DESING OF THE STUDY

Objectives
To study customer relationship management of ICICI bank To find general working of bank and how staff members response to customer.

Limitations
The project is only limited to the study of CRM of ICICI bank. CRM of other banks are not disclosed. CRM strategies of banks are not compared with each other. Time, length, and depth of the study are limited as per the requirements of Mumbai University.

Scope
The project begins with a brief mention of what CRM is and its need and importance in

banks. It further goes on to show the CRM strategy of ICICI bank

EXECUTIVE SUMMARY
Customer relationship management is a broad approach for creating, maintaining and expanding customer relationships. CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organizations current and potential customers. At the heart of a perfect strategy is the creation of mutual value for all parties involved in the business process. It is about creating a sustainable competitive advantage by being the best at understanding, communicating, and delivering and developing existing customer relationships in addition to creating and keeping new customers. So the concept of product life cycle is giving way to the concept of customer life cycle focusing on the development of products and services that anticipate the future need of the existing customers and creating additional services that extend existing customer relationships beyond transaction The intense competition which banks have come to face, both as a consequence of growth of non-banking financial institutions as well as securitization has created the fear of high risk and has increased the attention towards Customer Relationship Management. Customer relationship management (CRM) is a multifaceted process, mediated by a set of information technologies that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns. In this way, CRM is intended to help companies understand, as well as anticipate, the needs of current and potential customers. The project is a detail study of Process Involved in Planning of Customer Relationship Management and Need for Customer Relationship Management

Introduction
Today, many businesses such as banks, insurance companies, and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquire new customers retain existing ones and maximize their lifetime value. At this point, close relationship with customers will require a strong coordination between IT and marketing departments to provide a long-term retention of selected customers. This paper deals with the role of Customer Relationship Management in banking sector and the need for Customer Relationship Management to increase customer value by using some analytical methods in CRM applications. CRM is a sound business strategy to identify the banks most profitable customers and prospects, and devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision making, and customized service-all delivered through the various sales channels that the bank uses. Under this case study, a campaign management in a bank is conducted using data mining tasks such as dependency analysis, cluster profile analysis, concept description, deviation detection, and data visualization. Crucial business decisions with this campaign are made by extracting valid, previously unknown and ultimately comprehensible and actionable knowledge from large databases. The model developed here answers what the different customer segments are, who more likely to respond to a given offer is, which customers are the bank likely to lose, who most likely to default on credit cards is, what the risk associated with this loan applicant is. Finally, a cluster profile analysis is used for revealing the distinct characteristics of each cluster, and for modeling product propensity, which should be implemented in order to increase the sales.

CUSTOMER RELATIONSHIP MANAGEMENT: INTRODUCTION

INTRODUCTION: C.R.M
The term CRM stands for Customer Relationship Management. Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It is a p rocess or a methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. This process helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs. 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 specific customers. 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 their customers that can last a lifetime. 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.

Defining C.R.M:
Customer Relationship Marketing is a practice that encompasses all marketing activities directed toward establishing, developing, and maintaining successful customer relationships. The focus of relationship marketing is on developing long-term relationships and improving corporate performance through customer loyalty and customer retention. Customer Relationship Management (CRM) as the name suggests, the primary focal point is placed on the customer. The key objective is to increase customer value over time by increasing customer loyalty. If a company develops better customer relationships, it also improves business processes as well as its profits. In general, CRM is a more efficient automated method used to connect and improve all areas of business to focus on creating strong customer relationships. All forces are coupled together to save, improve, and acquire greater business to customer relationships. The most

common areas of business that are positively affected include marketing, sales, and customer service strategies. CRM helps create time efficiency and savings on both sides of the business spectrum. Through correct implementation and use of CRM solutions, companies gain a better understanding of their strongest and weakest areas and how they can improve upon these. Therefore, customers gain better products and services from their businesses of choice. In order to achieve better insight on CRM, it is essential to consider all of its components.

CRM- Meaning:
Customer relationship management (CRM) is a business strategy that spans your entire organization from front office to back-office. It is a commitment you make to put customers at the heart of your enterprise. The right CRM strategy and solutions can help you securely, reliably and consistently delight your customers every time they interact with your business by empowering them with anytime, anywhere, and any channel access to accurate information and more personalized service. Reach more customers more effectively, increase customer retention and boost customer loyalty by leveraging opportunities to up-sell and cross-sell and driving repeat business at lower cost Drive improvements in business performance by providing your customers with the ability to access more information through self-service and assisted-service capabilities when it is convenient for them. Enable virtualization in your enterprise as more of your people and resources extend beyond your offices and around the world Balance sophisticated functionality with rapid implementation and effective support for a faster return on your CRM investment. Todays customers face a growing range of choices in the products and services they can buy. They base their choices on their perception of quality, value, and service. Each Consumer has a specific behavior. But buying habits are sometimes difficult to understand. Therefore companies always want to gain some insight about consumer behavior and habits in order to better control this behaviour. Having an impact on consumer behavior means being able to change consumers perception of the product or service, to establish a relation between the company and its clients.

 CRM IN BANKING SECTOR

Over the last few decades, technical evolution has highly affected the banking industry. For more than 200 years, banks were using branch based operations. Since the 1980s, things have been really changing with the advent of multiple technologies and applications. Different organisation got affected from this revolution; the banking industry is one of it (Sherif, 2002). In this technology revolution, technology based remote access delivery channels and payment systems surfaced. ATM displaced cashier tellers, telephone represented by call centers replaced the bank branch, internet replaced the mail, credit cards and electronic cash replaced traditional cash transactions, and interactive television will replace face-to-face transactions (Sherif, 2002). In recent years, banks have moved towards marketing orientation and the adoption of relationship banking principles. The key motivators for embracing marketing principles were the competitive pressure that arose from the deregulation of the financial services market particularly in India. This essentially exposed clearing banks and the retail banking market to increased competition and led to a blurring of boundaries in many traditional product markets (Durkin, 2004). The bank would need a complete view of its customers across the various systems that contain their data. If the bank could track customer behaviour, executives can have a better understanding, a predicative future behaviour and customer preferences. The data and applications can help the bank to manage its customer relationship to continue to grow and evolve (Dyche, 2001). According to Stone et al. (2002) most sectors of the financial services industry are trying to use CRM techniques to achieve a variety of outcomes. In the area of strategy, they are trying to: Create consumer-centric culture and organisation Secure customer relationships; Maximize customer profitability; Integrate communications and supplier customer interactions across channels; Identify sales prospects and opportunities; Support cross and up-selling initiatives; Manage customer value by developing propositions aimed at different customer segments; Support channel management, pricing and migration.

CRM is a sound business strategy to identify the banks most profitable customers and prospects, and devotes time and attention to expanding account relationship with those customers through individualized marketing, reprising, discretionary decision making, and customized service through the various sales channels that the bank uses. Any financial institution seeking to adopt a customer relationship model should consider six key business requirements (Chary & Ramesh, 2012), they are: Create a customer-focused organisation and infrastructure. Gaining accurate picture of customer categories. Assess the lifetime value of customers. Maximize the profitability of each customer relationship. Understand how to attract and keep the best customers. Maximize rate of return on marketing campaigns.

A greater focus on CRM is the only way the banking industry can protect its market share and boost growth. With intensifying competition, declining market share, deregulations, smarter and more demanding customers, there is competition between the banks to attain a competitive advantage over one another or for sustaining the survival in competition. In India, the banking sector has been operating in a very stable environment from last thirty forty years. In current scenario of banking sector, the falling of interest rates and tough competition between these players had made Indian bankers to realize that the purpose of their business is to create and retain a customer and to see that the entire business process is consistent with an integrated effort to discover, retain and satisfy customer needs. But the success of' CRM Strategy depends upon its ability to understand the needs of the customer and to integrate them with the organizations strategy, people, technology and business process. Financial services are in a structural change whereby competition and customer demands are increasing.

 CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues. It doesn't happen by simply buying software and installing it. For CRM to be truly effective an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. Solid CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. In CRM projects, following data should be collected to run process engine: Responses to campaigns, Shipping and fulfillment dates, Sales and purchase data, Account information, Web registration data, Service and support records, Demographic data, Web sales data.

 Need of CRM in banks:

CRM primarily caters to all interactions with the customers or potential customers, across multiple touch points including the Internet, bank branch, call centre, field organization and other distribution channels.

CRM can help banks in following ways:

Campaign Management: Banks need to identify customers, tailor products and services
to meet their needs and sell these products to them. CRM achieves this through Campaign Management by analyzing data from banks internal applications or by importing data from external applications to evaluate customer profitability and designing comprehensive customer profiles in terms of individual lifestyle preferences, income levels and other related criteria. Based on these profiles, banks can identify the most lucrative customers and customer segments, and execute targeted, personalized multi-channel marketing campaigns to reach these customers and maximize the lifetime value of those relationships.

Customer Information Consolidation: Instead of customer information being stored in

product centric silos, (for e.g. separate databases of savings account & credit card customers), with CRM the information is stored in a customer centric manner covering all the products of the bank. CRM integrates various channels to deliver a host of services to customers, while aiding the functioning of the bank.

Marketing Encyclopedia: Central repository for products, pricing and competitive

information, as well as internal training material, sales presentations, proposal templates and marketing collateral. 4 360-degree view of company This means whoever the bank speaks to, irrespective of whether the communication is from sales, finance or support, the bank is aware of the interaction. Removal of inconsistencies of data makes the client interaction processes smooth and efficient, thus leading to enhanced customer satisfaction.

Personalized sales home page: CRM can provide a single view where Sales Mangers and
agents can get all the most up-to-date information in one place, including opportunity, account, news, and expense report information. This would make sales decision fast and consistent.

Lead and Opportunity Management: These enable organizations to effectively manage

leads and opportunities and track the leads through deal closure, the required follow-up and interaction with the prospects

Activity Management: It helps managers to assign and track the activities of various
members. Thus improved transparency leads to improved efficiency. 8 Contact Centre It enables customer service agent to provide uniform service across multiple channels such as phone, Internet, email, Fax.

Operational Inefficiency Removal: CRM can help in Strategy Formulation to eliminate

current operational inefficiencies. An effective CRM solution supports all channels of customer interaction including telephone, fax, e-mail, the online portals, wireless devices, ATMs, and face-to-face contacts with bank personnel. It also links these customer touch points to an operations Centre and connects the operations center with the relevant internal and external business partners.

CRM with Business Intelligence: Banks need to analyze the performance of customer
relationships, uncover trends in customer behaviour, and understand the true business value of their customers. CRM with business intelligence allows banks to assess customer segments, which help them calculate the net present value (NPV) of a customer segment over a given period to derive customer lifetime value. Customers can be evaluated within a scoring framework. Combining the behaviour key figure and frequency to monetary acquisition analysis with a marketing revenue quota can optimize acquisition costs and cut the number of inefficient activities.

With such knowledge, banks can efficiently allocate resources to the most profitable customers and reengineer the unprofitable ones. Data warehousing solutions have been implemented in Citibank, Reserve Bank of India, State Bank of India, IDBI, ICICI, MaxTouch, ACC, National Stock Exchange and PepsiCo. And Business Intelligence players hope many more will follow suit. OBJECTIVE OF CUSTOMER RELATIONSHIP MANAGEMENT IN BANKS

Objective of customer relationship

management

Sales

Marketing

Customer service

Support

The push towards better CRM technologies is natural result of the search by business of greater productivity and efficiency in customer facing operations like sales, marketing, customer service and support. E.g. in sales, companies need IT system that provides greater control and efficiency. This means improved forecasting and to capability, greater visibility into sales performance across a variety of channels increased productivity by external sales forces and reduced sales costs, meanwhile, companies must meet customer demands for better quality timeless and customization in the service they deliver. Companies also need technologies that help them approach customers in a rational way. E.g. remember a customer address from one transaction to another and carefully choreograph contact between its, sales force and customers. In addition to being wasteful and inefficient

The internet dramatically accelerate the focus on CRM by making customer interactions more cost-efficiency. In addition, the web has established a more direct sales channel that supports rapid customers interaction and short sales cycles. Using internet technologies, customer can interact with information from a wide variety of sources without special training.

The idea of CRM is that it helps businesses use technology and human resources gain insight into the behaviour of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase Customer revenues. It doesn't happen by simply buying software and installing it. For CRM to be truly effective an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life Stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used.

ADVANTAGES OF CUSTOMER RELATIONSHIP MANAGEMENT A. BENEFITS OF CRM TO BANKS :

The change from the profit direction of a business to customer centric unit has lead to the flow of CRM inculcation in the modern business scenario. Gone are those days when a business was just a hub of wealth creation. These days it is impossible for a business to survive, without being focused upon the needs and expectations of the customers. 1. An enhanced CRM process provides companies a better way to understand the changing needs of their customers and to respond to these quickly. Because CRM managers have the information ready at hand, they are able to analyze the data and come up with quick responses. This is only one of the benefits of customer relationship management.

2. Customer Relationship Management or CRM is a procedure by which companies get to know what customers require from their service/products. The process also enables organizations to track complaints and act on them immediately before situations spill over from bad to worse. Indeed, the possibilities and benefits of customer relationship management are endless. 3. The information coming CRM should not be static. It should be updated regularly to help companies track their customers' spending habits and changing tastes. Thus, they can respond quickly to the shifting trends before they lose their loyal customers. The benefits of customer relationship management's updated facts and statistics are driving companies to look for software solutions to ease the management and acquisition of data. 4. The old-fashioned data banking or storing of information, such as customers names, mailing addresses, and phone numbers are no longer sufficient. Companies and organizations need to track what their customers are buying, where they are buying, and how frequently do they purchase items from their stores and from competition. Acquisition of the information follows national and international guidelines, so there should not be any problem about this. 5. A bank gets to enjoy the several add-on enhancements from CRM. Imagine what your CRM people can do using the software. They will be able to collect customer information anytime when needed, share the information and collaborate with customer-related in-house staff, and come up with quick analysis on the consolidated data gathered from various sources. All these features increase your workers' productivity. 6. Because banks are able to catch on with the changes, One can immediately strategize to keep their faithful customers and attract new ones. One is redesigning CRM program to retain its customers and get new clientele. Increased revenue is another of the many benefits of customer relationship management. 7. Work within the company becomes well-organized, systematic, and coordinated, thereby eliminating waste of funds on unnecessary projects - when CRM information is used to analyze trends and shared with the people who directly or indirectly have to do with CRM.

B. BENEFITS OF CRM TO CUSTOMERS :

Customer relationships are becoming even more important for banks as market conditions get harder. Competition is increasing, margins are eroding, customers are becoming more demanding and the life-cycles of products and services are shortening dramatically. All these forces make it necessary for banks to intensify the relationship with their customers and offer them the services they need via the channels they prefer.

CRM helps banks to provide lot of benefits to their customers; some key benefits are as follow. 1. Service provisioning throughout the entire life cycle of the corporate customer, from the initial stages to the establishment of a close, long-term relationship with profitable clients, 2. Optimization of the use of bank resources, such as alternative channels of distribution(internet and home banking), 3. Significant reduction in and limitation of operational costs through system automation and standardization, 4. Low maintenance and expansion costs owing to the use of modern administration tools which allow bank employees to make a wide range of modifications to the system 5. CRM permits businesses to leverage information from their databases to achieve customer retention and to cross-sell new products and services to existing customers. 6. Companies that implement CRM make better relationships with their customers, achieve loyal customers and a substantial payback, increased revenue and reduced cost. 7. CRM when successfully deployed can have a dramatic effect on bottom-line performance. For example, Lowes Home Improvement Warehouse, in a span of 18months, achieved a 265 percent return on investment (ROI) on its $ 11m Reinvestment. 8. According to a study conducted in the sector of banking, convenience of location, price, recommendations from others and advertising are not important selection criteria for banks. From customers point of view, important criteria are: account and transaction accuracy and carefulness, efficiency in correcting mistakes and friendliness and helpfulness of personnel. Thus, CRM, high-quality attributes of the product / service and differentiation proved to be the most important factors for customers.

9. another study conducted in a European bank shows that with CRM, the bank was able to focus on profitable clients through efficient segmentation according to individual behavior. Information about who buys what and how much enabled the bank to have a commercial approach based on the client and not solely on the product. Thus, the bank was able to better satisfy and retain its customers. Eventually, CRM results both in higher revenues and lower costs, making companies more effective and efficient: effective in targeting the right customer base with the right services via the right channels, and efficient in doing this at the lowest costs. For example, those banks that are moving transactions from the more expensive channels to a less costly channel like the call centre or Internet are therefore able to save money.

METHOD OF EFFECTIVE CRM IMPLEMENTATION

Banks can take several steps to strengthen their customer relationship management in an effective manner. 1. Acknowledge Email Enquiries : At the very minimum, banks should send out an automated email response that acknowledges receipt of a customer's email and lets the sender know when to expect a more complete response. It is then vital to get back to the customer within the promised time frame. Banks can earn more customer goodwill if they respond faster than the imposed deadline. To handle significant volumes of email, banks need adequate routing technology. Many banks regard a voice call centre as a cost of doing business, but they don't look at it the same way with email. 2.Develop The Right Contact Strategy : By knowing which offers and incentives to offer to which customers and when, banks will not annoy customers with unwanted marketing offers, building customer loyalty along the way. Such goals can be at least as important as realizing cross-sell opportunities.

3. Providing Online `Chatting' : An alternative to telephone support, online chatting is providing a service via emails or any other form of immediate response. This service also offers some of the immediacy of the phone but primarily allows customers to remain online. With online chatting, service agents can usually handle between one and three customer inquiries at once.Given that the average call lasts about four minutes, a customer-service representative can handle 10 to 12 customers per hour using "chat", compared with six to eight per hour over the telephone. One of chat's important advantages is that it keeps customers in an online store environment where they remain exposed to merchandise and promotions. 4. Reduce Costs By Improving Website Design And Self-Service : Email, telephone support, and chat all involve considerable staffing costs. But to reduce these expenses a site should anticipate customer needs. Sites that is difficult to navigate and don't provide needed information chase away some customers and force those who stay to resort to more expensive channels to satisfy their service needs. 5. Analyses The Project's Scope : Before recommending or embracing CRM, bank executives must analyses the business issues, the customer relationship model and the exact nature of customer interactions and how they tie together. Banks should not embrace top-line growth as an objective until they can understand precisely how CRM technology will provide those new revenues. 6. Know The Limitations: Many CRM implementations are severely limited because they fail to provide a complete and meaningful view of the customer. CRM is primarily a business program, and it requires a genuine partnership between various departments to ensure that both business and technology issues are managed effectively. Furthermore, CRM not only takes existing business processes and makes them more efficient, but it also requires these processes to be modified. For a CRM implementation to be successful, decision makers within the bank need to make sure that all the stakeholders understand and support the required process changes.

7.Change Accounts Into Customer : Traditionally banks have closely associated customers with accounts, to the point of calling the account the customer and vice versa. Customers will tend to feel alienated when they are treated like a number instead of a person. A conventional account structure usually contains very little information about customers and their needs, or their relationship with competitors or other divisions within the bank.

The way ahead Banks have excellent reasons to adopt comprehensive CRM strategies to grow a lifetime customer relationship. As banks move from transaction-centric to a relationshipcentric business approach, effective leveraging of customer relationship becomes all the more critical. Today, customers are expecting even more individual attention, responsiveness and product customization, yet are unwilling to pay a premium for these services. They are willing, however, to build a long-term relationship with banks that offers differentiated and more personalized services. This is where electronic banking can offer a competitive advantage. Successful CRM implementation in electronic banking needs to integrate data from all customer touch points, employee feedback and even shareholders' perceptions. If used effectively and in an innovative way, this approach will enable banks to develop a strategy to deliver to the customer the most appropriate products and services.

IMPLEMENTATION OF CRM IN INDIAN BANKS

Although CRM as a concept is of recent origin its tenets have been around for some time. Field officers in the banks have always promoted close relation-ship with customers, but the focus on customer orientation rather than product orientation as a commitment has been on the Indian banking scene for nearly a decade. But the fact remains that implementing customer relationship management is not easy.

There are really very few organizations that are actually optimizing customer experiences at all points of contacts. It is necessary to understand who customers are and what they value, select

customer carefully, design products and services that deliver the desired value, design effective sales channels and customer touch points, recruit and equip employees to deliver and increase customer value, and constantly refine your value proposition to ensure customer loyalty and retention (Forsytyh 1997 and Goldenberg 1998). With the advancement of banking technology and computerization and networking of bank branches, banking customers are becoming more and more dynamic and less loyal in their behaviour. The development of the Internet is further adding to this trend and the whole market becomes trans-parent and customers are in a position to move easily from one bank to another. In such a situation, customer satisfaction is the key to bank marketing, which aims at retention of the old customers and their bringing in new customers.

CRM deserves differential treatment to different class of customers at times. Service can be given to customers either personally through individuals such as customer service manager or the process can be automated by using computers. These different approaches are adopted depending on the value of relationship with the customer. Personal management of relationship is extended to business customers and high value personal customers and automated relationship management to lower margin mass- market segments.

CRM system can open up new channels of delivery, which are most cost effective. We can cite example of the Internet and call centers. According to an estimate, cost per transac-tion through these modes can be reduced by 90 per cent when compared to cost of transaction at branch. To offer better and extended services to custom-ers new technology platforms are being created through huge investment in Information Technology in banking sector. The recent development in this field is the introduction of CBS (Core Banking Solutions). A CBS helps in centralizing the transactions of branches and different banking channels and the customers start banking with the bank instead of at different branches. This is the only way to offer seamless transactions across different channels (branches, the Internet, the telephone and Automated Teller Machines or ATMs). As such nowadays a customer is called a customer of the bank rather than of a branch.

Another problem generally faced by a bank in implementing CRM is resistance to change. The banking industry is passing through a radical transformation, from a sellers market to a customers market, a regulated economy to a more liberalized and open economy, advancement in technology and a lot of other developments. These complex changes are forcing the banks to change the way they do business. A change denotes making things in a different manner. It should be planned properly, proactive and goal oriented. It requires two things: Firstly, the ability of the organization to adapt changes in the business environment is to be increased. Secondly, the mindset of the employees has got to be changed in the development of right attitude, skills, expectations, perceptions and behaviour. Implementation of CRM in Indian banking is still in its initial stage and has to go a long way to develop and raise it to the global standards. But the Indian banks including the public sector banks are coming in a big way to address this issue to remain competitive with their counterpartsthe foreign and private sector banks.

 CUSTOMERS RELATIONSHIP MANAGEMENT A NEW MANTRA

IN INDIAN BANKING
Nowadays banks have to work keeping in mind the position of the financial market and anticipate change in the market place and prepare themselves accordingly. They have to make new resolutions to build further on their own strengths to explore new avenues of Customers Relationship Management. This is the only strategic weapon to be pursued for excellence in the pursuit of performance and achievement. Both the retention of old business as well as to search for new business, CRM is the only choice. CRM, being the essence of modern banking, a sound understanding of the key principles, its theories and practices should be revisited and redefined to provide a road map to new ideas and techniques in the field. Over the years, banking institutions have been feeling the pressing need of putting up greater thrust on this initiative for improving their operations and appearances.

 THE FOCUS ON CRM

The profitability of a bank depends to a large extent on its ability to deploy its fund in high yielding loan portfolios of their customers. But with the increasing competition of lowering interest rates by different banks, interest spread is touching the low ebb every day. The demand for credit from the corporate sector is diminishing due to more efficient management of working capital, availability of cheaper funds from other routes etc. According to the Centre for Monitoring Indian Economy (CMIE), during 2000-01, the working capital cycle of manufacturing companies fell to 21 days compared to 60 days a year ago. In the year 2001- 02, the cycle further reduced to 14 days and became negative during 2002-03. Taking as a percentage on sales, working capital ratio had dropped to three per cent from a level of 13 per cent over the last five years in case of 4,000 selected manufacturing industries. The demand for working capital will be in the declining stage in the years to come. Further, there is lack of investment demand in the market. These developments have led the banks to go in search of new business opportunities where they can put their resources and earn a reasonable margin to add to their bottom lines. After a lot of exercise and considerable thought, they identify the retail sector and commit for considerable retail lending as a means to serve their ends.

CUSTOMER RELATIONSHIP MANAGEMENT: IN ICICI BANK

CUSTOMER RELATIONSHIP MANAGEMENT: STUDY OF ICICI BANK

INTRODUCTION OF ICICI BANK Profile ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI Bank is also the largest issuer of credit cards in India. Business Focus ICICI wants to leverage their people, technology, speed and financial capital to: Be the banker of first choice for our customers by delivering high quality, world-class products and services. Expand the frontiers of our business globally. Play a proactive role in the full realization of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders.

 Distribution ICICI Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,528 branches and 6000 ATMs in India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposit and loan products. Moreover, ICICI Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Why CRM in ICICI Bank?

The environment within which financial institutions operate has changed in recent years. It is now one of: Increased competition Growing product commoditization, and Diminishing margins

Banking customers have also changed in recent years.

Customers today are more

knowledgeable, sophisticated and assertive than ever before. They demand higher levels of customer service, are less loyal, and more inclined to switch to a competitor. Modern

customers thus necessitate flexibility in hours of operation, greater convenience, customization, transparency, accessibility and control. This has led to a shift in business focus from transactional to relationship marketing.

The use of CRM in ICICI bank has been essentially done for the following purposes:

Targeting customers
It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. For example, a customer interacts with the banks for savings accounts, credit cards, home loans, car loans, demat accounts, etc. the data generated through all these services needs to be integrated to enable effective targeting. After the integration is done, a profitability analysis of the customer needs to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers.

Sales reference material

A consolidated information database on all products, pricing, competitor information, sales presentations, proposal templates and marketing collateral should be accessible to all the people concerned. These prove to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instantaneous access to all relevant material as and when it is required (especially when he/she is in a meeting with a client.)

Consistent interface with customers

The communication to customers from various departments like sales, finance, customer support, etc. should be consistent and not contradictory. Therefore, all departments should be privy to a unified view of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal coordination. This is bound to enhance customer satisfaction. The contact Centres used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, e-mail, fax, etc.

Banks can use the data on customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine value for that segment. Accordingly, suitable campaigns can be designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and up-selling.

ICICI Banks CRM Initiatives

ICICI Bank has to manage more than 13 million customers. The bank has over 550 branches, a network of 2025 ATMs, multiple call centers, Internet banking and mobile banking. Its customers often use multiple channels, and they are increasingly turning to electronic banking options. Business from the Internet. ATMs and other electronic channels now comprises more than 50 per cent of all transactions. In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers. The Teradata solution focuses on a CRM platform.

Information from various legacy and transaction systems is fed into a single enterprise called wide data warehouse. This allows the bank to generate a single view of its customers. The warehouse has the capability to integrate data from multiple sources comprising Oracle and flat files. The Behavior Explorer enables profiling of customers and querying on various

parameters. These enable the bank staff create suitable campaigns for targeting individual customers on the basis of their requirements. The logistics in the system have also led to other benefits like interactive reports, unearthing cross-selling opportunities as well as finding out about the channel usage undertaken by a segment. The data access was facilitated through the use of Cognos Power Cubes.

 CRM working of ICICI BANK

CRM, according to ICICI consists of following approaches: A. Getting personalized information on customers. B. What is the value of the relationship? C. Customized offerings to the customers D. Converting a prospective customer into a true customer.

[A] GETTING PERSONALIZED INFORMATION ON CUSTOMERS: The bank collects all the information about the customers for processing. ICICI bank has mainly 4 service offerings viz: loan account, saving account, current account and fixed deposits. Moreover, the bank has many customers in each category. So, they collect the data on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form.

[B] WHAT IS THE VALUE OF THE RELATIONSHIP? After the collection of the personalized information on every customer, the department checks out the value of the relationship with each and every customer. Later, they decide how to approach the customer for knowing what his needs and wants are? After this is done, the company offers him the customized product.

[C] CUSTOMIZED OFFERINGS TO THE CUSTOMER: The step which comes after deciding the value of the customer is that the company offers the person the customized product. Moreover, they also practice a concept called cross- selling over here. Cross selling refers to offering another product from the service offering of the bank to the customer which he has not gone for.

[D] CONVERTING A PROSPECTIVE CUSTOMER INTO A TRUE CUSTOMER: The last approach of CRM according to ICICI bank is that they try to convert the prospective Customer into a true customer. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly.
The processes for delivering CRM-The tools and the processes are as follow

Customer application form Centralized software where the whole data is collected. Wide range of offering Cross selling and Feedback forms

1. Customer application forms: Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants. 2. Centralized software where the whole data is collected The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross selling. 3. Wide range of offering After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then is offers a more customized service. 4. Cross selling It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example If customer has savings account with the bank then

they offer him a insurance, fixed deposits etc.This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives us, the more are his chances of being special services offered. 5. Feedback forms The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used, employee behavior and promptness in solving customers problems, are taken and they are analyzed.

The Benefits of CRM Customers usage pattern:

ICICIs CRM data warehouse integrates data from multiple sources and enables users to find out about the customers various transactions pertaining to savings accounts, credit cards, fixed deposits, etc. The warehouse also gives indications regarding the customers channel usage.

New product development

Analysis at ICICI guides product development and marketing campaigns through Behaviour Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customers needs and desires, enabling the bank to satisfy customers through better personalization and customization of services.

Central data management

The initial implementation of CRM allowed ICICI to analyse its customer database, which includes information from eight separate operations systems including retail banking, bonds,

fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM.

Some Noteworthy CRM Initiatives of ICICI Bank Mobile ATMs

Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings.

Timings 9.00 am to 10.00 am

Locations Junction of Nehru Road and M.O. Road, near Ram temple, Vile Parle (E)

11.00 am to 12.00 noon 1.00 pm to 2.00 pm 3.30 pm to 5.00 pm

Opp.J.W. Marriott Hotel, Juhu Lokhandwala Circle, Andheri (W) Outside Vasanth Sagar, 120 ft. Road, Hakur Village, Khandivali (E)

Bulk Deposits
The ICICI Banks Bulk Deposit ATMs enable customers to deposit large amounts at one time. Unlike conventional ATMs, which are able to accept only 30 notes at a time, these ATMs allow

the deposit of huge amounts. The Bulk Deposit ATM is available in Mumbais Vashi sector branch office of ICICI. The bulk deposit facility can be availed of by select customers who need to deposit huge amounts of cash. ICICI Bank issues a special card called the `Deposit Only Card to facilitate this service. This card allows for deposit transactions only. The service is further facilitated by the provision of special bags at ATMs in which a customer can put his money. After the deposit slip is filled, the bag can be inserted in the ATM. The transaction slip is then generated by the ATM as an acknowledgement of the deposit.ICICI Bank also has cash pick-up service for business customers under the business banking segment.

ATMs for the visually challenged

ICICI Bank has launched ATMs with special voice-guided systems, which guide a visually challenged person to access ATMs without any help. The jack on the terminal enables headphones to be connected to it and voice commands enable the customer to transact business. Customers may choose a suitable language to get voice commands. After the language selection is done, the customer is guided to ensure that the ATM card is inserted in the right slot and thereafter, guidance is provided for entering the PIN by using the keypad. A raised button is provided on number 5 to enable users to identify the numbers easily through touch. The slot for cash collection has such raised `pips that enable easy

identification through touch.

Other Services through ATMs

Apart from the usual transactions involving the bank, some other services can also be availed of by ICICI Bank customers. These include: Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Internet service provider, Sify and VSNL).

Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine. Mutual fund transactions, and Bill payments

Mobile phone as a Virtual Wallet

The mobile phone has been transformed into a virtual wallet a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq a revolutionary new service which is a credit card using the mobile phone. This is the first mobile-to-mobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase and also the problems associated with the point of sale (POS) terminal since the mobile phone services as a secure POS and a payment mechanism.

Social Events
ICICI Bank organized the largest domestic invitational amateur golf event for HN1 (highnet-worth individuals) customers. This nation-wide golf tournament had over one lakh highnet-worth clients of ICICI Banks private banking division participating in the event.

Mobile Banking Benefits

Mobile banking enables the customer to avail of many facilities by just sending an SMS. These facilities, which are currently offered free of cost, are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account

 CUSTOMER RETAINTION
There are various components of CRM like customer information, sales, Marketing trends and marketing efficacy that acted in tandem to improve relationship between ICICI and its consumers. ICICI captured customer data and analyzed them while dealing with customers at these very touch points. A CRM solution from Siebel was implemented for the Automation of customer handling in all key retail products of the Group. The solution allows Customer service agents to track all customer complaints and requests. It also allows target setting and centralized tracking of turnaround times for request ful fillment.The solution went live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office. This central view of the total customer relationship is being used extensively for identifying opportunities to cross-sell new products and services to the existing customer base. Its technology strategy emphasizes enhanced level of customer services through 24x7availability, multi-channel banking and straight through processing, and cost efficiency through optimal use of electronic channels, wider and focused market reach and opportunities for cross-selling. The company offers the person the customized product. Moreover, they also practice a concept called cross- selling over here. Cross selling refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example if customer has saving account with the bank then we offer him loan, insurance and other investments.

RELATIONSHIP MANAGEMENT:-

Know Your Customer:

Know Your Customer is about understanding your individual customer's value and needs. This understanding comes only from collecting information that customers provide in their interactions with your company, and developing a 360-degree view of customer behavior across all touch points. As you begin a dialogue with individual customers, you create a learning relationship with your customers; each interaction becomes an opportunity to build and extend your relationship with that customer. The more extensive the learning relationship, the more invested the customer becomes in the relationship and the more

difficult it will be for the customer to switch to a competitor. The bank collects all the information about the customers for processing. ICICI bank has mainly 4 service offerings viz: loan account, saving account, current account and fixed deposits. Moreover, the bank has many customers in each category. So, they collect the data on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form. After the collection of the personalized information on every customer, the department checks out the value of the relationship with each and every customer. Later, they decide how to approach the customer for knowing what his needs and wants are? After this is done, the company offers him the customized product.

Reach Your Customer:

Reach Your Customer is about reaching the right customers with the right offer at the right time through the right channel. Based on your knowledge of each customer, you are able to reach specific customers with targeted offers, information, products, and services. You reach each customer with a personalized message based on his or her needs, behaviors, and value.

Grow Your Customer:

Grow Your Customer refers to your company's ability to effectively execute Marketing strategies based on your knowledge of customer share and customer lifetime value. You must use scarce investment dollars to target your efforts to your best, most valuable customers. Increasing the total value of your customer base by retaining and growing your best customers, is significantly less expensive than trying to generate the same amount of value by acquiring new customers. Focusing on your best customers requires you to re-examine and re-allocate total Marketing and sales investments from less profitable customers and the acquisition of new customers.

 DRAW a 6 market frame work

Internal market the employees of the bank are very crucial for success. For customer the employee is the bank as he tract with him daily. If the staff are not satisfied or in good mood then that will be reflected in the services they provide. So the banks policy should be that they try to keep all the employees satisfied. Recruitment marketing selecting right person for a right job is a difficult task. ICICI Bank has to plan all the requirements and job specification, according to that they have to select the employee. As said earlier in banking sector employee play a key role in success. Referral market the word of mouth marketing works a lot. When a customer is satisfied, he tells his friends, relatives and known that ICICI Bank services are good, their interest rate of loan is not high, the deposit rates are high. This helps the bank increase customer base and profits. Influence marketing ruling body of bank i.e. RBI, policy plays an important role in functioning of banks. They lay all the important policy which the banks have to follow. The lending rate, deposit rates all are affected by the policy of RBI. Supplier Market the raw material in banks are computers, software, furniture, etc. So the bank has to put focus on all the suppliers of these commodities. In bank performance enhancement technology plays a vital role. The bank should be updated with technologies.

 DRAW HEXAGON PROFILE MODEL

In ICICI Bank the initial customers are less as compared to repeat customers. This is because if customers are satisfied with the services they keep on doing business with banks. They do regular transactions. The bank tries to do cross selling. If customers is saving a/c holder they try to sell insurance policy, demat a/c, credit and debit card, etc. There are many customers who would like to give suggestions to bank for improvement in product and services. Their valuable insights are important for bank, and they are used for product development. These types of customers are called the advocates.

IDIC MODEL
Identify (learn about customers) ICICI Bank has to first learn about the customers. In banking the very important thing while opening an a/c is KYC i.e. Know Your Customers. The bank has to first know about the customers. They should know the name, age, sex, address, family, etc. Along with all these they should also know their past and present status of the customers, their needs and wants. Differentiate ICICI Banks have many products and services. They have to differentiate the customers according to their income, status, needs and requirements. They then have to plan and develop products catering to a specific group of people. This is the type of differentiation banks are following. Interact there are various touch points where customers can interact. They can retrieve and send information from telephone, e-mail, internal portals, fax, face to face interaction with employee. The banks collect all the information about the customer they can. They try to develop a good relationship with the clients. They try to maintain all personal information also so that better relationship can be developed. Customize ICICI bank develop many products according to the income, status, needs and requirement. They have wealth manager who cater the requirements of the clients. They focus on high net worth individuals. They plan and suggest the customers where to invest and how much to invest.

Results
CRM helped ICICI Bank to become the 3rdbest bank in India. With Affinium, ICICI Bank has boosted customer retention by four percent, and executed acquisition campaigns, which resulted in reduction of acquisition cost by 60 percent due to effective targeting and channel optimization. Following the implementation of Affinium, the campaign volume increased by over 200 percent The credit card activation campaign has achieved an incremental activation rate of 30 percent compared to activation efforts without predictive modeling. Debit card early activation program resulted in incremental response of five percent over the normal activation rates. Now ICICI Bank could provide various facilities to its customers like demat a/c, insurance policy, bills payment facilities, etc. other than its core business of providing loans and keeping deposits of customers; CRM solution gave ICICI Bank an upper edge in fighting with its competitors

Competitive advantage
ICICI Bank comes in 3rd ranking of all commercial banks in India. It has a great competitive advantage over all other banks. This is because the relationship which they with their customers is too good. They have been focusing on it from the beginning. The parameters on which ICICI Bank has given maximum weight age to build business are Employees they have very good front end employees, who deal with customers on regular basis. They have been trained in such a way that they always maintain good relationship with clients. They always have a smile on their face and treat customers as their family members.

Technology ICICI Bank tries to be updated in technology department. They use all the new technology which will be beneficiary for them to deal with customers. They try to make transaction and system easy for customers. Customer Relationship bank has always maintained a policy of knowing the customer well. Their first aim is to understand the customer plan, need and requirement. For this they need to know the financial position and status of the customers. They always try to maintain good relationship with them.

Recommendations
Make the customer relationship building more strong try to improve the relationship, so that customers dont ever think to shift to other banks. Provide wealth manager to valuable customers, so that they design their investment policy. This helps in strong relation building and retaining customers. Try to do more cross selling CRM solution helps in cross-selling. Try to target the customers for using more and more products. Introduce more loyalty programs like giving more schemes and offers on credit cards. Improve ways to reduce customer grievances ICICI Bank should work on reducing customer problems, if they face. Try to solve all the problems as quick as possible because small issues can lead to big problems and make customer dissatisfied. Take customer feedback regularly and work on it

 CONCLUSION:
Banking can be mysterious for consumers and how they interact with their finances can be a complex matter. The challenges faced by banks and their customers are many but the trick lies in de-mystifying complex financial relationships. Technical solutions deployed by banks today are flexible, user-friendly and meant to facilitate specific workflow and requirements in implementation processes. In order to simplify lives, banks have begun to implement end-to-end technologies through all departments with the intention of removing human error from processes. Previously existing manual environments could not have been adequate for future visions, growth plans and strategies. In this day and age, customers enjoy complete luxury in terms of customized technical solutions and banks use the same to cement long-term, mutuallybeneficial relationships. For a bank to succeed in adopting a CRM philosophy of doing business, bank management must first understand CRM as a holistic concept that involves multiple, interlocking disciplines, including market knowledge, strategic planning, business process improvement, product design and pricing analysis, technology implementation, human resources management, customer retention, and sales management and training. Turning the business strategy into actionable items is a difficult undertaking. For which Customer Relationship Management works a magic wand.

Thus, we see that a focused and customer centric approach helped ICICI Bank become #2 bank in India (till recently, as PNB has taken over it as the No 2 bank in India now).ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new generation private banks. It has invested a lot in ICT and spared no pains in giving best to the customers. Its multi-pronged approach towards managing customer relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India. Thus after grabbing details of CRM in ICICI bank we can say that ICICI bank is well ahead of other banks as far as Customer Relationship Management is concern. However at the same time keeping intense completion in to account, ICICI bank should involve technology more in CRM in terms of Mobile Banking, Competitive products and Services to all the segments.