SUMMER TRAINING PROJECT REPORT

On
(Customer Relationship Management of ICICI Bank.)
Towards partial fulfillment of
Master of Business Administration (MBA)
Submitted by
(GYATRI KUMARI)
IIIrd Semester
Roll No-1130672039
Session 2013-14

Affiliated to

Uttar Pradesh Technical University, Lucknow

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Certificate from Guide

DECLARATION
I, Gayatri Kumari Student of MBA (Marketing) studying at Sardar
Bhagat SinghManagement College, declare that the project work entitled
CUSTOMER RELATIONSHIP MANAGEMENT at ICICI Bank in
Lucknpw was carried by me in the partial fulfillment of MBA.

This project was undertaken as a part of academic curriculum

according to the UPTU rules and norms and it has not commercial interest
and motive, it is my original work. It is not submitted to any other
organization for any other purpose.

Date: - August 2014

Place:-LUCKNOW
GAYATRI KUMARI
MBA (3rd SEM)

ACKNOWLEDGEMENT
It gives me immense pleasure to present this project report Of
CUSTOMER RELATIONSHIP MANAGEMENT at ICICI Bank in
LUCKNOW In partial fulfillment of the degree of Master of business
administration. No work can be carried out without the help and guidance of
various persons. I am happy to take this opportunity to express my gratitude
to those who have been helpful to me in completing this project report.
At the outset I would like to thank __________________ for his
valuable guidance and suggestions during the training period.
I would be failing in my duty if I do not express my deep sense of
gratitude to my college mentor ________________ without his guidance it
wouldnt have been possible for me to complete this project work.
Lastly I would like to thank my parents, friends and well-wishers who
encouraged me to do this research work and all those who contributed
directly or indirectly in completing this project to whom I am obligated to.

Thank you
GAYATRI KUMARI
(MBA 3rd SEM)

EXECUTIVE SUMMARY

Goal of most businesses. Ideally, you want to attract new customers to your
products and encourage repeat purchases Making new customer and
establishing relationship with existing customer is the ultimate/and new.
This study is made to make prospective customers (SMEs owners) aware
about the services of ICICI Bank. and how it will be helpful in the growth of
their SMEs and encourage them to go for customer relation Analysis and
interpretation has been done on basis of primary data which is collected
through questionnaire, interview, and survey of people related with different
areas.

TABLE OF CONTENTS
1. Introduction of Project

8-12

2. Company Profile

13-35

3. Literature and Review

36-72

4. Objectives of Study

73-74

5. Scope of the Study

75-76

6. Research Methodology

77-80

7. My Role and Responsibility in the Organization

81

8. Types of Measurement Scale

82-83

9. Data Analysis and Interpretations

84-103

10.Limitations of the Study

104

11.Suggestions

105-106

12.Conclusion

107

13.Bibliography

108-109

14.Annexure

110-116

Questionnaire for Customers

INTRODUCTION OF PROJECT
CUSTOMER RELATIONSHIP MANAGEMENT
CRM is the development and maintenance of mutually beneficial longterm relationship with strategically significant customers.

(Buttle,2000)
CRM is an IT enhanced value process, which identifies, develops,
integrates and focuses the various competencies of the firm to the voice of
the customer in order to deliver long-term superior customer value, at a
profit to well identified existing and potential customers.
(Plakoyiannaki and Tzokas, 2001
Learn more about customers' needs and behaviors in order to develop
stronger relationships with them. Good customer relationships are at the
heart of business success. There are many technological components to
CRM, but thinking about CRM in primarily technological terms is a
mistake. The more useful way to think about CRM is as a strategic process
meet those needs and enhance your bottom line at the same time. This
strategy depends on bringing together lots of pieces of information about
customers and market trends so you can sell and market your products and
services more effectively.
CRM is an application that enables companies to make the move towards
being a customer centred organisation by putting the customer at the centre
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of all the information that relates to them and allowing authorised people
within the organisation to access the information.
In a customer centred organisation, salespeople would have access to all the
information that affects their relationship with their customer. The
conversations, the emails, the complaints, the complaint resolutions, all the
information that had been sent to the customer, who else in the company the
customer had spoken to everything that affects their ability to service
the customer and sell more product or services to them.
Customers of a customer centred organisation feel more valued. Their
requests are dealt with more rapidly and accurately because all the
information required to service the request is in one place. Customer centred
organisations may have a higher customer retention rates than competitors
organised along traditional lines because of this.
Of course, different companies have very different ideas about what a
meaningful relationship is. Nike doesnt know the names of all their millions
of customers, but they have a very good idea of their preferences across
different market segmentations. They probably also know a lot about shoe
size distribution curves in different countries around the world. They dont
call people up and try to sell them a pair of shoes. They engage through
mass market media, and measure consumer responses to different marketing
campaigns.
On the other hand a company that sells expensive sports cars to the super
rich is likely to have strong personal relationships with each individual

customer, and not just related to the cars they buy, built up through face to
face interaction.
CRM helps a business understand who their customers are, how they like to
interact with the company, how profitable they are, and what their future
value might be. In this way it helps an organisation make critical decisions
about how to do business, such as what new products or services they should
be developing, and what sales and marketing channels they should invest in,
or discard.
Effective CRM therefore is about gathering information about customers,
then analysing and interpreting it. This is the role played by CRM software
systems.
The idea of CRM is that it helps businesses use technology and human
resources to gain insight into the behavior of customers and the value of
those customers. With an effective CRM strategy, a business can increase
revenues by:

providing services and products that are exactly what your customers
want

offering better customer service

cross selling products more effectively

helping sales staff close deals faster

retaining existing customers and discovering new ones

A brief introduction to the Customer Relationship Management is that

its a strategy used to learn more about customers' needs and behaviors in
order to develop stronger business relationships with them. After all,
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good customer relationships are the heart of any business success. There
are many technological components to CRM, but thinking about CRM in
primarily technological terms is a mistake. The more useful way to think
about CRM is as a process that will help bring together lots of pieces of
information

about

customers,

sales,

marketing

effectiveness,

responsiveness and market trends together to complete your business

puzzle in order to bring the harmony into your work force.
Every business organization depends on customers for sustenance, the
question is how to create and maintain customer satisfaction. Every business
communicates with their clients in many different ways, especially in our
technology rich and information based society. How we treat all of this
information is where CRM plays a key role.
CRM acts as a central repository of information on your clients and potential
clients. Customer relationship management software hones in on the
relationship. As in many publications of late on one to one marketing,
cyclical selling and counselor selling the mainstay is the relationship and
how we recognize it. A customer-centric strategy is created with the
intention of increasing both your customer satisfaction, and customer
loyalty.
Customer Relationship Management focuses on acquiring, developing and
creating satisfied loyal customer; achieving profitable growth; and creating
economic value in companys brand.
Customer Relationship Management strives to improve the customers
experience of how they interact with the company and produce high
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customer satisfaction level .the more loyal customer, the higher are the
customer satisfaction level.
Recently CRM has taken a center stage in the business world with
businesses concentrating on saving money and increasing profits by
redefining internal processes and procedures.

It costs a company

dramatically less to retain and grow an existing client, than it does to court
new ones. It is said that It is seven times more expensive to acquire a new
customer than to keep an existing one, therefore the value of customer
information and management should never be underestimated

Customer satisfaction level comprises of three drives

Value equity

Brand equity

Relationship equity

Product price

Product Quality

Technical service

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COMPANY PROFILE
ICICI Bank

The World Bank, the Government of India and the Indian Industry, to
promote industrial development of India by providing project and corporate
finance to Indian industry, established ICICI LTD., in 1955.
ICICI Bank is India's second-largest bank with total assets of Rs.
3,634.00 billion (US$ 81 billion) at 31st March, 2010 and profit after tax Rs.
40.25 billion (US$ 896 million) for the year ended 31st March, 2010. The
Bank has a network of 2016 branches and about 5219 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management. The Bank currently has subsidiaries
in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China,
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South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK

subsidiary has established branches in Belgium and Germany. ICICI Bank's
equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
Prudential Policy (formerly known as Prudential Corporation policy)

Prudential policy is an international financial services group with significant

operations in Asia, the US and the UK. They serve approximately, 25
million customers and have 290 billion in assets under management.
They are among the leading capitalized insurers in the world with an
Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion
(as at 31 December 2009).

The Group is structured around four main business units:

Prudential Corporation Asia (PCA)

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PCA is a leading life insurer in Asia with presence in 12 markets and

a top three position in seven key locations: Hong Kong, India, Indonesia,
Malaysia, Philippines, Singapore, and Vietnam. PCA provides a
comprehensive range of savings, protection and investment products that are
specifically designed to meet the needs of customers in each of its local
markets. PCAs asset management business in Asia has retail operations in
10 markets and it independently manages assets on behalf of a wide range of
retail and institutional investors across the region.
Jackson National Life Insurance Company
Jackson is one of the largest life insurance companies in the US,
providing retirement savings and income solutions to more than 2.8 million
customers. It is also one of the top five providers of variable and fixed index
annuities in the US. Founded nearly 50 years ago, Jackson has a long and
successful record of providing effective retirement solutions for their clients

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Prudential UK & Europe

(PUE is a leading life and pensions provider to approximately 7
million customers in the UK.It has a number of major competitive
advantages

including

significant

longevity

experience,

multi-asset

investment capabilities, a strong investment track record, a highly respected

brand and financial strength. PUE continues to focus on its core strengths
including its annuities, pensions and investment products where it can
maximize the advantage it has in offering with-profits and other multi-asset
investment funds.

THE JOINT VENTURE

ICICI Prudential Life Insurance Company Limited was incorporated

on July 20, 2000. The authorized capital of the company is Rs.2300 Million.
The paid up capital is Rs. 1900 Million. The Company is a joint venture of
ICICI (74%) and prudential plc UK (26%).
History:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was its wholly owned subsidiary. ICICIs
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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 Banks acquisition of Bank of Madura
Limited in an all stock amalgamation in fiscal 2001. And secondary
market sale by ICICI to institutional investors in fiscal 2001 and fiscal 2002.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry.
Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on
trust by world-class people and service. This we hope to achieve by:
Understanding the needs of customersand offering them superior
products and service.
Leveraging technologyto service customers quickly, efficiently and
conveniently.
Developing and implementing superior risk management and
investment strategiesto offer sustainable and stable returns to our
policyholders.
Providing an enabling environment to foster growth and learning for
our employees.

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MISSION:
Understanding the needs of customers and offering them superior
products and service.
Building long lasting relationships with their partners.
Providing an enabling environment to foster growth and learning for
their employees
Objective:
The principal objective was to create a development financial
institution for providing medium-term and ling term project financing to
Indian businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank.
In the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified financial
services group offering a wide variety of products and services, both directly
and through a number of subsidiaries and affiliates like ICICI Bank. In 1999,

17

ICICI become the first Indian company and the first bank or financial
institution from non Japan Asia to be listed o the NYSE.
Structure:
After consideration of various corporate structuring alternatives in the
context go the emerging competitive scenario in the Indian banking industry,
and the move towards universal banking, the managements of ICICI and
ICICI formed the view that the merger of ICICI Bank would be the optimal
strategic alternative for the both entities, and would create the optimal legal
structure for the ICICI Groups universal banking strategy. The merger would
enhance value for ICICI shareholders through the merged entity access to
low-cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments systems and provide transaction
banking service. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations , scam less
access to ICICI s strong corporate relationship built up over five decades,
entry into view business segments, higher market share in various business
segments, particularly fee-based service, and access to the vast talent pool of
ICICI and its subsidiaries.

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Awards and Recognition:

ICICI Prudential AMC has constantly been on the forefront of innovation
and has introduced products aligned to meet customer needs leading to a
well-diversified product portfolio. As acknowledgment of our efforts, we
have received valued recognition from various organizations of international
repute. Some of the prominent awards and recognition are:
Bloomberg UTV Financial Leadership Awards 2011:
ICICI Prudential AMC received the coveted UTV Bloomberg
Financial Leadership Award 2011 for Best Contribution in
Investor Education & Category Enhancement of the Year in the
mutual fund category.Mr. Nimesh Shah, Managing Director, ICICI
Prudential AMC received this prestigious accolade from Honorable
Ex. Finance Minister, Sri Pranab Mukherjee.
Morning Star Mutual Fund Awards 2011:
India Debt Fund House Award 2011
Business World Mutual Fund Awards 2010:
ICICI

Prudential

Discovery

Fund

adjudged

Leader (Based on past 3-year SIP performance)

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Emerging

 ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity

Fund Mid and Small Cap for the year 2010
Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI
Prudential Discovery Fund) for the year 2010
Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI
Prudential Discovery Fund ) for the year 2010
NDTV Profit Mutual Fund Awards 2010:
ICICI Prudential Discovery Fund - Category Emerging
Leader (Based on past 3-year SIP performance)
Lipper Fund Awards 2010 India:
ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years
(Mixed Asset INR flexible)

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Management
Ms.Chanda Kochhar- Managing Director & Chief Executive Officer

Chanda Kochhar joined ICICI Prudential AMC as its Managing Director in

July 2007.
Nimesh has completed his Chartered Accountancy. Prior to joining ICICI
Prudential AMC, She was Senior General Manager at ICICI Bank and has
over 18 years experience in banking and financial services. At ICICI Group,
he has handled many responsibilities including project finance, corporate
banking and international banking.
She was associated with one of the first batches of senior managers selected
to lead the foray of ICICI Bank into the international arena. He led ICICI
Banks foray into the Middle-Eastern region and Africa.

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Mr. B Ramakrishna - Executive Vice President

Mr. Raghav Iyengar - National Head Sales and distribution
Mr. Homi Khusrokhan - Head - Information Technology
Mr. Hemant Agarwal - Head - Operations
Mr. Ashish Kakkar - Head - Human Resources
Mr. Aashish Somaiyaa - Head Retail Business

Fund Management
Mr. S. Naren - Chief Investment Officer - Equity
Mr. Chaitanya Pande - Head Fixed Income
Board of Directors: Asset Management Company
Ms. Chanda Kochhar - Chairperson
Mr. Barry Stowe
Mr. Suresh Kumar
Mr. Vijay Thacker
Mr. Dileep C. Choksi
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Mr. N.S. Kannan

Mr. Nimesh Shah
Mr. C. R. Muralidharan
Directors of the Trustee Company
Mr. M. S. Parthasarthy
Mr. M. N. Gopinath
Mr. Keki Bomi Dadiseth
Mr. Vinod Dhall
The International Advisory Business Division of ICICI Prudential Asset
Management Company Ltd. advises offshore funds in jurisdictions
spanning Japan, Middle East, Taiwan & Singapore.
As on 30th June, 2010, we are advising a cumulative asset size of close to $2
Billion spanning Equity, Debt & Real Estate. Through the onshore presence
and legacy of our parent company in India, we present the following benefits
to offshore investors:
Excellent Onshore Investment Insights and Information.
Extensive on the ground research capabilities.

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 Deep knowledge of the reputation, vision and execution capabilities of

promoter-run companies.
An innate understanding of governance structures of corporate
entities.
As one of the largest Asset Management Companies in India, we have
had a successful track record in serving domestic clients across the
Institutional and Retail Investor space. We are very confident in our ability
to enable International Investors to participate in the long-standing India
growth story and generate alpha over a medium to long term horizon.
Their presence all over India is with 2100 branches including 1,116
micro-offices, over 290,000 advisors and 18 banc assurance partners. They
were also the first lifeinsurancecompany to receive the National Insurer
Financial Strength rating from Fitch ratings. It does not stop here they were
also rated thrice in a row by The Economic Times AC Nielson ORG
survey of Most Trusted Brand' as the Most Trusted Private Life Insurer.

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, one of the foremost financial services companies of India and
Prudential policy, one of the leading international financial services group

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headquartered in the United Kingdom. ICICI Prudential was amongst the

first private sector life insurance companies to begin operations in December
2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September
30, 2010) with ICICI Bank and Prudential policy holding 74% and 26%
stake respectively. For the period April 1, 2010 to September 30, 2010, the
company garnered Rs 7,267 crores of total premiums and has underwritten
over 10 million policies since inception. The company has a network of over
1,500 offices and over 1, 60,000 advisors, as on September 30, 2010. The
company has assets held over Rs. 65,000 crores as on September 30, 2010.
For the past nine years, ICICI Prudential Life has maintained a wide range
of Life Insurance products that meet the needs of the Indian customer at
every step in life.
ICICI Prudential Life recently completed 10 years on the Indian Insurance
scope on 12th December 2010.
ICICI Bank is Indias second largest bank with total assets of about
ram esRs.1, 676.59 billion (US$ 38.5 billion) at March 31, 2005 and profit

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after tax of Rs. 20.05 billion (US$ 461 million) for the year ended March
31,2005 (Rs. 16.37 billion(US $376 million)in fiscal 2004).
ICICI Bank has a network of about 573 branches and extension counters and
over 2,000 ATMs. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in
the asset management.
ICICI bank set up its international banking group in fiscal 2002 to cater to
the cross border needs of clients and leverage on its domestic banking
strengths to offer products internationally. ICICI bank currently has
subsidiaries in the United Kingdom, Canada and Russia, branches in
Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
ICICI Banks equity shares are listed in India on the Bombay Stock
Exchange and the National Stock Exchange of India Limited and it
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).

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ICICI Bank at the present scenario:

India has never had it good before booming economy reflects in the rise of
SENSEX past the 10,000 mark, projections of an 8-plus percent GDP
growth, the revival of manufacturing and rising foreign investments have
delivered growth in the banking sector.
During the recent survey conducted by the KPMG with respect to the Indias
top banks, ICICI bank holds its slot in the list of top banks.

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LITERATURE AND REVIEW

Customer Relationship Management Group Project

CRM IN BANKING : A CASE STUDY OF ICICI BANK

Globally, regulation and technological improvements are responsible for the

vast majority of innovations in banking over the past quarter century. The
introduction of personal computers and the proliferation of ATMs in the
1970s captured the bank managements attention. The regulatory changes in
the 1980s fuelled much of the industrys growth, which was followed by
downsizing as bankers focused on creating a market presence which resulted
in significant merger activity. Recent technological improvements are at the
root of the bankers focus as well as a target for their significant investment
today. In fact, according to recent projections, bankers and their financial
service company brethren will spend almost $ 7 billion this year on CRM
and increase that by 14 per cent each year for the next several years.

Why CRM? The Changing Environment

The environment within which financial institutions operate has changed in

recent years. It is now one of:

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 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.

CRM Strategy

Customers are the lifeblood of the business and the way in which a bank can
protect and increase its customer base and ultimately its profitability is to
build strong customer relationships through the delivery of superior quality
service and to meet customer needs better than the competitors. The CRM
approach focuses on maximizing value for the customer and the bank.

Research has shown that the key drivers of customer loyalty are:
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 Positive staff attitude

Honesty, integrity and reliability
Proactive advice and deliver of promise
Consistent delivery of superior quality service
Simplicity and ease of doing business
Good after-sales service
A fair effective complaints resolution policy.

Focus on ICICI Banks Initiatives

The use of CRM in banking has gained importance with the aggressive
strategies for customer acquisition and retention being employed by banks in
todays competitive milieu. This has resulted in the adoption of various
CRM initiatives by these banks to enable them achieve their objectives.

The steps that banks follow in implementing CRM are:

Identifying CRM initiatives with reference to the objectives to be

attained (such as increased number of customers, enhanced percustomer profitability, etc.),
Setting measurable targets for each initiative in terms of growth in
profits, number of customers, etc. and
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 Evaluating and choosing the appropriate CRM package that will help
the company achieve its CRM goals (a comparison of pay-offs against
investments could be carried out during the evaluation exercise).

CRM has been deployed in retail banking. The challenges in managing

customer relations in retail banking are due to the multiple products being
offered and the diverse channels being used for the distribution of the
products. Customer expectation from banks can be summed up as:

Any time anywhere service, personalized offers, and lower payouts.

Aggressive marketing and promotions on the part of the banks have resulted
in most customers happily switching loyalties to enjoy better privileges,
thereby making the task of retaining them more difficult for the banks.

The use of CRM in banking 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
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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

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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 co-ordination. 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 centres, Internet
banking and mobile banking. Its customers often use multiple channels, and
33

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 Behaviour 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.

The Benefits of CRM

34

 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 guide 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.
35

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 Lucknow,

Chandigarh and various places in Kerala during specified timings.

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 Lucknows 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
36

`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

37

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 and Sify).
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.

38

Social Events

ICICI Bank organized the largest domestic invitational amateur golf event
for HN1 (high-net-worth individuals) customers.

This nation-wide golf

tournament had over one lakh high-net-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
Case Questions
1.

Explain the initiatives take by ICICI Bank to promote CRM.

39

2.

Discuss the benefits of the initiatives taken by ICICI Bank to promote

CRM.
3.

What should be the core elements of CRM that ICICI bank in your
opinion should follow, besides what they are already following to
make themselves a distinct bank from their competitors

4.

Outsourcing CRM is one activity that most organizations follow. Is it

a viable option. Give your views keeping in mind the cost involved in
implementing CRM and enhancing business also.

CRM (Customer Relationship Management) is something that is not

restricted to any country or culture. Wherever customers are there, business
cannot afford to keep them unhappy; and that is where CRM comes in as a
strong requirement.
In India, the trend is positive. When compared to about twenty years ago
, people have more choice and every company knows it cant take customer
for granted .May be the movement is slow ,but we see a steady progress
towards an increased focus on the customer rather than merely on the
products and price .
Todays era is of service because customers are ultimate base line for any
business to sustain in this competitive world
For example: Banks started providing gold, silver cards to its valued
customer, depending on their needs the customer get faster services.

40

The concept of CRM is relatively simple and familiar to insurers. The

two points of the concept are:
Understand your customers' unique requirements.
Offer them the services and products over their lifetime that
will maintain or increase their profitability and retain them as
your customers.

These are the some supporting strategies that implement these

concepts to yield significantly greater results and a true competitive
advantage.
These supporting strategies generally fall into three groupings:
analytical, marketing and operational. The analytical path focuses on mining
the data you have on your existing customers, and marrying that data with
external data when possible to develop a scoring index. This index can then
be reliably applied to individual customers to indicate their level of
profitability, tendency to remain a customer, and propensity to acquire other
products and services.
The current trends in corm followed by customer relation companies
While the CRM market in India is still nascent, bigger players such as
ICICI Prudential Life Customer relation Company are adopting it in a big
way. The company was earlier using Gold Mines (a sales and marketing
tool) and HEAT (an operational CRM solution) from Front Range Solutions.
Last year it took a decision to invest in CM3 from Tera data and SASs
41

statistical tool for BI. Anil Tikoo, head-IT at ICICI Prudential Life Customer
relation Company says, As a forward looking company, we see CRM
playing a significant role in acquiring new customers. CRM lets us obtain
granular details about our customers, helping us to design better products,
improve service levels and reduce operational costs. CRM has helped ICICI
Prudential Life capture five lack customers through effective event-based
marketing and lead tracking to cross- and up-sell

Customer Relationship Management focuses on acquiring, developing

and creating satisfied loyal customer; achieving profitable growth; and
creating economic value in companys brand.
Customer Relationship Management strives to improve the customers
experience of how they interact with the company and produce high
customer equity .the more loyal customer, the higher are the customer
equity.
Recently CRM has taken a center stage in the business world with
businesses concentrating on saving money and increasing profits by
redefining internal processes and procedures.

It costs a company

dramatically less to retain and grow an existing client, than it does to court
new ones. It is said that It is seven times more expensive to acquire a new
customer than to keep an existing one, therefore the value of customer
information and management should never be underestimated
Customer Relationship Management (CRM) has become one of the most
dynamic technology topics of the millennium. According to Chen and
42

Popovich (2003), CRM is not a concept that is really new but rather due to
current development and advances in information and enterprise software
technology, it has assumed practical importance.The root of CRM is
relationship marketing, which has the objective of improving the long-term
profitability of customers by moving away from product-centric marketing.
Bose (2002) noted that CRM was invented because the customers differ in
their preferences and purchasing habits . If all customers were alike, there
will be little need for CRM. As a result, understanding customer drivers and
customer profitability, firms can better tailor their offerings to maximize the
overall value of their customer portfolio (Chen and Popovich) . The
attention CRM is currently receiving across businesses is due to the fact that
the marketing environment of today is highly saturated and more
competitive (Chou et al, 2002) . According to Greenberg (2004), CRM
generally is an enterprise-focused endeavor encompassing all departments in
a business . He further explains that, in addition to customer service, CRM
would also include, manufacturing, product testing, assembling as well as
purchasing, and billing, and human resource, marketing, sales and
engineering. Chen and Popovich (2003) argued that CRM is a complicated
application which mines customer data, which has been retrieved from all
the touch points of the customer, which then creates and enable the
organization to have complete view of the customers. The result is that firms
are able to uncover and determine the right type of customers and predicting
trend of their future purchases. CRM is also defined as an all embracing
approach that seamlessly integrates sales, customer service, marketing, field
support and other functions that touch customers (Chou et al, 2002) . They
further stated that CRM is a notion regarding how an organization can keep
43

their most profitable customers and at the same time reduce cost, increase in
values of interaction which then leads to high profits.
The modern customer relationship management concept was shaped and
influenced by the theories of total quality management (Gummesson) and by
new technological paradigms (Zineldin, 2000). There is however, a
perceived lack of clarity in the definition of customer relationship
management, although all accepted definitions are sharing approximately the
same basic concepts: customer relationships, customer management,
marketing strategy, customer retention, personalization (Zineldin 2000).
However, while academics debate the subtitles of various definitions, the
practitioners have developed a wealth of applicative papers analyzing the
concrete challenges and opportunities of implementing the systems
(Bacuvier et al. 2001). CRM in some firms is considered as a technology
solution, considering of individual databases and sales force automation
tools and sales and marketing functions so as to improve targeting effort.
Peppers and Rogers (1999) argued that other organizations view CRM as a
tool, which has been particularly designed for one-to-one customer
communications, which is the function of sales, call centres or the marketing
departments. Accordingly Frow and Payne (2004) added that CRM stresses
two-way communication from the customer to the supplier to build the
customer over time. The two-way communication has been enhanced greatly
by advances in technology particularly the Internet.
In term of information technology (IT), CRM means an enterprise wide
integration of technologies working together such as data warehouse, web
site, and intranet/extranet, phone support system, accounting, sales,
44

marketing and production. Kotler (2000) assured that CRM uses IT to gather
data, which can then be used to develop information acquired to create a
more personal interaction with the customer. In the long-term, it produces a
method of continuous analysis and reinforcement in order to enhance
customers lifetime value with firms.
Goldenberg (2000) believes that CRM is not merely technology applications
for marketing, sales and services but rather when it is successfully
implemented ; it enables firms to have cross-functional , customer-driven ,
technology-integrated business process management strategy that maximses
relationships. Chin et al (2003) stated that that due to many technological
solutions available for CRM automation, it is often misconstrued as a piece
of technology. But they maintained that in recent times many companies
have realized the strategic importance of CRM, and as a result, it is
becoming a business value-effort rather than technology- centric effort.
Customer satisfaction level compromises of three drives

Value equity

Brand equity

Relationship equity

CRM (Customer Relationship Management) is something that is not

restricted to any country or culture. Wherever customers are there, business
cannot afford to keep them unhappy; and that is where CRM comes in as a
strong requirement.

45

Business drivers for CRM

Margins are under pressure: A couple of years ago, ICICI BANK dominated
the Chemicals market with the help of its sales force and channels and
margins were reasonably high. Today, there are close to so many companies
offering Chemical products. All of them have equally strong international
and local partners; all are focusing upon similar geographies and target
customers.
Company have added a variety of products and services to their
customers.
Where to beginoperational CRM or analytical CRM?
The choice between operational and analytical CRM as a starting point
depends upon the customerss needs. Gartner says that ICICI BANK
companies with multiple chemical products and a big customer base, such as
integrated products solution providers, will leverage their customer base to
cross- and up-sell different products, including customer needs. Such
providers will benefit from adopting analytical CRM. Market segmentation,
campaign management and data mining applications will benefit them in
many ways.
Customer relationship management (CRM) is a model for managing a
companys interactions with current and future customers. It involves using
technology

to

organize,

automate,

synchronizesales, marketing, customer service, and technical support

46

and

CUSTOMER ORIENTATION

Constructive criticism helps marketers adapt offerings to meet changing

customer needs.
A firm in the market economy survives by producing goodsthat persons are
willing and able to buy. Consequently, ascertaining consumer demand is
vital for a firm's future viability and even existence as a going concern.
Many companies today have a customer focus (or market orientation). This
implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven
approach, the market change identification approach and the product
innovation approach
In the consumer-driven approach, consumer wants are the drivers of all
strategic marketing decisions. No strategy is pursued until it passes the test
47

of consumer research. Every aspect of a market offering, including the

nature of the product itself, is driven by the needs of potential consumers.
The starting point is always the consumer. The rationale for this approach is
that there is no reason to spend R&D (research and development) funds
developing products that people will not buy. History attests to many
products that were commercial failures in spite of being technological
breakthroughs.

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, reprising, discretionary decision making, and customized serviceall delivered through the various sales channels that the bank uses. Under
48

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.
Different Banks are at different levels of CRM adoption and implementation
and majority of them can be considered to be at preliminary stages.
Operational CRM is the most wide spread, but collaborative CRM is most
evident in internet banking, mobile banking, ATM functions, POS devices
and initiatives like availability of pass book printing machines to enable
customers to update their passbooks themselves. Also SMS alerts at various
significant customer service events are proliferating.

49

OBJECTIVES OF THE STUDY

To know the concept of CRM.

To study & monitor the working styles, structure, economic objectives
of public and private sector banks.
To analyze the level of customer centric from both customer and
employee point of view.
To find out customer account management in banks.
50

 Identification of barriers to successful implementation of CRM.

Assessments of customer loyalty towards banks.

RESEARCH METHODOLOGY

51

The research methodology in this project was divided into two phases:
PHASE I
To study of CRM processes at ICICIBANK.
TECHNIQUE USED:
Interview method was focused.
PHASE II
To study the perception and satisfaction of customers regarding CRM at the
ICICIBANK.
TECHNIQUE USED:
Structured Questionnaire was devised to know the responses of people.
SAMPLING TECHNIQUE USED:
The technique of Random Sampling has been used in the analysis of the
data.
SAMPLE SIZE: Sample size of 100 questionnaires was taken.
DATA COLLECTION:
Primary Data
The main source was the questionnaire which was designed to know
the customer

responses.

Secondary Data

52

Secondary data is collected from previous researches and reports to

fill in the respective summer internship report. The secondary data
was collected through

Websites

Books

STATISTICAL TOOLS USED:

The main statistical tool used for the collection and analyses of data in this
term paper are:
Pie Chart

53

MEANING AND DEFINITION OF CUSTOMER

RELATIONSHIP MANAGEMENT

The CRM (customer relationship management) is an integrated effort to

strengthen the network of relationship for the mutual benefit of both the
parties. The biggest management challenge in the new millennium of
liberalization and globalization for a business is to maintain good
relationship with the king the customer.
Its ultimate objective is towards Personalized handling of customers as
distinct entities through the identification and understanding of their
differentiated needs, preferences and behaviors.
54

This study is of great significance because:

A 5% increase in the customer retention will increase the profit up to
125%.
It costs seven times more to attract a new customer than to serve an
old one.
20% of the companys loyal customers account for the 80% of its
revenues.
.In the words of Lekha CRM aims at delivering better products and value to
the customers through better understanding of his needs.
According to Shani and Chalarani Customer Relationship Management
marketing can be defined as an integrated effort to identify, maintain and
build up a network with the individual customers and to continuously
strengthen the network for the mutual benefit of both parties, through
interactive, individualized and value added contracts over a long period of
time.

OBJECTIVES OF CUSTOMER RELATIONSHIP

MANAGEMENT

CRM, the technology, along with human resources of the banks, enables the
banks to analyze the behavior of customers and their value.

In CRM projects, following data should be collected to run process

engine:

55

1) Responses to campaigns,
2) Shipping and fulfillment dates,
3) Sales and purchase data,
4) Account information,
5) Web registration data,
6) Service and support records,
7) Demographic data,
8) Web sales data.
3.4 CRM STRATEGIES

Customer Behavior Patterns

For example, in the financial sector, early beneficiaries of successful
CRM strategies have been the banks. These organizations use data
warehousing and data mining technologies to learn from the millions of
transactions and interactions with their customers, and to anticipate their
needs. The patterns of customer behavior and attitude derived from this
information enable the banks to effectively segment customers on predetermined criteria.
Detailed customer data can provide answers to the following questions:
Which communication channel do they prefer?
What would be the risk of leaving the bank to go to the competition?
56

What is the probability the customer will buy a service or product?

This knowledge assists financial institutions with CRM solutions in

place to develop marketing programs that respond to each customer
segment, support cross-selling and customer retention programs and enables
the staff to understand how to maximize the value of each customers
interaction.
CRM applications provide functionality to enhance customer
interactions. Banks known for its high level of customer service might use
this characteristic as a starting point for implementing a CRM application.
Another company may be very good at targeting profitable customers. Each
bank should seek a niche on which to develop its CRM strategy.

57

CRM IN BANKING SECTOR

According to a RBI statement, in future India will have a competitive

banking market as one of the most attractive market after 2009. India will
see foreign banks come in, what with more freedom to come in. grow and
acquire. Therefore, it is imperative that Indian banks wake up to this reality'
and re-focus on their core asset - the Customer. A greater focus on Customer
Relationship Management (CRM) is the only way the banking ndustry 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 organization's strategy, people, technology and
business process.

58

CUSTOMER FOCUS IN BANKING SERVICES

As the intense competition becomes a way of doing business, it is the
customer who calls the shot in deciding the nature of products and services
offered in the market. The customers are becoming demanding, dominant
and selective. In fact the perceptions and the expectations of the customers
have undergone a sea change, with the availability of banking services to the
customers at their door steps through the help of technology. Marketing of
customer services aims at two important goals: prosperity to the bank and
satisfied customers. Banks offer tangible services like loan schemes, interest
rates and kinds of account and the intangible services like behavior and
efficiency of staff, speed of transactions and the ambience. The banks may
need to include customer oriented approach or customer focus in their five
areas of businesses such as Cash accessibility, asset security, money transfer,
deferred payment and financial advices.
There are four strategies available to customer relations' managers:
To win back or save customers
To attract new and potential customers
To create loyalty among existing customers and
To up sell or offer cross services.

The future of banking business very much depends upon the ability of the
banks to develop close relationship with the customers. In order to develop
close relationship with the customers the banking industry has to focus on
the technology oriented innovations that offer convenience to the customers.
Today customers are offered ATM services, access to internet banking and

59

phone banking facilities and credit cards. These have elevated banking
beyond the barriers of time and space.

CRM STRATEGY:

In any organization CRM strategy is a wide-ranging and detailed definition

of the scope of' the CRM programmed towards organizational goals. "The
strategy is needed to keep businesses customer centric and to help the
company constantly evolve internal processes and technology to acquire and
retain customers. CRM is fundamentally a strategy aligned with the
superseding corporate strategy. It tries to attempts to optimize a firm's
profitability, revenue and customer satisfaction by focusing on a customer
centric process. The idea of CRM is that it helps businesses use technology
and human resources to gain insight into the behavior of customers and
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 organization's 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

60

existing customers and creating additional services that extend existing

customer relationships beyond transactions the value of those customers.
Implementing CRM strategies, firms can achieve many goals such as:
Plummeting costs of sales
Plummeting costs of acquiring new customers
Enhanced customer satisfaction and profitability
Decreasing the need to acquire so many new customers
Calculate profitability of customers
Higher customer retention rates

With an effective CRM strategy, a business can increase revenues by:

providing services and products that are exactly what your customers
want
offering better customer service
cross selling products more effectively
helping sales staff close deals faster
retaining existing customers and discovering new ones

61

RESEARCH METHODOLOGY

The research based will be Descriptive Research.

Type of data
1.Primary data
2.Secondary data
Primary data
The primary or the first hand data will be collected with the help of handing
out the questionnaire to the customers &employees.
Secondary data
The major source of secondary or supporting data will be internet .
Using this data measurement technique, information was collected by
personal interviews.
Secondary data was collected through company websites, discussions with
company guide.
The collected data was processed through S.P.S.S. Package.

62

Research Design
Research Design

was originally constituted as primarily research into the

process of design, developing from work in design methods, but the concept
has been expanded to include research embedded within the process of
design, including work concerned with the context of designing and
research-based design practice. The concept retains a sense of generality,
aimed at understanding and improving design processes and practices quite
broadly, rather than developing domain-specific knowledge within any
professional field of design.

Exploratory research designs: are the simplest, most flexible and most
loosely structured designs. As the name suggests, the basic objective of the
study is to explore and obtain clarity on the problem situation.
Descriptive research designs: are more structured and formal in nature. As
the name implies the objective of these studies is to provide a
comprehensive and detailed explanation of the phenomena under study.
Sampling designs:The research was mainly opted on customers survey, advisers survey as
well as sales officers survey.

63

The sample selected for survey was stratified sample. Sample size is
50 Customers, 10 Sales officers and 50 advisers.

Sample Character
Respondents are sales officers, and existing customers of ICICI BANK
customer relation and the advisers.
Sampling Plan
For Customers
Sampling unit

: Individuals.

Sampling Method : Non Probability, Convenience Sampling.

Sampling Size

: 50 Customers.

For sales officers

Sampling unit

: 10 Sales officers

For Advisers
Sampling unit

: Advisors .

Sampling Method : Non Probability, Convenience Sampling

Sampling Size

: 50 Advisers

Sampling Plan

: Questionnaires.
64

Sample Area

: LUCKNOW

Tools and Technique of Data Collection

Personal Interviews
Where customers, sales officers and advisers were interviewed
personally that face to face interaction were done.

Questionnaire:
It is a systematic designed questionnaire is used for collecting primary
data. These data are used for further descriptive research.

65

PRESENTATION OF DATA

ANALYSIS OF PHASE I

Q1.How many ATMs does ICICIBank has?

A1. ICICIBank has a total of 6460 ATMs.
Q2.Do you have any system of making customers aware of the crowd?
A2.Yes we have a token service where in the customers are provided with
the token and they are welcomed one after the other as per their number.
Q3.Does the bank has a facility of internet and phone banking?
A3.Yes, we provide our customers the facility of both internet and phone
banking.
Q4.Do you have any intermediaries to open bank account?
A4.As intermediaries we have business correspondents to get a bank account
open ..
Q5.How do you manage customer waiting system?
A5.To manage customer waiting time we have a television, journals and
magazines available at our branch that can keep them occupied.
Q6.When demand is much in the bank then is it kept on contractual basis?
A6.No, there is no system of outsourcing.
66

Q7. Is there a provision of multi skilling of employees?

A7. Yes there is a provision of multiskilling where employees during
training are trained and made familiar with a range of products and services
rather than just one particular field. This leads to get customer queries and
administrative process completed quicker.
Q8.Is there a system of overtime incentive provisions?
A8.No, there are no overtime incentives only drivers that are provided to
senior managers are paid for overtime incentives.

MANAGING CUSTOMER COMPLAINTS

Q9.How do you manage customer complaints?

A9.There is a Complaint Redressal System in order to manage customer
complaints.
Q10. Is there any particular person to see complaints? Is there any status of
telling it to the customers?
A10.Yes, there is both manual and computerized system of registering
complaints and the customers are regularly reported through mails and
messages about the current status of actions being taken on their complaints.
Apart from this letters with an apology are also sent to the respective
customers at their address to ensure that they are completely informed .

67

Q11.Does the meetings are held regularly in order to sort out the complaints
by the customers?
A11.Yes there is a Customer Service Committee meeting held once in a
month.
Q12.By what all ways does the bank invite the suggestions to the customer?
A12.There is a suggestion box available at every branch of ICICIBank.
Apart from this there is an online facility also available where banks may
drop their suggestions on the official website of ICICIBank.

68

CUSTOMER RETENTION

Q13.If a customer closes his account because of poor services , then do you
try to retain the customers?
A13.Yes, their reasons are first heard and then they are ensured by the
branch managers that from next time they would be provided with better
services.
Q14. Is branch manager answerable for closure of accounts by the
customers?
A14.Yes the branch managers are answerable to the higher authority.
Q15.Is there any special service or discounts available for customers?
A15. Yes , there are various schemes introduced to the customers on the
basis of their savings.

69

CUSTOMER SEGMENTATION

Q16. Is customer segmentation done in ICICIBank?

A16.Yes
Q17.How do you maintain relationship pricing with the customers?
A17. In order to maintain relationship pricing old customers who have good
conduct of account are provided with various incentives according to
different schemes.

CUSTOMIZATION

Q18.How is database management done?

A18.Due to Core Banking System (CBS) we have a centralized database
management.
Q19.How is customer profiling done?
A19.Customer Profiling is basically KYC (Know Your Customer) where we
take the ID Proof and Address Proof of all our customers.
Q20.Are the customers wished on their anniversaries or birthdays?
A20.Yes, to wish the customers their anniversary or birthday dates are taken
and they are wished through emails or SMS

70

Q21.What data does the bank take from a customer that helps the bank in
advising customers and distributing products like loan?
A21.We generally advise those customers who have a good conduct of
account in our bank. Apart from this their salary and the past records (if they
had taken loan earlier and cleared it as per the date of maturity) are also
taken into consideration.

71

DATA INTERPRETATION THROUGH PIE CHARTS

ANALYSIS OF PHASE II
ANALYSIS OF THEQUESTIONNAIRE
Sample size of 100 questionnaires was taken out of which 85
respondents turned up and 15 were left unfilled.
Out of 85 respondents 39 were females and 46 were males.
Ambience being one of the important factor in an organization 35%
strongly agree to it whereas 4 % do not consider to be important.

Ambience
not at all important
4%
very
important
13%

quite important
35%

slightly
important
13%

fairly important
35%

Majority of respondent said that up-to-date equipments are

important for the organization.

72

Up to Date Equipments

very important
58%

quite important
42%

According to 39% of respondents materials and information should be

visually appealing whereas none of them thought it to be a very
important or not at all important

Visually Appealing Information

slightly
important
21%

quiet
important
39%

fairly
important
40%

100% respondents said that banks should have appropriate number of

counters to deal them.

73

 According to more than 50% respondents convenient location is very

important.

Convenient Location for Customers

slightly important
1%

fairly important
6%

quiet important
40%

very important
53%

More than 50% of customers said that enough parking space should
be available for parking as it is an important factor.

Enough Parking Space

very important
24%

fairly important
23%

quiet important
53%

74

 Majority of respondents agreed that bank employees should be well

dressed and appear neat

Neat and Well Dressed Employees

very important
slightly important
2%
8%

quiet important
51%

fairly important
39%

100% respondents said it to be very important that when bank

promises to do something by a certain time they should do so.
100% respondents said it to be very important that banks should keep
them informed about when the services will be performed.
100% respondents marked it to be very important that the employees
of bank should deliver prompt services.
100% respondents said that it is very important that the employees of
the bank should always be ready to help them and to respond to their
request promptly.
More than the average of employees stated that the trust on employees
of the bank is very important.
75

Trust on Employees
fairly important
3%

quiet important
44%

very important
53%

A huge percentage of employees agreed that it is very important for

the employees to stay polite to their customers.

76

Employees to be Polite
quite
important
14%

very important
86%

82% of employees agreed that it is very important that employees of

the bank should listen to their questions and problem with patience.

Patience in Employees

quiet important
18%

very important
82%

41% of respondents stated that to them individual attention by the

employees is a very important factor whereas none of them denied it
to be an unimportant factor.
77

Individual Attention to Customers

fairly important
4%

very important
41%
quiet important
55%

Majority of respondents stated that it is important for the banks to

have knowledgeable staff.

Knowledgeable Staff
quiet
important
18%
very important
82%

100% respondents said that banks should have their best interest at
heart
78

 100% respondents said that employees of bank should know the

needs of their customers and should not waste their time with using
apt technology , efficient workforce and avoid duplication.
According to 100% respondent bank statement delivered by bank
statements and records should be accurate and error free transactions
and records should be insisted upon.
According to 41% respondents bank should have convenient opening
hours while nobody disagreed to it.

Convenient Opening Hours

fairly important
6%

very important
41%
quiet important
53%

100% respondents strongly agreed on the importance of information

on any kind of change in the policy.

79

 Majority of respondents stated that they keep interest in knowing all

the information about new products while nobody considered to be
unimportant.

Information About New Products

very important
16%
fairly important
42%
quiet important
42%

100% respondents said that it is very important that banks satisfy their
needs and wants.
100% respondents agreed that bank should be sympathetic and
reassuring when they have problems and should make an effort to
correct the mistakes.

80

 15% respondents agreed while 85% disagreed when they were asked
about if they had ever filed a complaint in the bank in any form.

Have you Ever Filed a Complaint

yes
15%

no
85%

100% respondents said that the procedure to file a complaint in banks

should be easy and hassle free and after the complaint is filed bank
should ensure timely redressaland updated status of their complaint.
Majority of respondents focused on the importance of 24 hour access
to safe and secured internet banking services.
100% respondents said that the services provided to them should be
easily accessed through phone.
More than average of respondents in various percentage strongly
agreed that banks should encourage electronic services.

81

Encouragement of Electronic Services by

Bank
slightly
important
7%
fairly important
12%

very
important
26%

quiet important
55%

49% respondents recommended Bank of India to others while 51%

did not.

Have You Recommended PNB to Others

yes
49%

no
51%

100% respondents disagreed when they were asked if they had ever
badmouthed about their bank in any form and agreed to stay with their
bank .
At some places the questionnaire is left blank due to lack of awareness
in the field of technological services.
82

FINDINGS

It can be observed from the above study that perspective of customers

with respect to bank has drastically changed.
Customers today are more demanding and have a technological
outlook . Security in transactions and time saving techniques are their
major preferences.
Apart from this, factors like ambience, up to date services, equipments
and facilities are necessity of banks to which they should focus on.
All these facilities seem to be successfully fulfilled by ICICIBank.
Besides this, they have maintained a good CRM with their customers
that keep them connected with their customers.
However, they should pay a major focus on such customers who are
still not aware about the e-banking services and should encourage
them to self educate themselves in this respect.
Moreover, ICICIBank should pay focus on its complaint redressa l

system so that a very none of its customers should face any problem
while making any transactions.

83

RECOMMENDATIONS:

Customer Relationship Management is do-able. However the

following must take into consideration before embarking upon its
implementation. All aspects of customer relationship management, including
technology solution, must be fully explored effectively deliver the
competencies required to realize the business benefits.

Tackling any one competence alone will lead to a dysfunctional business.

One competence does not make customer relationship management.
Take pragmatic steps with a clear view on delivery of all the components
in the medium term, rather than piecemeal in the short term.
Successful mass customization is crucial to reducing customer
acquisition cost and improving the cross selling capacity.
Channels are a delivery mechanism. The effectiveness of the mechanism
is achieved when it is faultless!
. 75% of all Customer Relationship Management projects have failed
due to lapses in implementation. Technology is not enough,
implementation is the key and this is where the people aspect comes
into the forefront.
Customer Relationship Management implementation is effective when
companies are able to identify the internal and external customer and
integrate them with its core business process.
84

CONCLUSIONS:

Customer

Relationship

Management

is

concerned

with

attracting,

maintaining and enhancing customer relationship in multi service

organizations. CRM goes beyond the transactional exchange and enables the
marketer to estimate the customer's sentiments and buying intentions so that
the customer can be provided with products and services before the starts
demanding. Customers are the backbone of any kind of business activities,
maintaining relationship with them yield better result.
This study provides a step in understanding the existing CRM strategies in
ICICIBank at Lucknow. The findings indicate that there are several loop
holes in the
existing tactical CRM strategies in PNB. This study is an example of the
knowledge that can be gained in understanding the effectiveness of front end
CRM strategies in the Indian banking sector from the customer perspective
and further in-depth case study analysis can be executed to give more on
CRM strategies in the Indian banking sector.
This study shows that if organizations want to attain a sustainable
competitive advantage through CRM, they should efficiently apply all the
CRM resources to create CRM process capabilities which are unique and
85

cannot be copied by other organizations. There is a direct relationship

between perception and satisfaction, important. And employing CRM may
only strengthen the relationship between perceptions and up-buying and
cross buying which is all in support of introducing CRM in service sector.
Banks are realizing that CRM is the magic bullet that helps financial
institutions to build stronger and more profitable relationships. Hence Banks
should focus on delivering to customers by having a concise and precise
ways of doing things through effective CRM solutions rather than
developing product strategy.

86

BIBLIOGRAPHY

BOOKS:
Customer Relationship Management by Dr. V KUMAR.
Introduction to Customer Relationship Management by Sugar
Forge.
WEBSITES:
http://www.allprojectreports.com/MBA-Projects/Marketing-ProjectReport/customer-relationship-management-projectreport/customer_relationship_management_project_report_mba.htm
www.crm.com
https://www.pnbindia.in/En/ui/Profile.aspx

87

ANNEXURE I

DIRECTIONS: This survey deals with your opinions of banking services.

Please show the extent to which you think firms offering banking services
should possess the features described by each statement. Do this by picking
one of the five options next to each statement.

Please mention your preferred bank ..

1.

The physical
facilities of the
banks should be
visually
appealing.

Not at all Slightly

Fairly
Quite
important important important important

88

Very
important

2.

Physical Layout
of equipment and
furniture inside
the bank should
be comfortable
for customer
interacting with
staff and
transacting with
ease.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

3.

Banks should
have up-to-date
equipment.

Not at all Slightly

Fairly
Quite
important important important important

89

Very
important

4.

Banks should be
well-equipped
with up-to-date
facilities e.g.
reload/top-up
machine, free
WIFI, drinking
water dispenser,
coffee vending
machine, air
conditioning, etc

Not at all Slightly

Fairly
Quite
important important important important

Very
important

WIFI,

, AC

5.

Banks should
Not at all Slightly
Fairly
Quite
have appropriate important important important important
number of
counters with
respect to the

number of clients.

90

Very
important

6.

Banks should be
conveniently
located for
customers.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

7.

Banks should
have enough
parking spaces
for customers.

Not at all Slightly

Fairly
Quite
important important important important

91

Very
important

8.

Material and
Not at all Slightly
Fairly
Quite
information
important important important important
associated with
the service (e.g.
promotional

brochure)
provided by bank
should be visually
appealing at the
customer service
counter.

9.

,
)

Banks
Not at all Slightly
Fairly
Quite
employees should important important important important
be well dressed
and appear neat.

Very
important

92

Very
important

10.

When a bank
promises to do
something by a
certain time they
should do so.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

11.

Banks should tell

you exactly when
services will be
performed.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

12.

The employees of Not at all Slightly

Fairly
Quite
bank should
important important important important
deliver prompt
service.

93

Very
important

13.

The employees of Not at all Slightly

Fairly
Quite
your bank should important important important important
be always willing
to help you.

Very
important

14.

The employees of Not at all Slightly

Fairly
Quite
the bank should
important important important important
always be
already to
respond to your

requests
promptly.

94

Very
important

15.

You should trust

employees of the
bank

Not at all Slightly

Fairly
Quite
important important important important

Very
important

16.

You should feel

in safe in the
transactions with
your banks
employees.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

17.

The employees of Not at all Slightly

Fairly
Quite
your bank should important important important important
be polite.

Very
important

18.

The employees of Not at all Slightly

Fairly
Quite
the bank should
important important important important
listen to your
questions and
problems with
patience.

Very
important

95

19.

Bank should give

you individual
attention.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

20.

Bank should have Not at all Slightly

Fairly
Quite
your best interest important important important important
at heart.

Very
important

21.

Bank staff should

have good
knowledge and
they should
provide useful
advice.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

22.

Bank should not

Not at all Slightly
Fairly
Quite
waste your time
important important important important
with using
appropriate
technology,
efficient
workforce and
avoid duplication.

Very
important

96

23.

The employees of Not at all Slightly

Fairly
Quite
bank should
important important important important
know your needs.

Very
important

24.

Bank statements
Not at all Slightly
Fairly
Quite
delivered by bank important important important important
should be
accurate.

Very
important

25.

Bank should
insist on error
free transactions
and records.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

26.

Bank staff should Not at all Slightly

Fairly
Quite
keep their records important important important important
accurately.

Very
important

97

27.

Bank should have Not at all Slightly

Fairly
Quite
operating hours
important important important important
convenient to all
the customers.

Very
important

28.

Bank should
inform you about
the policy
changes.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

29.

Bank should
inform you about
the new products.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

30.

Bank should
satisfy your need
and wants.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

31.

When you have

problems bank
should be
sympathetic and
reassuring.

Not at all Slightly

Fairly
important important important

98

Quite
Very
important important

32.

The employees of Not at all Slightly

Fairly
Quite
the bank should
important important important important
make an effort to
correct the
mistakes and
apologize to you.

Very
important

33.

Have you ever

Not at all Slightly
Fairly
Quite
formally filed a
important important important important
complaint in your
bank in any form
(e.g. verbal,
written, website,
telephonically,
etc)

Very
important

34.

The procedure
Not at all Slightly
Fairly
Quite
followed by bank important important important important
to file a complaint
should be simple
and hassle free.

Very
important

99

35.

When a
Not at all Slightly
Fairly
Quite
complaint is filed; important important important important
bank should
ensure its timely
redressal and
keep you updated
about the status of
the complaint.

Very
important

36.

Bank should
provide 24 hours
access to internet
banking services.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

37.

Internet banking
offered by your
bank should be
safe and secure.

Not at all Slightly

Fairly
Quite
important important important important

Very
important

100

38.

The services of
Not at all Slightly
Fairly
Quite
your bank should important important important important
be easily accessed
through the
phone.

Very
important

39.

Bank should
Not at all Slightly
Fairly
Quite
encourage
important important important important
electronic
services to reduce
going to the bank
(including ATM
machines,
terminal sales,
internet banking
and telephone
banking).

Very
important

40.

Have you ever

YES
bad mouthed
about the bank in
any form (written,
verbal, social
networking sites,
etc).

NO

101

41.

Have you ever

YES
recommended the
bank to others in
any form (written,
verbal, social
networking sites,
etc)

NO

42.

You are happy to YES

choose your
correct bank
compared to other
banks.

NO

43.

You are going to

stay with the
current bank.

Not at all Slightly

Fairly
Quite
important important important important

102

Very
important

Kindly list your particulars below (The details are sought for verification and
statistical purposes only)

Thank you

103