INTRODUCTION TO CUSTOMER RELATIONSHIP

EVOLUTION TO CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is one of the latest buzzwords in the field of management. CRM has been popularised by the business press and marketed by the CRM vendors as a solution for all the ills faced by firms and managers. However it means different things to different people. !ome business personnel infer CRM as one to one marketing while for some it may mean a call centre. "thers call database marketing as CRM. !till others refer to technology solutions as CRM. #e will try to trace the evolution of CRM.

IS CRM A NEW CONCEPT?

$o it is not. Merchants and traders have been practicing customer relationship for centuries. %heir business was built on trust. %hey customized the products and all aspects of delivery and payment to suit the re&uirements of their customers. %hey paid personal attention to their customers knew details regarding their customers' tastes and preferences and had a personal rapport with most of them. (n many cases the interactions transcended the commercial transactions and involved social interactions. )ven today this kind of relationship e*ists between customers and retailers craftsmen artisans + essentially in markets that are traditional small and classified as pre,industrial markets. %he (ndustrial Revolution changed the relationship,oriented practices. -usiness organisations adopted mass production mass communication and mass distribution to achieve economies of scale. Manufacturers started focusing on manufacturing and efficient operations to cut costs. (ntermediaries like distributors wholesalers and retailers took on the responsibilities of warehousing transportation distribution and sale to final customers. %his resulted in greater efficiency and lower costs to the manufacturers but brought in many layers between them and the customers. %he resulting gap reduced direct contact and had a negative impact on their relationships %he post (ndustrial era ((nformation era) saw the re,emergence of relationship practices. !ome of the factors responsible for this shift in the orientation included + a. Rapid advances in technology b. (ntensive competition in most markets c. .rowing importance of the service sector d. /doption of total &uality management programs

RAPID ADVANCES IN TECHNOLOGIES

%he advances in information communication and production technologies have helped marketers come closer to their customers. 1irms operating in diverse sectors ranging from packaged goods to services started using these technologies to come closer to their customers learn more about them and then build stronger bonds with them through fre&uent interactions. Marketers could gain knowledge about customers that helped them respond to their needs through manufacturing delivery and customer service. %echnology also enabled customers undertake some of the responsibilities normally performed by marketers like ordering and product +use,related services. %hough the emergence of CRM in recent times coincided with the information age we must remember that technology is 2ust an enabler. %echnology enabled marketersovercome several long felt shortcomings of mass marketing. !ome of these included ,(nefficiencies of mass marketing3 0456s and early 0446s witnessed some of the most radical business transformations which resulted in cost reductions in almost all functional departments e*cept marketing. Manufacturing and related operations costs were reduced through business process reengineering human resource costs were reduced through outsourcing restructuring and layoffs financial costs were reduced through financial reengineering but marketing costs kept increasing due to increased competition and product parity in virtually every industry. ,7ack of fast effective and interactive modes of customer contact feedback and information and ,7ack of consolidated information about customer interactions purchase behaviour and future potential

INTENSIVE COMPETION IN MARKETS

(n competitive markets specially the ones that were maturing and witnessing slow or no growth marketers found it more profitable to focus on their e*isting customers. !tudies have shown that it costs up to 8,5 times more to attract a new customer than to retain an e*isting customer. /lso it paid more to develop closer relationships with few suppliers than a lot of vendors. Many marketers started developing programs to keep customers for life instead of 2ust making one,time sales. / 9customer,for,life' orientation create opportunities for cross selling products and services which meet the customers' evolving needs over their different stages of lifecycle.

 GROWING IMPORTANCE OF THE SERVICE SECTOR

%he service sector contributes to over two,third of the .;< of most advanced economies. (n (ndia the contribution of the service sector to the economy is about =6> of the .;<. "ne of the characteristics of the service industries is the direct interaction between the marketer and the buyer. (n services the provider is usually involved in the production as well as delivery directly. 1or e*ample professional service providers like a doctor or a consultant are directly involved in production as well as delivery of their services. !imilarly the customers are directly involved in the purchase and consumption of these services. %hese direct contacts create opportunities for better understanding a better appreciation of needs as well as constraints and emotional bonding all of which facilitate relationship building. %herefore it should come as no surprise when one sees the service firms pioneering many of the customer relationship initiatives. 1irms operating in the financial services hospitality business telecom and airlines are the early adopters and e*tensive users of CRM practices.

ADOPTION OF TQM:
%he adoption of total &uality management programs helped companies offer &uality products and services to customers at the lowest prices. %o enable this value proposition organisations needed to work closely with their customers intermediaries as well as suppliers thus fostering close working relationships with members of the marketing system. Companies like %herma* ?ero* and %oyota formed partnering relationships with suppliers and customers to practice %@M. "ther developments like more demanding customers increased fragmentation of markets and generally high level of product &uality forced businesses to gain competitive advantage by building more enduring relationship with their customers. /doption of CRM practices among firms operating in competitive markets has also been boosted by the tremendous potential for benefits.

ANALYSE CUSTOMER NEEDS

(n most cases salespeople are &uick demonstrators. %hey start off with their well,rehearsed pitch overloading customers with information about their product instead of trying to find out what the customer wants or needs. (nformation is the key to success and in the sales field it is the information about the customer. %he best way to find this information is through research before meeting the prospect and probing effectively while discussing business with them. %he more you know about the background current condition and plans of the prospects the more successful you will be. / better approach would be to find out what are the customerBs main concerns. %hen give them as much information about those concerns as they seem interested in having. %his does four things3 (t eliminates doubts due to lack of information. (t pro2ects you as an e*pert eager to help thus holding the interest of the customer as he becomes convinced you are interested in issues important to him. -y probing you will understand what the customer wants to accomplish and narrow your recommendations accordingly. <robing also encourages customers to become involved in the conversation and develop a dialogue between you and him. %he two basic types of probing techni&ues are C"pen probeC and CClosed probeC. (n the former the customers freely e*press their e*periences values and concerns. %his techni&ue begins with words like what when where why who how etc. #hereas in the second techni&ue gets simple CyesC or CnoC type of responses or a choice of alternatives that you supply. %he second style is the best approach for dealing with unresponsive customers allowing you to literally pull out information. /nd while you are asking those &uestions keep these simple tips in mind. Maintain direct eye contact3 (t allows your customer to know that you are listening. $othing stops the flow of this golden information &uicker than when he thinks that you are not listening. Rela*3 !it back and make your prospect think his words are the most interesting thing youBve ever heard. (-ecause at that moment they areD) Concentrate3 ;onBt think about what you are going to say ne*t instead concentrate on every word your customer says. Eeep them talking3 Remember the information is in the prospectBs head. Four 2ob is to gather it by keeping them talking.

Eeep your &uestions simple3 /void asking long convoluted &uestions and using 2argons. (t breaks the momentum. #ait for three seconds3 #hen you think the prospect is finished count till three slowly before you respond. (n doing so you will give yourself plenty of time to formulate your ne*t &uestionH response you will appear to be totally engrossed in what the prospect is saying and may encourage himHher to open up further. ;o not interrupt3 $ever ever interrupt the customer. -y interrupting you are stopping the train of thoughts and this is a common blunder committed by most sales person eager to sell. (n using these simple professional probing techni&ues and listening carefully to the answers you will truly establish yourself as a consultant who finds whatBs important fills those needs with the benefits of a product and makes specific recommendations. More importantly it will help you build a professional relationship. !o probe donBt pitch , itBs the clue to selling smarter not harderD

ANALYSING THE MARKET PLACE FOR CUSTOMER VALUE

/ ma2or trend of marketing in the 56s and 46s has been increased emphasis on decisions made with data rather than from the Ctop of the head.C 7eading,edge companies increasingly seek ways to measure customer satisfaction loyalty and value as a means for setting strategy and growing revenue and share.

CUSTOMER SATISFACTION
Customer satisfaction measurement typically begins when a company realizes that their customers are the people who provide the revenues that hopefully will cover e*penses. Most companies start by establishing a customer satisfaction baseline. %hen they target year,by,year improvement. "ften they use a five,point scale and track the percentage of respondents in the Ctop two bo*esC ,, the people who rate them at G or = (C!atisfiedC or CIery satisfiedC). %ypically the first two or three survey waves yield insights action and improvement in customer satisfaction scores. -ut soon the insights fade and customer satisfaction scores flatten out.

CUSTOMER LOYALTY AND RETENTION

/t this point practitioners usually probe for better metrics. %hey e*amine how customer satisfaction scores are related to loyalty intention scores like Cwillingness to repurchaseC or Cwillingness to recommend.C $aturally they find that top,bo* respondents are more

likely than second,bo* respondents to say that they will probably repurchase or recommend. !ome companies switch to tracking top,bo* customer satisfaction scores. "thers begin to focus on loyalty intention measures. !till others begin to use indices that combine elements of customer satisfaction and loyalty. -ut what they all really want is to attract and retain targeted profitable,to,serve customers. !ome companies (like Cadillac and /%J% during the 0456s) observe that while their customer satisfaction scores may be very high market share is slipping. "ther companies worry about the difference between loyalty intentions and retention e*perience. !ome practitioners probe deeper. #ill our CsatisfiedC customers be loyal if a competitor provides better valueK (f the answer is Cno C they begin to focus on loyalty. %hen they probe even deeper. #ill our CloyalC customers stick with us if a competitor provides better valueK /gain the answer is CnoC or Cprobably not.C #hy should a customer who intended to be loyal stay with us if someone else provides better benefits (product service relationship image) at the same or lower cost than we doK How do we get at the drivers of actual retention rather than measures of intended loyaltyK Companies that have many branches or locations like retail banks have studied why some branches have higher retention rates than others. %hey find that the units with higher retention rates perform better on key criteria that customers value than do branches with low retention rates. -ranches that underperform lose more customers to competitors. Customer retention rates,,and attraction rates,,are driven by the customerBs perception of the value of our offering relative to competitors.

CUSTOMER VALUE

Many practitioners are bombarded by books and speakers using customer oriented phrases like customer focus customer satisfaction customer service customer delight customer loyalty and customer value. (n a broad sense these books and speakers are all putting forth the same idea3 Cyou should focus on your customers.C -ut when we delve into the measurement,analysis,understanding,acceptance,action,improvement se&uence we find there are two complementary paradigms. %he customer satisfaction paradigm is older. %he customer value paradigm is newer includes many of the elements of the customer satisfaction paradigm plus many additional features and is being more widely adopted and deployed by leading,edge companies (for e*ample /llied!ignal 1ed)* Honeywell H< 7ever $ortel M! #est #isconsin )nergy. %he customer satisfaction approach focuses on how to satisfy people who are using your products or services. Most customer loyalty measures fall within the customer satisfaction paradigm. %hey are based on a sample of our customers and are typically not measured relative to competition. %he customer value approach focuses on how people choose among competing suppliers (attraction retention and customer, and market,share gains). %his approach leads companies to search for the answers to three customer value &uestions3

#hat are the key buying factors that customers value when they choose among our business and our toughest competitorsK

How do customers rate our performance versus competitors on each key buying factorK #hat is the percentage importance of each of these components of customer valueK

-y highlighting the best performer on each key buying factor marketers obtain a market derived empirical collage of each supplierBs customer value proposition. "ften the view from the marketplace differs from the organizationBs internally developed customer value proposition Eeeping an eye on the future these companies also ask or anticipate how the key buying factors percentage importance weights and relative performance scores are changing or can be changed by a market,driving organization. "ften the sample size is large enough to permit market segmentation analysis based on what each segment values most. (n concentrated business,to,business markets with few customers ;elphi panels are substituted for surveys as a means of listening to the voice of the customer and marketplace

WHAT IS CUSTOMER VALUE ANALYSIS

(ncludes the key premise that customers make decisions to purchase based on the premise of value (t goes beyond customer satisfaction measurements and surveys Measures the components of customer value3 market,perceived &uality and market,perceived price 4

 <lots a map that shows how you compare to your competitors according to your customerBs values .ives you a clear simple and practical picture of your position in the marketplace

MEASURING CUSTOMER VALUE

Customer satisfaction transaction surveys focus on how to satisfy e*isting customers better. Customer value analyses focus on how to improve your competitive position attract and retain targeted customers and create shareholder value.

CUSTOMER RETENTION PROGRAM

Cost of attracting a new customer is estimated to be = times the cost of keeping a current customer happy "ffensive marketing typically costs more than defensive marketing because it re&uires much effort and cost to induce satisfied customers to switch away from their current suppliers. /ccording to Reichheld and !asser , profits can be improved from :=> to 5=> by reducing customer defections by =>. Ways to r ta!" #$sto% rs: )rect high switching barriers customers are less inclined to switch to another supplier when this would involve high capital costs high search costs loss of loyal customer discounts

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 ;eliver high customer satisfaction %his involves creating long term relationships that deliver value . %his is the focus of relationship marketing. T& 'as!# ty( s o) #$sto% r r t "t!o" (ro*ra%s ar +!st , ' +o-. (n D!s#o$"t Pro*ra%s customers receive a price cut on repeat purchases. 1or e*ample many insurance companies will offer a discount on auto insurance if a customer also has homeowner's insurance. %hese firms assume that customers are more likely to remain loyal if they own a greater breadth of the firms' products. Loya+ty Pro*ra%s often taking the form of fre&uent flyerHfre&uent buyer programs and are usually based on a points system. <oints are given to customers for interactions they have with the company. (nteractions may include making purchases using a new channel (like a #eb site or self,service kiosk) or referring prospective customers. <oints can be redeemed for rewards or discounts. Car,/'as , Pro*ra%s can be a specific type of points based or discount program. / popular type of card,based program may be used by your supermarket where your Nvalued customerO card can be swiped at the point of sale and you are offered immediate discount on purchases.

T& Costs a", D!))!#$+t! s o) C$sto% r R t "t!o" Pro*ra%s (n addition to the cost of administering retention programs (which can be rather e*pensive + producing cards and marketing materials setting up points tracking systems maintaining a customer service center or #eb,site) the programs may end up offering rewards or discounts to customers who would have purchased products or services without an incentive. More than 5L> of customers said they would purchase from a company even if they weren't in a program ((nternational Research <ro2ect on 7oyalty <rograms Retail /dvertising and Marketing /ssociation). Regardless of the costs vs. the benefits of a customer retention strategy like any customer relationship management activity retention programs are often hamstrung by a lack of enterprise,wide direction. (t is difficult to pinpoint who advocates the customer. %ypically a firm will need to change in four areas to improve their focus on the customer3

How the organization thinks + are the firm's success metrics centered on customersK How the organization works + are processes engineered around customersK How the organization is structured + does the form of the firm follow its function (to meet customer needs)K

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How culture manifests itself in the organization + does everyone in the firm think about listen to and respond to customersK

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DEFINATIONS
CUSTOMER RELATIONSHIP MANAGEMENT 0CRM1 is a business strategy to select and manage customers to optimize long,term value. CRM re&uires a customer,centric business philosophy and culture to support effective marketing sales and service processes. CRM applications can enable effective Customer Relationship Management provided that an enterprise has the right leadership strategy and culture. CUTOMER RELATIONSHIP MANAGEMENT is the implementation of customer,centric business strategiesP which drives redesigning of functional activitiesP which demands re,engineering of work processesP which is supported not driven by CRM technology. Customer relationship management is not simply retention or customer service or marketing. CRM is a systematic business approach using information and on,going dialogue to build long lasting and mutually beneficial customer relationships. CRM integrates data technology analyses and marketing and communications processes across all customer touch,points. (n CRM the customer is the building block for data management reporting goal setting and measurement as well as business and marketing strategy organization and technical infrastructure and corporate culture and values over time and across all business units. CRM e*tends the concept of selling from a discrete act performed by a salesperson to a continual process involving every person in the company. (t is the artHscience of gathering and using information about your customers to build customer loyalty and increase customer value. #ith the current state of information technology and high customer service e*pectations itBs practically impossible to consider these process issues without addressing technology but itBs important to remember that customer relationshipsQhuman relationshipsQare the ultimate driving force.

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FEATURES AND 2ENEFITS

Customer !ervice and Care Contact management Customization and integration .raphical user presentation (nboundHoutbound C%( features !creen pop with ;$(! and /$( <redictive dialingHauto dialing #eb enabled ;evelopment toolkit Remote agent support Multiple blended campaigns

Help ;esk /pplications "nline !urveys /ppointment scheduling 1ollow,up date call backs Call history 7iterature fulfillment Mass mailing )mailHfa* !ystem and agent monitoring ;ata importHe*port "rder entry and tracking system

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2ROAD FEATURES OF CRM

Measuring both inputs across all functions including marketing sales and service costs and outputs in terms of customer revenue profit and value. /c&uiring and continuously updating knowledge about customer needs motivation and behavior over the lifetime of the relationship. /pplying customer knowledge to continuously improve performance through a process of learning from successes and failures. (ntegrating the activities of marketing a common goal. %he implementation of appropriate systems to support customer knowledge ac&uisition sharing and the measurement of CRM effectiveness. Constantly fle*ing the balance between marketing sales and service inputs against changing customer needs to ma*imize profits. sales and service to achieve

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ELEMENTS AND SERVICES OFFERRED

THE ELEMENTS OF CRM

Sa+ s For# A$to%at!o" Call center telephone sales ),Commerce C$sto% r S r3!# 4Ca++ Mar5 t!"* A$to%at!o" C "t r Ma"a* % "t Call centers managing Campaign management aspects of customer contact #eb,based self service Content management

1ield !ales 1ield services and dispatch ;ata analysis and business intelligence tools Retail %hird,party brokers distributors agents ;ata warehouse and data cleansing tools CRM S r3!# s o)) r , !"#+$, : E/MAIL SUPPORT: )mail management. Rapid human response to customer &ueries and complaints including skill,based routing data capture data mining and reporting CHAT SUPPORT: 7ive web,chat and collaboration in real time. (ncludes co,browsing web page pushing collaborative form,filing and browser synchronization. Highly effective e,commerce facilitator for customer support ac&uisition and retention. TELEPHONE SUPPORT , %elephone support services fully integrated with (nternet support. %his provides a consistent customer e*perience across all available contact channels enabling closer management and measurement capabilities for our clients. ON/LINE TECHNICAL SUPPORT , "n,line technical support and monitoring provided by engineersH technicians from premier (ndian universities polytechnics and softwareH hardware training institutes. %echnical help desk outsourcing enables companies to focus on their core business and utilize their available skill sets more efficiently DATA ANALYSIS , ;ata mining analysis and reporting by &ualified e*perts in 1inance !tatistics and -usiness /dministration from renowned (ndian management institutes. /nalysts prepare in,depth client reports highlighting key points and areas of concern from data captured by CRM software applications.

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-ecause CRMBs tentacles reach into so many areas of a business a CRM system isnBt something that can be implemented out of the bo*. /utomating CRM is an ongoing process. $o single vendor is able to supply all the pieces. #hen integrating a CRM system a company must first review the business processes applications and technologies it uses to deal with customers. (t should also consider its schedule its budget and what it hopes to gain from a CRM implementation. (tBs also worth noting that CRM used to focus on the telephone as the primary means of contact with little attention paid to e,mail or the #eb. However electronic messaging is overtaking voice as the most common form of communication. Corporate call centers arenBt going out of business but they need new people and e&uipment to deal with e,mail and (nternet in&uiries. %he three main areas that CRM systems focus on are sales customer service and marketing automation. !ales also called sales force automation includes the following five areas3 1ield sales. Call center telephone sales. %hird,party brokers distributors or agents. Retail. ),commerce which is sometimes referred to as technology,enabled selling.

Customer service and support includes the following3 1ield service and dispatch technicians. (nternet,based service or self,service via a #eb site. Call centers that handle all channels of customer contact not 2ust voice.

Marketing automation differs from the other two categories because it doesnBt involve customer contact. (t focuses on analyzing and automating marketing processes.

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MARKETING TOOLS

AUTOMATION

INCLUDE

THE

FOLLOWING

;ata,cleansing tools. ;ata analysis or business intelligence tools for ad hoc &uerying reporting and analyzing customer information plus a data warehouse or data mart to support strategic decisions. Content,management applications that allow a companyBs employees to view and access business rules for marketing to customers. / campaign management system which is a database management tool used by marketers to design campaigns and track their impact on various customer segments over time.

;epending on a companyBs goals the tools it chooses would be integrated across the main areas of sales service and marketing. %he technology includes databases data warehouses servers and other hardware telephony systems software for business intelligence workflow management and e,commerce middleware and system administration management tools.

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RELATIONSHIP MARKETING
Relationship marketing is grounded in the idea of establishing a learning relationship with customers. /t the lower end building a relationship can create cross,selling opportunities that may make the overall relationship profitable. 1or e*ample some retail banks have tried selling credit cards to less profitable customers. #ith valuable customers customer relationship management may make them more loyal and willing to invest additional funds. (n banking these high,end relationships are often managed through private bankers whose goals are not only to increase customer satisfaction and retention but also to cross,sell and bring in investment.

RELATIONSHIP LADDER

%he diagram represents the process involved in attracting and keeping customers. %he company hopes to convert many of it &ualified prospects to first time customers and then convert satisfied first time customers to repeat customers. %he efforts are then focused on making them clients,people who buy only from the company in the relevant product categories. %he ne*t challenge is to turn them to advocates customers who praise the company and encourage others to buy from it. %he ultimate challenge is to turn advocates into partners where the customer and the company work actively together.

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HOW SHOULD A COMPANY 2UILD ITS RELATIONSHIP

%he company has to spend more to build greater customer loyalty. %here are five levels of company investment in customer relationship building. 2ASIC MARKETING3 %he sales person simply sells the product REACTIVE MARKETING: %he sales person sells the product and encourages the customer to call if he or she has any &uestions or complaints ACCOUNTA2LE MARKETING: %he salesperson gets in touch with the customer to check whether product is meeting the customers' e*pectations.%his information helps the company continuously improve its performance PROACTIVE MARKETING3 %he company salesperson contacts the customer from time to time with suggestions about improved product uses or helpful new products. PARTNERSHIP MARKETING: %he company works continuously with the customer to discover ways to effect customer savings or help customer perform better.

(n determining which customers are worth the cost of long,term relationships it is useful to consider their +!) t!% 3a+$ . %his depends on3 current profitability computed at the customer level the propensity of those customers to stay loyal e*pected revenues and costs of servicing such customers over the lifetime of the relationship -uilding relationships makes most sense for customers whose lifetime value to the company is the highest. %hus building relationships should focus on customers who are currently the most profitable likely to be the most profitable in the future or likely to remain with the company for the foreseeable future and have acceptable levels of profitability.

RELATIONSHIP GOALS

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%he goal of relationship management is to increase customer satisfaction and to minimize any problems. -y engaging in CsmarterC relationships a company can learn customersB preferences and develop trust. Complaints and errors must be recorded not 2ust fi*ed and forgotten. Contact with customers in every medium whether over the (nternet through a call center or through personal contact is recorded and centralized. )very customer contact is a chance to learn preferences. UNDERSTANDING LIFETIME VALUE /t most companies :6 percent of the customers generate more than 56 percent of the revenues and profit. Fet company resources are often skewed toward interacting with customers who are the biggest (sales) loudest (service) or easiest to find (marketing). %his means companies not only bear the direct cost of these low,value interactions but they also ,, more importantly ,, bear the opportunity cost of not spending time with high, value customers. (n most companies no one organization is responsible for customer success making it difficult to gather all the cost and interaction data and providing no clear owner to manage the customer value process and take action on results. /s a result defining customer value is something very few companies do despite the fact that analyzing customer lifetime value can help lock in valuable customers (and Ccherry pickC competitorsB customers) as well as better focus customer relationship management (CRM) deployments toward the highest returns. "ne of the first steps to &uantify the benefits of CRM is to understand and measure customer lifetime value. CUSTOMER VALUE CALCULATIONS AND DEFINATIONS /rthur M. Hughes author of The Complete Database Marketer (Mc.raw Hill .lossary Revised )dition 0448) , )!" s #$sto% r +!) t!% 3a+$ as 6...t& " t (ro)!t t&at yo$ -!++ r # !3 )ro% tra"sa#t!o"s -!t& a *!3 " #$sto% r ,$r!"* t& t!% t&at t& #$sto% r #o"t!"$ s to '$y )ro% yo$.6 7eading companies also include indirect revenue from customer referrals to represent a complete picture of overall customer value. %rue customer lifetime value analysis re&uires an in,depth understanding of customer behavior as well as using past behavior to predict future actions. /s such customer value analysis is often performed in con2unction with a customer data warehouse and customer analysis where detailed historical behavior can be tracked to predict trends and actions.

%he following definitions of key customer costs and revenue sources provide a good starting point for initial customer value calculations.

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I"!t!a+ R 3 "$ : %he revenue generated by the goods and services the customer purchases initially. #here heavy discounting is the norm companies may wish to capture discount levels as well as net purchase value to monitor discounting trends (and validate the optimistic assumption that future purchases will have lower discounts). I"!t!a+ Costs: %he cost of making the sale plus the cost of the actual good or service sold. A#7$!s!t!o" #ost: / rough way to estimate the ac&uisition cost is to take total sales and marketing costs (assuming most of these are variable costs) for the company or business unit and estimate the percentage spent to ac&uire new customers (rather than to keep e*isting customers). %hen divide that number by the number of customers ac&uired. Companies with better sales and marketing reporting mechanisms can use finer,grained cost,per,sale numbers for common sales and marketing activities. /nother good indicator of sales cost for business,to,business (-:-) transactions is the length of the sales cycle. Remember that initial sales costs are usually higher than those for repeat sales and sales costs vary significantly by customer type (ma2or account new business small and medium,sized enterprise). !ales and marketing costs also vary widely by industry with customer ac&uisition costs ranging from tens of dollars in online retail to thousands of dollars for business services. %ry to get an appropriate ac&uisition cost for each type of customer. Pro,$#t #ost: Calculate product cost based on the typical product or product mi* sold. 1or companies providing custom or configured products the cost of the product can vary significantly based on the amount of nonstandard work re&uired. ((n high,tech this could include costs of additional features added to make the saleP in manufacturing or service industries it could include the cost of additional process steps or product add,ons.) Make sure to include as many of the variable costs as possible to reflect the true cost of the transaction F$t$r R 3 "$ : %he value of future purchases depends on the amount and fre&uency of incremental purchases and the customerBs loyalty (which determines the length of time the customer continues to purchase). /lso include ongoing recurring revenue for services. I"#r % "ta+ ($r#&as s: 1or industries with periodic transactions (such as insurance some retail telecom or other services) incremental purchase estimates are relatively simple. 1or others customer purchase history can help determine typical purchase patterns for a given time period. Companies often model several different cross,sell or up,sell scenarios and ad2ust those based on results. Companies may also find that purchase value or customer loyalty increases with the number of purchases so they ad2ust marketing and sales programs to move customers more &uickly to a higher value state.

S r3!# a", s$((ort r 3 "$ : %he amount of services the customer typically buys in a given time period is often a percent of product cost. (n more mature industries service revenue may be more valuable ,, and more profitable ,, than product revenue. 1or e*ample automotive suppliers now claim to lose money on every car sale but they make

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it up on service. Many high,tech vendors charge annual maintenance fees for service and support which for more mature products can be lucrative profit centers. F$t$r Costs: !imilar to initial costs this is the cost of the incremental products purchased and the cost to make the incremental sale as well as the cost for ongoing service. I"#r % "ta+ sa+ #osts: %ypically sales costs for repeat sales are about :6 percent of the cost to make the initial sale. However that number varies by industry and customer segment and should be validated with customer e*amples. I"#r % "ta+ (ro,$#t #osts: %his is the cost of the product that the customer purchases. /gain be sure to include variable production or fulfillment costs specific to a customer or group of customers. O"*o!"* s r3!# a", s$((ort #osts: (n many industries customers re&uire ongoing management and service outside incremental transactions. %hese costs typically include customer service and support calls and back,office processing costs (e.g. billing statements) and may include ongoing sales account management or customer retention programs (e.g. newsletters fre&uent shopper or customer loyalty awards). %hese service and support costs may or may not be billed to the customer. Loya+ty 0r t "t!o" rat 1: %he percentage of customers who remain customers in a given time period. -y applying the loyalty rate the company can discount future revenue against the likelihood that the customer will actually be around to make the purchase. / rough loyalty rate can be calculated by taking the percent of customers in a segment at the beginning of a time period that are still active at the end of the time period. !ervice and -:- companies (which donBt necessarily lose customers but instead lose some of their business) often use percent of assets (book) or percent of revenue retained rather than the percent of customers retained. /nnual customer retention rates range from =6 percent to 86 percent in the cell phone (nternet service provider and e,tailing markets to more than 56 percent in more mature industries such as financial services and manufacturing. I")+$ "# Va+$ : Companies are trying to calculate the value of a delighted customer (as opposed to a merely satisfied customer) by measuring the number of sales that the customer indirectly influences through references referrals and the like. 1or e*ample 7e*us estimates its best customers will not only buy several cars over their lifetime but will also refer several other customers because they were highly satisfied. Companies may wish to calculate this influence value in different ways depending on the likelihood of the referred customer purchasing and the cost of converting referrals to sales.

/ conservative way to calculate this is to multiply the number of customers referred by the reduction in customer ac&uisition cost over a typical new customer. %he idea here is that referred customers are much easier to find and close than new customers ,, the amount of sales and marketing cost saved by the referral is the incremental value. #hile detailed

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customer lifetime value calculations can be &uite comple* a higher,level approach often provides a great deal of value. A * " ra+ )or%$+a )or #$sto% r +!) t!% 3a+$ 0LTV1 Customer 7%I R Ialue ((nitial Revenue , Costs) S net present value (7oyaltyT(1uture Revenue , Costs)) S net present value (7oyaltyT(nfluence Ialue) T!(: (nitial revenues and costs are relevant mainly when comparing strategies to ac&uire new customers. %o evaluate value and priorities for e*isting customers focus on future value rather than attempting to recover past sunk costs. Fou may use past purchases to determine likely loyalty and future purchases. ("ne way to handle this would be to apply a CdecayC rate to all past purchases so that the longer itBs been since the customerBs purchase the less the purchase is factored into customer value calculations.)

FIVE WAYS TO APPLY MANAGING THE CUSTOMER VALUE

%here are a variety of benefits to managing customer lifetime value. !ome ways companies can apply customer value management include3 0. Tar* t t& r!*&t " - #$sto% rs -!t& a((ro(r!at sa+ s a", %ar5 t!"* a#t!o". Measure costs and results against the types of customers ac&uired and their likely lifetime :G

customer value. 1or e*ample you donBt want to use e*pensive direct sales or e*travagant marketing promotions to attract low,value customers. "n the other hand donBt neglect medium,value customers who can be easily sold to and served with limited resources. :. U", rsta", t& r +at!3 3a+$ o) #$rr "t #$sto% rs. (dentify high,value customers for pro,active customer retention activities. 1ocus resources on the most valuable customers ,, not 2ust those customers that scream the loudest or purchased most recently. -ase your ongoing customer care on potential future business and influence value. A. Wat#& )or s&!)ts !" #$sto% r 3a+$ t&at %ay !",!#at #&a"* s !" #$sto% r ' &a3!or. Many loyalty programs rank customers periodically by relative value and target for special attention customers whose value significantly increased or declined from previous periods. )arly intervention to reward higher value activities or address customer dissatisfaction is often key to maintaining or enhancing customer value. (%his approach is most effective in industries with highly predictable periodic customer purchases such as retail. (t can also be used in many business sales with fairly predictable upgrade or replacement cycles such as high,tech and heavy manufacturing or on an aggregate basis to track the relative value of different customer segments.) G. I, "t!)y *a(s ' t- " #$rr "t 3a+$ a", (ot "t!a+ 3a+$ . Catalogue and financial services companies are starting to use value gap analysis to compare the current value of a customer with the total value of that customerBs purchases across all similar products and services. %he value gap (ad2usted for the e*pected difficultyHcost to close the gap) can drive targeted cross,sellHup,sell campaigns as well as measure improvements in customer value against the total available value. ("therwise companies could improve customer value while falling behind in overall Cwallet shareC if the customerBs total purchases are increasing faster than their purchases with the company.) =. Pr!or!t!8 CRM !"!t!at!3 s 'y t& !r !%(a#t o" #$sto% r 3a+$ . !tart with a goal of increasing customer retention rate for high,value customers or increasing incremental purchases for customers with high potential value. Mnderstand what it takes to make a customer valuable and focus marketing efforts on ac&uiring and nurturing customers to ma*imize customer value not 2ust initial revenue. %ake a hard look at service costs and find ways to offload routine re&uests to self,service or assisted.

STEPS IN IMPEMENTING RELATIONSHIP MARKETING

-ased on the premise that important accounts need focused and continuous attention the steps involved in establishing a relationship marketing program include (dentify the key customers meriting relationship marketing /ssign a skilled relationship manager to each key customer :=

 ;evelop a clear 2ob description for relationship managers /ppoint an overall manager to supervise the relationship managers )ach relationship manager must develop long range and annual customer relationship plan.

DELIVERING LIFE TIME VALUE 9IN PRACTISE

Create awareness. 7et every employee of the organisation be aware of the value of a regular customer ;o not give the customer any reason to go away .ive the customer concrete reasons to come back / complaint must not be treated as a nuisance but as an opportunity for customer retention.

CUSTOMER VALUE PROPOSITION

/fter analyzing the market place for customer value the company should be able to develop a uni&ue customer value proposition. Customer value proposition implies "ffering the right product %o your target customers /t a price that is acceptable to them -ased on their perception of the value /t a cost that allows you to be profitable.

ADVANTAGES
Customer value analysis and relationship marketing offers the following advantages Mnderstanding the customer needs (dentifying customer segments

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(ncreasing competitive options /voiding price wars (mproving service &uality !trengthening communication 1ocus on what is meaningful to customers -uilding customer loyalty (mproving brand performance ;eveloping stronger customer relationship Customer satisfaction !atisfied customers are more likely to repurchase and become good customers %here is a positive relationship between satisfaction loyalty and profitability

CRM IN 2ANKING SECTOR

CRM has been in (ndia for over seven years now. -ut its penetration in the Industry in general and that in the financial services market in particular has been rather uninspiring. :L

%he surprising aspect that came out from the study was that though the banks were aware of the CRM'sB benefits they are skeptical about its applicability to their organization. %he root cause for this is the astonishing growth that the banks are e*periencing at the moment. %he study involved delving deeper into the CRM retail banking application and finding out any hidden undercurrent that have been affecting the CRM adoption in the said segment. /dditionally an effort has been made to present a relative weightage among various factors that goes into making the vendor selection decision which can additionally be used by software vendors for benchmarking purposes. %he study is presented in the form of results and its analysis and methodology used by primary data and secondary data

2ANKS AND TECHNOLOGY: A SYM2IOTIC ASSOCIATION

#orldwide banking institutions have been in the forefront of technology adoption. %his behavior can be attributed to a range of operational characteristics that banks inherently work with. !ome of them being3

Huge volume of operations .eographically scattered nature of its networks !ecurity concerns !cattered workforce Customer centric competitive business landscape

%he above factors apply to banks in general irrespective of nation of operations. !ome (ndia specific factors that lead to an e*plosive growth in technology spending since Bopening upB of the sector are3

(ncreased competition /dvent of cutting edge technologies and competition aggressively adopting them <enetration of the (nternet Realization that technology adoption is cost effective in the long run %remendous growth in scale of operations , the banks have been e*panding at a rapid pace , in terms of customer base range of offering as well as in geographical penetration

/nd in the recent past guided by the philosophy of placing customer first one key area of technology investments by the banks has been Customer Relationship Management (CRM).

PENETRATION IN 2ANKS
C-anking Cis not different from selling cokeO. %he seismic shift witnessed last year was driven by 2ust one pervasive goal of reaching out to the customer. :5

%he last decade has seen many changes taking place in the structure of banking and also in the way the -anking sector has opened up. ;eregulation and entry of new players are changing the -anking scene. %o say that the future belongs to a particular group <rivate -anks or 1oreign -anks or <ublic sector -anks is not correct. %he future belongs to the player who keeps in touch with the time who moves along with the time and is able to respond to the emerging needs of the customers. %oday -anking is changing we are seeing technology being introduced in the sector. / greater amount of dis,intermediation is taking place in the higher segment of the corporate sector and there is a need for providing better &uality customer service. %he market is becoming more J more buyer dominated. (n -anking the final result as to who will actually be able to woo customers will depend on their ability to react and respond to the customer re&uirement. %he customer is going to be the real decider of fate of -anks. %he -anks want to be a ma2or retail consumer -anks in (ndia. %he part of retail -anking goes not only with Credit Card but ;ebit Cards and !mart Cards as well. %he Customer can get a bunch of additional services with co,branded cards which have tie,ups with petroleum C"'s airlines hospital chains. -anks have introduced ;ebit Cards self,e*planatory card that caters very well to the tastes of credit averse (ndians. %he banks are providing all products under one roof and that includes the retail staff as well. H;1C -ank (C(C( M%( -ank and H!-C Citi are wooing corporate to open salary accounts. %he minimum balance re&uired for these accounts is zero and hence customer base of these -anks is e*ponentially increasing./%M network which provides visibility and convenience and hence helps in increase customer ac&uisition is set near railway station petrol pump shopping comple*es etc. (nternet -anking is available to the customer at his desktop while the branches may be : to A kms. away. !ome banks have already ventured to maintain relationship with online banking through (nternet. %he latest trend in banking strategy is clicks bricks in which customer can debit or credit accounts check balances and even trade on it. Car loans are other area in which banks are developing relationship with the customer. %he ideal model of maintainining relationship with the customer focuses on the customer service issues. -anks are providing customers with the highest &uality services with special emphasis on recognizing customer needs and cross selling (e*panding relationship with e*isting clients to increase range of services delivered to the clients) appropriate bank services. (n a nutshell the customer has become the fulcrum of all -anking activities (n this competitive world order companies strive to attain a competitive edge vis,U,vis their competitors. / firm can gain competitive advantage by3

-ecoming a low cost player /chieving operational efficiency -y cultivating customer loyalty

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1or obvious reasons of margins involved the last option is most profitable for any firm. 1urthermore the low cost and operational efficiency can provide competitive edge only in the short to medium run. "nce someone comes up with matchedH better proposition the customers donBt think twice before switching over. (n this backdrop itBs no wonder that companies large and small strive to turn themselves into customer,driven enterprise. / loyal and happy customer is difficult for competition to wean away even if there are some cost differentials etc. -ut fostering a sense of relatedness in customers is at best a daunting task. %he customers have become more and more informed and as an obvious e*tension much more demanding regarding what he e*pects. /s a means of satisfying the ever,increasing customer e*pectation and as a tool for retaining e*isting customers and appropriating new customers the CRM philosophy was conceived. (t is not a tool or a technology but a way of thinking that has developed and which keeps customer at the forefront of every strategyHaction. CRM is a comprehensive approach that aligns business strategy corporate culture and organization and supporting information technology so that the customer relationship proves mutually beneficial to both customer and enterprise. %hrough widespread implementation of sales customer service marketing field support and other customer touching functions CRM integrates people process and technology to ma*imize relationships with all customers. %he ultimate ob2ective is to enhance the customer e*perience whenever there is interaction with him at one of numerous possible touch,points. %his enhanced customer e*perience translates into happy and loyal customer and thereby into a greater wallet share.

2ENEFITS THAT 2ANKS CAN LOOK FORWARD TO

(n highly competitive and dynamic market landscape a key differentiator for retail banks is the way their customersB view them3 how satisfiedH dissatisfied they are from their respective banks services, in short how loyal the customers are towards the banks. (ts

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found in a research that the cost of ac&uiring a new customer is over = times the cost of retaining an e*isting customer. /dd to this the fact that the competition is always on lookout to wean away your customersP one cannot be complacent as far as customer satisfaction is concerned. /part from enhancing the customer satisfaction the adoption of CRM philosophy and its tool leads to the following benefits3

Real,time forecasting for true sales pipeline visibility and more accurate decisions owing to the ability to predict what all products the customers are e*pected to purchase over a period of time. <roviding an integrated view of customers or prospects across companies and channels this makes cross selling and up selling easier. Research shows the more products a customer buys from a firmP the less likely that person is to leave it. Cross selling to e*isting customers produces incremental revenue at little cost increases customer loyalty and improves underwriting accuracy. (ncreased productivity of managerial e*ecutives sales and customer service staff. Reduced training costs. !treamlining of the business process across different functions aligned to the best practices. .iving customers the ability to transactHinteract through multiple channels (phone etc). %urn around %ime (%/%) for closing leads opening accounts and closing service re&uests can be drastically improved. Campaign definition and performance tracking on a periodic basis (for different financial programsHpromotions).

WHAT GOES AGAINST CRM?

CRM has been in (ndia for over seven years now. -ut its penetration in the (ndustry in general and that in the financial services market has been rather uninspiring despite its professed advantages. %he surprising aspect that came out from the study was that though

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the banks were aware of the CRMsB benefits they are skeptical about its applicability to their organization. %he root cause for this is the astonishing growth that the banks are e*periencing at the moment. Most of the Retail banks are witnessing a tremendous e*pansion in their customer base3 one bank even claim to be adding over 066> customer on y,on,y basis. /part from this there are many other factors that have undermined the acceptance of CRM. %he chart shown below enlists the various factors (and their relative weightages on a scale of =) that are believed to have played a role in the sluggish penetration of CRM in the retail,banking sector3

%he above chart clearly shows that it is the implementation time that has had affected the way people in banks look at CRM the most. (n order to further CRM in this segment it is of paramount importance to reduce the implementation time to minimum possible. %his factor makes CRM on ;emand (web based CRM services offered by service providers) a particularly attractive alternative. %he second important parameter that came out from the study was the cost. %o sum up (ndian retail banking players want less risk and faster returns at lesser costs.

Hence from a CRM service providersB view there is a need to find means to enhance the appeal of CRM to these prospective firms. %here can be many factors which when properly fine,tuned can go a long way in convincing retail,banking institutions to embrace CRM. -ut not all factors are similar3 changes in cost incurred canBt be e*pected to have the same appeal to the customer as the changes in the implementation time. /nd more often than not these factors are mutually contradictory. !o software service providers need to prioritize their specific offerings depending upon the relative weightage

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accorded to these factors by the interested firms. %he retail industry on an average believes that the following are the parameters changes in which will have most prominent bearing on the CRM adoption. %he percentage values give the relative weightages of the individual factors.

!ince companies generally cant do with an investment that takes a long time to get running implementation time figures as the top,most criteria closely followed by initial costs and training re&uired. %raining re&uirement factor figures prominently in the case of mid,market banks due to the fact that these firms generally make do with 2ust the re&uired amount of manpower and it is very difficult for them to spare them. %hat will immediately start affecting their operations. Current customer attrition level is surprisingly lowest in priority. %his might be due to the fact that most of the banks surveyed are undergoing tremendous e*pansion in terms of customer base and hence are really not that concerned

about customer attrition.

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CRM/IN THE 2ANKING SECTOR AN E:PERIENCE

#hile one hears international giants successfully implementing CRM by and large the (ndian business or the (ndian arm of such giants give only a lip service to CRM and also there was an element of double speak in the conte*t of customer relationship management by (ndian firms. / survey reveals that only A8> of the C)"s have CRM as one of the top activities in there agenda. 1or the purpose ( met different officials from (C(C( bank M%( bank -ut unanimously agree to the dramatic change in the approach that has swept not only their banks but also other state owned and private banks. /t both (C(C( and M%( there is a mad rush to reach out to the customer through multiple channels like /%Ms cell phones branch phones or the (nternet etc. /part from these it is &uick and efficient service personalized interest and importance to the customer that is the name of the game. %he banks have classified their customers into / - C groups based on their values but maintain the same level of relationship with them.

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"n the other hand (C(C( bank and M%( bank are of the opinion that today there banks believe in providing state if the art value added services to the to their customers. (n a way they are practicing CR/;7),%",.R/I) strategy or in a lay manBs language providing all types of services under one roof i.e. once relationship is developed the customer is given all types of services like retailing stock trading hospital services insurance services etc. H;1C bank offers financial news to customers through C$-C. (t offers a shopping mall through an affiliate site called Ceasy to shopC where the consumers can buy products for which the bank provides loans. Moreover according of (C(C( bank at their bigger branches they have separate services department where in managers are re&uired to look into customer needs and problems ac&uainting them of newer purchase deals etc. Contrary to that the government banks says that inspite of the fact that private banks are coming up with technology based services they are able to maintain here position and be in competition because they go for mass banking i.e having the smallest and the biggest investor in the chain. %his they says they have accomplished through small tactics like talking to them in local language personal attention to them from managers etc. and in a lighter vein they say that private banks are practicing CRM so aggressively because they go for class banking and therefore the loss of even a single customer takes a very toll on tem and there business. #ell to conclude they all unanimously believe that by looking at the shape of things in future CM!%"M)R R)7/%("$!H(< M/$/.)M)$% is here to stay and is destined to be in the fulcrum of activities.

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CASE STUDIES

HISTORY
(C(C( -ank is (ndiaBs second,largest bank with total assets of over Rs. 0 trillion and a network of about =G6 branches and offices and over 0 666 /%Ms. (C(C( -ank 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 and affiliates in the areas of investment banking life and non,life insurance venture capital asset management and information technology. (C(C( -ankBs e&uity shares are listed in (ndia on stock e*changes at Chennai ;elhi Eolkata and Iadodara the !tock )*change

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Mumbai and the $ational !tock )*change of (ndia 7imited and its /merican ;epositary Receipts (/;Rs) are listed on the $ew Fork !tock )*change ($F!)). (C(C( -ank was originally promoted in 044G by (C(C( 7imited an (ndian financial institution and was its wholly,owned subsidiary. (C(C(Bs shareholding in (C(C( -ank was reduced to G8> through a public offering of shares in (ndia in fiscal 0445 an e&uity offering in the form of /;Rs listed on the $F!) in fiscal :666 (C(C( -ankBs ac&uisition of -ank of Madura 7imited in an all,stock amalgamation in fiscal :660 and secondary market sales by (C(C( to institutional investors in fiscal :660 and fiscal :66:. (C(C( was formed in 04== at the initiative of the #orld -ank the .overnment of (ndia and representatives of (ndian industry. %he principal ob2ective was to create a development financial institution for providing medium,term and long,term pro2ect financing to (ndian businesses. (n the 0446s (C(C( transformed its business from a development financial institution offering only pro2ect 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 (C(C( -ank. (n 0444 (C(C( become the first (ndian company and the first bank or financial institution from non,Vapan /sia to be listed on the $F!). /fter consideration of various corporate structuring alternatives in the conte*t of the emerging competitive scenario in the (ndian banking industry and the move towards universal banking the managements of (C(C( and (C(C( -ank formed the view that the merger of (C(C( with (C(C( -ank would be the optimal strategic alternative for both entities and would create the optimal legal structure for the (C(C( groupBs universal banking strategy. %he merger would enhance value for (C(C( shareholders through the merged entityBs access to low,cost deposits greater opportunities for earning fee,based income and the ability to participate in the payments system and provide transaction, banking services. %he merger would enhance value for (C(C( -ank shareholders through a large capital base and scale of operations seamless access to (C(C(Bs strong corporate relationships built up over five decades entry into new business segments higher market share in various business segments particularly fee,based services and access to the vast talent pool of (C(C( and its subsidiaries. (n "ctober :660 the -oards of ;irectors of (C(C( and (C(C( -ank approved the merger of (C(C( and two of its wholly,owned retail finance subsidiaries (C(C( <ersonal 1inancial !ervices 7imited and (C(C( Capital !ervices 7imited with (C(C( -ank. %he merger was approved by shareholders of (C(C( and (C(C( -ank in Vanuary :66: by the High Court of .u2arat at /hmedabad in March :66: and by the High Court of Vudicature at -ombay and the Reserve -ank of (ndia in /pril :66:. Conse&uent to the merger the (C(C( groupBs financing and banking operations both wholesale and retail have been integrated in a single entity.

SERVICES AND PRODUCTS OFFERED 2ASIC SERVICES

SAVINGS ACCOUNT

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"ne needs a minimum balance of =666 for opening a savings account with (C(C( bank %he dynamic features for the savings account holder are as follows ;ebit cum /tm card /uto invest card (nternet -anking <hone -anking /nywhere -anking $omination facility ;oorstep services

SPECIAL SAVINGS ACCOUNT

/n operating account with free multi city che&uebook facility. / saving account which offers to sweep balances above Rs.:= 666 in multiples of Rs.= 666 to a fi*ed deposit for 0 year. #e trust totally your commitment to the account and the relationship and do not prescribe any minimum balance re&uirement. (n other words there is no penalty for non,maintenance of minimum balances in the accounts. (nternet -anking 1ree /nywhere banking 1ree collection of outstation che&ues 1ree monthly account statements. <ayroll processing for employees of the organisation through (C(C( -ank !alary /ccounts (nward remittance through Money:(ndia for 1CR/ approved trusts

SALARY ACCOUNT
ICICI 2a"5 Sa+ary A##o$"t is a benefit,rich payroll account for )mployers and )mployees. /s an organization you can opt for our !alary /ccounts to enable easy disbursements of salaries and en2oy numerous other benefits too. 2 " )!ts

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 Reduces your paperwork. !aves remittance costs. )mployees receive instant credit of salaries. More convenient than )C!. -esides all of the above employees will automatically become (C(C( -ank account holders with special benefits and privileges of 5,5 banking (nvestment advisory and much more... (C(C( -ank also has a special offering3 ;efense -anking !ervices designed e*clusively for the armed forces.

DEMAT SERVICES
(C(C( -ank ;emat !ervices boasts of an ever,growing customer base of over = 7ac /ccount Holders. (n our continuous endeavor to offer best of the class services to our customers we offer you with the following features3 "nline access to your demat account. Check your holdings transactions and status of re&uests and much more ;edicated specially trained customer care e*ecutives at our call centre to handle all your &ueries. Holding and %ransaction details available round the clock on (IR ((nteractive Ioice Response) system Fou can also avail yourself of online share trading services from (C(C(direct.com and get a A in 0 account inclusive of a demat brokerage and an (C(C( bank

AUTO INVEST ACCOUNT

/uto (nvest /ccount gives you the li&uidity of a !avings /ccount coupled with high earnings of 1i*ed deposit. %his is achieved by linking your !avings /ccount to 1i*ed ;eposit /ccount providing you the following uni&ue facilities Ma*imum returns , Four money is never idle. /uto !weep 1acility ensures higher rate of interest on your !avings -ank ;eposits. (t lets you set a balance (sub2ect to a minimum of Rs. 06 666) to be maintained in your !avings /ccount and automatically creates 1i*ed ;eposit on weekly basis for any e*cess amount in the multiples of Rs. = 666. %his fi*ed ;eposit is created for a period of one year or more as specified by you. A4

 Ma*imum 7i&uidity , Fou can withdraw the funds in your /uto (nvest /ccount from any channel such as the (C(C( -ank /%M (C(C( -ank <hone -ankingT and (C(C( -ankBs (nternet -anking facility. $o penalty is levied on premature withdrawal for fi*ed deposits of less than Rs 0= lakh. (n case of withdrawal our Reverse !weep 1acility breaks the last 1i*ed ;eposit in units of Rs. =666. %he 1i*ed ;eposits are broken on 7ast,(n,1irst,"ut (7(1") -asis. %he remaining balance in your fi*ed deposit account will continue to earn higher interest at the original rate applicable to the fi*ed deposit. /uto Renewal , Mnder this facility when your deposits fall due the bank will automatically renew the principal and accrued interest for a similar period as the original deposit.

FOREIGN CURRENCY INTERNATIONAL DEPOSITS

(C(C( -ankBs 1oreign Currency (nternational ;eposits provides a range of benefits to $on,resident (ndians F at$r s ;eposits ranging from A months to 8 years /ttractive multi currency 1i*ed ;eposits in M!; .-< and )MR Minimum investment amounts are M!; :666 .-< 0=66 and )MR :666 Maturity proceeds is completely repairable

CURRENT ACCOUNT
(C(C( -ankBs Recurring ;eposits are the ideal way to invest small amounts of money every month and end up with a large saving on maturity. F at$r s )ncourages regular savings without stress on your finances. High rates of interest (identical to the fi*ed deposit rates).

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 $on,applicability of %a* ;eduction at !ource (%;!). M!"!%$% 2a+a"# %he minimum balance of deposit is Rs. 0 666 per month and thereafter in multiples of Rs. 066.

ROAMING CURRENT ACCOUNTS

Roaming Current /ccount from (C(C( -ank travels the distance with your business. #ith advanced technological features your banking needs are well taken care of. Fou can access your accounts at over A=6 networked branches across the country. !o while you take care of your business let (C(C( -ank's Roaming Current /ccount simplify banking for you.

ANYWHERE 2ANKING
MO2ILE 2ANKING:
#ith (C(C( -ank -anking is no longer what it used to be. (C(C( -ank offers Mobile -anking facility to all its -ank and Credit Card customers. (C(C( -ank Mobile -anking enables you to bank while being on the move. (C(C( -ank Mobile -anking can be divided into two broad categories of facilities3 /lert facility3 (C(C( -ank Mobile -anking /lerts facility keeps you informed about the significant transactions in your /ccounts. (t keeps you updated wherever you go. Re&uest facility3 (C(C( -ank Mobile -anking Re&uests facility enables you to &uery for your account balance.

ATM
(C(C( -ankBs :G Hour /%M network is one of the largest and most widespread /%M $etwork in (ndia. %he banks /%Ms are located in commercial areas residential localities ma2or petrol pumps airports near railway stations and other places which are conveniently accessible to their customers. (C(C( -ank /%Ms features user,friendly graphic screens with easy to follow instructions. %hey have introduced /%Ms which interact with customers in their local language for increased convenience

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DE2IT CUM ATM SERVICES:

Combining the acceptability of a credit card and the prudence of an /%M card the (C(C( -ank ;ebit card is a most convenient accessory for you. $o more fear of overspending. $o more searching for the nearest /%M. "nly more comfort and convenienceD #ith the (C(C( -ank ;ebit Card you can shop using I(!/ )lectronBs on,line debit program and debit your (C(C( -ank account directly when purchasing goods or services at any shop displaying the (C(C( -ankHI(!/ )lectron logo. (C(C( -ank offers you the powerful options of

ICICI 2a"5 HPCL D '!t Car, ICICI 2a"5 N#as& D '!t Car,

INTERNET 2ANKING
(C(C( -ank.com offers variety of features to make banking a pleasure. %ransfer funds online. -alance )n&uiry and !tatement and Check out your last 06 transactions with a real time balance. Checks out past transactions from the date of opening your account. (ssue instructions to stop payment of a particular che&ue. !ends banking alerts for people on the move. "ne gets monthly statement by email !ubscribe to free bank statements to be delivered to your email (d

PHONE 2ANKING
/ user friendly automated service menu offers you convenient access to your account coupled with security as all your transactions are protected by an /tm <in , %he <ersonal password to your -anks J Credit card /ccount and %pin for your ;emat /ccount. -ut if you do need any assistance our officers will be glad to help you.

SPECIAL SERVICES
PRIVATE 2ANKING

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E;#+$s!3!ty a", Co"3 "! "# ;edicated "fficer !eparate interaction area in the branch /nywhere -anking facility )*clusive <hone -anking service

Co%( t!t!3 Pr!#!"* Reduced rates for products and services !everal Complimentary "ffers Ialue,linked benefits

YOUNG STARS
Foung !tars is a banking service for children aged 0day ,05 years brought to you by (C(C( -ank to help the parents meet the present and future aspirations that they hold for their child. (t offers various savings and investment options to the parent along with teaching the child to manage hisHher personal finance in a more responsible and independent manner. /t Foung !tars cute companions guide your child through the world of banking ,through checking the account balance fun zones and special pages on the internet. (t makes banking a pleasure and of course teaches your child to manage their personal finances. #ith the pocket money that you transfer to your childBs account you can even shop with him H her at Foung !tars very own shopping page. Fou can even open a recurring deposit in your childBs name. "nce you are done with your BbankingB you can access your childBs account with all the fun links to special zones designed to suit your childBs area of interests and also impart knowledge on the current events of the world.

CAMPUS 2ANKING
%he student must be student above 05years of age. Here the customer needs to maintain a &uarterly balance of Rs =66 2 " )!ts to t& st$, "t 1ree (nternet -anking 1ree <hone -anking (in select citiesT) (C(C( -ank $cash ;ebit Card

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Ot& r 2 " )!ts <arents can transfer funds from your (C(C( -ank account to your childBs account free of charge so that his H her college fees tuition living e*penses etc. are taken care of. (f you have an (C(C( -ank Credit Card you can give your son H daughter a supplementary card and even specify a pre,determined spending limit.

IMPORTANCE OF CRM IN ICICI 2ANK

Customer focus. Cross,selling. "ne,to,one marketing. /re these 2ust customer relationship management buzzwordsK $ot to (C(C( -ank (ndia's largest private bank. (C(C('s management truly believes in customer focus in seeing each customer's complete financial picture. (t also is determined to stay ahead of the competition by integrating and analyzing customer data using the latest in data warehousing technology. (n the process of growing its business to this level (C(C( -ank has distinguished itself from other banks through customer relationships. (C(C( -ank )*ecutive ;irector Chanda Eochhar says N(n an increasingly competitive environment where customers are becoming more demanding and financial services are getting commoditized (C(C( realized the key differentiator would be customer focus.O %o achieve this focus (C(C( needed to unearth the customer data traditionally buried in systems supporting each separate product. (n the process it wanted to achieve greater success in the following business,critical areas3 %arget marketing and customer ac&uisition !hare of wallet Channel strategy and management Relationship management and database marketing <roduct development Credit approval (C(C('s -usiness (ntelligence .roup realized that before the bank could get a clear picture of each of its customers and begin to tailor its products and services accordingly it would have to consolidate its data from eight disparate systems into one data warehouse. (n 0444 the company turned to %eradata. N%eradata has helped (C(C( understand the behavioral and financial profiles of our customers O -agchi says. N(C(C( has leveraged this understanding to effectively target specific customer segments with relevant offers and communication.O

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#ith these customer profiles (C(C( is able to tailor its marketing campaigns to meet the needs of its target prospects. N/ recent e*ample is a national campaign that was run for the bank's priority banking product O -agchi says. N#e used the intelligence gained from an analysis of the characteristics and needs of e*isting high net worth customers in order to design the campaign to ac&uire new priority banking customers.O -esides boosting customer ac&uisition rates (C(C( uses the data warehouse to increase business from current customers. ;alal says N(C(C( -ank has run over G6 cross,sell up, sell and retention campaigns out of the %eradata warehouse in the past year. %he credit cards attribute appro*imately 05> to :6> of their business in the past year to the cross, sell campaigns run out of the warehouse.O Much of this success is due to (C(C('s newfound ability to put the right product in front of the right customer at the right time. )ven with 06 million customers (C(C( can bring every household into focus creating a clear picture of each customer's accounts and needs. -y strategizing with this customer perspective (C(C( is poised to satisfy more customers one at a time

At ICICI Bank its a privilege to bank with customers and deal with their need. The bank guarantees that no customer goes un heard .Thus the slogan rightly goes ICICI !e make Banking a pleasure".

HISTORY OF COMPANY
M%( -ank was among the first private sector banks to obtain the banking license post liberalization. !ince then the bank has grown to a total deposit base of Rs=L.:bn at the G=

end of fiscal year 0444,:666 which is a 46> increase over the year 0445,44. %he bank now plans to focus on retail and fee,based income and has taken ma2or initiatives in this direction. #hile liberalization and reforms have thrown up a few challenges it has also created opportunities for banks to increase revenues by diversifying into (nvestment banking (nsurance Credit Cards mortgage financing depository services and more. #ith the emergence of e,commerce the way in which banking business is presently conducted would undergo a radical change. 1uture competition among banks will be essentially based on the twin platforms of technology savviness and ability to attract talent %elephone and (nternet banking will gain importance and the future will see the emergence of (nternet driven operations without a broad,based branch network. (ncreasing competition will e*ert pressure on bottom lines forcing banks to cope with thinning margins. Margins in fund,based business have come under pressure due to a sharp fall in interest rates with disproportionate reduction in cost of deposits. (ncreasing disinter mediation by corporates has led to rising investments by banks in lower yielding C;s $C;s and preference shares. <ressure on C/R has forced many players to focus on zero risk instruments like .,!ecs. %he bank's key advantage is the strong investor base of its parent company. (f M%(E can leverage M%('s association with the ma2or corporates its can make a good penetration into the corporate banking segment. (t can also tap M%('s large retail investor base to drive retail deposit growth. %he bank is already taking over control of M%('s collection centres at many cities. %his provides the bank with a good amount of float. Moreover the bank is acting as a clearing house for $!) and has also tied,up with companies in e,commerce. #ith the increase in retail and fee,based income the bank shall witness better results in future. %he -ank today is capitalized to the e*tent of Rs. 040.50 Crore with the public holding (other than promoters) at ==.0:>. %he -ankBs Registered "ffice is at /hmedabad and its Head "ffice is located at Mumbai. <resently the -ank has a very wide network of 0G= branch offices :L )*tension Counters and :: service counters. %he -ank has a network of over =08 /%Ms providing :Ghrs a day banking convenience to its customers. %his is one of the largest /%M networks in the country. %he -ank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve e*cellence.

PROMOTERS
M%( -ank 7td. has been promoted by the largest and the best 1inancial (nstitution of the country Mnit %rust of (ndia. %he -ank was set up with a capital of Rs. 00= crore with M%( contributing Rs. 066 crore 7(C , Rs. L.= crore and .(C and its four subsidiaries contributing Rs. 0.= crore each.

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Mnit %rust of (ndia , !hareholding G0.L6> Mnit %rust of (ndia is the largest mutual fund in (ndia with funds under management of appro*imately Rs. =0GAG crore as on A0st March :66:. M%( presently occupies a special position in (ndian capital market. #ith a servicing and distribution network of =A branch offices A:6 Chief Representatives and about 5L 666 agents M%( provides the complete range of services to its investors.

2ASIC SERVICES
SAVINGS ACCOUNT
M%( -ankBs !avings /ccount is 2ust the right product for everyone salaried or self, employed high net worth individuals and $R(Bs. %he unmatched package of M%( -ank !avings -ank account brings to you the benefits of better efficient and hassle free banking. (nterest pain on &uarterly basis 1ree international debit card %ele banking and internet banking Multi city N/t <arO che&ue book for all savings account holders 1ree anywhere banking facility /uto speed facility to transfer access balances into high interest earning term deposits $etwork of :68 offices and over 066 /tms to ensure that ones money is easily accessible @uarterly statements delivered at your door steps free of cost !pecial savings account for !tudents %rustH$gosH!ocities !enior citizens ;emat /ccount holder

SALARY POWER
M%( -ankBs !alary <ower comes with a host of facilities that give ones employees the complete gamut of banking services (including overdrafts loans and zero,balance re&uirements) on a preferential basis. $ot only is it a convenient way for the employer to manage salaries (across various centers through our centralized database) the employee also benefits from a range of value added benefits. Making it the perfect incentive for ones employees.

GL

Sa+! "t F at$r s -alance Re&uirement3 $o minimum balance "verdraft 1acility3 Mpto =6> of net salary at <ersonal 7oan rates ;emand ;rafts3 1ree ;emand ;rafts drawn on M%( -ank -ranches without any restrictions <ower 7oans <ower :G3 1acility of /%M cum ;ebit Cards on overdraft accounts <riority -anking3 Reduced balance criteria for availing <riority -anking that entitles you to e*clusive banking and lifestyle privileges

RFC0D1 ACCOUNT
Holding foreign currency is no longer restricted to the $R(s. 1or the first time Reserve -ank of (ndia has allowed Resident (ndians to maintain foreign currency accounts without any ceiling to it. %his step is considered as a continuation of R-(s gradual endevour towards achieving <F$++ Ca(!ta+ Co"3 rt!'!+!ty<. / Resident 1oreign Currency (;omestic) /ccount R1C(;) with M%( -ank entitles you to maintain non,interest bearing current account in four ma2or currencies (M!; )MR" .-< and Vapanese Fen). %here will be no ceiling on the balances held in the account. Che&uebooks denominated in M!;H.-<H)MR"HF)$ will be issued on these accounts with := leaves. %he che&ues thereby branded as R1C (;omestic) /ccount are not presented in clearing and are payable only at the issuing branch. %he min balance for such a current account isbe M!; 066H, or .-< 86H, or )MR" 066H, or Fen :6666H,. %here are penal charge of M!; =H, or .-< AH, or )MR" =H, or Vapanese Fen 0666H, per &uarter in case of failure to maintain the min balance re&uirements. %he R1C(;) account holders are not allowed any /%M facility as of now. However they can use B(,ConnectB for en&uiry purposes only.

RECURRING DEPOSITS
%he ob2ect of recurring deposits is to provide a person with an opportunity to build up his savings through regular monthly deposits of fi*ed sum over a fi*ed period of time. Recurring deposits are accepted in e&ual monthly installments of minimum Rs. 0666H, and above in multiples of Rs. =66H, thereafter. %he fi*ed numbers of installments for which a depositor can opt are 0: :G A8 A4 G5 86 8A L: 5G 48 065 and 0:6 months.

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 %ransfer of /ccounts , / recurring deposit account can be transferred from one office of the -ank to another branch.

EASY NETWORK THROUGH SERVICES

ATM NETWOK
/ !avings -ank /ccount with M%( -ank entitles you to a free ;ebit card which enables you to access your account anytime and at any /%M centre across the country. Fou can withdraw and deposit money and che&ues with your ;ebit card. Mnlike most other /%Ms a M%( -ank /%M allows you to withdraw up to Rs G6 666 a day. (n addition cash can be withdrawn from any of the /%Ms against your MasterCard (domesticHinternational).

=>HR/2ANKING
%elebanking service provides you instant access to your account. (t offers you a wide range of services over the phone such as account information -alance )n&uiry %ransaction ;etails !tatement of /ccount on 1a* !tatus of your Che&ue (/vailable only during branch -usiness Hours)

!/CONNECT INTERNET 2ANKING

%he concept of Cthe -ank on your desk,topC. Fou can look,up the status of your account &uery and undertake a range of financial transactions simply by clicking the mouse. (n addition i, connect helps you to conduct "nline trading Mutual 1unds purchases and online shopping .Fou can also make payments such as insurance electricity telephone and mobile services.

CORPORATE !/CONNECT
%o suit the fast paced and dynamic needs of our corporate customers Mti -ank offers corporate iConnect. /part from all the features in i connect it also offers multiple user id to allow a number of users to access the facility at the same time seperate powers of entry and authorization of transactions online to ensure complete safety and facility for online updating of bulk transactions such as credit cards of staff salaries.

SPECIAL SERVICES
AT POWER CHEQUE
/ll the!avings /ccount holders e*isting as well as new will receive /% </R Che&ues. /% </R Che&ue packs a lot of power for your convenience. $ow your !avings -ank /% </R Che&ue is a local che&ue at all M%( -ank Centers across the country.

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!o no longer have to incur any cost or delays in association with outstation che&ue collection nor would one have to go about to procure a demand draft to avoid the same. %his facility also helps to operate your account if u relocate to another one city.

PRIORITY 2ANKING
/t M%( -ank they value ones relationship with them. /nd it is their endeavour to strengthen this bond further. #ith this end in mind they present Pr!or!ty 2a"5!"*. / service that would provide preferential treatment to select customers like us .%hrough <riority -anking they provide customers2a"5!"*? I"3 st% "t a", L!) sty+ Pr!3!+ * s which would make their banking e*perience with M%( -ank very fulfill /s a <riority banking customer one will have access to their e*clusive <Pr!or!ty 2a"5!"* Ar a< within the -ranch. %his area would have an ambience which would allow customers to conduct their financial transactions in utmost comfort and confidentially through a dedicated R +at!o"s&!( Ma"a* r. %he Relationship Manager is a trained professional who will be easily accessible to you. /s a <riority -anking customer one may ask the Relationship Manager to attend to your needs either at your office or residence.

DE2IT CARD
#ith the ;ebit Card you can travel and shop around the world with a light wallet. Fou can use the M%( -ank ;ebit Card in (ndia at over =666 /%Ms and =8 666 Merchant )stablishments. (t is also accepted at 5 66 666 /%Ms and 0: million Merchant )stablishments worldwide. No A""$a+ F : %he M%( -ank ;ebit Card comes to you absolutely free of cost. /ll you need is a !avings -ank /ccount (including $R) H $R" /ccounts)T H Current /ccountTT with us. H!*& r Tra"sa#t!o" L!%!t : %o ensure that you are never out of money we now give you an enhanced daily withdrawal limit of Rs. G6 666 at /%Ms and absolutely no limit at Merchant )stablishments sub2ect to the balance in your account. A,,!t!o"a+ Car, Fr : (ncase of a 2oint account you can get one additional card free of cost. 1or more than one additional card there will be a nominal charge (as per tariff rates). P&oto S!*"at$r Car, : %he ;ebit Card from M%( -ank will be personalised for you. (t will carry your photograph and signature giving you added security. I"s$ra"# : %he M%( -ank (nternational ;ebit Card comes with special insurance features that protect you and your loved ones. Wero 7ost Card 7iability <ersonal /ccident Cover of up to Rs. : 66 666H, 3 (n the unfortunate event of loss of life in a mishap the customerBs beneficiaries will receive the benefit of accident insurance of up to Rs. : 7akhs. %he <ersonal /ccident Cover comes into force as soon as the ;ebit Card is used for a payment transaction at any Merchant "utlet. %he customer should have one of the following accounts with M%( -ank to be eligible for the M%( -ank ;ebit Card 3 (Minors not eligible) Usa*

=6

%he M%( -ank ;ebit Card is a multifunctional card and can be used at 3 UTI 2a"5 ATMs : 1or transactions such as Cash #ithdrawals -alance (n&uiry Che&ue HCash ;eposit <($ Change %ransfer of 1unds Mini !tatement etc. VISA 4 VISA P+$s ATMs : 1or Cash #ithdrawals and -alance (n&uiry transactions. M r#&a"t Esta'+!s&% "ts : (displaying the I(!/ )7)C%R"$ !(.$ and having )lectronic !wipe %erminals)3 %o make payments for <urchases at !hops ;epartment !tores or payments at Restaurants <etrol <umps etc.

TRAVEL CURRENCY CARD

M%( -ank understand how important and memorable each moment of your trip abroad is and present you with the %ravel Currency Card a hassle free secure and convenient way to carry money and payments make when you travel abroad. %he %ravel Currency Card gives you :G,Hour access to money. (t enables you to withdraw money from any I(!/ /%M as well as pay for all your purchases in any country you visit anywhere in the world. Tra3 + A#ross t& G+o' %he M%( -ank %ravel Currency Card is a prepaid M! ;ollar denominated card. %he Card is available off the shelf at your nearest M%( -ank -ranch and select authorised 1ull 1ledged Money Changers (11MC). /ll you need to do is fill in the application form overleaf along with relevant documents and get the re&uired amount dollars loaded onto your Card (Min X=66). %hough the Card is denominated in M! ;ollars it can be used in any country in the world in the local currency of that country. %he %ravel Currency Card is a I(!/ )lectron Card and can be used to withdraw cash at over 5 G6 666 I(!/ H I(!/ <lus /%Ms and shop dine purchase anything you want at over 0A million Merchant "utlets across the world.

S #$r!ty / secure G digit <($ helps to secure all your cash withdrawal transactions. (f your Card is lost or misplaced all you need to do is call on the :G,Hour Customer !ervice $umber your Card will be immediately blocked to secure your money and a replacement Card will be sent to you. /s a cardholder you can also access IisaBs .lobal Customer /ssistance !ervice (.C/!) which can be used to report a lost or stolen card get emergency cash assistance and make in&uiries (charges applicable). Fou also get insurance coverage e&uivalent of upto Rs. : 66 666H, for 7oss of Card from the time you report the loss to us.

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U"$t!+!8 , 2a+a"# / C&oos yo$r o(t!o" R )!++ 4 R )$", 4 Tra"s) r to a Do++ar A##o$"t #hen you return from your trip you can choose to 0. .et your balance on the card encashed :. %ransfer it to a Resident 1oreign Currency ;omestic /ccount A. "r simply let the balance on your Card (upto X:666 as per R-( Regulation) remain so that you can use it for any future trips

CURRENT ACCOUNT
NORMAL CURRENT ACCOUNT /t an /verage @uarterly -alance of Rs 06666 this account takes you into the all new world of banking. 2USINESS ADVANTAGE ACCOUNT /s your business grows so does your banking re&uirements. /nd you need an account that can keep pace with your growth. -usiness /dvantage /ccount at an average &uarterly balance of Rs :=666 is 2ust right for you. 2USINESS CLASSIC ACCOUNT -usiness Classic /ccount from M%( -ank helps you co,ordinate your finances perfectly with total control on your funds. !o en2oy the power. /ll at an /verage @uarterly -alance Re&uirement of Rs 0 lakh. /verage @uarterly -alance Re&uirement Rs 0 lakh.

2USINESS PRIVILEGE ACCOUNT )n2oy the host of privileges with our -usiness <rivilege /ccount. (f you can maintain Rs = lakhs average &uarterly balance go for it. FACILITIES EN@OYED /nywhere banking facility /t par Che&ue book (nterenet -anking CashHChe&ue pick,up services 1ree /tmHdebit card =:

 1ree e,statements daily

CASH MANAGEMENT SERVICES

(n todayBs competitive marketplace effectively managing cash flow can make the difference between success and failure. M%('scash flow solutions give you ma*imum control over this vital asset. #hether you do business locally or throughout (ndia we can provide you with innovative integrated cash management solutions tailored to your specific needs. M%(s Cash Management enables the efficient utilization of your receivables through coordinated management of payments collections and balances in your accounts. %he ob2ectives are to reduce costs enhance control and optimize returns by leveraging our -anking e*pertise for mutual gains. Managing Receivables3 Collections Managing <ayables3 <ayments Managing %a*es3 C;-% H C-)C Collections Managing (nformation3 M(! (% !upport J !ervices Managing Resources3 7i&uidity Management M%( -ankBs Cash Management !ervices is based on an e*tremely robust technology capable to cater to collections or paymentBs re&uirements of3 7arge Corporate !mall and Medium !egment -anks $-1CsMutual 1unds 1inancial (ntermediaries Mtility !ervice <roviders

POWER LOANS
Mti bank <ower loans brings everything within your reach. #ith products like <ersonal loans Home 7oans and vehicle loans. Fou can get that piece of 2ewellery your wife always wanted the perfect house ensure your kids have the best education and 2ust about everything u have dreamt off.

THE MANTRA OF UTI 2ANK

CUSTOMER FOCUS MEANS... R(.H% <R";MC% R(.H% %(M)

=A

 R(.H% <R(C) R(.H% CH/$$)7 /s shown above they have segmented their customers for their targets %hree key target segments for Mti -ank !alaried !elf employed Retirees

Pro,$#t $sa* t ",s to 3ary 'y #$sto% r s *% "t. !ignificantly greater variation observed in liabilities than in assets. W!t&!" a#& #$sto% r s *% "t? (ro,$#t (ro)!ta'!+!ty t ",s to 3ary. <rofitability driven by average balances for liabilities and ticket sizes for assets .<eople with higher earning levels are likely to be more profitable. %hus need to focus on profitable customers within each segment /t M%( -ank to deal with cutomers they have divided banking into maordern and traditional

MYSTERY SHOPPING
GOAL

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A2$!+, a (ro/a#t!3 #$sto% r # "tr!# #$+t$r !" t& 2ra"#& s -!t& &!*& s r3!# or! "tat!o".B

MEASURA2LES
-ehaviour at the counter @uality and @uantity of information parted !ensitiveness to customer needs "verall pro,activeness in selling the -ank's products

METHODOLOGY USED
/ set of :,A -anks are identified for comparative study. %he mystery customer visits the branch. Checks the ambience , #alls !ofa $oise level <"! etc. )ngages with 1ront desk officer. !eeks information on various products. /sks basic &uestions .!eeks information on non,banking products. !imilar approach at other competitive banks. Comparative ratings shared with the -ranch head. (n case of deficiency same study repeated on the same officer after 8 months. !ays Hemant Eaul senior I,< of M%( -ank N7esser the product relationships more are the chances of customers shifting loyalties on the slightest inconvenienceO. 1or its technological assistance and solutions in CRM the bank has tied up with leading software firms like (nfosys and #ipro programming under 1($/C7) CRM and (-M for core banking solutions.

These are the services and products that #ti bank gives their customers. !ith #ti Bank$ everyday banking becomes an absolutely hassle free e%perience for you. Because they use the latest technology to constantly innovate their services and products.

SURVEY
SURVEY TOPIC:
%o study why people choose a particular bank its different products and services availed .#hether the banks marketing and sales techni&ue affects the customers of a bank of different age and income groups. ==

O2@ECTIVE:
%his survey has being made keeping in mind that3 1inding out peoples criteria for choosing the bank. 1inding out which services of the bank people avail the most. %o know if the banks are giving the right products according to the peoples demand. %o determine whether marketing techni&ues help in increasing the customers for a bank. /nd finally to find out whether the people are satisfied with the banks relationship.

SAMPLE SICE:
=6 respondents

SURVEY RESULTS: SECTION I

D. GENDER CLASSIFICATION 0:> below :6 A=> between :6 to A6 08> between A6 to A6 A0> above =6 =. SE: G6> male 86> female E. MARITAL STATUS G6> single 86> married

>. LITERACY :G> Mndergraduate G6> .raduate :5> <rofessional 5> "thers F. @O2 PROFILE

=8

:G> !elf employed G5> !ervice 5> Mnemployed G. INCOME PER MONTH ::.::> below = 666 08.8L > between A 666,= 666 AA.AA> between 06 666,:6 666 08.8L> between :6 666,A6 666 00.00> above A6 666 H. SAVINGS PER MONTH A=.:4> below 06> of income GL.6=> between 06> to :6> of their income =.55> between :6>,A6> of their income 00.L8> above A6>

SECTION II
I. HOW DO YOU CHOOSE A 2ANK FOR AVAILING ITS SERVICES?

=L

35 30 25 20 15 10 5 0

Reputation Proxim ity Safety of capital Ow nership Recom m enda tion

1or availing the banks services according to the respondents of the survey :5.=L> felt that reputation was an important factor (i.e goodwill of the bank) 0L.0G>felt pro*imity of the bank (i.e taking into consideration where they stay or work) A:.:4> felt safety of capital was inporatant.0L.0G> felt ownership was important (publicHprivateHco, operative) and :.58> said they would choose the bank on recommendation. J. MOST IMPORTANT FACTOR WHEN A 2ANK SERVICES ARE DELIVERED?
Speed of accuracy Accuracy Timely intim ation now led!e of products "ourtesy of em ployees

%he most important factor when bank services are delivered according to the respondents are :A.:8> said speed of service A:.=8> said accuracy of the service.05.8> said timely intimation of account status.0A.4= said knowledge of the products and 00.8A> said courtesy of employees.

DK. MOST IMPORTANT FACTOR THAT A 2ANK POSES

=5

&0 %0 $0 50 #0 30 20 10 0

'ood (ranch desi!n )illin!ness to help Ad*ertisin! leaflets +fficiency in performin! trasactions

%alking about the important factors that a bank needs to poses 4.58> said good branch design is essential.0>spoke about advertising.0=.0A> said that the willingness of the bank to help is essential and LG.04> thought that the bank should be efficient in its performance. DD. HOW OFTEN DO U VISIT A 2ANK?

#0 35 30 25 20 15 10 5 0 ,aily )ee-ly .orthni!htly /ontly Rarely

%alking about how often do people go to the bank 5>said that they go to the bank daily :6>said they go to the bank weekly G6> said they go to the bank fortnightly :6>said they go banks on monthly basis and 0:> said they rarely go to banks.

D=. WHICH OF THE FOLLOWING SERVICES DO U AVAIL OF A 2ANK?

=4

&0 %0 $0 50 #0 30 20 10 0 Mo'!+ s r3!# s I"t r" t 2a"5!"* P&o" 2a"5!"* ATM s r3!# s

#ith respect to the services of the bank which include Mobile services internet banking phone banking and atm services.5.AA> said they avail mobile services internet banking phone banking and L=>for atm services.

DE. WHICH OF THE FOLLOWING SERVICES DO U AVAIL?

Personal loans Term 0oans Sa*in!s1"urre nt account "redit1,e(it card ,2m at Account

#ith respect to the services of the bankA.06> said they have taken personal loans with the bank L=> said they have savingsHcurrent account with the bank 0=.8=>said they have CreditHdebit cards and 8.:=> said they hold d,mat accounts with the bank.

D>. HOW DO COME TO KNOW A2OUT A SERVICE IN A 2ANK?

86

$0 50 #0 30 20 10 0 #ord of Mouth %v /dv <rint /dv Hoardings (nternet

#hen people were asked how they come to know about the banks services ==.0L> people said through word of mouth 0A.L4> said through %I advertisements 0A.L4> said through print advertisements 8.4> said through hoardings and 06.AG> come to know via the net. DF. DO ADVERTISMENTS INFLUENCE TO SELECT YOUR 2ANK?

3es 4o

"f all the respondents of the survey L6.5A> said advertisements don't influence them while:4.0L> said advertisements influence them in selecting a bank.

DG. DUE TO COMPETITION IS THE CRM PRACTISES OF 2ANKS INCREASING?

80

A!ree ,ia!ree

4=.=A> agree that due to competition the CRM practices of the banks are increasing whileG.0L>disagree to this. DH. DO YOU THINK THE COMPETITION OF 2ANKS IS INCREASING?

A!ree ,isa!ree

40.8L> respondents agree that there is increase of competition in banking sector and due to which their facilities are improving while 5.AA> disagree to this fact.

RECOMMENDATIONS
/lign oneself to the challenge in terms of correctly identifying the key issues and ob2ectives.

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 $eglect of the business process issues surrounding CRM implementations has impacted efficiency gains achieved post implementation. /nd hence though technical aspects needs to be given due importance other strategic aspects should not be compromised upon. %he basic pre,re&uisite of CRM is "enterprise wide consistent and uniform customer knowledge". Connect this insight to a usable platformH idea. %he time has come to make the shift from customer volume based strategies to customer value based strategies. -anks need to understand the actual value of each relationship and should base their actions on this information to provide mutually beneficial customer relationship.

CONCLUSION
%he optimal environment would be one where everyone in the organization shares the same accurate up,to,date relevant and reliable information , where customer intelligence 8A

is available at his or her fingertips and available for everyone to make the right decision at the right time. #hat is needed to accomplish this is an effective means of data gathering access and integration enabling you to provide the highest &uality products and services. -ut this doesnBt mean that 2ust technological aspects are the only important aspect. (n fact the CRM philosophy revolves around three aspects3 strategy people and technology. Most of the CRM implementationBs failure can be attributed to over,emphasis on technical aspects and on neglect of other two e&ually critical concepts. %he choice of technology should be derived from the strategies that the firm has visualized and who are going to use it. %he work culture should be developed to reflect customer first philosophy. %he processes involved in customer management are also very important. %hey need to be aligned to the best in practice. /dditionally the firms start implementing CRM without even deciding upon the ob2ectives to be achieved through the e*ercise. %here should be proper performance measurement mechanism and control methodology that can give insight (and control) into the status of the implementation process as well as on its success. "wing to CRMsB high initial costs as well as high implementation costs the downtime re&uirements lack of clear R"( measurements long gestation period before the profits start showing up etc have also served as important factors in slow and gradual penetration of CRM in various institutions.

8G