DISADVANTAGE OF CRM

Some of the main disadvantages of Customer Relationship Management (CRM) occur when
professionals do not use software in a way that is beneficial to their organizations. When
salespeople neglect to update customer records, for example, the software ends up costing more
than it benefits a business. A customer relationship management system that is incorrectly
implemented can also cause problems for a business. If an executive decides to implement this
kind of system, for instance, but does not include all departments, the information generated by
can be inaccurate. Some opponents point to other disadvantages of customer relationship
management, such as the depersonalization of sales processes, the difficulties of implementing
these systems into preexisting business systems, and the comparatively time consuming tasks
associated with retrieving and recording data.
Customer relationship management is a strategy that allows sales and marketing professionals to
record, access, and track information related to customers and potential clients. This strategy
normally requires use of computer programs that allow users to keep records that can help
professionals to determine how to sell and market to new clients and how to satisfy current
customers. Proponents of customer relationship management believe that is a more cost effective
way for service and retail professionals to increase profitability.
One of the most commonly cited disadvantages of CRM is that it can lead to dehumanization in
sales processes. Instead of learning from firsthand experience which services and products
clients prefer, salespeople access information digitally stored in databases. Some professionals
believe that selling is most effective when sales professionals are able to appeal to clients at a
visceral level.
Some critics point to the the technical disadvantages of customer relationship management. In
most cases, these systems are implemented into business systems that may already include a
complicated network of software and hardware. Some sales professionals have found that
customer relationship management systems may not be compatible with other management
systems. This can lead to confusion among users, and inconsistent results.
One of the most commonly cited advantages of customer relationship management is that it helps
organizations cut costs and become more efficient. Detractors, however, believe that the opposite
is true. The amount of time it can take for professionals to access and record data is thought by
some to be greater than the time it takes to use conventional filing methods. Other detractors
point to the time and money required to train employees to use new software.

Disadvantages of CRM
However, despite the significant advantages of CRM, there are several disadvantages:

First, a mistaken tool choice may make CRM more complicated. This is why you need to
consider in advance what kind of tools would be appropriate to your structure in order to
follow its relationship with its customers and prospects.

CRM is not easy to put in place, attention must be given to the choice of tools, but also to
the effective implementation of CRM process that will be undertaken by the company.

Definition of Indian overseas bank

ian Overseas Bank (Hindi: ) (IOB) is a major bank based in Chennai
(Madras), with about 3350 domestic branches, including 1150 branches in Tamil Nadu, 3
extension counters, and eight branches and offices overseas as of 30 September 2014. Indian
Overseas Bank has an ISO certified in-house Information Technology department, which has
developed the software that its branches use to provide online banking to customers; the bank
has achieved 100% networking status as well as 100% CBS status for its branches. IOB also has
a network of about 3300 ATMs all over India.
IOB has branches in Singapore, Hong Kong, Colombo, Seoul, and Bangkok. It has representative
offices in Guangzhou, Vietnam, and Dubai. IOB also is part-owner of a joint-venture bank in
Malaysia.
The net profit for the quarter ended 30 June 2014 stood at INR 272 Crores. The Business touched
INR 4,20,739 Crores(YoY Growth 8.16%) for the quarter ended 30 September 2014. Deposits
stood at INR 2,39,223 Crores(YoY Growth 12.47%), CASA stood at 23.76%, Advances stood at
INR 1,81,515 Crores(YoY Growth 2.96%) Operating Profit for Q2 14-15 is INR 729 Crores.
ntroduction:
The facility of Internet Banking is provided only as a convenience to the Customer and the Customer may
avail the facility at his own risk. By having an Account with the Bank and/or using of this facility the
Customer agrees unconditionally not to contest any transaction carried out or not carried out by the Bank,
over Internet Banking, and shall accept the record of the transaction maintained by the Bank, without any
demur or protest, and hold the Bank harmless and blameless against any loss, or consequences thereof,
arising from any transaction carried out or not carried out over Internet Banking. Against the above
background, the Customer can use any services provided by the Bank over Internet. In addition to
conditions and features as mentioned elsewhere in the Terms & Conditions, some of the additional
conditions and features and the basis on which the Services, are offered by the Bank over Internet are
given below:

Definitions:
In this document the following words and phrases have the meaning set opposite them unless the context
indicates otherwise.

- Bank refers to IOB, a body corporate constituted under Banking Companies (Acquisition and Transfer of
Undertakings) Act 1970 having Central Office at 763, Anna Salai, Chennai-2, Tamil Nadu, India.
-Internet Banking is

the trade name of the banks Internet Banking service which provides access
to account information, products and other services as advised by the Bank from time to time to
the Bank's customers through the Internet. Internet Banking, Electronic Banking, E-Banking and
Internet Banking services/facility may be interchangeably used.
- Customer refers to any person who has an account with the Bank and who has been authorised by the
bank to avail of the Internet Banking facility or for any other services.
- Account refers to the Customer's Savings and / or Current Account and / or Fixed Deposit and / or any
other type of account so designated by the Bank to be eligible account(s) for operations through the use
of Internet Banking. An account in the name of a minor or an account in which a minor is a joint account
holder, is not eligible to be an Internet Banking account
- Personal information refers to the information about the Customer obtained in connection with Internet
Banking.
- Terms refer to Terms and conditions for use of Internet banking as specified in this document. In this
document, all references to the Customer being referred in masculine gender will also include the
feminine gender.
The technical terms shall be governed by the definitions given under the provisions of the Information
Technology Act, 2000.

Applicability of Terms:
These Terms form the contract between the Customer and the Bank. By applying for Internet Banking and
accessing the service the Customer acknowledges and accepts these Terms. These Terms will be in
addition to the terms and conditions relating to any account of the customer, agreed by the customer at
the time of account opening. In the event of any conflict between these terms and those agreed at the
time of opening of such account, these terms will prevail.

Application for Internet Banking:

The Bank may provide Internet Banking to selected Customers at its discretion. The customer would need
to be a current Internet user or should have access to the Internet and knowledge of how the Internet
works. Application for Internet Banking has to be made through the online registration. The acceptance of
the registration does not automatically imply the acceptance of application for Internet Banking.

Software:
The Bank will advise from time to time the Internet software such as Browsers, which are required for
Internet Banking. There will be no obligation on the Bank to support all the versions of the Internet
software. The Customer shall upgrade his software, hardware and the operating system at his cost from
time to time so as to be compatible with those of the Bank. The Bank shall be at liberty to change, vary or

upgrade its software, hardware, operating systems etc from time to time and shall be under no obligation
to support the software, hardware, operating systems of the customer. It shall be the sole responsibility of
the customer/user to ensure support for the software/ hardware / operating systems, etc.
Where the customer operates from a country other than India, the customer is responsible for complying
with the local laws of that country, including (but not limited to) obtaining any license.
The customer has to take appropriate measures at his cost to protect his systems from the likes of
hackers, virus attacks, etc. Measures include installation of effective anti-virus scanners, firewalls, etc.

ow will the entry of new banking players change the banking landscape in India?
Challenges of iob
The entry of new banking players may not bring a drastic change in the banking scenario in the
country. However, they will be starting to make a perceptible impact. The advantage for these
new players may be that they will be able to commence their operations with the support of stateof-the-art technology. By using the latest updated product, they will be able to offer niche
products, having an edge over other competitors. Public sector banks will continue to have the
advantage of the broad network of branches and ATMs across the country. But, the new banks
may also plan to increase their presence in rural areas. Hence, I feel that the new banking players
may not be an immediate threat to other existing banks. However, in the long run, they might be
giving good competition for others. This will compel all banks to continuously innovate and
improve their performance.
OB and Society:
IOB has been committed to and involved in various
social causes, the most prominent being women
empowerment - the Sakthi IOB Chidambaram
Chettiar Memorial Trust and IOB's Promotion of the
Agricultural Seed Bank.
The Sakthi IOB Chidambaram Chettiyar Memorial
Trust is a public charity trust initiated by the Bank and
its Staff Representative organisations in February 1996 in
memory of Shri M.Ct.M.Chidambaram Chettiyar, the
founder of IOB.
Objective:
To enable women in the lower strata of society to equip
themselves with the essential skills and knowledge
required for embarking on a career of their choice.
The Sakthi IOB Chidambaram Chettiar Memorial

Trust

IOB's Promotion of Pulses Seed Bank is a project in association with M.S.Swaminathan

Research Foundation, Chennai for the establishment of Seed Banks in various villages under
Dryland farming.
Objective:
Most small and marginal farmers in the rain fed areas pay less attention to cultivating pulses
consequently leading to the decline of productivity in this sector. This scheme is intended to
increase the production of pulses in dryland farming.
Activities:
The Districts of Ramanathapuram and Pudukottai in Tamil Nadu were chosen for the 1st Phase
of this project.
The aim of this project is...

To increase the availability of good quality seeds at the right time to the small and
marginal farmers

The provision of market linkages for pulses

Sending in experts from the MSSR Foundation for demonstration of pulses cultivation in
the rain fed areas

wards & Accolades

> Bank won the Platinum Award for the category Training Excellence HR Award for the year
201112 from the Greentech Foundation, New Delhi.
> Bank won I PE BFSI Awards 2013 under three categories namely Best Bank in PSU Sector,
Best Bank in Rural Outreach and Best CSR.
> Bank has been accorded as the Best Public Sector Bank under Priority Sector lending in Dun
& Bradstreet
Polaris Financial Technology Banking Awards 2013.
>

Bank has won the Skoch Awards 2013 for High Availability of WAN and Paperless Board.

> Bank has won The Sunday Standard Best Bankers Awards 2013 under three categories
namely Best Indian Bank Large, Best Public Sector Bank Large and Best Public Sector Bank
Customer Orientation.
> Bank was declared Runner up in the ASSOCHAM's Social Banking Excellence Awards
2013.
>

Bank won Development Leadership Award 2013 under Agriculture Leadership Awards.

> Bank won National Award for the inhouse Magazine in Hindi for 201213 First Prize
under C Category.
> Bank was nominated as winner of FIPS Awards 2013 for the project of integration of
Payment Gateway.

> 2 RSETIs were awarded AA ranking and 3 RSETIs were awarded A ranking in RSETI
Awards.
>

CIMSME gave the Bank MSME Banking Excellence

Award 2013 in three categories namely Financial Inclusion Award, Jury Award for New
Initiatives & MSME Excellence Award (Runner up)
> Bank was adjudged as the First Runner Up in the category of Best Use of Business
Intelligence among Public Sector Banks in IBA Banking Technology Awards 201213 by
Indian Banks Association.
> Public Relations Council of India in their Collateral Awards 2013 declared Bank winner for
Wall Calendar and CSR Initiatives.
> Tamil Nadu Government declared the Bank as the Best Bank Award for Excellence in Credit
Linking Self Help Groups for 201112.
> Bank won National Award for Outstanding Performance in Implementing PMEGP in South
Zone level for 201213.
>

India Business Journal's IBJ Business Excellence Award 2013 Customer Focus Award.

DEFINITION CRM

Customer relationship management (CRM) refers to the

practices, strategies and technologies that companies use to
manage, record and evaluate customer interactions in order
to drive sales growth by deepening and enriching
relationships with their customer bases
Characteristics of CRM

Relationship management is a customer-oriented feature with service

response based on customer input, one-to-one solutions to customers
requirements, direct online communications with customer and customer
service centers that help customers solve their issues.

Sales force automation. This function can implement sales promotion

analysis, automate tracking of a clients account history for repeated sales or
future sales, and also oordinate sales, marketing, call centers, and retail
outlets in order to realize the salesforce automation.

Use of technology. This feature is about following the technology trend and
skills of value delivering using technology to make up-to-the-second
customer data available. It applies data warehouse technology in order to
aggregate transaction information, to merge the information with CRM
products, and to provide KPI (key performance indicators).

Opportunity management. This feature helps the company to manage

unpredictable growth and demand and implement a good forecasting model
to integrate sales history with sales projections.[7]

CRM in developing and maintaining client relationships

Increasingly CRM is expanding outside of the core sales and marketing areas
and systems are available that incorporate support and finance data also into
the CRM view that a user gets, enabling a wider holistic view of a customer
from one screen for a user.

Customer relationship management systems track and measure marketing

campaigns over multiple networks. These systems can track customer
analysis by customer clicks and sales.

Definitions (2)Add to FlashcardsSave to FavoritesSee Examples

1.A management philosophy according to which a companys goals can be best
achieved through identification and satisfaction of the customers' stated and
unstated needs and wants.
2.

A computerized system for identifying, targeting, acquiring, and retaining the best mix of
customers.
Customer relationship management helps in profiling prospects, understanding their needs, and
in building relationships with them by providing the most suitable products and enhanced
customer service. It integrates back and front office systems to create a database of customer
contacts, purchases, and technical support, among other things. This database helps the company
in presenting a unified face to its customers, and improve the quality of the relationship, while
enabling customers to manage some information on their own.

n Overview of the History of CRM (Customer Relationship Management)

While Customer Relationship Management (CRM) can be traced back to the 1980's, the actual
term did not come about until the 1990's. One reason that drove the CRM software boom in the
90's was the explosion of technology. As advancements in different database features came
about, it paved the way for early CRM adopters to truly improve the CRM software and make it
more effective for customers. Some of the earliest companies to really embrace this and invest in
the use of CRM software were the banking and telecommunications industry, as so much of their
business was customer-related. For them, this was the easiest way to do it. This eventually led to
other industries of all shapes and sizes, to get involved in CRM software.
It was not always an easy ascent for CRM software though. During the 1990's, the CRM industry
ran into a few issues; fees for CRM use were very expensive and the buyers were not getting as
much bang for their buck as they would have liked. Customers thought that for what they were
paying they should be getting more and were underwhelmed with the finished product they had
purchased. This has all changed for the better over the past decade. Not only have developers
made CRM simpler to use, but the price has also become less expensive.
Over the past two decades, CRM has changed from just a storage base system to evolve in to an
all around product that a company can manage every aspect of their business data. Companies
can now use CRM software to constantly track customers needs and wants. The numbers follow
these statements as well; as of 2007 the annual sales of CRM software had multiplied over
eighteen times compared to what it was 10 years prior, in 1997.
Many other factors drove the CRM boom, including the enhancements of the Internet. When the
Internet came about, this helped companies who were not able to support a full database at their
own site. Offsite storage would be easier for many companies, and is also a cheaper investment
then on-premise solutions. The emergence of mobile technology has also boosted CRMs as well.
Now that CRMs are offering more mobile solutions, more companies want to put CRM to use
since it gives them easy access at their fingertips when they are away from their office.

With today's CRM solutions, companies are able to incorporate pretty much any section of their
company into one database. Whether it be sales, marketing, customer service, support, etc. with
today's CRM solutions consumers are able to manage each of those extremely effectively, under
just one database. CRM solutions are now a great way to combine your front-office integration
with your back-office. This was something that was only dreamed about when the idea of
Customer Relationship Management originally came about. Now look how far it has come!
Check back with us at the beginning of 2012 to read Part 2 of CRM: Then and Now. Part 2
focuses on the CRM landscape and how it is still ever changing from an On-Premise Solution to
a Cloud Solution and how it is affecting the industry.

Feature pf crm
ustomer Relationship Management is a strategy which is customized by an organization to
manage and administrate its customers and vendors in an efficient manner for achieving
excellence in business. It is primarily entangled with following features:
1. Customers Needs- An organization can never assume what actually a customer needs.
Hence it is extremely important to interview a customer about all the likes and dislikes so
that the actual needs can be ascertained and prioritized. Without modulating the actual
needs it is arduous to serve the customer effectively and maintain a long-term deal.
2. Customers Response- Customer response is the reaction by the organization to the
queries and activities of the customer. Dealing with these queries intelligently is very
important as small misunderstandings could convey unalike perceptions. Success totally
depends on the understanding and interpreting these queries and then working out to
provide the best solution. During this situation if the supplier wins to satisfy the customer
by properly answering to his queries, he succeeds in explicating a professional and
emotional relationship with him.
3. Customer Satisfaction- Customer satisfaction is the measure of how the needs and
responses are collaborated and delivered to excel customer expectation. In todays
competitive business marketplace, customer satisfaction is an important performance
exponent and basic differentiator of business strategies. Hence, the more is customer
satisfaction; more is the business and the bonding with customer.
4. Customer Loyalty- Customer loyalty is the tendency of the customer to remain in
business with a particular supplier and buy the products regularly. This is usually seen
when a customer is very much satisfied by the supplier and re-visits the organization for
business deals, or when he is tended towards re-buying a particular product or brand over
times by that supplier. To continue the customer loyalty the most important aspect an
organization should focus on is customer satisfaction. Hence, customer loyalty is an
influencing aspect of CRM and is always crucial for business success.

5. Customer Retention- Customer retention is a strategic process to keep or retain the

existing customers and not letting them to diverge or defect to other suppliers or
organization for business. Usually a loyal customer is tended towards sticking to a
particular brand or product as far as his basic needs continue to be properly fulfilled. He
does not opt for taking a risk in going for a new product. More is the possibility to retain
customers the more is the probability of net growth of business.
6. Customer Complaints- Always there exists a challenge for suppliers to deal with
complaints raised by customers. Normally raising a complaint indicates the act of
dissatisfaction of the customer. There can be several reasons for a customer to launch a
complaint. A genuine reason can also exist due to which the customer is dissatisfied but
sometimes complaints are launched due to some sort of misunderstanding in analyzing
and interpreting the conditions of the deal provided by the supplier regarding any product
or service. Handling these complaints to ultimate satisfaction of the customer is
substantial for any organization and hence it is essential for them to have predefined set
of process in CRM to deal with these complaints and efficiently resolve it in no time.
7. Customer Service- In an organization Customer Service is the process of delivering
information and services regarding all the products and brands. Customer satisfaction
depends on quality of service provided to him by the supplier. The organization has not
only to elaborate and clarify the details of the services to be provided to the customer but
also to abide with the conditions as well. If the quality and trend of service go beyond
customers expectation, the organization is supposed to have a good business with
customers.
Advantages

Departmental Integration One

thing that hinders an organization's
performance and ability to serve a
customer is the visibility of data
throughout different departments. If
a customer calls and speaks on one
matter to someone in the sales
department and moments later
speaks to the billing department,
departmental integration reduces the
chance a customer is put on hold
while the departments speak to each
other. Having a CRM streamlines a
customer's process from start to
finish.
Enhanced Customer Service
CRMs are a great tool for

Disadvantages

System Integration CRM

software may not integrate well with
other email and accounting systems.
If this is the case, a CRM could prove
costly for a company because it is
utilizing more resources than
originally thought. Companies must
evaluate all departments that will be
involved in its use before the
purchase.

Resentment CRM software's

biggest disadvantage is the
resentment employees may feel
toward the software. Many employees
disagree with change. Often,

auditing, training and tracking

information such as complaint calls.
They are useful in identifying a
customers needs. Customer service
representatives will have a larger
scale of information to better serve a
customer. They can view contracts,
prior pricing, shipping
information and even personal
information about a customer to
make it a more personable
experience.

Improved Sales and Marketing

Tactics With a CRM, an
organization's sales team can work
more efficiently. They can monitor
their pipeline and track the lead-tosale process, review each other's
notes on customers and share
product and contract information. A
manager will be able to better
measure productivity by having
access to monitor the time the sales
team spends on certain activities.
This is a valuable tool because a
manger can use this information
in performance evaluation of
employees.

implementing new systems indicate

growth or the need for cutbacks to
save the company money. Older
employees who have used older
systems or their own methods may
feel offended as though they are not
competent in doing their jobs. Once a
new system is brought around, it's
important for an organization to
keep employees in the loop.

A Learning Curve Another

disadvantage to a newly implemented
CRM software is the learning curve.
Either implementing a CRM for the
first time or upgrading an older
version will require employees to take
the time out to learn the system.
People fear what they do not know.
This may reduce productivity as they
become familiar with the new system

What is CRM?

CRM stands for Customer Relationship Management. Its French equivalent is GRC (Gestion de
la Relation Client) but CRM still is a term well known by francophones to describe this practice.
Customer Relationship Management brings together all techniques and tools that are used to
enter into relation with customers and prospects, in order to retain them and offer them a product
or a service that is most suitable for their needs. So we don't manage customer relationship
internally with collaborators or partners.
In concrete terms, CRM is managed through a software in which companies provide the
following customer's information: last name, first name, telephone number, address, places
where the client prefers to purchase, means of payment, average basket, etc. This information
helps the company to better focus the client and to send him offers, to provide products and
services that meet his needs, by reducing costs.
Internally, the company has at its disposition a tool that sets out all the contacts. The use of this

contact database can be wide. To be in contact with the customer or prospect, a range of
techniques may be employed:

Telephone is really convenient to get into the heart of the matter with the person and to
directly get his attention, with an exchange. This tool enables you to make up your mind
about the customer's needs and requirements and to adjust your arguments in accordance
with what the customer says. Having that said, sometimes it can be difficult to break the
telephone switchboard and office assistant barriers to contact the right person.

Email is a double-edged tool. First of all, you must ensure that you have a valid mailing
address that deals with the right person. Then, the email must be neither too short nor too
long, and manage to get the attention of its recipient. Finally, this is a tool that doesn't
imply response, whether immediate or not. That said, without going into endless
descriptions, an email can contain a link, a video introducing the company, the product or
the service better than by phone.

Direct contact, as well as phone, has the benefit of having the person standing in front of
you and getting directly his attention, adjusting the speech in line with what the customer
or prospect says. In the case of an appointment, the advantage for the contact of the
company is that the client or the prospect is inclined to receive him and thus supply and
demand meet.

2. What is the purpose of CRM?

CRM enables the company to create or keep in contact with the customer or the prospect. In a
first step, this allows the company to get known, to make its products and services known.
However, the first use of CRM is customer loyalty. With the increasingly stiff competition, to
retain customers gets very complicated. In addition, the customer is freer to select his partner
companies, products and services. Therefore, it is more costly for a company to gain new
customers than to maintain their loyalty. Indeed, a 5% rise customer loyalty rates can increase
from 25 to 100% the value of the average customer, according to the Revue franaise de gestion
(French Management Review February 2000). In addition, a loyal customer may also
recommend the brand name and the company. CRM allows the company to be always present
with the customer, to meet his needs, if possible to anticipate these needs and to propose offers
that the clients may not have even thought about. Furthermore, customers who feel that they are
given special treatment by a company are more likely to deal again with this company for the
services delivered to them.
Customer relationship management is a tool that can also serve as quality service. Following the
sale of the product or service, it may be a good idea to turn to the customer in order to realize his
satisfaction with his product expectation and with what has been delivered to him. This approach
enables the company to review its technical practice, marketing or selling techniques in order to

better correspond to the customer's expectations, in cases in which he would have been
disappointed, to make an offer to compensate him and to remain a company present in his
customer's life. Today, new means of communication such as social media are good tools to
discuss, to nurture the relationship with the customer and to measure his satisfaction.
3. Advantages of CRM

The advantages of carrying out a proper business CRM are many and varied:
- First of all, it is a good way to expand the customer's portfolio. By contacting prospects, it is
most likely that many of them are interested in the company activity, in its products and services.
It is obvious that if the company does not initiate a process to go towards the customer, then the
customer will not come to the company, unless he experiments a specific and urgent need.

Naturally, CRM offers the advantage of gaining customer loyalty. As stated above,
loyalty is less costly for a company and the loyal customer becomes a professional
recommendation of the company and its services. Furthermore, the company can promote
the work it has done for its customers in order to approach prospects. It is always more
convincing to present a work carried out rather than to rely on our own theoretical
expertise.

A good CRM associated with a good tool ensures companies to have a good view over
the list of customers and prospects, to know where it stands with relationship
management, when to contact them again, etc. Furthermore, an improved customer and
prospect insight ensures a better and more targeted communication.

CRM also ensures enhanced productivity. By fostering customer's loyalty, the company
spends less time acquiring new customers and saves then time on other projects.

4. Disadvantages of CRM
However, despite the significant advantages of CRM, there are several disadvantages:

First, a mistaken tool choice may make CRM more complicated. This is why you need to
consider in advance what kind of tools would be appropriate to your structure in order to
follow its relationship with its customers and prospects.

CRM is not easy to put in place, attention must be given to the choice of tools, but also to
the effective implementation of CRM process that will be undertaken by the company.

5. Tools for a proper CRM

Therefore, to manage your customer relationship, you need to be well equipped. There is a
multitude of structures that offer such tools. Nevertheless, some suit best certain types of
structures and companies than others. For example, TALCOD offers a tool that ensures a CRM
based on an open source software called civiCRM and originally created for associations and
NGOs. Therefore, the contact and relationship manager offered by TALCOD enables you to
manage a large contact database, to send personalized and targeted mailings, but also to manage
events online (creation, invitations, client reminders online) and to manage membership.