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Vol - I , ISSUE - XI [ December 2011 ]

Article : CUSTOMER RELATIONSHIP INITIATIVE IN BANKIN

Author : Dr. Govind P. Shinde and Prof. Kuldeep Bhalerao and Dr. (Mrs) M

Abstract:

Aim:- This paper is an honest attempt of study towards the CRM initiative of marketing and they have changed their working style according to the c

Result and conclusion:- Customers mind set has changed now days and Customers are very smart and hoping for better services from their banke

banks to be productive and profitable. To retain High Net Worth ind management with customers. To accept this challenges innovative Custo software can help, to a great extent, in achieving the desired results.

Key Words: CRM, Competition, Globalization, Initiative, Marketing, Service INTRODUCTION:

In the past, customers were simple persons and were happy at whateve competition and technological improvements customers have become f excellent and prompt services. And further expect improvements there customer satisfaction and customer delight and it can be said what they l alternatives are available to enlightened customers to choose the banks a they choose only those banks that they consider best suites them. IMPORTANCE OF THE STUDY:-

The aim of relationship marketing is to create strong, lasting relationsh develop long term relationship with existing customers because it is eas customer than to make a new sale to a new customer. REVIEW OF LITERATURE AND STATEMENT OF THE PROBLEM:-

A customer is the most important person who visits the premises of a b dependent on Customers. Customer should not be considered as a rude i Further it must be realized that:

(a) It takes months to find and get a good customer but only seconds to lo

(b) It is easier to rectify a mistake than to go on arguing on a mistake with

(c) A satisfied customer brings in more customers and Customer is the bes Initiatives taken by Banks

Of late, banks have been taking a plethora of initiatives to reorient their ba

1. Emphasis on process reengineering for improving customers' terms o 2. Shift from 'cost plus' pricing to competitive pricing of services. 3. Progressive IT application for swift delivery channels

4. Universal service obligation by creating 'bank within a branch' concep 5. Improving value chain for customers. 6. Pursuit of TQM at operational and administrative units.

7. Three pronged strategy of product innovation, product delivery and p 8. Focus on product augmentation as well as hybridization. 9. Shift from a "selling" to "marketing" mode. 10. Multiple platforms for swift redressal of grievances.

11. Periodical rating of service quality in house as well as by external Enrichment of training calendar, with sharp focus on behavioral aspec OBJECTIVES OF THE STUDY: 1. To understand the role of CRM in Banking. 2. To evaluate the strategies of CRM in Banking. 3. To find importance of CRM in Banking. 4. To take a study of CRM initiatives undertaken by ICICI Bank. METHODOLOGY USED IN DATA COLLECTION:-

Retail banking refers to mass-market banking where individual custome

accounts, mortgages, loans (e.g. personal, housing, auto, and education investment advisory services (for high net worth individuals) etc.

Before Internet era, consumers largely selected their banks based on how offices. With the advent of new technologies in the business of bank, suc any bank for their transactions. Thus the customer base of banks has i banks.

This is just the beginning of the story. Due to globalization new genera entered the market and they have brought with them several useful and in are also becoming more technology savvy and customer oriented.

Thus, Non-traditional competition, market consolidation, new technology, landscape of the retail banking industry. Today retail banking sector is cha

Multiple products (deposits, credit cards, insurance, investments and Multiple channels of distribution (call center, branch, Internet and kio Multiple customer groups (consumer, small business, and corporate)

Today, the customers have many expectations from bank such as (i) Service at reduced cost (ii) Service Anytime Anywhere (iii) Personalized Service

With increased number of banks, products and services and practically ni they find better services and products. Banks are finding it tough to get ne ANALYSIS AND INTERPRETATION OF THE STUDY:1. Facts of CRM Initiatives:

According to a research by Reichheld and Sasser in the Harvard Bus profitability by 35% in banking business, 50% in insurance and brokerage are now stressing on retaining customers and increasing market share. 2. Needs of a Bank

The banks now need to find out what to sell, whom to sell, when to sell, h need to differentiate themselves by adding value-added service, offerings more customized products, enhanced value offerings, personalized se customers and products that would be most profitable and target custom serve the customers with greater cost efficiency.

Banks also need to find out the avenues for increased customer satisf explained better from two initiatives bank took in the past:

Earlier what drove many bankers to invest in ATMs was the promise of a branch to transact business. But what was discovered is that t substantially offset by the cost of significant increases in the number significant increase in that intangible called customer satisfaction. Th resulted in higher customer retention and growing franchise value. Bankers invested in Internet banking, believing that the Internet Studies have now shown, however, that the primary value of offering valued customer segments. Again customer satisfaction drives the va

Thus, banks need to retain existing customers with enhanced personalized them the most. 3. Utility of CRM in Banks

Customer Relationship Management (CRM) primarily caters to all interac touch points including the Internet, bank branch, call center, field organiza

The use of Customer Relationship Management (CRM) in banking has acquisition and retention being employed by banks in todays compet initiatives by these banks to enable them achieve their objectives. The Management (CRM) are:

Identifying CRM initiatives with reference to the objectives to be a customer profitability, etc.), Setting measurable targets for each initiative in terms of growth in pr Evaluating and choosing the appropriate Customer Relationship Man

CRM goals (a comparison of pay-offs against investments could be ca

Customer Relationship Management (CRM) has been deployed in retail b banking are due to the multiple products being offered and the diverse ch expectation from banks can be summed up as:

Any time anywhere service, personalized offers, and lower payout

Aggressive marketing and promotions on the part of the banks have resu privileges, thereby making the task of retaining them more difficult for the FINDINGS:-

The use of Customer Relationship Management (CRM) in banking has been

1. Targeting customers: It is necessary for banks to identify pote transactional data that is generated through customer interactions an the lifecycle stage, economic background, family commitments, etc analysis. For example, a customer interacts with the banks for savin etc. the data generated through all these services needs to be integr profitability analysis of the customer needs to be undertaken to ac before targeting him with new offers. 2. Sales reference material: A consolidated information database on proposal templates and marketing collateral should be accessible to Force Automation (SFA) wherein the salesperson gets instantaneo (especially when he/she is in a meeting with a client.) 3. Consistent interface with customers: The communication to cu support, etc. should be consistent and not contradictory. Therefore, to enable a consistent approach. Removal of inconsistencies is nec owing to poor internal co-ordination. This is bound to enhance cu customers should ensure consistency in customer interaction, irresp Internet, e-mail, fax, etc.

Banks can use the data on customers to effectively segment the custome enable banks to understand the needs of various customer segments and

suitable campaigns can be designed to address the issues relevant for th When data analysis is done in the right manner, it helps in generating opp

ICICI Bank has to manage more than 13 million customers. The bank centres, Internet banking and mobile banking. Its customers often use banking options. Business from the Internet. ATMs and other electronic ch In the process of making its business grow to this level, ICICI Bank has customers.

The Teradata solution focuses on a Customer Relationship Management ( systems is fed into a single enterprise called wide data warehouse. This warehouse has the capability to integrate data from multiple sources c profiling of customers and querying on various parameters. These enable customers on the basis of their requirements.

The logistics in the system have also led to other benefits like interactive out about the channel usage undertaken by a segment. The data access w The Benefits of CRM

1. Customers usage pattern: ICICIs CRM data warehouse integrate the customers various transactions pertaining to savings account indications regarding the customers channel usage. 2. New product development: Analysis at ICICI guide product dev whereby customer profiling can be undertaken by usingad hoc quer needs and desires, enabling the bank to satisfy customers through be 3. Central data management: The initial implementation of CRM a information from eight separate operations systems including retail b custodial services, online share trading and ATM. SUGGESTIVE STRATEGIES AS CRM INITIATIVES OF ICICI BANK:-

1. Mobile ATMs: Customers of ICICI Bank can access their bank account at locations that have a high traffic of bank customers such as the comme

provides standard ATM facilities through ATM vans. This facility has been specified timings.

2. Bulk Deposits: The ICICI Banks Bulk Deposit ATMs enable customers which are able to accept only 30 notes at a time, these ATMs allow the Mumbais Vashi sector branch office of ICICI. The bulk deposit facility c amounts of cash. ICICI Bank issues a special card called the `Deposit transactions only. The service is further facilitated by the provision of sp the deposit slip is filled, the bag can be inserted in the ATM. The transac the deposit. ICICI Bank also has cash pick-up service for business custom

3. ATMs for the visually challenged: ICICI Bank has launched ATMs wi person to access ATMs without any help. The jack on the terminal enabl the customer to transact business. Customers may choose a suitable la done, the customer is guided to ensure that the ATM card is inserted in t PIN by using the keypad. A raised button is provided on number 5 to en for cash collection has such raised `pips that enable easy identification th

4. Other Services through ATMs: Apart from the usual transactions in ICICI Bank customers. These include:

Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Making donations for Tirupati Tirumala Devasthanams, Nathdwara tem Mutual fund transactions, and Bill payments

5. Mobile phone as a Virtual Wallet: The mobile phone has been

commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announc a credit card using the mobile phone. This is the first mobile-to-mobile pa cardholders to pay for their purchases with their Airtel Mobile phones. T making a purchase and also the problems associated with the point of sal and a payment mechanism.

6. Social Events: ICICI Bank organized the largest domestic invitat

customers. This nation-wide golf tournament had over one lakh high-netin the event. 7. Mobile Banking Benefits: Mobile banking enables the customer to which are currently offered free of cost, are as follows:

Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, Queries on banking, cards and demat account CONCLUSION:

CRM has proved its importance in banking sector and has shown the eff bank has grown up like anything as compared to the other banks. ICICI shown the effect of CRM on its services.

It is observed that banks lose their best clients to competitors due to a v

other service providers such as inefficient and improper service is one m building approaches such as responding to complaints instantaneously, rating of services across the network of branches, and the creation o employees. Another dimension of the relationship building exercise is to level of acceptance of existing products, which will facilitates in developing

Satisfied customers are the best guarantee for the stability and growth customized and innovative products and services at responsible cost.

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