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Key Business Requirements in CRM Historical Evolution of CRM in Banking Sector CRM in Retail banking: Current Trends and Dynamics Final CRM Best Practices Scale
Presentation Flow
Initial banks in India were primarily traders banks engaged only in financing activities
Over the years, immense developments have been made in terms of the regulations, ownership structure, products and services offered and the technology deployed
Anticipate
& Manage
CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to: Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs
It is a comprehensive approach which provides seamless integration of every area of business that touches the customer- namely marketing, sales, customer services and field support through the integration of people, process and technology
Simns (2003) - CRM reduces attrition by 25%, helps spend less on acquiring new customers Zeithaml et al (2006) CRM provides social benefit Customers develop a social relationship with their service providers
Align organisation behind goals Execute CRM programs and measure program effectiveness
Intense Competition
Well Informed Customers Decline in Brand loyalty
The above trends in Indian Banking industry have helped in shaping the CRM practices of our banks and these are continuously evolving based on the dynamic nature of these trends and competition
As per the research, following dimensions broadly define the Best Practices scale in Indian Banking Industry :
Key Customers
Bank Provides customized services and products to our key customers Strives to constantly surprise and delight our key customers Co-branding / Affinity partnering programs to provide increased value to our customers Knowledge Management
CRM Organization
Top mgt. accepts and provides leadership for building and maintaining customer relationships as a major goal of the bank. CRM responsibilities of frontline employees clearly defined, assigned and understood Delivers a consistent customer experience across all customer touch points / encounters Technology-based CRM Bank uses technology to automate marketing, sales, and service functions Information systems are designed to give comprehensive data about all aspects of customers, so as to increase responsiveness Our CRM software provides for integration of touch points to obtain a single view of the customer at every point of customer contact
Customer and employee feedback is taken using a variety of direct and indirect measures Bank has a well-developed privacy policy to ensure confidentiality of data collected from customers Does customer segmentation using Customer Lifetime Value (CLV)/ related metrics
HDFC Bank uses CRM to achieve its One Bank vision, boosting profit and customer satisfaction
HDFC Bank has implemented a revolutionary CRM solutions package called CRMnext which helped it immensely in achieving seamless integration across multiple transaction points and achieve customer delight.
After: 1) Customer insight by integration with data warehouse and other core banking applications. 2) Consolidation and streamlining of processes across functions and products. 3) Intelligent segmentation of customers.
Number of leads captured per month from Sept-2010 to March 2012 increased by 275%
Service Quality Rating improved from 65% in 2007-08 to 97% in 2011
Number of personalized offers surfaced on monthly basis increased significantly from Mar 2001- Nov 2011
Aims at providing quality, customer centric service to the Future Industries of India
Yes Bank was established in 2004 with financial support from Robobank Netherlands It provides knowledge banking services such as Corporate Finance, Business Banking, Retail Banking, Investment Banking, Financial Services, and Transaction Banking Awarded the Most Innovative Bank award in India
Case2: YES Bank - Before CRM implementation Challenges 1. It needed to cope with an increasing volume of multichannel interactions with the customers 2. It wanted to adopt business automation to improve sales turnaround time, reduce manual data entry and increase speed of the process 3. The customer care department required an efficient Help Desk Management System where the calls and complaints could be logged in and automatically assigned to relevant employee for resolution with automated escalations
Case2: YES Bank CRM implementation The CRM adopted by YES bank included following modules: 1. Sales and Leads Management 2. Personalized Dashboards with Activities Planner 3. Help Desk 4. Marketing Management 5. Document Management InfoAxon used its Agile and Iterative development methodologies to enhance the existing CRM
3. Helped achieve greater service excellence, capturing all customer queries, complaints and their feedback into the common system 4. It helped the Bank understand its customer better which resulted in better customer retention 5. Product sales substantially surged after the implementation.
Appendix