PROJECT REPORT ON

“A STUDY ON CRM (CUSTOMER RELATIONSHIP MANAGEMENT)

WITH REFERENCE TO ICICI BANK

A PROJECT SUBMITTED TO UNIVERSITY OF MUMBAI FOR

PARTIAL COMPLETION OF THE DEGREE IN MASTER OF
COMMERCE (BANKING AND FINANCE) ROLL NO.20
UNDER THE FACULTY OF COMMERCE

SUBMITTED BY
SNEHA SHAJI

UNDER THE GUIDANCE OF

PROF. RAJASHREE DESHPANDE

KERALEEYA SAMAJAM (REGD) DOMBIVLI’S MODEL COLLEGE

KHAMBALPADA Rd, THAKURLI, DOMBIVLI EAST,
KANCHANGAON, MAHARASHTRA-421 201

(2019-2020)

1
Chapter No. Title of the Chapter Page No.

1 Introduction 7 - 14
2 Research Design 16 - 17
3 Literature Review 19 - 21
4 Thereotical Review 23 - 35
5 Data Analysis / Presentation 37 - 38
6 Conclusion 39
7 Bibliography 40

2
 DECLARATION

I, the undersigned Ms. Sneha Shaji hereby, declare that the work embodied in this project
work titled “A STUDY ON CRM (CUSTOMER RELATIONSHIP MANAGEMENT)
WITH REFERENCE TO ICICI BANK”, forms my own contribution to the research work
carried out under the guidance of Prof. Rajashree Despande, is a result of my own research
work and has not been previously submitted to any other University for any Degree/Diploma
to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

SNEHA SHAJI

Certified by,
PROF. RAJASHREE DESHPANDE

3
 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and depth is
so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this Project.
I would like to thank my Principal Mr. Vinay Bhole for providing the necessary
facilities required for completion of this project.
I would like to express my sincere gratitude towards my project guide Prof Rajashree
Deshpande and Coordinator Prof. Thrivikraman MV whose guidance and care made the
project Successful.
I take this opportunity to thank, for his moral Support and guidance.
I would like to thank my college Library, for having provided Various Reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported me
throughout my project.

4
 Khambalpada Rd, Thakurli, Dombivli East, Kanchangaon,Maharashtra 421201
(0251) 2470010/2449227. E-mail: modelcollege@vsni.net Website: www.model-college.com

CERTIFICATE

This is to certify that Ms. Sneha Shaji has worked and duly completed her Project Work for
Master in Commerce under the Faculty of Management and her project is entitled, “A
STUDY ON CRM (CUSTOMER RELATIONSHIP MANAGEMENT) WITH
REFERENCE TO ICICI BANK” under my supervision. I further certify that the entire
work has been done by the learner under my guidance and that no part of it has been
submitted previously for any Degree or Diploma of any University.
It is her own work and the facts reported by her personal findings and investigations.

(PROF. RAJASHREE DESPANDE)

Date of Submission: Guiding Teacher

5
 CHAPTER 1
INTRODUCTION

6
 CHAPTER 1
INTRODUCTION

A STUDY ON CRM (CUSTOMER RELATIONSHIP

MANAGEMENT) WITH REFERENCE TO ICICI BANK

Customer Relationship Management is a strategy used to learn more about customers' needs
and behaviors in order to develop stronger relationships with them. The idea of CRM is that it
helps businesses use technology and human resources to gain insight into the behavior of
customers and the value of those customers. If it works as hoped, a business can:
Provide better customer service
Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues

CRM involves all parts of communication an organization has with its client, regardless of
whether its deals or administration relevant; it begins with the establishment of relationship
advertise ICICI. CRM is a precise methodology towards us ICICI data and on go ICICI
exchange to constructed long los ICICI commonly helpful client relationship. The utilization
of CRM innovation shapes the pivotal front-finish of any e-business system, generally CRM
has developed as pleasant weapon in the hands of the business slow pokes just as innovative to
course the business suites; the main touch point which is define ICICI this base is the
mindfulness among the corporatists to get the job done the clients effectively accessible to the
organizations to enormous degree.

CRM, refers to Customer Relationship Management, has it root in the Interaction Management
in 1980s. The point is to initiate an administration component to improve the connection among
big business and customer. As a business methodology, CRM successfully compose the
undertaking asset in the division of promoting, deals and backing; as the client focused
administration stratagem with the IT, the framework intends to overhaul the business work,
recombine the work process, and update the fulfilment degree to advance the client, so as to
pick up benefit. CRM exists as the administration framework in early occasions, however as
the develop thought and innovation in the administration instrument, it unions and ascends as

7
of late. CRM programming which supports this administration component turned into the dawn
business in the product market and view as the creating innovation which increment the
undertaking the executives after ERP. The endeavours everywhere throughout the world
experience a significant transformation as a result of CRM, which identified with the
correspondence and collaboration among big business and client or potential client. Data
innovation and Internet change the administration and working mode as well as effect the
aggressive ability. In the event that ERP help the undertaking to streamline the inward
administration stream and different assets, CRM make the outside asset particularly the client
asset to be completely used, so as to support the venture advancement. The starting point and
improvement of CRM motivated by three viewpoints: pull the interest, advance the data
innovation and revamp the administration thought. In the part of interest, business stream
revamping (BRP) and ERP accomplish the objective of upgrading and computerizing the
stream in the field of creation, stock, fund and current of materials in 1980s. Be that as it may,
the field of offers, giving very little consideration to the promoting and after-deals
administration could bring about the fragmented acknowledgment of the client and managing
them without bound together data. Then again, it is significant for big business to keep ordinary
client and win new ones. This brought forth the conflicting conduct among the real world and
request.
It doesn't happen by simply buying software and installing it. For CRM to be truly effective an
organization must first decide what kind of customer information it is looking for and it must
decide what it intends to do with that information. A recent (2001) survey of more than 1,600
business and IT professionals, conducted by the Data Warehousing Institute found that close
to 50% had CRM project budgets of less than $500,000. That would appear to indicate that
CRM doesn't have to be a budget-buster. However, the same survey showed a handful of
respondents with CRM project budgets of over $10 million. What are some examples of the
types of data CRM projects should be collecting?
Responses to campaigns
Shipping and fulfilment dates
Sales and purchase data
Account information
Web registration data
Service and support records
Demographic data
Web sales data
Customer relationship management is a broadly recognized, widely-implemented strategy for
managing and nurturing a company’s interactions with clients and sales prospects. It involves
using technology to organize, automate, and synchronize business processes—principally sales
activities, but also those for marketing, customer service, and technical support. The overall
goals are to find, attract, and win new clients, nurture and retain those the company already
has, entice former clients back into the fold, and reduce the costs of marketing and client
service. Once simply a label for a category of software tools, today, it generally denotes a

8
company-wide business strategy embracing all client-facing departments and even beyond.
When an implementation is effective, people, processes, and technology work in synergy to
increase profitability, and reduce operational costs.

Customer relationship management helps banking sector to use of technology and human
resources. These factors allow them to gain insight of consumer behaviour and their values. If
CRM works better than the bank can provide better customer service, help sales staff close
deals faster, cross sell products more effectively, make call centers more efficient, discover
new customers, simplify marketing and sales processes and increasing consumer revenue. It
could not happen with just buying software and installing into the system. In this the bank must
decide as what type of customer information that they are asking. It has to further decide as to
what they intend to do with the information. After all these after that the banks decide and run
a model considered by them simply the best. Efficiently dealing with all the customers and
providing them what they actually need increases the customer satisfaction. This increases the
chance of getting more business which ultimately enhances turnover and profit. If the customer
is satisfied they will always be loyal to the bank and will remain with the same bank forever
resulting in increasing customer base and ultimately enhancing net growth of banking business.
In today’s commercial world, practice of dealing with existing customers and get a thriving
business by bringing in more customers into loop is predominant. Installing a CRM system can
definitely improve the situation and help in challenging the new ways of marketing and
business in an efficient manner. Hence in the era of business every organization should be
recommended to have a full-fledged CRM system to cope up with all the business needs. So,
banking business is not an exception.

CRM is a powerful management tool that can be used to exploit sales potential and maximize
the value of the customer to the bank. Generally, CRM integrates various components of a
business such as sales, marketing, IT and accounting. This strategy may not increase a
business's profit today or tomorrow, but it will add customer loyalty to the business. In the long
run, CRM produces continuous scrutiny of the bank's business relationship with the customer,
thereby increasing the value of his business. Although CRM is known to be a relatively new
method in managing customer loyalty, it has been used previously by retail businesses for many
years. The core objective of modern CRM methodology is to help businesses to use technology
and human resources to gain a better view of customer behavior. With this, a business can hope
to achieve better customer service, make call centers more efficient, cross-sell products more
effectively, simplify marketing and sales processes, identify new customers and increase
customer revenues.

As an example, banks may keep track of a customer's life stages in order to market appropriate
banking products, such as mortgages or credit cards to their customers at the appropriate time.
The next stage is to look into the different methods of gathering customers', where and how
this data is stored and how it is currently being used. For instance, banks may interact with
customers in a countless ways via mails, emails, call centers, marketing and advertising. The
collected data may flow between operational (such as sales and stock systems) and analytical

9
systems that can help sort through these records to identify patterns. Business analysts can then
browse through the data to obtain an in-depth view of each customer and identify areas where
better services are required.

CRM AND BANKS

One of the banks' greatest assets is their knowledge of their customers. Banks can use this
asset and turn it into a key competitive advantage by retaining those customers who represent
the highest lifetime value and profitability. Banks can develop customer relationships across a
broad spectrum of touch points such as bank branches, kiosks, ATMs, internet, electronic
banking and call centers. CRM is not a new phenomenon in the industry. Over the years, banks
have invested heavily in CRM, especially in developing call centers, which, in the past, were
designed to improve the process of inbound calls. In future, call centers will evolve to
encompass more than just cost reduction and improve efficiency. According to Gartner Group,
more than 80 per cent of all US banks will develop their call centers as alternative delivery
channels and revenue centers, to be used for the delivery of existing products and services. But
to be successful, a bank needs more than the ability to handle customer service calls. It needs
a comprehensive CRM strategy in which all departments within the bank are integrated.

Objectives of CRM in Banks

CRM, the technology, along with human resources of the banks, enables the banks to analyze
the behaviour of customers and their value. The main areas of focus are as the name suggests:
customer, relationship, and the management of relationship and the main objectives to
implement CRM in the business strategy are: To simplify marketing and sales process, To
make call centers more efficient ,To provide better customer service, To discover new
customers and increase customer revenue and to cross sell products more effectively.
The CRM processes should fully support the basic steps of customer life cycle. The basic steps
are:

➢ Attracting present and new customers

➢ Acquiring new customers
➢ Serving the customers and
➢ retaining the customers
In today's increasingly competitive environment, maximizing organic growth through sales
momentum has become a priority for banks and financial institutions. To build this momentum
banks are focusing on customer relationship management initiatives to improve:
➢ Customer satisfaction and loyalty
➢ Customer insight/ 360º view of customer
➢ Speed to market products and services
➢ Increase products-to-customer ratio
➢ Improve up sales and cross sales and
➢ capitalizing on new market opportunities
10
The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behaviour and value of those customers. If it works as hoped, a business can: provide
better customer service, make call centers more efficient , cross sell products more effectively,
help sales staff close deals faster, simplify marketing and sales processes, discover new
customers and increase customer revenues .It doesn't happen by simply buying software and
installing it. For CRM to be truly effective an organization must first decide what kind of 51
customer information it is looking for and it must decide what it intends to do with that
information.

For example, many financial institutions keep track of customers' life stages in order to market
appropriate banking products like mortgages of them at the right time to fit their needs. Next,
the organization must look into all of the different ways of gathering information about
customers who come into a business, where and how this data is stored and how it is currently
used. One company, for instance, may interact with customers in a myriad of different ways
including mail campaigns, web sites, brick-and-mortar stores, call centers, mobile sales force
staff and marketing and advertising. Solid CRM systems link up each of these points. The
collected data flows between operational systems and analytical systems that can help sort
through these records for patterns. Company analysts can then comb through the data to obtain
a holistic view of each customer and pinpoint areas where better services are needed.

Need of CRM in Banks

The bank merely is an organization as it accepts deposits and lends money to the needy persons,
but banking is the process associated with the activities of banks. It includes issuance of
cherubs and cards, monthly statements, timely announcement of new services, helping the
customers to avail online and mobile banking etc. Huge growth of customer relationship
management is predicted in the banking sector over the next few years. Banks are aiming to
increase customer 52 profitability with customer retention. It is a sound business strategy to
identify the bank’s most profitable customers and prospects, and devotes time and attention to
expanding account relationships with those customers through individualized marketing,
pricing, discretionary decision making.

In banking sector, relationship management could be defined as having and acting upon deeper
knowledge about the customer, ensure that the customer such as how to fund the customer, get
to know the customer, keep in touch with the customer, ensure that the customer gets what he
wishes from service provider and understand that when they are not satisfied might leave the
service provider and act accordingly. CRM in banking industry is entirely different from other
sectors, because banking industry is purely related to financial services, which needs to create
the trust among the people. Establishing customer care support during on and off official hours,
making timely information about interest payments, maturity of time deposit, issuing credit

11
and debit cum ATM cards, creating awareness regarding online and e-banking, adopting
mobile request and others are required to keep regular relationship with customers.

The present day CRM includes developing customer base. The bank has to pay adequate
attention to increase customer base by all means. It is possible if the performance is at
satisfactory level, the existing clients can recommend others to have banking connection with
the bank he is they are connected. Hence seeking references from the existing customers for
the prospective future customers can develop their client base. If the base is increased, the
profitability also increases. Therefore, the bank has to implement lot of innovative CRM
measures to capture and retain the customers. There is need for a shift from bank centric
activities to customer centric activities. The private sector banks in India deployed much
innovative strategies to attract new customers and to retain existing customers. CRM in
banking sector is still in an evolutionary stage. It is the time for taking ideas from customers to
enrich its service. The use of CRM in banking has gained importance with the aggressive
strategies for customer acquisition and retention being employed by the banks in today’s
competitive milieu. This has resulted in the adoption of various CRM initiatives by these banks.

Steps to Follow
The following steps minimize the work regarding adoption of CRM strategy. These are:
➢ Identification of proper CRM initiatives
➢ Implementing adequate technologies in order to assist CRM initiative
➢ Setting standards (targets) for each initiative and each person involved in that circle
➢ Evaluating actual performance with the standard or benchmark and
➢ Taking corrective actions to improve deviations, if any.

Customer relationship management is concerned with attracting, maintaining and enhancing

customer relationship in multi service organizations. CRM goes beyond the transactional
exchange and enables the marketer to estimate the customer’s sentiments and buying intentions
so that the customer can be provided with products and services before they start demanding.
Customers are the backbone of any kind of business activities, maintaining relationship with
them yield better result.

CRM Strategies
This is a new way of thinking for many banks with thousands, even millions of customers.
Managing customer relationships successfully means learning about the habits and needs of
the customers, anticipating future buying patterns and finding new opportunities to add value
to the relationship.

12
Customer Behaviour Patterns
In the financial sector, early beneficiaries of successful CRM strategies were the banks. These
banks use data warehousing and data mining technologies to learn from the millions of
transactions and interactions with their customers, and to anticipate their needs. The patterns
of customer behaviour and attitude derived from this information enable the banks to
effectively segment customers on predetermined criteria. Detailed customer data can provide
answers to the following questions:
➢ Which communication channel do they prefer?
➢ What would be the risk of giving up one bank for another bank? and
➢ What is the probability that the customer will buy a service or product?

This knowledge assists financial institutions with CRM solutions in place to develop marketing
programs that respond to each customer segment, support cross selling and customer retention
programs. It enables the staff to understand how to maximize the value of each customer’s
interaction. CRM applications provide functionality to enhance customer interactions. Banks
known for their high level of customer service might use this characteristic as a starting point
for implementing a CRM application. Another company may be very good at targeting
profitable customers. Each bank should seek a niche for itself on which to develop its CRM
strategy.

Customer Data
A common problem many organizations share is integrating customer information. When
information is disparate and fragmented, it is difficult to know who the customers are and the
nature of their associations or relationships. This also makes it difficult to capitalize on
opportunities to increase customer service, loyalty and profitability. For example, knowing that
other family members are also customers provides an opportunity to up-sell or cross-sell
products or services, or knowing that a customer uses several sources of interaction with a
supplier can also provide opportunities to enhance the relationship. The creation and execution
of a successful CRM strategy depends on close examination and rationalization of the
relationship between an organization’s vision and business strategy. Building toward a CRM
solution and evaluating the use of customer data requires analysis and alignment of the
following core capabilities:
➢ Customer value management
➢ Prospecting
➢ Selling
➢ Collection and use of customer intelligence
➢ Customer development (up-selling and cross-selling)
➢ Customer service and retention and
➢ Protection of customer privacy

13
Successful CRM implementations result from the capability of the organization and its
employees to integrate human resources, business processes and technology, to create
differentiation and excellence in service to customers, and to perform all of these functions
better than its competitors. The current economic context and financial crisis has most probably
led many financial services institutions to refocus their CRM strategies with the customer
relationship being more than ever the key to profitability of a retail activity. These institutions
have to design a new approach to regain and reassure customers. Even if they have only started
building a “how to win back trust" strategy, there is a general movement towards “refocusing
on the customer” for the “post-financial” crisis phase.

STATEMENT OF THE PROBLEM

In a market-driven economy, the consumer has occupied the central position. A large number
of activities are directed towards attracting the customers. All industries are paying special
attention towards customer relationship and have changed their mode of operation of dealing
with their customers. Customer Relationship Management (CRM) gained recognition in the
mid-1990's, primarily driven by its perception as Information Technology (IT). However not
enough attention has been given to the fundamental drivers of CRM success: Strategy, metrics,
and the organization. Hence this research study titled "A Study of Customer Relationship
Management Practices in Banking Sector in Maharashtra State", which strives to explain how
successful CRM works and why it is important to give customer utmost importance. It
establishes a relationship and explains how the customer is important for the Banking Sector.

14
 CHAPTER 2
RESEARCH DESIGN

15
 CHAPTER 2
RESEARCH DESIGN

❖ TITLE OF THE STUDY

The present study is titled as “A PROJECT REPORT ON CRM (CUSTOMER
RELATIONSHIP MANAGEMENT) WITH REFERENCE TO ICICI BANK.

❖ OBJECTIVE OF THE STUDY

The specific objectives of the study are:

• To study the satisfaction level of exist customers of ICICI bank services.

• To find out the factors that influence to buy the services of ICICI bank.
• To indentify the problems faced by the customers of ICICI bank.
• To assess the role of customer relationship while purchasing the services of ICICI
bank.

❖ DATA AND METHODOLOGY

In the present study, secondary data available over 11 years from 2009-2019 from
various sources have been analyzed. Secondary data was collected from books,
magazines, journals, newspapers and websites.

❖ SCOPE OF THE STUDY

The study gives the information about the customer needs and customer satisfaction
levels towards ICICI Bank services. This study has concentrated all the services in
general. One can also do comparative study of various banks and their approach
towards the customers. In the present competitive business world, it becomes necessary
to align organization towards customers, to Integrate customers touch points, Knowing
and understanding customers and potential customers, Establishing and managing
relationships with customers. Thus, CRM is need of this hour.

16
❖ LIMITATIONS OF THE STUDY
For the purpose of the present study majority of the content is taken from secondary
data hence it is not much reliable.

17
 CHAPTER 3
LITERATURE REVIEW

18
 CHAPTER 3
LITERATURE REVIEW

BROWN (2000): stated that CRM is a process that understand and managed the needs of
existing customers to maintain a long term relationship and at the same time it also focused
on acquiring the new customers.

Furness (2001): in his study state that many businesses such as banks, insurance companies
and other service providers understand the importance of customer relationship management
and its potential to help them acquire new customers and maximize their lifetime value. Thus,
CRM is a policy towards attracting and retaining organizational customers. Customer
relationship management in the banking sector involves understanding the customer’s
changing needs and developing services to satisfy these needs by building long term
relationship with the customers. By emphasizing on customer relationship management, the
banking industry can protect its market share, increase its service quality and boost growth.

ANJANA GREWAL (2001): published a case study of relationship management

practices developed in early nineties in a leading foreign bank in India and developed a model
paper on same.

BECKFORD (2002): is of the opinion that though customer relationship management is

important for all businesses but for service firms it has become even more important.
Customers focus more on the elements of services and interaction with the service provider
because in services there is no tangible product which customers can experience. Thus, for
customers interaction with the service provider provides the experience. In banking industry,
customer relationship management factors need to be considered that have impact on the
banking service quality (Beckford, 2002, p. 12). This is more so important in case of Pakistan,
where economy is dominated by the services sector. Therefore, in increased dynamic and
competitive business environment, organizations
need to focus on new business styles, policies and practices especially related to customers.

Dyche (2002): stated that the information technology plays an important role in tracing the
customers and supports the firm to analyze the needs of the customer.

INJAZZ ET. AL. (2003): opines that a balanced and integrated approach to people,
process and technology was required to implement a successful CRM practice.

19
BUTTLE (2004): state that customer relationship management is being considered as a
foundation of business strategy, which incorporates internal processes as well as purposes in
addition to external networks, towards delivering quality service along with value to the
targeted clients.

WANGET AL. (2004): formed a frame works for CRM performance and customer value
on the basis of important dimension of customer value, for example perceived sacrifices,
emotional, social and functional value.

PAYNE (2012): also highlights that managing customer relationship management is very
complex and continuing process and requires a response from the organizations as the external
environment rapidly changes. Therefore, it is imperative that organizations view CRM in
broader and long term perspective.

JHAM AND KHAN (2008): in their study also point out that CRM is a very inclusive
strategy as well as procedure that focus on establishing and preserving along with enhancing
the association with the customers in order to generate the value and profit in support of the
firms. It is a widespread process, which is beneficial for increasing the quality through
maintenance of long lasting relationship with customers.

BHATTACHARYA (2011): customer relationship management is the way to reduce the

cost and increase the company performance and quality, which means profitability result
through customer loyalty (Rahimi, & Kozak, 2017). Customer relationship management helps
the employees to make accurate and speedy decision when dealing with the customers in
different areas and touch points. This help in solving many customers’ problems. Thus,
customer satisfaction and loyalty would be achieved through a successful CRM
implementation. Therefore, organization should discover different requirements of the
customers and adjust their policies according to customer need to increase the firm
competitiveness and quality.

ANG AND BUTTLE (2006): who in their study concluded that management practices
strongly affect CRM, which in turn is directly associated with the customer retention,
satisfaction and quality. Hence, excellence in customer services is strongly associated with the
customer relationship management practices.

20
CHASE (2004): also highlighted that service quality is related to the judgment and
measurement of customers of their overall experience regarding service environment of an
organization. The success in providing high quality service will be possible when employees
will behave in well manners with the customers, they will listen to the complaints with
concentration and respond efficiently and quickly to solve the customer complaints, along with
the level of knowledge and information that they will provide to their customers. Service
quality will be enhanced when an organization understands all these factors and implement
them with consideration that will not only satisfy the customers but will also develop strong
relationship with their customers.

Kennedy (2004): in his study also highlighted the relationship between CRM practices and
service quality of any organization. He point out that CRM helps in understanding the needs
of clients resulting in changes in the service delivery process according to the customer needs.
He further argues that the key objective of CRM policies and plans is to have better results by
satisfying and retaining important and profitable customers.

DR. BC SARASWATHY (2006): defines the main objective of CRM process.

According to him, CRM should focus on building long term relation with their customer by
delivering their needs and demands on time.

Ray (2007): suggested that to retain the existing customer, bank should efforts on their
expectation. The quality and punctuality of services will decide the satisfaction level of
customers. So, to maintain their relation with the organisation efforts should be made on their
requirements.

BOSHOFF AND TAIT (1996): also pointed out that service quality leads to increased
customer loyalty, satisfaction, retention and long term relationship with the customers. This
increases the profitability, performance, market shares and decreases the turnover rate of the
customers.

Girdhar (2009): opined that the relationship with the existing customers reflects the bank’s
image and would definitely help to attract the new customer accordingly.

MUDIE AND COTTAM (2010): in similar vein also point out that service quality is
closely associated with the customer relationship management. They further argue that
improving service quality through better service encounter process, service design process,
service productivity and culture of the firm, will help in customer retention.

21
THEREOTICAL REVIEW

22
 THEREOTICAL REVIEW

CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES IN ICICI

BANK
Introduction:
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major
banking and financial services organization in India. It is the 4th largest bank in India and the
largest private sector bank in India by market capitalization. The bank also has a network of
1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India and presence in 19
areas of investment banking, life and non-life insurance, venture capital and asset management.
ICICI Bank is also the largest issuer of credit cards in India.

CRM in ICICI Bank essentially focuses on providing optimal value to customers through the
way the bank communicates with them, how it sells to them, and how it services them as well
as through the traditional means of product, price, promotion and place of distribution. ICICI
bank recognizes that customers make buying decisions based on more than just price.... more
than just product. Customers make their buying decisions based on their overarching
experience that includes product, price, service recognition and support. The bank believes that
if ICICI bank can get all those factors right consistently it will be rewarded with ongoing
customer loyalty and value.

CRM in ICICI bank is hugely technology driven. Bank’s philosophy behind CRM is massive
use of technology. The use of technology might push customers away from the branch and get
most of the requirements fulfilled through machines outside the branch. Bank believes that this
effort of bringing customer least to the branch might help in reducing the factor of customer
ignorance, poor employee behaviour, inadequate parking and so on. CRM at ICICI Bank is
viewed as a discipline as well as a set of discrete software technologies, which focuses on
automating and improving the business processes associated with managing relationships in
the areas of sales, marketing, customer service and support. The organization aims to achieve
the end goal of one to one marketing.

The CRM software applications are not only intended to facilitate the coordination of multiple
business functions but also supposed to coordinate multiple channels of communications with
the customer as face to face, call centers, ATM, web, telephone, kiosk, bank, branch, sales
associates etc. so as to enable ICICI Bank carry out cradle to grave customer management more
efficiently. It should allow ICICI to engage in one-to-one marketing by tracking complete
customer life cycle.

23
From an architecture perspective, the enterprise-wide CRM solution should seamlessly
integrate non-transactional related customer information housed in the front office with the
transactional related customer information housed in the back office. Creating the enterprise
CRM strategies required the combination of nine distinct steps as shown below:

1. CUSTOMER PEOPLE

2. STRATEGY INTELLIGENCE

3. PROCESS AUTOMATION

4. ORGANISATION DATA

TECHNOLOGY

By combining these nine steps one can really start listening to the customers and understand
what they are saying, may be even in real time. Once that is achieved, profits begin to follow
as optimization techniques are applied.

IMPLEMENTING CRM:
A very detailed and comprehensive CRM action plan in ICICI Bank was developed based on
the understanding that CRM would require an enterprise wide transformation. The CRM
Business Transformation Map below shows the various aspects of that change. There are five
inter-related areas. These include:
1. Business Focus
2. Organisational Structure
3. Business Metrics
4. Marketing Focus
5. Technology.

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Five Core Areas of Business Transformation
BUSINESS FOCUS
• Product
• Sales
• Channel
• Marketing
• Service
• Customer

ORGANIZATIONAL STRUCTURE
• Product Management
• Place Management
• Promotion Management
• Channel Management
• Contact Management
• Customer Management

BUSINESS METRICS
• Product Performance
• Place Performance
• Program Performance
• Customer Revenue
• Customer Patterns & Profitability
• Customer Life time value And Loyalty

MARKETING FOCUS
• Mass Advertising
• Sales Promotion
• Marketing Campaigns
• Integrated Marketing
• Segment Specific Communications
• Customer Relationship Management

TECHNOLOGY
• Transaction Processing

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 • Data Maintenance
• Data Access
• Data Warehouse
• Data Marts
• Customer Touchpoint Systems

The key tear building the CRM action plan was in understanding where the organisation stood
relative to each of the five aspects of change. The next step in the planning process was a Gap
Analysis. This analysis essentially compared current stage against optimal relative to the five
aspects of business, to identify and specifically describe the gaps. In addition to the more
obvious gaps, this analysis helped identify the CRM organizational holes:

CRM BUSINESS CYCLE IN ICICI BANK:

CRM business cycle in ICICI Bank is classified in following parts:
1. Understand and Differentiate:
The bank went for a primary research to capture needs and attitudes. Customer valuation was
done to understand profitability, as well as lifetime value or long term potential. Value may
also be based on the customer’ ability or inclination to refer to other profitable customers. ICICI
Bank has differentiated services and communications based on both what they have learnt
independently and on what the customers have told them.

2. Develop and Customise:

ICICI Bank believes that the tent of customizaton should be based on the potential value
delivered by the customer segment. The company claims that their products, services, channels
and media has been customised based on the needs of qualitative customer segments. Eg.
Keeping in mind the requirements of businessmen the bank has come up with a new product
of Roaming Current account.

3. Interact and Deliver:

ICICI Bank is strongly of the opinion that value that is delivered to the customer is not just
based on the price of the product or the discounts offered. They believe that customers’
perceptions of value are based on a number of factors including the quality of products and
services, convenience, speed, ease of use, responsiveness and service excellence. Eg. ICICI
Bank has delivered its ATMs at the customer’s doorstep by using a mobile van with an ATM
machine and visiting various residential areas of Mumbai. This facility is specially aiming at
the inconvenience of housewives in banking.

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4. Acquire and Retain:
Learning customers have helped ICICI Bank pinpoint those that are producing the greatest
value for the organization. These customers and customer segment the company wants to clone
in its prospecting and acquiring efforts. This also helps them in designing the right channel,
right media, right product, right offer, right timing and the most relevant massage. ICICI Bank
aims to get these rights on an ongoing basis through its CRM initiatives. For, successful
retention, ICICI bank wants to develop the ability to constantly deliver on three principles:
• Continued effort to deliver on the customers’ definition of value.
• Maintaining customer interaction and never stop listening to them.
• Remember that customers change as they move through differing life stages; be alert
for the changes and be prepared to modify the service and value proposition as they
change. As a cycle, the stages are interdependent and continuous. As one moves from
one stage to the next, ICICI Bank hopes to gain insight and understanding that enhances
the subsequent efforts. The organization wants to become increasingly sophisticated in
the implementation of CRM processes and overtime tries to become increasingly
profitable by doing so.

5. Prioritizing the changes:

• In ICICI Bank, the evaluation of each of the strategies identified is adjudged on

following parameters:
• Cost to implement: including initial one-time costs, as well as anticipated ongoing
expenses.
• Overall benefit: Some changes may have larger impacts on the organizations ability
to increase customer value and loyalty.
• Feasibility: based on organisations’ readiness, data system support, resource skill sets
and a numbers of other factors.
• Time Required: - including the time necessary for training and addressing cultural change
management issues related to a specific strategy.

6. Creating an action Plan:

The next step had been development of a detailed action plan. It was based on three-
month phases with clear deliverables that would demonstrate progress and quick hits or
measures of success. The plan identified independent activities and comprehensively
details the time and resources required for each activity.
Another key factor for planning process was the leadership action. Advancing of CRM
transformation map require significant organisation change. This part of the action plan
helped access the drivers and restraints of these change and the organization’s readiness
to enforce the change. It created additional strategies by identifying specific leadership
actions necessary to lead. The organizational change. As a result, executives were able
to identify their roles and responsibilities and the actions necessary to eliminate the
barriers and to nurture change.

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Selecting And Implementing A Tech Based Solution In ICICI Bank:

ICICI Bank purchased an off the shelf CRM solution and customize it to suit bank’s
requirements. The global CRM product market space as scanned to shortlist about 15 large
players from a very fragmented market comprising of over 150 players claiming to have some
sort of CRM capability. Based on discussions with a global technological analysis group,
number of set criteria was drawn to shortlist the prospective product providers. This included:

• CRM expertise
• Retail finance expertise
• Implementation worldwide specially in Asia Pacific
• Company focus on CRM (Specially important in the context of many large ERP providers
having moved into the CRM space in recent times.)
• Credentials including financials, clients list, life history etc.
• Understanding of ICICI bank’s pain points to gauge how well they have been able to
comprehend ICICI’s pressing needs and its views on whether the product concerned could
provide a long term solution.
• Preferred implementation partners.

A detailed Request for information (RFI) was sent to each of the short listed companies. After
receiving the RFIs, another round of evaluation was done on the basis of:

• CRM solution implementation experience.

• Clientele (specially in Asia Pacific), scope and scale of implementation.
• Understanding of ICICI bank’s experience.
• Suggested solution including implementation timeline.
• Technological house holding expected
• Training and Maintenance.

A similar process was followed to shortlist the system integration:

• CRM expertise and Retail finance expertise
• Focus on CRM
• Project team specifics including indicative CVs of project team.
• Product Preferences.

After short-listing two product vendors and system integrators, reference calls were made to
several of the past clients of all the short listed companies. The reference calls followed a
specific pattern and were qualitatively adjudged. Some of the parameters included strengths
and weaknesses of the vendor/system integrator, timeliness, cost and time overruns,
commitment, training, quality control of customization and post implementation support.

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CRM Processes:

All processes were mapped on to product by understanding the details. During the course of
process mapping, several opportunities for improvement were identified and implemented. To
illustrate, the buying process of a loan product involves the following steps:
a) Prospect contacts the call center and leaves details.
b) Call center personnel passes on this lead to the Direct Marketing Associates (DMA)
responsible for the area from where the lead has come in.
c) The DMA contacts the prospect and collects documents. The DMA also files a field
Investigation (FI) request from a FI agency. The FI agency is external to ICICI Bank and checks
on the basic variety of the statements submitted by the prospect
d) The documents collected by them are filed and forwarded to the Credit Processing Agency
(CPA). The CPA also receives the FI report.
e) The CPA checks for completion of the file, generates a credit score card and passes on the
document to the credit buyer.
f) The credit buyer (CB) is an ICICI Bank personnel and takes the final call on the loan
sanctioning. He in turn passes on the documents to the central operations team for processing.
The central operations team is also internal to ICICI Bank.

The sales Process:

PRE Implementation of CRM

Independent Databases

Call Centers Sales Agent Scrutiny Credit Agents Operations

POST Implementation of CRM:

Databases

Call Centers Sales Agent Scrutiny Credit Agents Operations

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I. Technological Initiatives for CRM in ICICI Bank:

1. SIEBEL software: To accomplish the above objectives through specific software,

ICICI bank has rolled out Customer Relationship Management software, SIEBEL.
Customer touches ICICI Bank from a number of channels namely Call Center, Bank
Branch, ICICI Center, ATM, Web or SMS. SIEBEL provides a common platform, so as
to have an integrated single view of the end customer across product lines and channels.
To begin with, it will automate process-flow tracking in the product-sales process, and be
able to generate customised reports and promote cross selling. It will also enable efficient
campaign management by providing a software interface for definition, tracking,
execution and analysis of campaigns. Similarly, even the customer service and support
function also has well defined processes depending on the nature and the type of query and
complaints.

SIEBEL primarily addresses:

❖ Complaint and Query Management: SIEBEL addresses complaints in a

systematic manner. Any case requiring the authorization of an officer automatically goes
to the officer’s mailbox and goes forward only after his authorization. In SIEBEL, service
request (SRs) and complaints can be routed to the respective departments through an in-
built escalation matrix, which means, if SRs/complaints are not resolved within the
prescribed turn around time (TAT), it will get escalated to the higher levels in the
hierarchy. This in turn ensures effective control and redressal of complaints.

❖ Customer Retention: The software has got the property which enables the branch
head of any of the branch to know exactly when and which account is showing any abrupt
behaviour. The branch head can then be able to know the reason for such abrupt behaviour
and ultimately check his/her detachment from the bank.
Illustration: If a particular customer withdraws a significant amount from his account or
he is gradually reducing his deposits into his bank account, the branch head may
immediately take note of it and if it is because of dissatisfaction with the bank, it could be
immediately checked.

❖ Cross selling and up selling: The software can also be used for cross selling and
up selling purpose. In the above illustration, if the branch head comes to know that a
particular customer has withdrew significant money from his account for purpose of some
investment, it can immediately ask his sales team to reach the customer and offer the
investment avenues that the bank has as; fixed deposit schemes, bonds, insurances etc. If

30
 the customer intends to purchase a property or car, the sales team may even pursue for
their own home loans or auto loans.

❖ Customer contact management: SIEBEL enables the bank to record complete profile,
contact history of its customers. The software can even be used in greeting the customer at various
occasions as his Birthday, wedding day, insurance premium submission date etc. These help the
bank in inducing personal touch with the customers.

❖ Sales Force Automation: SIEBEL endeavors to track all banking accounts related
opportunities from the point where a prospect expresses interest in the product till the time
the sales process gets logically closed. This software even calculates incentive
compensation for the outbound sales team (OBST).

2. Call Center:

To facilitate CRM, bank has an effective call center to support. So, for most of the banking
requirements and for almost all types of customer complaints, customers are only required
to call to the call center of the bank and rest is bank’s job.

3. Automated Teller Machines:

ATM for ICICI Bank is a “force multiplier” says Chanda Kochhar, ED, ICICI Bank
(Source: Indian Management; July 2002, pg26). ICICI Bank has one of the largest network
of ATMs in INDIA. Ail the ATMs are networked. These ATMs not just act as a point to
reduce cost of setting up of many of branches but helps in reducing operational costs as
for ICICI Bank, cost of transaction through ATM is 70% lower than branch banking. The
bank intends to get at least 45% of its transactions to get routed through ATMs (Indian
Management; July 2002). These ATMs also act as means of promotion as says Trilok
Sharma, Branch Head, IDBI Bank, Varanasi, “People remember only two things, one
ICICI Bank’s ATM second Brand Ambassador Amitabh Bachchan.”. ICICI Bank’s ATMs
also help in cross selling and up selling. On an ICICI Bank ATM, a customer can ask for
more information on products. Currently, six options are available: Car loan, Home loan,
Credit cards, Mutual Funds, Life Insurances and Online Trading. So, if a particular
customer while transacting through ATMs search about a particular product of the bank,
the information automatically gets recorded to the bank’s central command. This
information is passed on to the concerned branch head who is supposed to ensure visit of
a sales staff to the customer and enquire about his interest on those products. ICICI Bank’s
ATM strategy is multi-lingualism. Its ATM displays information in four regional
languages besides Hindi and English. These are Marathi, Kannada, Tamil and Malayalam.
The bank wants to introduce tri-lingual interfaces in each state.
31
4. Net and Phone Banking:

In order to leverage technology, the bank wants to provide the most superior service. Net
and Phone banking options are part of that strategy. This further reduces bank’s operational
cost and provides another option to do banking even from their home or office. “Presently
net and phone banking transactions account for only 15% of total transaction.

II. OFFER CUSTOMISATION:

In order to strengthen CRM, ICICI Bank has designed several products keeping in mind
exclusive requirements of certain sections of the society.

1. ICICI Bank Private Banking Program:

In order to give special and distinct treatment to precious customers a special program has
been designed by the bank under Exclusive Banking Program. It is for those customers’
who keep Rs 5 lakhs + with the bank, they are offered a whole lot of personalized services
named as ICICI Bank Private Banking Program. There are several Personalised offer
which are as follows:
• Exclusivity and Convenience
• Dedicated officer at the Bank
• Separate interaction area in the branch
• Anywhere banking facility
• Exclusive Banking facility

Competitive Pricing
• Reduced rates for products and services.
• Several complementary offers.
• Value linked benefits.

Offers
• At Par cheque Facility
• Personalised Pay in slip Book
• Personalised Photo Signature Debit cards with enhanced withdrawal limit.

32
 • HPCL-ICICI Bank gold credit card with Pre- approved Rs 1,5+ lakhs. Annual first year
fees is waived off and subsequent years fees is also waived off if annual card spend
exceeds Rs 60.00C.

2. Roaming Current Account:

Roaming current account is for business personnel who travel extensively. They are
provided a chequebook where cheque can be treated at par across the country. These
cheques get cleared at whatever location it is deposited at. So, it does not get stuck with
the bank clearing for 15 days instead gets cleared in regular period of 2 days as the case
is for any local cheque. (ICICI Bank literature)

3. Students Campus:

Realising that student’s life is not a 9-5-lifestyle bank has introduced this product that
offers time and location independent banking solutions to the students community.

4. Kids-e-bank:

This product teaches children banking and e-commerce transactions through an

interaction on-line interface.

5. E Cheques:

For metro based high value business customer, ICICI Bank has launched a product
called e-cheques. By using RBI’s electronic fund transfer (EFT) mechanism, ICICI
Bank customers can transfer funds using e-cheques to any account in 8 major cities.

III. GRIEVANCE HANDLING MECHANISM:

1. Bank’s SIEBEL software effectively takes care of customer’s queries and complaints.
The software automatically records the complaints and forwards it to the person
concerned. If the complaint is not redressed within the set Turn Around Time (TAT),
the matter reaches to the person up in hierarchy.

2. The bank realized that greater attention to customer problems; query and complaint
should be segregated. Earlier every teller was handling queries and complaints. This
resulted in lack of control over activity and at times it was difficult to trace who received
complaint and who redressed it. It was also felt by the bank that its segregation would
clearly demarcate this activity end would help in identifying those responsible for
redressal within set TAT.

33
 3. For better implementation of the Bank’s CRM program at branch level, the bank has
put customer satisfaction as a parameter in the staffs performance appraisal. A regular
survey of Customer satisfaction is carried out by certain independent Research agency
as ORG-MARG. The study reveals satisfaction branch wise as well as at the overall
bank level. This keeps a check on its employees from refraining from the banks’
expected service delivery. The bank has even increased the weightage of customer
satisfaction in employee performance appraisal.

IV) CUSTOMER SERVICE SCHEMES:

1. Contact Management: SIEBEL enables the bank to record complete profile,
contact history and account management. The software can even be used in greeting the
customer at various occasions as his Birthday, wedding day, insurance premium
submission date etc. These help the bank in inducing personal touch with the customers.

2. Flexible Timings: In its Metro and Urban Branches the bank has increased its
timings from 8AM to 8PM, which helps office-going customers.

3. Mobile ATMs: Bank has introduced mobile ATMs in Andheri, Mumbai. *(Zee
Business News dated 3 Jan 2003).

4. e-Lobby: ICICI Bank has started ‘e-lobby’, a self service banking center. The ,e-
lobby’ showcases most innovative and user friendly gadgets providing self service
banking in the areas of bill payments, cash withdrawal, videoconferencing with
customer service executive, online banking and other such transactions without any
assistance.

5. Home delivery of offers: With effective use of technology of customers, the bank
has started sending its sale professionals to the customers’ office or home.

6. ICICI Bank’s ‘e-lobby’ has the first ATM for visually impaired person.

ICICI STACK
ICICIStack’ offers nearly 500 services that covers almost all banking requirements of
customers, in one place. The list includes digital account opening (instant savings and current
account opening), loan solutions (instant personal loans, instant credit cards, instant home loan
sanctions, instant car loans, instant overdraft facility, instant business loans), payment solutions
(digital payment solutions like UPI, bill payments using Bharat Bill Payment System),
investments (instant FD, PPF, NPS and AI led robo-advisory for other investments), insurance

34
 (term and health insurances digitally) and care solutions (protection for life, health, car and
home).
Some of the prominent services available in ‘ICICIStack’ are:

• Accounts Stack: Services like instant digital savings account with FD, PPF; instantly available
salary account, current account, travel card, bill pay solutions; APIs like connected banking
with ERP softwares, account management and digital on-boarding of partners
• Payments Stack: Offers digital payments and payout services like UPI, QR scan and pay,
merchant settlement and customer cashback, refund transactions, EazyPay merchant app and
digital on-boarding of merchants
• Loans Stack: Includes services like instantly available personal loan, business loan, credit
card, home loan sanction, home loan top up, car loan sanction and digital small ticket credit
called Paylater. APIs include e-Nach based mandate, instant loan booking, disbursement to
partner accounts for car loan or education loan, disbursement to customer account.
• Investment Stack: Offers instant services like FD, RD, SIP, PPF, NPS and AI led
roboadvisory for mutual fund investments, real time investment updates and any channel
servicing. Also offers value added products like FD with life insurance or credit card or
monthly income plan or investment with SIP
• Care stack: Includes services for protection for life, health, car, two-wheeler and home.

35
DATA ANALYSIS / PRESENTATION

36
DATA ANALYSIS / PRESENTATION

This project is to study the customer relationship management in ICICI Bank and how this
concept would help to maintain long term customer loyalty with the bank. This would help
ICICI bank to emerge as no one private sector bank in the country.

CRM, according to ICICI consists of the following approaches:

1. Getting personalized information on customers.

2. What is the value of the relationship?
3. Customized offerings to the customers.
4. Converting a prospective customer into a true customer.

1) Getting personalized information on customers:

The bank collects all the information about the customers for processing. ICICI bank has
mainly 4 service offerings viz: loan account, saving account, current account and fixed
deposits. Moreover, the bank has many customers in each category. So, they collect the data
on one server and thus the company gets the personalized information on each customer by
asking them to fill the information in customer application form.

2) What is the value of the relationship?

After the collection of the personalized information on every customer, the department checks
out the value of the relationship with each and every customer. Later, they decide how to
approach the customer for knowing what his needs and wants are? After this is done, the
company offers him the customized product.

3) Customized offering to the customers:

The step which comes after deciding the value of the customer is that the company offers the
person the customized product. Moreover, they also practice a concept called cross-selling over

37
here. Cross – selling refers to offering another product from the service offering of the bank to
the customer which he has not gone for. Example If customer has saving account with the bank
then we offer him loan, insurance and other investments.

4) Converting a prospective customer in to a true customer:

The last approach of CRM according to ICICI bank is that they try to convert the prospective
customer into a true customer. Right from the moment the inquiry comes, they follow- up the
customer and then make him to come to the bank occasionally and then regularly.

Improved customer retention Greater retention results in a larger future customer base CRM‘s
relation to the supply chain Conclusion & Discussion.

Presale Communication Postsale Communication

Decision makers Purchase behavior
Decision making Post purchase behavior
Influences Predicted behavior
Post purchase behavior Creditworthiness
Channels Attitudes and perceptions
Pricing
Predicted Behavior
Creditworthiness
Relevant information

• Never ask a client the comparable thing more than once

• Interact in the client's decision
• When taking part in a connection, start with the client, not the item
• Make the correspondences individual and customized
• Ensure that your connections with clients are constantly invited
• Ensure that they are promptly distinguished and treated suitably
• Protect the client's protection
• Invite exchange by printing sans toll numbers and site URLs on everything
• Ensure that the client can see the incentive from every correspondence. Convey
material or worth that reflects what has been realized.
• Be sensitive to the customers time.

38
CHAPTER 5
CONCLUSION:

Through all these initiatives, bank wants to have a competitive advantage over other players in
the market and also has the objective of servicing customers better. The bank aims to provide
personal service through impersonal medium and to convert a customer from being customer
of branch to customer cf bank. This study strongly supports the fact that CRM is need of an
hour and no business may be it is banking business; retailing or something else can ever survive
without proper introduction of CRM. This study strongly supports the connection that
consumer were more satisfied with professional service provider who engaged in both
courteous expressions and personal connections forms of sociality. Moreover, finding revealed
that regardless of services context customers expect service provider to be courteous usually,
most conversation begin or end with a courtesy expression and includes some form of personal
connection content. The important point is that sociality communication can play a pivotal role
in moving the provider and consumer for mere encounters to higher degree of relational
development.

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BIBLIOGRAPHY

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• Amuthan, R. (2004). A Study on Retail Banking Strategies in Private Sector Banks with
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