PRESENTED BY

KARANVEER SI NGH
-MOHI T BAJAJ



CRM in Banking A case study
of ICICI Bank
About ICICI
India's largest private sector bank and second
largest overall in terms of assets.
Total assets of Rs. 3,562.28 billion (US$ 77 billion)
Profit after tax Rs. 30.19 billion (US$ 648.8
million)2009
ICICI reported a 1.15% rise in net profit to Rs.
1,014.21 crore on a 1.29% increase in total income to
Rs. 9,712.31 crore
ICICI Bank offers a wide range of banking products
and financial services to corporate and retail
customers.
Successful due to their CRM Strategies and different
CRM initiatives.
Their CRM activities helped them making customers
loyal.

ICICI- RETAIL STRATEGY
ICICIs retail strategy was centered around
intensive deployment of technology to help reduce
cost of service, increase customer retention, help in
cross selling and up-selling while improving
process efficiencies.
The bank looked towards allowing the customers
use multiple electronic channels including internet,
ATMs, call centers, contact centers, desktops,
kiosks, mobiles and other hand held devices for
conducting financial transactions.

Why CRM The Changing Environment
1. Increased Competition
2. Growth of Product
3. Diminishing Margins
CRM- THE ICICI EXPERIENCE
CRM at ICICI involves increased communication
between the virtual universal bank and its
customers and prospects as well as within the
group itself.
The underlying idea is to enhance every instance of
contact with the customer.
ICICI believes that a true customer-centric
relationship can only be accomplished by
considering the unique perspectives of every single
customer of the organization.
CRM ROAD MAP OF ICICI
CRM is viewed as a discipline as well as a set of discrete
software technologies, which will focus on automating
and improving the business processes associated with
managing customer relationships in the areas of sales,
marketing, customer service and support.
The organizations aims to achieve the end goal of one-to-
one marketing.
The CRM Software applications will facilitate the
coordination of multiple business functions.
Coordinate multiple channels of communication with the
customer to carry out customer management more
efficiently.

It should allow ICICI to engage in one-to-one
marketing by tracking complete customer life-
cycle history.
To begin with, it will automate process-flow
tracking in the product sales process, and be able
to generate customized reports and promote
cross selling.
It will also enable efficient campaign
management by providing a software interface
for definition, tracking, execution and analysis of
campaigns.

THE CRM BUSINESS CYCLE
COMPONENTS OF CRM CYCLE
Understand and Differentiate.
Develop and Customise.
Interact and Deliver.
Acquire and Retain.

Understand and Differentiate
Organizations need to understand their
customers in order to have a relationship with
them.
Profiling to understand demographics, purchase
patterns and channel preference.
Primary research to capture needs and attitude.
Customer valuation to understand profitability,
as well as lifetime value or long-term potential.
The ICICI Groups customers need to see that the
firm is differentiating service and
communications, based on their learning
independently and on the customer expectation
and the expected values expected.
Develop and Customise
In a customer-focused world, product and
channel development has to follow the
customers lead, identify customers wants,
determine the value and desire of the customer,
etc.
Organizations are increasingly developing
products and services, and even new channels
based on customer needs and service
expectations.
ICICI believes that the extent of customization
should be based on the potential value delivered
by the customer segment.
Interact and Deliver
To foster relationships, organizations need to insure that:
All areas of the organization have easy access to
relevant, actionable customer information.
All areas are trained how to use customer information
to tailor interactions based on both customer needs
potential customer value.

ICICI is strongly of the opinion that value is not just
based on the price of the product or the discounts offered
but are based on a number of factors including the quality
of products and services, convenience, speed, ease of use,
responsiveness, and service excellence.


Acquire and Retain
The more ICICI learns about customers, the
easier it is to pinpoint those that are producing
the greatest value for the organization.
They aim to continue to learn more about each
customer segment and use it for successful
customer retention.
As ICICI moves step further in CRM they hopes
to gain insight and understanding that enhance
the subsequent efforts. The organization shall
become increasingly sophisticated in the
implementation of CRM processes, and over a
period of time shall become increasingly
profitable by doing so.
Successful customer retention is based on the
organization's ability to constantly deliver, based
on three principles:
Maintain interaction; never stop listening.
Continue to deliver on the customers definition of value.
Customers change as they move through differing stages of
their lives, which implies that the firm needs to be alert for
changes and to modify its services and value propositions as
they change.
IMPLEMENTING CRM
There are five interrelated areas:
Business Focus.
Organizational Structure.
Business Metrics.
Marketing Focus.
Technology.
The key to building the CRM action plan was in
understanding with the organization that stood relative
to each of the five aspects of change.
Interviews with key individuals throughout the
organization helped identify different initiatives that
have been launched, all focused on CRM.

The next step in the process was a Gap Analysis,
this analysis helped identify the CRM
organizational holes:
Marketing, sales and service practices.
Collection, capture, processing and deployment of customer
information.
Distribution and operations effectiveness at customer touch
points.
CRM Strategies
Key drivers of customer loyalty:-
1. Positive staff attitude
2. Honesty integrity and reliability
3. Proactive Advice
4. Consistent delivery of superiority quality service
5. After sale service
6. A effective complaints resolution policy
ICICI use three steps to build customer
relationship
Determine mutually satisfying goals between
organization and customers.
Establish and maintain customer relationship.
Produce positive feelings in the organization and the
customers.

Steps minimizing the work regarding adoption of
CRM strategy-:

Identification of proper CRM initiatives
Implementing adequate technologies in order to assist
CRM initiative
Setting standards (targets) for each initiative and each
person involved in that circle
Evaluating actual performance with the standard or
benchmark
Taking corrective actions to improve deviations

Steps followed in implementing CRM
1. Identify CRM initiatives with reference to the
attained (such as increased no. of customers.)
2. Setting measurable targets for each initiative in
terms of growth in profits , no. of customers
3. Evaluating and choosing the appropriate CRM
package that will help the company achieve its
CRM goal ( A comparison of pay-offs against
investment could be carried out during the
evaluation exercise.)

Benefits of effective CRM


Reduced costs, because the right things are being done
(ie., effective and efficient operation)
Increased customer satisfaction, because they are getting
exactly what they want
Ensuring that the focus of the organization is external
Growth in numbers of customers
Maximisation of opportunities (eg., increased services,
referrals, etc.)
Increased access to a source of market and competitor
information
long term profitability and sustainability

ICICI Banks CRM initiative
1. Mobile ATMs
2. Bulk Deposits
3. ATMs for the visually challenged
4. Other services through ATMs
- Prepaid mobile recharge
- Buying and renewing internet packs
- Mutual Fund transaction
- Bill Payments
5. Mobile phone as virtual Wallet
Customer touch points.
Customer feedback and actions on these feedbacks.
Telephonic awareness regarding new services.
Latest ads.
Warm wishes to customers on different festivals.

Use of CRM in ICICI Banking
1. Targeting Customers
2. Sales reference Material
3. Consistent interface with customers

Benefits of CRM
1. Customers usage pattern
2. New product development
3. Central data management
Conclusion
Customer Relationship Management is concerned
with attracting, maintaining and enhancing
customer relationship. CRM enables the marketer to
estimate the customers sentiments and buying
intentions so that the customer can be provided with
products and services before they starts demanding.
Customers are the backbone of any kind of business
activities, maintaining relationship with them yield
better result.
THANK YOU