Is it something new ?

CRM

Customer
Understanding
=
+
Relationship
Management

October 18, 2016

Why CRM ?

October 18, 2016

Why is Customer Focus Important ?

6

Participate in
Global Village

Today we face the 5th

wave of innovation
5

Reach the
Customer

4
Enhance Executive
Decision Making

3
Enhance Products & Services

2
Leverage Investments

1
Reduce Costs

1960s

1970s

1980s

1990s

2000s

2010s

2020s

October 18, 2016

Why are Customer Initiatives Important ?

6

Participate
in Global
Village

Remain In
Business

Customer
Initiatives

Reach the
Customer

Increase
Revenue

Decision
Support
Initiatives

Enhance Executive
Decision Making

3
Optimize
Resources &
Minimize
Costs

Operational
Initiatives

Enhance Products & Services

2
Leverage Investments

Financial
Initiatives

Reduce Costs

1960s

1970s

1980s

1990s

2000s

2010s

2020s

October 18, 2016

A difference in opinion
Company view

Customer view

90%

70%

32%

2%
Customers are happy We research customer
with our customer
service needs and
service
wants as part of our
customer service
improvement

Customer service Customer service

needs no
today is better
improvement
than ever

October 18, 2016

And action
Company view

Customer view

98%

43%

7%

We want to develop a We want to form and

relationship with
develop a relationship
our customers
with our suppliers

The relationship now is

stronger than 12 months
ago

October 18, 2016

Whos Using CRM ?

CRM and IT Spending as % of Total Company Revenues
Financial Services
Banking
Telecommunications
Insurance
Media
Health Care
Electronics
Pharmaceuticals
IT

% IT
% CRM

Utilities

October 18, 2016

How ?

October 18, 2016

Know Thy Customer

To better understand our customers, remember that
A customer is not a new kid on the block. Instead, the customer is more like an old friend whos been taken for granted
at least until now.
Assess a customer and create a Customer Centric data repository that integrates all customer information from a wide
range of sources.
Study whos staying and whos leaving and Why.
Identify companys most valuable customers i.e. those who are profitable, have a low cost to service metric, and will
provide a high lifetime value.
Focus the right customers i.e. the most valuable customers Value Quotient.
Customer surveys (to understand key customer expectations) and company service metrics (to get early warnings on
potential problem areas) can help determine customer satisfaction levels and problem areas.

A better understanding of the customer base is needed to build a better relationship with the company's customers.

October 18, 2016

Increase Customer Loyalty

The quality of market share (customer loyalty) deserves as much attention as the quantity of market
share (product sold)
Developing a consistent, seamless and personal approach to the customer creates a long lasting
customer relationship, leading to customer loyalty and increasing company profit and success.

Some of the benefits that a company can

attain from a loyal customer base.

Money making

Money saving

Improved customer retention

More cross-selling and upselling
Improved campaign management
Sharper sales targeting

Higher sales productivity

Superior configuring
Better channel sizing
Reduced support cost

October 18, 2016

A Customer Loyalty Program

The first phase of the Program is to
Identify the existing customer base. This must be done before the business can begin to build and retain a relationship
with these customers.
Determine how the company can differentiate itself in the minds of its existing customers.
Clearly define the existing customer service strategy, then identify changes necessary to provide stellar customer
service.
Put into place technology that will give the customer the same access to resources (i.e. there should be complete and
consistent information across the channels) and the same service level regardless of the channel used.
Define the elements of the CRM strategy that embodies the heart of the customer loyalty program.
Communicate the new customer service strategy to all not only within the company but also to outside service
providers. Clearly delineate everyone's responsibilities within this new strategy.
Develop and utilize training programs to support the new customer service strategy.
Hire, develop and retain the right people.
Develop and use quality control strategies to monitor progress and to help "stay the course."
Institute appropriate reward and recognition programs.

Companies can boost revenues by as much as 85% if they can increase the retention rate of their best customers by
only 5%.1
A 5% increase in customer loyalty translates into a 25% to 95% percent increase in profitability. 2

October 18, 2016

New Approach to Marketing

TO: Finding products that are right for each customer

TURN the process

through 90 degrees

Customer 1
Customer 2
Customer 3

Customer
FROM: Finding customers that are right for each product
Products: 1 2 3 ...
To achieve this we need to align around
Organization and Culture
Business processes and skill
Measurement and incentives
Information management
Technology

October 18, 2016

Right Information - Key to Success

As of 25th September, 2007
Total No. of Branches Live : 311
Total No. of Customers
: 4155704
Sr. No.

Critical & Mandatory

fields

Data
Available

First Name

100%

Last Name

100%

DOB

4%

Gender

64.9%

Marital Status

1.76%

Customer Pan No.

0.62%

Contact Address

98.3%

City

Included in Contact
Address

Pin Code

59.9%

Challenges:
Bank to ensure branches to capture the customer
related critical data.
Resolution Techniques:
Critical fields to be captured compulsorily
during new customer registration.

Bank to drive customers to fill the details

through a kiosk in branch or through internet
banking

October 18, 2016

Right Information - Key to Success

Sr. No.

Critical & Mandatory

fields

Data
Available

10

Home Phone

30.1%

11

Business Phone

10.3%

12

Mobile No.

5.9%

13

Email Address

0.0006%

15

Employer Name

0.0006%

16

Occupation

96.9%

17

Income

NA

18

Locker Holder

NA

19

ATM Card Availed

3.7%

20

Net Banking Availed

NA

21

Tele Banking Availed

NA

For migrated data, bank to ensure the

branches capture all the critical fields within
a specified time frame.
Periodic updation of critical data to be
ensured by bank through branches.
Data capturing drive can be ensured through
the banks Call Centre channel.
Bank can also capture the critical data during
campaigns through a Business Reply /
Feedback form and updation in the system

October 18, 2016

What is CRM ?

October 18, 2016

15

CRM Means Different Things To Different

People
However, regardless of the meaning the following key elements of CRM
stand out:
CRM
CRMmust
mustbe
bepart
partof
ofan
anoverall
overallcompany
companyphilosophy.
philosophy.
CRM
CRMsolutions
solutionsmust
mustincludes
includesnot
notjust
justsystems,
systems,but
butalso
alsopeople,
people,process
processand
and
strategy.
strategy.
CRM
CRMmust
mustfocus
focuson
onselecting
selectingand
andmanaging
managingcustomer
customervalue
valueand
andloyalty
loyaltythrough
throughaa
long-term
long-termrelationship.
relationship.
CRM
CRMisisnot
notaasingle
singlesystem
systembut
butaacomprehensive
comprehensiveapplication
applicationarchitecture
architectureconsisting
consisting
of
several
systems.
of several systems.

October 18, 2016

Our Mission
Create a fully Integrated CRM system, as opposed to series of information islands.

Welcome to Bank of Maharshtra - One Family One Bank

October 18, 2016

Facts & Figures

Present and Future

October 18, 2016

18

Rs 24,300 cr

5 times

The estimated yearly

savings if India fully shifts
to an e-payment system.

More transactions now

take place via e-banking
than inside a branch.

Online Banking
BASIC BANKING
Check account balance
Check credit card transactions
Transfer Funds
Get one screen view of your banking relations
with multiple financial providers

MAILBOX
Leave standing instructions

95%
Is the potential reduction
in cost by shifting to nonbranch banking.

16 million
Indians will be banking
online by end 2007, up
from 4.6 million in 2006.

Contact the branch manager for redressal of

grievances
Apply for new services like account opening

VALUE ADDITION
Check book / DD request
Smart money order
TDS enquiry
Demat services

INVESTMENTS

LOAN PRODUCTS

Transaction in mutual funds

Apply for a loan

Buy insurance policies

Manage your existing loans by tracking fluctuations in interest rates and EMIs

Trade in stocks

Compare products to bag the best deal and service

Forex transactions

Buy gold

Banks are emerging as financial superstores offering everything from insurance

to mutual funds. They are no longer mere wealth accumulators or custodians;
they now help in wealth creation and wealth management.
October 18, 2016

When ?

October 18, 2016

20