Customer Relationship Management Practices

At
ICICI Bank
1st Draft

Submitted To:Dr. Ashutosh Kumar

Submitted By:Mr. Anmol Sharma

Mr. Jitender Bhardwaj
Mr. Nikhil Satija
Ms. Nancy Sharma
Mr. Parth Sharma

Contents
Acknowledgement
Overview & History of ICICI Bank
Introduction to CRM
CRM at ICICI Bank
Questionnaire

OVERVIEW OF ICICI BANK

ICICI Bank is an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India. As of 2014 it is the second largest bank in India in terms of
assets and market capitalization. It offers a wide range of banking products and financial services
for corporate and retail customers through a variety of delivery channels and specialized
subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset
management. The Bank has a network of 3,845 branches and 12,012 ATMs in India, and has a
presence in 19 countries.
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom, Russia,
and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre; and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has
also established branches in Belgium and Germany.
In March 2013, Operation Red Spider showed high-ranking officials and some employees of
ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank suspended
18 employees and faced penalties from the Reserve Bank of India in relation to the activity.

HISTORY
ICICI Bank was established by the Industrial Credit and Investment Corporation of India
(ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks
and public-sector insurance companies to provide project financing to Indian industry. The bank
was initially known as the Industrial Credit and Investment Corporation of India Bank, before it
changed its name to the abbreviated ICICI Bank. The parent company was later merged with the
bank.
ICICI Bank launched internet banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998, followed by an equity offering in the form of American Depositary
Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock
deal in 2001 and sold additional stakes to institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project 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 ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with
its five million American depository shares issue generating a demand book 13 times the offer
size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmadabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002.

Introduction to CRM
CRM is an acronym for Customer Relationship Management. Its a set of strategies, processes,
metrics, organizational culture and technology solutions that enhance an organization's ability to
see the differences in its present & prospective customers, track new opportunities to better serve
customers and act, instantly and profitably, on those differences and opportunities. Recently
CRM has taken a centre stage in the business world with businesses concentrating on saving
money and increasing profits by redefining internal processes and procedures. It costs a company
dramatically less to retain and grow an existing client, than it does to court new ones. The aim of
CRM is to optimize the use of technology and human resources.
CRM services consist of the following major segments:

Consulting services
Implementation services
CRM Outsourcing services
Training services

Emphasizing on the importance of CRM one of the ICICI employees said, With the overall
improvement in the ETL1 process made possible by PowerCenter, we benefited from greater
data immediacy for business users and more reliable information, which resulted in quicker
analysis and timely reporting.
said one of the employees at ICICI Bank, Mumbai CRM at ICICI Bank involves increased
communication between the bank and its present and prospective customers. Its philosophy
focuses on each and every customers satisfaction.
CRM facilitated coordination of multiple business functions & multiple channel of
communication with the customers to carry out customer management more efficiently. It also
automated the process flow tracking in the product sales process and helped generate customized
reports and promote cross-selling.
The typical components of a CRM strategy at ICICI are as follows:

- Understand and differentiate: Understanding customers is important in order to develop a

sound relationship with them. Customer profiling is done in order to understand demographics,
purchase pattern and channel preference. CRM also helped ICICI in valuation of its customers to
understand customer profitability and Customer Life Time Value (CLV).
- Develop and customize: - In a customer centric business environment, the products and
processes have to be according to customers needs and preferences. ICICI has always focused on
developing channels of service delivery according to customers need and service expectation.

- Interact and Deliver: To foster a strong customer relationship ICICI ensured that all areas of the bank
have easy access to relevant, actionable customer information and employees should be trained on how to
use customer information to tailor interactions based on both customer needs and potential customer
value.
- Acquire and Retain: CRM helped ICICI to figure out valuable customers and made it easy to formulate
retention strategies for them. It also helped it cope up with the change in customers life cycle and offer
services accordingly.

IMPLEMENTING CRM AT ICICI BANK

The key to implementing CRM was in understanding organization and customers in a better way.
There are five interrelated areas that were taken care of before implementing CRM:
- Business Focus
- Organizational Structure
- Business Metrics
- Marketing Focus and Technology
Business Focus: There are various components of CRM like customer information, sales,
marketing trends and marketing efficacy that acted in tandem to improve relationship between
ICICI and its consumers. ICICI captured customer data and analyzed them while dealing with
customers at these very touch points. A CRM solution from Siebel was implemented for the
automation of customer handling in all key retail products of the Group. The solution allows
customer service agents to track all customer complaints and requests. It also allows target
setting and centralized tracking of turnaround times for request fulfillment. The solution went
live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative
to achieve customer integration at the back-office. This central view of the total customer
relationship is being used extensively for identifying opportunities to cross-sell new products and
services to the existing customer base.
Technology Focus: ICICI Bank continues to leverage ICT2 as a strategic tool for its business
operations to gain competitive advantage. Its technology strategy emphasizes enhanced level of
customer services through 24x7 availability, multi-channel banking and straight through
processing, and cost efficiency through optimal use of electronic channels, wider and focused
market reach and opportunities for cross-selling. The Technology Management Group (TMG) is
the focal point for the ICICI Groups technology strategy and Group-wide technology initiatives.

This group reports directly to the Managing Director & CEO. A key to ICICIs success has been
its ability to harness business information to CRM initiatives that have fueled growth and helped
attract more than 30 million customers.
The foundation for ICICI Banks wide-ranging CRM programs is a Sybase IQ-based data
warehouse. Developers had used a combination of PL/SQL and BTEQ scripting, a proprietary
technology specific to the data warehouse, for data extraction, transformation, and loading
(ETL). With its growing customer base, IT administrators recognized that the bank needed a
more powerful, sophisticated data integration system to help ensure the warehouse lived up to its
potential as an analytic CRM engine that delivered tangible bottom-line results. To step up to the
next level of data integration, ICICI Bank officials agreed with a recommendation from
Teradatas professional services division, which provided systems integration support for the data
warehouse, to implement the Informatica PowerCenter enterprise data integration platform.
ICICI Bank deployed PowerCenter in 2003 as it embarked on the next phase of its warehouse,
which would add data from five new sources, in addition to the initial three sources of retail
banking, credit cards, and securities information.
The next step in the CRM implementation process was gap analysis which essentially is
assessing different loopholes in:
- Marketing, sales and service practices
- Collection, capture, processing and deployment of customer information
- Distribution and operations effectiveness at customer touch points

Problems faced by ICICI Bank while implementing CRM

1. Missing Key Information: CRM data often contains gaps in information. Relying on basic
demographic data or purchase history is no longer sufficient. Supplement basic info with more
detailed information, such as purchasing preferences or Web history. Without this type of
information, it's difficult to understand how to reach customers effectively.
2. Out-of-Date Information: Customer information changes often, but the data marketers most
use to reach customers doesn't always update as quickly as we'd like. Whether a consumer has
moved to a new city or has changed his or her purchasing habits, campaigns will not be effective
if marketers are relying on information that does not update as customers' lives change.
3. Incorrect or Unverified Data: Similarly, the data used for marketing campaigns needs to be
accurate from the start. Marketers of banks often rely on unverified data that could be incorrect.

For marketing campaigns to be effective, it is crucial for marketers to reach consumers in a

highly targeted way. Without verifying information, marketing efforts and resources could be
wasted.
4. Lack of Insight: Even if CRM data is up-to-date and accurate, it's still just data. It provides
banks with as much information about a customer as possible, but doesn't reach conclusions.
Banks need to use this information to uncover their own insights to effectively reach consumers
at the right time, through the right channel and with the right message.
5. Inability to Find New Prospects: While CRM data can be useful for reaching current
customers, it does not help banks reach new customers. It's important for banks to effectively
reach consumers who have the potential to become loyal, long-term customers.
6. Privacy Concerns: CRM databases are not responsive to the challenges of multichannel
marketing in an increasingly privacy protected society. It is important for banks to identify and
contact clients and prospects according to their unique privacy requirements.

CRM data can be very useful and often leads to highly successful campaigns. But marketing
people of a bank needs to keep these potential issues in mind before relying on this information.
Overlooking these common problems leads to incomplete or inaccurate profiles of your
customers and can lead companies down the wrong path.

Questionnaire with an employee:

1.
2.
3.
4.

How CRM came into the picture at ICICI Bank.

What was the need that bank felt to start up with the CRM.
Can you just brief us regarding CRM process of ICICI bank.
We know that ICICI Bank is the number one bank in India in customer relationship
management. What is ICICI doing different than other banks.
5. CRM is the activity done at various levels of the organization, how does ICICI implement
it.