers belongs to:-

30 25 20 15 10 5 0
ee s m pl oy

24 6
na l

5
ye d de n

11 0
ed t m pl oy pl o St u O th er s

ss io

Pr of e

G ov t

Figure 4.2. Most number of customers belongs to

Most of the customers are belongs to business profession.

3. Do you want to access online services?

28 27 26 25 24 23 22 21
YES NO

Se l

23

Figure 4.3 Do you want to access online services?

Most number of customers do not prefer for online services.

47

U ne

.e

f-e

27

4. Customers describe the bank most suitably as a whole:-

25 20 15 10 5 0 Customer service Timeliness Professionalism 23 12 15

Figure 4.4 Customers describe the bank most suitably as a whole

The above figure 4.5 shown that the customers of ING Vysya bank are largely influenced by its customer services.

5. Quality of customer support given by the bank:18 16 14 12 10 8 6 4 2 0

17

16 11

1
Excellent Very good Good Manageable

4
Poor

Figure 4.5. Quality of customer support given by the bank

From the above figure-4.2, it shows that 33% customer prefer ING Vysya for better quality of service because the bank provides service line for phone banking services.

6. Banks environment: 48

20 18 16 14 12 10 8 6 4 2 0

16 8

19

6 1
Very good Good Manageable Poor

Excellent

Figure 4.6. Banks environment

The above figure-4.3 shown that the customers giving mixed response when asked them to rate the banks environment.

7. Product/services preferred by most customers:

50 45 40 35 30 25 20 15 10 5 0

47

Deposits

0 Loans

0 Mutual funds

3 Insurance Others

Figure 4.7 Product/services preferred by most customers

From the above figure-4.4 it reflects that banks product other than deposits are at low popular its ATM is freely accessible in 16 other banks. 8. Ranking given by the customers according to the importance of below factors in ING Vysya bank.
Table 4.1 Ranking given by the customers according to the importance of below factors in ING Vysya bank.

49

RANK

ASSISTANCE

OFFICE ENVIRONMENT

ADMIN. PROCEDURE

POST PURCHASE SERVICE

BEHAVIOUR OF EMPLOYEES

TIMELINESS

1 2 3 4 5 6

12 16 15 5 1 1

8 5 9 10 8 10

4 6 6 10 10 14

6 5 6 7 14 12

13 12 4 8 6 7

7 6 9 12 11 15

Figure 4.8 Assistance

The highest number of customers given rank-2 for the importance of assistance in the bank.

50

Figure 4.9 Office Environment

The highest number of customers given rank- 4 & 6 for the importance of office environment in the bank. It reflects that customers are giving a mixed response for the importance of the environment of the bank.

Figure 4.10 Administratio Procedure

The highest number of customers given rank-6 for the importance of administration procedure in the bank. Customers are not giving less important to the administration procedure. 51

Figure 4.11 Post Purchase Behaviour

The highest number of customers given rank-5 for the importance of post purchase service in the bank.

Figure 4.12 Behaviour of Employees

The highest number of customers given rank-1 for the importance of behavior of the employees with the customers in the bank. Customers are strongly says that behavior of the employees is the most important factor to managing the CRM. 52

Figure 4.13 Timeliness

The highest number of customers given rank-4 for the importance of timeliness of work in the bank. Here the customers are giving a mixed response for importance of timeliness of work in the bank.

4.2 Findings
The market report analysis shows a picture of the stock market operation briefly. That is representing in below: The samples are taken from various sector of the society like: - professionals, govt. employees, businessman, and general public. And have taken 50 samples. Most number of customers is belonging to business profession. About 56% of customers of my sample are choosing ING Vysya bank because of better and quick services. The quality of customer support of the bank is satisfactory. Most number of customers is suggesting to providing loan facility. About 46% of customers of my sample are describing the bank having good customer service. Most number of customers is appreciating the environment of the bank. Most number of customers are says they are not interested in online services. 53

5. CONCLUSION & RECOMMENDATIONS

5.1 Conclusion
The customers needs are straight and specific. The customer should not be forced to change despite his reluctance to accept change. It is essential that bank understand and accept the fact that the marketplace is made up of individual customers. The mantra should be to create and deliver value in such a way that it always stays one step ahead of its customers. The first step towards this is entry-level satisfaction, which helps in fine-tuning the customer mind. This must be followed by the identification of the specific problems, which arise from time to time, and resolving the same. Deep and insightful knowledge of the customer will be the key asset for staying competitive in the millennium.

5.2 Recommendations
ING Vysya bank has to increase its branch offices. More number of advertisements on local channels can help the bank to increase the number of prospects. More awareness campaigns are to be implemented regarding its financial products and services among the customers. As the number of competitors is increasing it has to introduce new marketing strategy to compete with the competitors. With the introduction of loan facility on savings account both the customer and the company can be benefited. Taking feed back from the customers about the services provided by them and asking suggestions to customer would feel the customer very important. Up to date information about the customers can help to increase the relationship with them.

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REFERENCES
[1] [2] [3] [4] [5] Vasant Desai, The Indian Financial System, 3rd ed., Himalaya Publishing House, 1999. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha Marketing Management, 12th ed., Pearson Prentice Hall press, 2007. http://www.ingvysyabank.com/ http://en.wikipedia.org/wiki/Customer_relationship_management. The Economic Times.

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ANNEXURE Customer survey for CRM of ING VYSYA BANK

Name Address : ___________________________ Age: _________

: ______________________________________________

1. What best describes your occupation? (a) Govt. Employee employed (d) Student ...... 2. Please indicate your current yearly income? (a) Below Rs. 1,00,000 (b) Rs 1,00.000-2,00,000 2,00,001-3,00,000 (d) Rs. 3,00,001 4,00,000 Above Rs. 5,00,000 3. Please specify your highest educational qualification. (a) School (c) Graduation (d) Post Graduate 4. Which of these product / services have you used from this bank? (a) Deposits (d) Insurance (a) Better and quick service Trust worthy (e) Others specify .. 6. Do you want to access online services? (a) Yes (b) No 7. Are you interested in mobile banking? (b) Loans (c) Mutual funds (e) Others (specify) (b) Easy to reach (d) (e) Others specify (b) Intermediate / Diploma (e) Rs. 4,00,001-5,00,000 (f) (c) Rs. (e) Unemployed (f) Others (specify) (b) Professional (c) Self-

5. Why have you chosen this bank?

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(a) Yes suitably?

(b) No

8. Which of these following terms describes the bank most (a) Customer service from the bank? ( if you choose option d or e then give the reason in Q.13) (a) Excellent (d) Manageable (b) Very good (e) Poor (c) Good (b) Timeliness (c) Professionalism

9. How do you describe the quality of customer support you got

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10. Rate the banks environment on 1 to 10 scales. 11. Rank the followings, according to the importance you Rank Assistance Office Environment Administrative Procedures Post Purchase Services Behavior of Employees Timeliness 12. Are you using services more than one bank? (a) Yes (b) No if yes name the bank and rate it on 1 to 10 scale : ................................. 13. What suggestion do you want to give to the bank to improve service? Please specify:consider in the bank.

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