CRM

ON

BANKING
Submitted to : KADAM MAM
Submitted by : NIRANJAN PANJWANI
42
AMIT BASANTANI

03

ICICI Bank

ICICI Bank is an Indian multinational bank and financial

services company headquartered in Mumbai. Based on
2013 information, it is the second largest bank in India by
assets and third largest by market capitalisation. It offers a
wide range of banking products and financial services to
corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries in the
areas of investment banking, life and non-life
insurance, venture capital and asset management. The
Bank has a network of 3,350 branches and 10,486 ATM's in
India, and has a presence in 19 countries.[2][3]

FACILITIES PROVIDED BY ICICI BANK

1. PRODUCT MIXa) Deposits
Fixed Deposits:
Safety, Flexibility, Liquidity and Returns. A combination of
unbeatable features of the FixedDeposit from ICICI Bank.
Recurring Deposits
Through ICICI Bank Recurring Deposit one can invest small
amounts of money every monththat ends up with a large saving
on maturity. So one can enjoy twin advantages - affordabilityand
higher earnings.
b) Investments:
ICICI Bank Tax Saving BondsGovernment of India
BondsInvestment in Mutual Funds
c) Anywhere Banking:
ICICI Bank is the second largest bank in the country. It services a
customer base of more than 5million customer accounts through

a multi-channel access network. This includes more than

500 branches and extension counters, over 1800 ATMs, Call
Centre and Internet Banking. Thus, onecan access the various
services ICICI Bank has to offer at anytime, anywhere and from
anyplace
d) Loans:
ICICI Bank offers wide variety of Loans Products to suit the
customers requirements. Coupledwith convenience of networked
branches/ ATMs and facility of E-channels like Internet
andMobile Banking, ICICI Bank brings banking at their doorstep
Customer involvement:
ATM does not involve any bank employees. Besides, during usual
bank transactions, there isdefinite customer involvement at some
or the other place because of the money matters andsignature
requires.
PHYSICAL EVIDENCE:
Physical evidence is the material part of a service. Strictly
speaking there are no physicalattributes to a service, so
a consumer tends to rely on material cues. There
are manyexamples of physical
evidence:InternetPaperwork BrochuresFurnishingsBusiness
cardsThe building itself (such as prestigious offices or scenic
headquarters). The physical evidencesalso include signage,
reports, punch lines, other tangibles, employees dress code etc

Customer Relationship Management

In literature, many definitions were given to
describe CRM. The main difference among these
definitions is technological and relationship aspects
of CRM. Some authors from marketing background
emphasize technological side of CRM while the
others considers IT perspective of CRM. From
marketing aspect, CRM is defined by [Couldwell
1998] as .. a combination of business process and
technology that seeks to understand a companys
customers from the perspective of who they are,
what they do, and what they are like. Technological
definition of CRM was given as .. the market place
of the future is undergoing a technology-driven
metamorphosis [Peppers and Rogers 1995].
Consequently, IT and marketing departments must
work closely to implement CRM efficiently.

CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use
technology and human resources gain insight into
the behavior of customers and the value of those
customers. If it works as
hoped, a business can: provide better customer
service, make call centers more efficient, cross sell
products more effectively, help sales staff close
deals faster,
simplify marketing and sales processes, discover
new customers, and increase customer revenues.It
doesn't happen by simply buying software and
installing it. For
CRM to be truly effective, an organization must first
decide what kind of customer information it is
looking for and it must decide what it intends to do
with that information.

CRM (customer relationship management)

CRM as defined by Kotler, is the process of utilizing detailed

information
about individual customers & carefully managing all the
customers touch points
with the aim of maximizing customer loyalty. The final objective
of the CRM
process is to create a powerful new tool for customer retention,
customer value,
customer acquisition & profitability.

CRM activities includes

Ensuring both inputs across all functions including marketing,
sales and
services. Integrating the activities of marketing, sales and service
to achieve
a common goal.
Constantly flexing the balance between marketing, sales and
service
inputs against changing customer needs to maximize profits.
Costs and outputs in terms of customer revenue, profit and
value.
Acquiring and continuously updating knowledge about customer
needs,
motivation and behavior over the lifetime of the relationship.
Applying customer knowledge to continuously improve
performance
through a process of learning from successes and failures.

Scope of Research

This research is carried out to study following points in

Banks in which we conducted the research.
Ability of Banks to retain loyal & profitable customers for rapid
growth of
the business.
Acquiring the right customers, based on known characteristics,
which
drives growth & increases profit margins, Lower cost of customer
acquisition
Increasing individual customer margins while offering the right
products
at the right time.

Research Problem: How can CRM in banks be

described?
1. To approach this research problem we have studied following 4
questions
regarding the cases of 3 banks. Those questions are as follows:
2. How CRM is defined by the bank managers?
3. How the CRM process in bank is described?
4. How CRM technology in bank can be described?
5. How CRM organizational structure & people in bank can be
described?

CRM Process:
The bank handles the CRM process in a technical way, by
collecting the
information about its customers from data warehouse and
customer meetings, the
information includes the market position of the customer
(business), the
management, what type of contracts the customers is signing in
and how much,
what type of credit the customer wants.

CRM - Organizational structure

A separate department coordinates the entire CRM process, which
is responsible

for making strategies and following it up. The bank has different
trainings
programs to enhance its staffs skills, the training program called
sales and
strategy, which also includes the CRM segment, is designed for
the staff in the
marketing, advertising and CRM departments.

Conclusions
Results obtained by extensive usage of customer
data to develop and apply Relational Marketing have
convinced the Garanti Bank to proceed along the
line undertaken. As
lists of customers eligible for four very important
banking product/services are available, as above
described, the following actions are now being
deployed:
1. extension of promotions to a larger customer
population by having sales people in the branches
contacting progressively 15,000 customers
2. targeted campaigns through Internet and the call
center for customers actively using one or both of
these innovative channels for their banking
operations.

The same approach is now being extended to small

and medium businesses and to commercial
customers. Moreover the analytical and strategic
CRM cycle is being
completed by developing an application analyzing
customers' attrition and deploying
strategies to reduce it.

THANK
YOU