UNIVERSITY OF MUMBAI

A PROJECT ON CRM IN BANKS

Submitted to
University of Mumbai for partial completion of the degree of
Bachelor’s in commerce (Financial Markets)
Under the Faculty of commerce

By
ANJALI JAYGOVIND TRIPATHI
(FM.18.66)
UNDER THE GUIDANCE OF
Ms. BABITA KAKKAR

SIES (NERUL) COLLEGE OF ARTS, SCIENCE & COMMERCE

PLOT 1-C, SECTOR-V, NERUL, NAVI-MUMBAI – 400706
APRIL 2021
 SIES (Nerul) College of Arts, Science and Commerce

Sri Chandrasekarendra Saraswathy Vidyapuram, Plot 1– C, Sector –

V, Nerul, Navi Mumbai – 400706

CERTIFICATE

This is to certify that Ms Anjali Jygovind Tripathi has satisfactorily carried out the project
work on the topic entitled “CRM in Banks” under the guidance of Mrs. Babita Kakkar in
partial fulfilment of Bachelor of Financial Markets (BFM) Semester VI as per the
curriculum laid down by the University of Mumbai, during the academic year 2020 – 2021.

Asst. Prof. Priyanka A. Gogri Asst. Prof. Girish

Kirtani Internal Examiner/ Project Guide Course Co-ordinator

Dr. Koel Roychoudhury

External Examiner I/c Principal

 Declaration by learner

I the undersigned Ms Anjali Jaygovind Tripathi, hereby declare that the work embodied
in this project work titled “CRM in Banks” forms my own contribution. The research
work carried out under the guidance of Ms. Babita Kakkar is a result of my own research
work and has not been previously submitted to any other University for any other
Degree 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, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Ms. Anjali Tripathi

Ms. Babita Kakkar

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the 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, Dr. Koel Roychoudhury for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Ms. Girish KIRTANI, for her moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Ms. Babita
Kakkar whose guidance and care made the project successful.

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.
 EXECUTIVE SUMMARY

This report analyzes the brokerage industry taking into account the health of the capital
market and the intensity of competition among the brokerage companies. Michael porter’s
five forced analysis has been employed to present a picture to gain an understanding of the
competitive landscape and industry attractiveness. It covers important segments of the
industry market dynamics.
A differentiating aspect of this report is a comparative assessment of the top brokerage firms
on various value indicators.
The major growth drives for brokerage revenue and trading volume are:
1) Continuous fall in brokerage’s fees
2) Adaption of technology screen based trading, electronic matching and paperless securities
3) Centralized operations, effective risk management and control on large interconnected
operations spanning multiple locations, which is enabled by telecom connectivity and low
costs
4) Increasing access to capital and the ability to provide margin finance
Though the brokerage industry has been consolidating steadily over the last 10 years, the
share of the top 10 brokers has risen to only around one-fourth of the total industry revenues.
In sharekhan and 5paisa, apart from many small players, compete on the basis of low
brokerage fees and customer service.
The major growth drivers of the brokerage industry are the increasing appetite for equities
among investors as an asset class, the convenience of online trading and declining brokerage
fees.
 INDEX

Chapter Title of the Chapter Pg. No.

No.

1. INTRODUCTION 7

2 RESEARCH METHODOLOGY 48

3 LITERATURE REVIEW 50

4 DATA ANALYSIS, INTERPRETATION AND 61

PRESENTATION

5 CONCLUSION & SUGGESTION

5.1 SUGGESTION 76

5.2 CONCLUSION 77

BIBILOGRAPHY -

ANNEXURE
 CHAPTER 1:- INTRODUCTION

INTRODUCTION OF CRM

CRM, or Customer relationship management, is a number of strategies and

technologies that are used to build stronger relationships between companies and their
customers. A company will store information that is related to their customers, and they will
spend time analysing it so that it can be used for this purpose. Some of the methods
connected with CRM are automated, and the purpose of this is to create marketing strategies
which are targeted towards specific customers. The strategies used will be dependent on the
information that is contained within the system. Customer relationship management is only
used by corporations, and they will focus on maintaining a strong relationship with their
clients.

There are a number of reasons why CRM has become so important in the last 10 years. The
competition in the global market has become highly competitive, and it has become easier
for customers to switch companies if they are not happy with the service they receive. One
of the primary goals of CRM is to maintain clients. When it is used effectively, a company
will be able to build a relationship with their customers that can last a lifetime. Customer
relationship management tools will generally come in the form of software. Each software
program may vary in the way it approaches CRM. It is important to realize that CRM is
more than just a technology.

Customer relationship management could be better defined as being a methodology, an

approach that a company will use to achieve their goals. It should be directly connected to
the philosophy of the company. It must guide all of its policies, and it must be an important
part of customer service and marketing. If this is not done, the CRM system will become a
failure. There are a number of things the ideal CRM system should have. It should allow the
company to find the factors that interest their customers the most. A company must realize
that it is impossible for them to succeed if they do not cater to the desires and needs of their
customers. Customer relationship management is a powerful system that will allow them to
do this.

It is also important for the CRM system to foster a philosophy that is oriented towards the
customers. While this may sound like on sense, there are a sizeable number of companies
that have failed to do it, and their businesses suffered as a result. With CRM, the customer
is always right, and they are the most important factor in the success of the company. It is
also important for the company to use measures that are dependent on their customers. This
will greatly tip the odds of success in their favour. While CRM should not be viewed as a
technology, it is important to realize that there are end to end processes that must be created
so that customers can be properly served. In many cases, these processes will use computers
and software.

Customer support is directly connected to CRM. If a company fails to provide quality

customer support, they have also failed with their CRM system. When a customer makes
complaints, they must be handled quickly and efficiently. The company should also seek to
make sure those mistakes are not repeated. When sales are made, they should be tracked
so that the company can analyse the m from various aspects. It is also
important to understand the architecture of Customer relationship management.

The architecture of CRM can be broken down into three categories, and these are
collaborative, operational, and analytical. The collaborative aspect of CRM deals with
indication between companies and their clients. The operational aspect of the
architecture deals with the concept of making certain processes automated. The analytical
aspect of CRM architecture deals with analysing customer information and using if for
business intelligence purposes. Each one of these elements is critical for the success of a
CRM system. A company must learn how to use all three properly, and when they do this
proficiently, they will be able to build strong customer relationships and ensure their
profits for a long period of time. As more businesses continue to compete on a global
level, it will become more important for them to use successful Customer relationship
management techniques.

MEANING OF CRM

Customer Relationship Management is the establishment, development, maintenance and

optimization of long-term m mutually valuable relationships between consumers
and the organizations. Successful customer relationship management focuses on
understanding the needs and desires of the customers and is achieved by placing these
needs at the heart of the business by integrating them with the organization's strategy,
people, technology and business processes.
At the heart of a perfect CRM strategy is the creation of mutual value for all the parties
involved in the business process. It is about creating a sustainable competitive advantage
by being the best at understanding, uncaring, and delivering, and developing
existing customer relationships in addition to creating and keeping new
customers.

DEFINITION OF CRM

―Customer Relationship Management (CRM) is a co-ordinate approach to the selling

process allowing the various operational, customer contact and sales
promotional functions of an organization to function as a whole.‖
 INTRODUCTION OF CRM IN BANKS

Today, customers have more power in deciding their bank of choice.

Consequently, keeping existing customers, as well as attracting new ones, is a critical
concern for banks. Customer satisfaction is an important variable in evaluation and control
in a bank marketing management. Poor customer satisfaction will lead to a decline in
customer loyalty, and given the extended offerings from the competitors, customers can
easily switch banks. Banks need to leverage effectively on their customer relationships
and make better use of customer information across the institution.

Competition in the financial services industry has intensified in recent years, owing to
events such as technology changes and financial industry deregulation.
Conventional banking distribution has been gradually supplemented by the emerging use of
electronic banking. Many bank customers prefer using ATMs or a website rather than
visiting a branch, while technology has also reduced barriers to entry for new customers.

CRM--A POWERFUL TOOL

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 term, CRM produces continuous scrutiny of the bank's business relationship with
the customer, thereby increasing the value of the Customer‘s 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 behaviour. With this, a business can
hope to achieve better customer service, make call centres 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 customers' information
are gathered, 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 centres, marketing
and advertising. The collected data may flow between operational systems (such as sales
and stock systems) and analytical 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 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 at bank branches, kiosks,
ATMs, internet, electronic banking and call centres.

CRM is not a new phenomenon in the industry. Over the years, banks have invested
heavily in CRM, especially in developing call centres, which, in the past, were designed to
improve the process of inbound calls. In future, call centres will evolve to encompass more
than just cost reduction and improved efficiency. According to Gartner Group, more than 80
per cent of all US banks will develop their call centres as alternative delivery channels and
revenue centres, 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 centres more efficient

• To provide better customer service

• To discover new customers and increase customer

Revenue

• 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

• Finally, 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 m banks are focusing on Customer relationship
management initiatives to improve

• Customer satisfaction and loyalty

• Customer insight/ 360º view of customer

 • Speed to market for products and service

• Increase products-to-customer ratio

• Improve up sales and cross sales

• Capitalizing on New market opportunities

The idea of CRM is that it helps businesses use technology and human resources
gain insight into the behaviour of customers and the value of those customers. If it works as
hoped, a business can: provide better customer service, make call centres 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 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 or IRAs to them at the right
time to fit their needs. Next, the organization must look into all of the different ways
information about customers comes 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 centres, mobile
sales force staff and marketing and advertising efforts. Solid CRM systems link up each of
these points. This collected data flows between operational systems (like sales and
inventory 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.

In CRM projects, following data should be collected to run process engine:

1) Responses to campaigns,
2) Shipping and fulfilment dates,

3) Sales and purchase data,

4) Account information,

5) Web registration data,

6) Service and support records,

7) Demographic data,

8) Web sales data

 GOALS OF CRM

Implementing customer relationship management can be a costly undertaking.

Organizations spend a lot of money scrutinizing vendors, buying the right CRM software,
hiring, consultant, training employees, etc. The only way in which a company can actually
measure its success is if it establishes CRM goals prior to the implementation as in this way it
is able to determine whether or not it has successfully implemented CRM. Despite the fact
that industries have different business aspects they share some common CRM goals.

Some of the Commonly Established CRM Objectives are as follows:

1) Increase in Customer Service :

Establishing customer loyalty as one of your top CRM goals is absolutely fundamental to
CRM successful implementation .For this task it is essential that the whole organization
realize that they play a part in this goal. This objective cannot be achieved with the help of a
few employees only. Customers need to feel that they have received excellent service. This
ensures their continued patronage. This is by far one of the most essential goals of customer
relationship management. Customer retention and brand loyalty is absolutely essential to
ensure success. Undoubtedly it is far harder to gain a new customer than to actually keep one.
Customer service is the pivotal point around which CRM revolves.

2) Increasing Efficiency:

One of the most important goals of CRM is the increase in organization efficiency and
effectiveness. This is almost always adopted by every organization. It is necessitated by the
fact that increase in efficiency is required to boost success. CRM achieves this through cost
reduction and customer retention. Adequate CRM training achieves this goal.

3) Lowering Operating Costs:

CRM goals also include the reduction of costs of operation. This goal should be clearly
established and conveyed to all those involved in the CRM implementation process. CRM
manages to reduce operating costs through a workforce management system. This helps to
maximize skills and thus reduce cost. These reduced costs enable an organization to achieve
greater efficiency. If cost reduction is management's objective then the CRM implementation
should be carried out in such a way that this is achieved. Throughout the process maximum
reduction in costs should be adhered to in order to meet this particular CRM goal.
4) Aiding the Marketing Department:

Another goal of CRM is generally aiding the marketing department in all its efforts. This
includes marketing campaigns, sales promotions etc. If this is fixated as one of the goals of
CRM, then it should be communicated to those involved. This goal is fundamental as it
boosts sales indirectly thereby increasing the profitability.

NEED OF CRM IN BANKS

Bank merely an organization 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 cheque
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 profitability with any customer retention. This
paper deals with the role of CRM in banking sector and the need for it is to increase customer
value by using some analytical methods in CRM applications. 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 when they are not
satisfied and might leave the service provider and act accordingly.
 CRM in banking industry entirely different from other sectors, because banking
industry 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 and debit cum
ATM card, creating awareness regarding online and e-banking, adopting mobile request etc.
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 operating. Hence asking reference from the existing customers can
develop their client base. If the base increased, the profitability is also increase. Hence the
bank has to implement lot of innovative CRM to capture and retain the customers.

There is a shift from bank centric activities to customer centric activities are opted.
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 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 bank in today’s competitive milieu. This has resulted in the
adoption of various CRM initiatives by these banks.

STEP 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
 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 the starts
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
your customers, anticipating future buying patterns and finding new opportunities to add
value to the relationship

Customer Behaviour Patterns

For example, in the financial sector, early beneficiaries of successful CRM strategies
have been the banks. These organizations 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 pre-determined criteria.

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 and 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 its 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 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
 Protection of customer privacy

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.
Irrespective of whether it is a public sector bank or a private sector bank; a regional rural
bank or a foreign bank all banks commonly store details of tens of thousands of customers
and prospects - both in a corporate database and in discrete documents on the desktops of
individual bank staff. Retrieving customer data to support targeted marketing activities in this
environment has traditionally involved sorting hard copy by hand, which is time-consuming,
inaccurate, and increasingly cost-prohibitive.

Hence the banks devise software, which would mitigate this task of customer relationship
management solution, to take full advantage of their valuable customer data. It also provides
a way to quantify a campaign's success and aids in planning future marketing strategies,
better work flow tracking and management, considerable increase in the speed of the
marketing campaign planning process, greater cost efficiency with improved ROI, easy
monitoring of multiple marketing campaigns and improved workflow management

Global Banks CRM Strategy Goal

Bank of America Provide service representatives with 360- Improve customer

degree view of customer relationship for experience, retention
corporate and retail banking

FleetBoston Segment customer base into six different Attain cross-sell

groups based on demographics and revenues, maximum
banking behaviour lifetime value

BNP Paribas Deploy CRM system across branch Improve customer

network, integrating with central office, experience, cross-sell
link multiple customer databases

Society General Integrate call centre branch, and central Improve customer
office; link 80 banking applications to experience, support
support unified view of customers consistent message
 CRM PRINCIPLES

The main principles of CRM can be grouped into seven guiding factors:

1. Customer focus

The first and foremost important guiding principle in CRM is customer focus. Who is
a customer? This question is very fundamental. A customer is a person or group of persons
who receives the product or service—the final output of a process or group of processes. A
customer is the final arbiter of quality, value and price of a product or service. A satisfied
customer only assigns value to a service, on the contrary, to a dissatisfied customer a product
or service has no value, even if the concerned service or product has been designed with lot
of effort, energy and cost after a thorough planning.

A satisfied customer motivates his fellow members to go in for the service or product
that he has already acquired. But a dissatisfied customer always counsels his friends, and
fellow members not to go to banks where his experience proved to be wrong or other-wise.
So customer’s delight or customer’s satisfaction is the essence of any CRM program. As a
part of this focus on customers, banks should ensure that clients are identified; their
requirements are determined, understood and met enhancing customers’ satisfaction.

The main thrust of CRM is to improve an organization’s efficiency, economy and

effectiveness through reduction of sales cycle times and selling costs, identification of new
markets and channels for expansion, improvement of customer value, satisfaction, retention
and thereby increasing profitability and market share of the enterprise. Successful CRM
focuses on understanding the needs and desires of the customers and is achieved by placing
these needs at the heart of the business by integrating them with the organization’s strategy,
people, technology and business processes. (Heygate, 1999). There must be total commitment
for the enterprise towards this end.
2. Leadership

Persuasion, judgment and decision-making abilities are the main attributes of quality
leadership. When there is a slight chance of getting a business but the client is hesitating or in
a fix, or not in a position to decide properly, it should be followed up by the relationship
manager by patient hearing, mild counselling and to stand by the side of the prospective
client to help clear his doubts and to make him feel happy by realizing that he is going in the
right direction and he is very right in choosing his requirements.

The following points may be found helpful in this regard:

(a) It is to be communicated to all employees that all customers should be given a proper
hearing and it should be supported from all levels.

(b) Ways and means should be identified and practiced of getting and staying closer to
customers.

(c) Proper respect should be extended to the customers. All relevant information should be
collected from them with humble and polite approach. Proper value should be given to their
feedback.

(d) There should be proper re-action to the information and feedback provided by the
customers in designing, developing and providing desired products at afford-able cost.

3. Process approach

A process transforms an input into desired output by the use of resources, energies
and time. In producing an output there may one single process or a group of inter-related
processes. In case of inter-related processes, often the output from one process directly forms
the input to the next. For effective functioning of an organization, it has to identify and
manage numerous linked activities with the help of different processes for accomplishing its
goal.

Proper attention should be given to the following points:

(a) All processes should be de-signed keeping in view the requirements and desires of the
customers, within the policy, resource availability, strategy of the company.
(b) All processes should meet the legal and statutory requirements to perform the activity or
deliver the product or service.

(c) Time involved in processing should be minimum with least waiting time to the customers.
If required delegation of authority and assignment of account-ability at various executive
levels should be addressed, revised and fine-tuned to meet the requirements.

(d) All the processes should be properly integrated to meet the goal congruence and should
not function at cross-purpose.

(e) There should be in built control mechanism for ease of measuring, reviewing and taking
corrective action.

4. System approach

Customer’s requirement is one level of commitment. That level implies a system that
is reactive and provides to customers what they want but the target should be to achieve more
and to exceed the customer’s expectation to accommodate future requirement and to build a
cushion against the competitors’ attributes.

CRM denotes the management of the entire system and is not confined to only one or
the other sub-systems or functional departments. CRM is based on a system approach to
management. Its primary objective is to increase value to customers on a continuous basis by
designing and improving organizational processes and systems on an on-going basis. Meeting
Each sub-system may have its own goal but the goal and objectives of all sub-systems are to
be integrated to achieve the overall goal.

There may be one sub-system to acknowledge the customer’s order, a separate one to
deliver the product within the delivery schedule, another sub-system to comply with the
complaints of the customers etc., but all directed to accomplish the goal—value to the
customers. The total system as a whole should decide what product to make or what service
to offer, what should be the quality involved, what should be the price, what markets and
customers to target upon and similar other issues.
5. Involvement of people

The fundamentals of CRM bear the genes of customer relationship through

involvement of people, i.e., the work-force at the disposal of the organization. The whole
gamut of CRM is for the people, of the people and by the people. People involvement at all
levels is essential for the success of a CRM program. The bank managers and staff must be in
a position to exploit the concept of customer relationship completely.

Customer relation may be defined as that dimension of relationship marketing that

seeks and ensures customer loyalty by fulfilling promises and continuing to satisfy
customer’s wants and needs so that defection is zero. It comprises of three levels of
relationships; financial relationship, social relationship and structural relationship.

The main focus of financial relationship is frequency marketing programs based on

financial incentives such as reduction of processing fees, lower rate of commitment charges,
organization of loan mela on special occasions etc. A social relationship program revolves
round a social bonding between company and its customers and establish brand loyalty.
Bankers, nowadays, make house calls, offer different services outside their for-mal activities,
share the feelings and emotions of clients and even send clients flowers on birthdays and
anniversaries. A marketing relation with the middleman and interested groups is developed in
an in-side-out manner mainly based on software, which would help in data warehousing, data
mining and data analysis. The optimization of structural relationship lies in the replacement
of physical resources by total service replacement.

Drawing of money through ATMs instead of physical presence in the branch for
withdrawal of cash through cheques or withdrawal forms may be sited as example. To obtain
the full benefits of people involvement, the human resource management should focus on
employee empowerment, productivity linked reward, and zero defeat service oriented train-in
and total quality management.

6. Mutually beneficial customer relationship

The relationship with the customer should be based on a mutually beneficial relation-
ship. A bank should not concentrate its attention towards earning of profits only, but focus
should be directed to the customers’ wealth creation or value enhancement with the motto of
earning through service.
 As an example we can talk of a savings account that’s ‘fixed up’ to give you more
interest. It ensures that any balance in your savings account above a certain amount, say, Rs
3,000 automatically gets transferred to a fixed deposit to give you higher returns, which will
be swept back into your savings account, when you need it.

Sometimes, other benefits are also extended, such as, free personal accident
insurance coverage along with fixed deposit scheme above a certain amount and above a
certain term. Banks are no more restricting their activities to deposit and advances; rather
they work with the mot-to of offering ‘Integrated Total Package Solutions to all needs of a
customer. Banks have gone to the extent of booking cinema tickets, paying utility bills,
school fees etc. for the ease of their clients who are very busy and do not find time for such
work. Many of such activities are not profitable in terms of time and efforts spend by the
bank. But banks are carrying out such services for mutual benefits, which pays in the long
run.

Wealthy individuals are in the habit of placing all sorts of demands on their private
bankers and a bank has to respond to such requests not merely for income generation but as a
gesture of goodwill and at times such activities add a consider-able percentage to a bank’s fee
based income. According to an estimate, a bank can earn Rs 35,000 to Rs 100,000 per annum
for a good customer. But generally it is found that earnings start after the first two- three
years of dealing with the customer. In a mature relation-ship, such fee-based income is a
regular feature and is very much crucial in today’s banking where interest spread is getting
reduced due to competition and fee based income can increase the bottom line. But in many
instances, the expenses in terms of time, effort, recognizing individual needs and offering a
customized investment solution are high.

7. Continual improvement

Another objective of CRM is the efforts towards continuous improvement in the

customer relationship through the provision of value added services at favourable cost.
Business processes in the areas of finance, system integration, human resource management
etc. are to be automated and optimized with an aim to increase the efficiency and
effectiveness of operations.
 The most effective way of improvement lies in innovation and change management.
Today’s successful organizations must stimulate and foster innovation and master the art of
change. Organizations that maintain their flexibility, spontaneity and unpredictability,
continually improve their quality and, beat their competitors to the market place with a
constant stream of innovative products and services, will be the winners.

The major areas to be targeted are:

(i) Improving the effectiveness of marketing.

(ii) Implementing multichannel trigger driven marketing.

(iii) Implementing a strategic analysis capability to support strategic decision making.

(iv)The ability to deliver the increasing levels service demanded by customers.

Building a transparent communication system and employee participation to better define the
needs of the customers and deliver the right services and products.

BENEFITS OF CRM TO BANKS

Despite the fact that in most banks profits sometimes fail, they seldom pay attention to or
adopt any customer strategy. It has long been the misconception that banks need not pay
much attention to customer focus just because they had customers. Some banks even if they
possess good customer relationships are unable to cross sell as they have not figured out who
to target with what product/service. What happens is that customers are often approached for
the wrong products.

However the new millennium has resulted in banks and financial agencies rethinking
their strategies and goals. They have come to understand the importance of hanging onto the
customer and keeping him happy. The rules that once governed the banking industry have
changed. They have realized that adopting a customer centric strategy is essential and needs
to be compulsorily undertaken. The vast majority of banks now realize they need a customer
strategy and are opting for CRM - Customer Relationship Management.
 Banking CRM software serves to increase the market share and boost growth in the
banking industry. What happens in CRM banking solutions is that they change the way the
employees think and mould them into customer conscious people. CRM induces bankers to
know that they are required to maintain good relationships with their customers and should
strive to retain them.

They are made to realize that the business process should consist of efforts to discover
and satisfy customer requirements. Since the banking field now boasts of so much of
technological innovations there has been a wide variety of innovations in CRM banking as
well. Statistics show that bankers will spend $7 billion on CRM. The sector will also
evidence an increase in expenditure of 14 percent each year. With such phenomenal statistics
it is but a surety that CRM banking solutions sales will soar in the coming years.

FOLLOWING ARE THE BENEFITS OF CRM TO BANKS:

 CRM Banking Focuses on the Customer

CRM manages to places the customer at the focal point of the organization in order to
cater to his needs, satisfy him and thus maximize the profits of the organization. Banking
CRM understands the needs of the customer and integrates it with people, technology,
resources and business processes. It focuses on the existing data available in the organization
and uses it to improve its relationship with customers. Banking CRM uses information and
analytical tools to secure customer focus. Thus it is completely essential that banks
implement CRM in order to secure this.

 Overall Profitability

CRM enables banks to give employee's better training that helps them face
customers easily. It achieves better infrastructure and ultimately contributes to better overall
performance. The by-products of CRM banking solutions are customer acquisition, retention
and profitability. Banks that don't implement CRM will undoubtedly find themselves with
lesser profitability coupled with a sharp decline in the number of customers.
  Satisfied Customers

It is important to make a customer feel as if he / she is the only one - this will go a
long way in satisfying and retaining them. Bankers need a return on investment and it has
been proved that increase in customer satisfaction more than contributes a fair share to ROI.
The main value of CRM banking lies in satisfaction and increased retention of customers.

 Centralized Information

CRM banking solutions manage to clearly integrate people, processes and technology.
CRM banking provides banks with a holistic view of all bank transactions and customer
information as well and stores it in a single data warehouse where it can be studied later.

 CRM Banking Boosts Small Banks

Banking CRM software meets the needs of banks of all sizes in terms of attaining the
required accuracy and understanding of customers. Merely assuming that banks that are
considerably smaller in size have a better customer approach and are able to deal with their
customers in a better manner is wrong.

They are just as much in need of CRM aid as the others. Small banks on account of a
limited amount of money have had to realize that a large contribution to profits is directly the
result of good customer service. CRM makes sure that the bank delivers exactly what the
customer expects.

 Customer Segregation

CRM enables a bank to see which customers are costing them and which are bringing
benefits. CRM provides them with the required analytical tools that will help them focus on
the importance of segregating these two and doing what is required to avail of the maximum
returns. After this segregation is done CRM easily enables banks to increase their
communication and cross-selling to their customers effectively and efficiently.

 Aggressive Customer Acquisition

CRM solution supports the creation of demand generation through multi-channel and
multi-wave campaigns. The solution ensures the bank’s marketing message is appropriately
personalized and targeted towards the most suitable segment of prospects. This optimizes
marketing efforts and results in greater conversion of prospects
  Improved Cross-sell Framework

The solution presents a unified 360° view of the customer, allowing single point
access to all the relationships the customer has forged with the bank. This along with robust
customer analytics effectively supports true relationship banking, providing a robust
framework for cross-sell opportunities.

CRM solution also integrates with other white labelled solutions to facilitate
contextual and personalized customer engagement, with a keen focus on right-talk driven
right-sell.

 Increased Operational Efficiencies and Collaboration

CRM solution supports business automation for processes and business activities,
eliminating manual tasks and reducing process time. Straight through processing abilities
enhance reduction in turnaround and processing time, increasing output and enabling speedy
completion of tasks. The multilingual Web-based single repository of information enables
remotely located bankers to collaborate and transact seamlessly.

 Lower Total Cost of Ownership (TCO)

A Web-based solution leveraging new-generation technologies, Finale CRM solution

is future-proof and can be seamlessly integrated with other enterprise applications. With a
robust architecture and proven scalability, it ensures protection for the bank’s technology
investments.

 Campaign Management

Banks need to identify customers, tailor products and services to meet their needs and
sell these products to them. CRM achieves this through Campaign Management by analysing
data from banks internal applications or by importing data from external applications to
evaluate customer profitability and designing comprehensive customer profiles in terms of
individual lifestyle preferences, income levels and other related criteria.
 Based on these profiles, banks can identify the most lucrative customers and customer
segments, and execute targeted, personalized multi-channel marketing campaigns to reach
these customers and maximize the lifetime value of those relationships.

 Customer Information Consolidation

Instead of customer information being stored in product centric silos, (for e.g.
separate databases of savings account & credit card customers), with CRM the information is
stored in a customer centric manner covering all the products of the bank. CRM integrates
various channels to deliver a host of services to customers, while aiding the functioning of the
bank.

 Marketing Encyclopaedia

Central repository for products, pricing and competitive information, as well as

internal training material, sales presentations, proposal templates and marketing collateral.

 360-degree view of company

This means whoever the bank speaks to, irrespective of whether the communication
is from sales, finance or support, the bank is aware of the interaction. Removal of
inconsistencies of data makes the client interaction processes smooth and efficient, thus
leading to enhanced customer satisfaction.

 Personalized sales home page

CRM can provide a single view where Sales Mangers and agents can get all the most
up-to-date information in one place, including opportunity, account, news, and expense report
information. This would make sales decision fast and consistent.

 Lead and Opportunity Management

These enable organizations to effectively manage leads and opportunities and track
the leads through deal closure, the required follow-up and interaction with the prospects.
  Operational Inefficiency Removal

CRM can help in Strategy Formulation to eliminate current operational inefficiencies.

An effective CRM solution supports all channels of customer interaction including telephone,
fax, e-mail, the online portals, wireless devices, ATMs, and face-to-face contacts with bank
personnel. It also links these customer touch points to an operations centre and connects the
operations centre with the relevant internal and external business partners.

 CRM with Business Intelligence

Banks need to analyze the performance of customer relationships, uncover trends in

customer behaviour, and understand the true business value of their customers. CRM with
business intelligence allows banks to assess customer segments, which help them calculate
the net present value (NPV) of a customer segment over a given period to derive customer
lifetime value. Customers can be evaluated within a scoring framework. Combining the
behaviour key figure and frequency to monetary acquisition analysis with a marketing
revenue quota can optimize acquisition costs and cut the number of inefficient activities.
With such knowledge, banks can efficiently allocate resources to the most profitable
customers and reengineer the unprofitable ones. Data warehousing solutions have been
implemented in Citibank, Reserve Bank of India, State Bank of India, IDBI, ICICI, Max
Touch, ACC, National Stock Exchange and PepsiCo.

BENEFITS OF CRM TO CUSTOMERS

Customer relationships are becoming even more important for banks as market conditions
get harder. Competition is increasing, margins are eroding, customers are becoming more
demanding and the life-cycles of products and services are shortening dramatically. All these
forces make it necessary for banks to intensify the relationship with their customers and offer
them the services they need via the channels they prefer.

CRM helps banks to provide lot of benefits to their customers; some key benefits are as
follow.

 Service provisioning throughout the entire life cycle of the corporate customer, from
the initial stages to the establishment of a close, long-term relationship with profitable
clients.
  Optimization of the use of bank resources, such as alternative channels of distribution
(internet and home banking),
 Significant reduction in and limitation of operational costs through system automation
and standardization,
 Low maintenance and expansion costs owing to the use of modern administration
tools which allow bank employees to make a wide range of modifications to the
system
 CRM permits businesses to leverage information from their databases to achieve
customer retention and to cross-sell new products and services to existing customers.
 Companies that implement CRM make better relationships with their customers,
achieve loyal customers and a substantial payback, increased revenue and reduced
cost.
 CRM when successfully deployed can have a dramatic effect on bottom-line
performance. For example, Lowe’s Home Improvement Warehouse, in a span of 18
months, achieved a 265 percent return on investment (ROI) on its $ 11m CRM
investment.
 According to a study conducted in the sector of banking, convenience of location,
price, recommendations from others and advertising are not important selection
criteria for banks. From customers’ point of view, important criteria are: account and
transaction accuracy and carefulness, efficiency in correcting mistakes and
friendliness and helpfulness of personnel. Thus, CRM, high-quality attributes of the
product / service and differentiation proved to be the most important factors for
customers.
 Another study conducted in a European bank shows that with CRM, the bank was
able to focus on profitable clients through efficient segmentation according to
individual behaviour. Information about ‘who buys what and how much’ enabled the
bank to have a commercial approach based on the client and not solely on the product.
Thus, the bank was able to better satisfy and retain its customers.

Eventually, CRM results both in higher revenues and lower costs, making companies
more effective and efficient: effective in targeting the right customer base with the right
services via the right channels, and efficient in doing this at the lowest costs. For example,
those banks that are moving transactions from the more expensive channels to a less costly
channel – like the call centre or Internet– are therefore able to save money.
 Stages of Customer Relationship

 Visitor
The online CRM is the entry portal to your company, however the visitor finds you.
Whether they visit with your representatives at a trade show, or fill out a web form,
they enter the front door of your virtual company and into the online CRM to be
greeted with a welcome and offered something valuable to them. WARNING: Do not
skip this important stage or your emails may be rejected later.

 Engaged Visitor
Online CRM is able to engage the sales lead and rescue your sales. The first place you
engage the visitor is in the welcome email. Be gracious and welcoming

 Prospect
In some companies, just clicking on the link to the first offer will convert the sales
lead into a prospect. It may be time to have your Sales people call to offer help and
guide the sale. Whatever the sales process for your product or service, an email
campaign delivered in your online CRM is the most engaging and personal way to get
them to pay attention to your message

 Customer
Way too many companies stop courting the business after they have become
customer. Some feel that customers are not loyal anyway, so what’s the point? Others
believe that if they concentrate their effort on delivering good products and excellent
service – it will be enough to earn whatever loyalty is possible.

 Advocate
In an online world where customers can post their experience with your company to
be seen by anyone who may be interested – customers have the enviable power to
make or break your business. As demonstrated by such companies as Apple, Amazon
and more, devout loyalty is possible when customers feel important. They feel deeply
attached to the companies who make them feel valued and heard.
 CRM CYCLE

There are four phases to the customer life cycle. The four phases include;
marketing, customer acquisition, relationship management, and loss.
Marketing

The marketing part of the customer life cycle is when messages are sent to the target
market to attract prospect customers.

Customer Acquisition

The next phases is customer acquisition which means prospects become

customers when they place an order.

Relationship Management

The third stage is relationship management. Relationship management is when resell

processes increase the value of existing customers.

Loss/Churn

The end stage of a customer life cycle is loss/churn when inevitably in time a company
may lose a customer. The company then needs to establish a win-back process. The
company then needs to decide which lost customers are of most value and try to win
back their business.

A CRM system integrates all four phases of the customer life cycle into three major
processes. These processes are solicitation, lead-tracking, and relationship management. The
diagram above depicts the four phases and the three major processes. It shows the flow of
phases and what each phase means.
 Types of CRM

Nowadays, three major types of customer relationship management systems, namely

operational CRM, analytical CRM and collaborative CRM are being used in many
organizations

 Operational CRM

It provides support to front-office business processes that involve direct interaction with
customers through any communication channel, such as phone, fax, e-mail, etc. The
details of every interaction with customers, including their requirements, preferences,
topics of discussion etc., are stored in the customers’ contact history and can be retrieved
by the organization’s staff whenever required. Thus, it presents a unified view of
customers across the organization and across all communication channels. Examples of
operational CRM applications are sales force automation (SFA), customer service and
support (CSS), enterprise marketing automation (EMA) etc.

 Analytical CRM

It enables to analyze customer data generated by operational CRM applications,

understand the customers’ behaviour, and derive their true value to the organization.
This helps to approach the customers with related information and proposals that satisfy
their needs. The analytical customer relationship management applications use
analytical marketing tools like data mining to extract meaningful information like the
buying patterns of the customers, target market, profitable and unprofitable customers,
etc., that help to improve performance of the business.

 Collaborative CRM
It allows easier collaboration with customers, suppliers, and business partners and, thus,
 enhances sales and customer services across all the marketing channels. The major goal
of collaborative customer relationship management applications is to improve the
quality of services provided to the customers, thereby increasing the customers loyalty.
Examples of collaborative CRM applications are partner relationship management
(PRM), customer self-service and feedback, etc.

Strategic framework for successful implementation of CRM

A global survey conducted by the IBM Institute for Business Value and part of IBM
Business Consulting Services three part series ‘Doing CRM Right’, claims that only 15
percent of CRM projects are fully successful, but that the success rate can be improved to as
high as 80 percent, through proper business methodology and prioritisation.

Banks have made a large investment in technology and benefits thereof are being realised in
terms of improved customer empowerment, customer orientation and convenience. Yet to
realise the full potential, a need to emphasise the strategic importance of CRM is felt. For
successful adoption and implementation relevant changes in banks’ culture, practices,
processes and employee attitudes are required. The following section suggests a strategic
framework to enable successful CRM implementation.

(1)Recognising CRM as a strategic initiative

CRM has many dimensions, resulting in varied perspective to CRM. Therefore, the CRM
philosophy in its true sense is not understood by stakeholders. This becomes a major
impediment to
 Reality
Myths

(a) CRM is primarily about information technology
software packages
(b) CRM is primarily sales and marketing
(c) Once we approach the known CRM software
developers and vendors, they will supply CRM
solution that will fit my business.
(d) CRM once brought and implemented in place in a (d)
firm takes care of itself for all time to come.
(e) CRM is highly expensive.
(f) CRM is suited to Business-to-Business (B2B)
situations and in dealing with large customers.
(g) CRM works well for high value-high anxiety
product only.
(a) CRM is primarily about relationships where
information technology software package
comes handy.
(b) CRM is primarily to automate customer
support.
(c) Development of an intellectual infrastructure
and active involvement are the prerequisites
before we approach CRM software vendors.
Life of the firm is dynamic. Hence the CRM,
solution must be in ‘scalable and modifiable’
form.
(e) CRM is highly cost effective.
(f) CRM is as useful to business to consumer
(B2C situations) as well and for any customer
who is your key customer.
(g) CRM is good for any product even
commodities.

Acceptance and Implementation of the concept.

So it is imperative to state that CRM is a long term strategic initiative meaning that it
emanates from the mission of organisation and is considered as a key means of attaining the
organisation’s long term objectives. It also means that it is designed to sustain the organisation’s
objective attainment, fitting in the plan of action formulated to optimise the organisation’s
opportunities and face the threats. Here a clarification of some myths about CRM is helpful.

(a) Before embarking on CRM, it is necessary to delineate CRM and technology. It should
be clearly understood that the role of technology is in enabling the CRM strategy. Once
this is clearly understood, CRM will get a buy in by all employees in Bank. Passing the
entire responsibility of CRM related tasks on to IT department does not result in
conversion of technology applications into business. Passing solely to Marketing
department, without educating the officers about functionalities, results in non utilisation
in most cases and underutilisation in some. The need of the hour is recognition to CRM
as organisation wide strategy or planned sequence of activities to develop and nurture
customer relationships.
(2) Top management support
Without leadership and endorsement of top management, the CRM initiative may not get the
required weight age, attention and effective deployment. In fact, the philosophy should be
propagated and sold to internal customers i.e. employees at all levels by senior management. A
particularly important role of top management in this context is development and sharing a

‘CRM vision’. A study of best practices adopted by organisations successful in implementation of

CRM indicates that senior managers of these firms create a vision for how CRM will change their
organisations. In addition to this, they include attributes that affect customers’ perceptions of
value, how they can bond with organisation, product and purchase intent. This vision evolves as
the organisation progresses ahead in CRM journey. For example, at a major Canadian Bank,
initially the vision was associated with the development of customer information systems. With
time the vision became more focused on the delivery of differentiated value propositions through
products to customers.

(3) Realignment of Organisational Structure and practices

Sales force Automation, dashboards, loads of customer information in MIS reports cannot lead to
CRM implementation in it’s true sense unless and until the organisation structure in Banks is
realigned. The present structures in most banks are product and process centric. Having installed
technology set up for CRM, relevant changes in structure making it compatible to adoption and
use of technology enabled CRM is the need of the hour. This has certain dimensions such as:

(a) Steering Committee for CRM

At present, there are Marketing divisions, IT departments, MIS departments, Data Centres and
Project Management offices. All are working towards effective management of customer
information towards attainment of Bank’s objectives, one of which is maintenance of customer
relations to develop business. There is a need to streamline this effort towards attaining the CRM
vision. This can be achieved through formation of a CRM Steering Committee at the top level
which has representatives from all these departments. The Committee can synergise the efforts of
all these departments, so that CRM practices are identified, communicated and practiced in
coordination with sufficient top management support and functional expertise.

(b) Breaking of Silos

Present systems are marked by a silo approach where in IT department works in isolation to
marketing department. They have different objectives and strategies. But, it is necessary to
understand that CRM cannot be successful in this environment. Coordination, communication
and joint ownership of both the departments is essential. This will enable IT people to give
technical expertise and marketing people to link the market realities to technology and then plan
products, services to match them.

(c) New positions

The ownership of CRM concept and management of its implementation and adoption through out
the Bank is not possible without creation of some new positions which handle the responsibility
and anchor the propagation of the concept. Most desirable is that, at all levels officials
responsible for different dimensions of CRM be employed. To overlook the overall
implementation and management, an H.O. level position be created. Then IT, Marketing positions
for specific tasks of campaign management, software development and product development etc.
can be created.

(4) Change in culture

CRM being a strategic initiative demands a change in organisation culture pertaining to
perceptions and practices. CRM to be successful needs buy in from all organisational members
and particularly the recognition of the fact that each one is responsible for CRM. It is often
observed that CRM is perceived to be the task of employees in direct contact with customers. The
truth is every employee is a part of process leading to customer satisfaction. So, each can
contribute meaningfully in value addition to customer irrespective of his task and role in process
sequence. Thus, a realisation of each employee’s basic role towards customer centricity will
strengthen adoption of CRM

(5) Communication and coordination

To put life into technology and strategic plans for customer acquisition, service and retention,
communication of CRM vision, enabling practices and desired behaviours is necessary. Also,
coordination of human efforts and customer communications to software enabled CRM updates,
alerts and templates is essential. This can be achieved by Multichannel Integration Process.
Today Banks customers are utilising a variety of channels, leading to strategic customer
information scattered in islands across Bank. CRM objectives cannot be attained unless these
transactions across channels like internet, mobile, call centre, branch, POS terminal, ATM, etc.
are tracked. The multichannel integration will enable a unified view of the customer leading to
better insights into his preferred products, channel preference, usage frequency, needs and wants.
This definitely will aid not only better and informed service, but also new product development,
targeting, approaching the customer with the right product at the right time, through the right
channel. This phenomena called `versioning’ can differentiate a Bank’s offerings from other
players just bombarding offers and products through all possible channels leading to wastage of
effort, resource and time. Apart from this, unified customer view will enable informed decision
making preventing attrition, bad loans and frauds

(6) Motivation
Lack of motivation towards adopting, accepting and using CRM applications is a major
impediment to CRM in Banks. This can be addressed by helping employee at all levels to
understand CRM concepts and firm’s vision for CRM as well as communicating customer,
market and profitability data to describe the Banks’ progress, as it proceeds on its CRM journey.
Also helpful will be setting expectations to help individuals and groups align their performance
with the goals of CRM. It is essential to set expectations to help individuals and groups align their
performance with the goals of CRM. People need to know the link between CRM and their own
role performance and success

(7) Training
Adequate training to end users is essential keeping in view the involvement of new technology,
realignment of business practices and magnitude of fundamental change in Bank’s service
offerings. Training at all levels focused on CRM philosophy, applications in banking, new
processes to be adopted, employee’s role in customer service, and change management along
with use of new technology is the need of the hour. In addition, behavioural training in
reinforcing customer centric attitudes and behaviour is required. In other words, rather than
simply demonstrating how to use software’s features and functionality, training should teach
employees how to effectively execute the business process, enabled by the CRM system.

CRM in Banking: Global scenario

Worldwide banks have explored and realised the benefits of CRM in a variety of ways.
Different banks have implemented the philosophy in their own different way. A few
illustrations will give a glimpse of the global scenario with respect to CRM in Banking.

Royal Bank of Canada utilised CRM to develop models of assessment of customer

profitability and life time value. These were then included in determining customer decisions
like – Customised Marketing campaign, establishing service levels, segmentation, targeting,
product design and pricing. Customer’s vulnerability to attrition also is analysed and the most
valuable are flagged before they defect, in order to take preventive action in a focused and
effective way.

Wells Fargo Bank renowned for leadership in service and convenience to varied customer
segments focused on customer service through CRM. Application of CRM enabled better
integration of customer information and service applications to assist representatives of
customer sales and services to easily provide a one-stop-shop for any banking service or
transaction. Using CRM, Wells Fargo takes full advantage of available customer information
to offer customer the choice, convenience and price benefits so that they give the Bank, all
their business.

Wachovia Bank uses customer transaction data to support modelling processes that
evaluate each branch’s current and long term profitability. In Atlanta Bank’s largest market,
significant performance improvements were attained when it used the output of modelling
process as a basis to decide which of its 96 branches to close and which location to open new
ones
 CRM FRAMEWORK

1.Know your customers

It refers to formal or informal approach towards the customers in order to identify their needs.

2. Know your internal customers

Until and unless an employee is happy, he will not be able to satisfy his customers.
Therefore, it is equally important to keep your internal customers (employees) happy through
incentives like employee of the month.

3. Recognize your customers

It refers to identifying profitable customers through database management.

4. Value addition through interaction

Keep interacting with customers and make every interaction value added or beneficial for the
customer. Every interaction with customer should become a source of information.

5. Interdependence
There comes a stage when company and customers become interdependent
on each other.
 The top CRM systems for investment companies

Today, the majority of investment advisor firms have indicated growth as their business
priority. The advisory firms prioritizing growth intend on achieving the development
primarily by adding new clients organically. Advisers interested in customer acquisition
inevitably face operational challenges that can threaten their ability to serve customers.
However, by implementing best-of-breed software, investment advisory organizations can
grow assets while improving the quality of service they deliver to their customers. A fully
integrated customer relationship management solution is the most powerful tools these
companies have at their disposal if they want to grow. However, when it comes to selecting
the right CRM software tool for the advisory firm, an important question must be answered:
Which CRM system will fit your investment business the best?

When it comes to CRM software that was not specifically designed for the company, but is
being used by investment advisers, I have selected 5 of the most popular solutions to be
aware of. For a fuller listing see the listing at G2Crowd comparing CRM systems for features
and pricing
1. Salesforce

Salesforce is a popular cloud-based CRM solution, which is increasing its presence in the
investment advisory industry by providing a wide array of seamless integrations with third-
party software solutions. Investment banks and capital markets firms are
adopting Salesforce to strengthen relationships with corporate clients and institutional
investors. Salesforce is a cloud-based, fully customizable CRM system that offers integration
capabilities via its application programming interface. Sales Cloud helps consolidate your
data into one place, manage your data across teams, and is accessible on desktop and mobile
devices and automate the organizational process. However, if you choose sales force CRM,
make sure that you can provide relevant expertise to successfully implement the solution.
You can subscribe for a Salesforce Financial Services Cloud demo to see how you can stay
connected with clients in real-time, nurture deeper relationships, and increase productivity.
2. Microsoft Dynamics

Microsoft Dynamics comes in both on-premise and cloud-based versions. As to be expected,

Microsoft Dynamics integrates with the rest of Microsoft products. Microsoft Dynamics’
features bridges to all common business challenges: sales force automation, customer service
and marketing modules empower the team to focus on what’s most important. Microsoft
Dynamics CRM offers editions for financial advisors, which provides a holistic 360° view of
all client and household assets and liabilities, as well as financial and insurance product
details. It helps easily identify, manage, and track relationships between households, clients,
and prospects. The flexible architecture of the solution allows for easy customization so you
can mold the application to your specific needs. Microsoft Dynamics CRM offers all of the
important functions, which will be helpful for any investment company: sales force
automation, marketing planning and automation, social engagement, customer service
including field services solutions and analytics.
3. BPM Online

Bpm online is a cutting-edge, process-driven, cloud based CRM software that connects the
dots between marketing, sales and customer service- efficiently managing the complete
customer journey from lead to order, and to on-going account maintenance. Bpm’online helps
you coordinate actions in your sales, marketing, and service supports by combining customer
data with business process management tools. The solution is suitable for mid-size and large
corporations with scalable features. Bpm’online is built around the Bpm platform, which
helps you design and automate processes to improve customer service and meet or surpass
their expectations. Drag and drop tools and make customization easy with solutions for both
cloud and on-premise infrastructures. Bpm'online has customized solutions for a variety of
industries including an application for capital market firms and private banks, which has been
tailored to meet the specific needs of the industry: Bpm'online provides a comprehensive
process-based solution that offers front-and back-office business tools to help private
investments and wealth management firms manage their work. If you are looking for a
process-driven CRM with fast implementation, a monthly subscription that includes support
and upgrade costs; you should consider bpm'online CRM
4. Sugar CRM

Sugar CRM is an affordable and easy to use CRM platform that can help investment business
communicate with prospects, share sales information, close deals and keep customers happy.
Companies use Sugar everyday to manage their sales, marketing and support processes.
Sugar CRM is customizable for financial services that empowers them with the right
information at the right time,seamlessly guiding the customers through every phase of their
journey, improves business efficiency, performance and customer satisfaction. As an open-
source, web-based CRM solution, Sugar is easy to customize and adapt to the changing needs
– it is an ideal fit for small and medium-sized companies as well as large enterprises. The
solution is possible to run in the cloud or on-site.
5. Insightly

Insightly is an affordable and robust CRM solution for small businesses. It collects data from
multiple channels and effectively stores it for quick reference across different investment
projects or contacts. The system can handle all text or emails due to its unique linking
relationships. You can link a contact or an organization to a particular project or even
multiple projects. Later, you can easily find all projects associated with the needed contact.
The solution helps manage all of the customer transactions, interactions, leads, proposals,
opportunities and projects from any device at any time. Insightly’s web application allows
businesses to start using CRM with just an email address and a web browser. In addition,
Insightly for Google Apps is the number one CRM application in the Google Apps
marketplace. If you want to become a more customer-facing business, Insightly deserves a
strong consideration for the unique ability to easily keep all related information together.
 CHAPTER 2:- RESEARCH METHODOLOGY

OBJECTIVE OF STUDY

The primary objective of the study remains to identify the impact of CRM activities on
customers in banking sector. The study is an overall perspective, aim to cover following
objectives.

1. The objective of this study is to bring insight and deeper understanding into
the objectives, strategies and the expected benefits of CRM initiatives by organizations
particularly service companies like banks.

2. To find out that how the expected benefits of CRM can initiatives by
organizations be described?

3. To find out positive impact on the overall performance of the organization in

the long run.

4. To get more knowledge about CRM in banking sector

5. To understand consumer psyche about CRM in banking area.

6. To analyse that how CRM works as a link between banks and customers.
TYPE OF RESEARCH:

Research Design – It is an exploratory research.

The data for study is collected by using both, primary as well as secondary sources. The
data was collected by using various techniques and sources which are briefly described
below. Data was collected from customer and marketer of banks. Like HDFC, ICICI
bank etc.

Apart from the data collected for aforesaid companies, data will be collected from
regulatory sources, Journals, Books and Internet etc.

Primary data collection:

Primary data is collected from following sources:

1. Customer and marketer of banking service

2. Bank officials data is collected through interviews and filling of questionnaire.

Secondary data collection:

Secondary data constitutes an integral part of the study and it will be assimilated in
following areas:

1. Published data regarding financial performance of banking companies by internet

channels

2. Data regarding customer behaviour towards new channels

3. Data regarding opportunities for marketer in banking sector

Secondary data is collected through extensive literature survey and sources will include
newspapers, internet, journals, magazines books reports and other publications
 SAMPLE SIZE & METHOD OF SELECTING SAMPLE:

 Sample size: 50 respondents

 Sampling method: Convenience Sampling

Demographics Percentage

Female 12 24
Gender
Male 38
76

Total 50 100

Age 50
Under 25 yr 25
34
25 – 30 yr 17
30 – 35 yr 05 10
Above 35 yr 03
06

Total 50 100

Education Bachelor‘s Degree 24

12
58
Master‘s Degree 29
18
09
Diploma/ Certificate Course

Total 50 100
 Income

Below 1.5 Lakhs

15 30
1.5 Lakhs – 2 Lakhs 18 36
10 20
2 Lakhs – 3 Lakhs
14
Above 3 Lakhs 07

Total 50 100

SCOPE OF STUDY:

1. The objective of this study is to bring insight and deeper understanding into the
objectives, strategies and the expected benefits of CRM initiatives by organizations
particularly service companies like banks.

2. To find out that how the expected benefits of CRM can initiatives by organizations be
described?

3. To find out positive impact on the overall performance of the organization in the long
run.

4. To understand consumer psyche about CRM in banking area.

5. To analyze that how CRM works as a link between banks and customers.

LIMITATION OF THE STUDY:

The study might be limited by following factors:

1. CRM in banking is a very recent phenomenon.

2. The primary data, collected in form of questionnaires and interviews, might have inherent
limitations of business and casual response.

3. The area of study was Navi Mumbai so it cannot be generalized to other cities.
 CHAPTER 3:-LITERATURE REVIEW

 Krasnikov, Jayachandran and Kumar (2009) studied the impact of

customer relationship management (CRM) implementation on firm performance
is an issue of considerable debate. This study examines the impact of CRM
implementation on two metrics of firm performance operational (cost) efficiency
and the ability of firms to generate profits (profit efficiency) using a large sample
of U.S. commercial banks. The authors use stochastic frontier analysis to
estimate cost and profit efficiencies and employ hierarchical linear modeling to
assess the effect of CRM implementation on cost and profit efficiencies. They
find that CRM implementation is associated with a decline in cost efficiency but
an increase in profit efficiency. A firm-level factor, CRM commitment, reduces
the negative effect of CRM implementation on cost efficiency. The authors also
find that two adoption-related factors, time of adoption and time since adoption,
influence the relationship between CRM implementation and cost and profit
efficiencies. Early adopters benefit less from CRM implementation than late
adopters. However, time since adoption improves the performance of firms that
implement CRM. By demonstrating the different ways CRM implementation
influences cost and profit measures, the study provides valuable insights to CRM
researchers and managers.

 Han-Yuh Liu(2007) tells that Although Customer Relationship Management

(CRM) is arguable the most important area of concern to enterprises in an era of
electronic commerce (EC), few studies have explored it from an industry-specific
perspective to develop usable action plans. The banking industry is one of the
major beneficiaries of the ‗explosion‘ in CRM across all sectors of the economy,
but there is an absence of information and support for it in Taiwan. Embracing
CRM requires changes in many aspects of enterprises. This paper employs a
four-strategic framework; of contact channel management, enterprise-wide
management, customer data management, and information technology
management, in its review of what constitutes best practice in the leading banks
in Taiwan with respect to CRM. It is argued that if Taiwan's banking industry
adopts this framework it should be able to respond effectively to the various
internal and external challenges identified in this study as well as to develop its
own CRM initiatives.

 Wettemann(2007) discusses the advantages of implementing customer

relationship management (CRM) solutions to improve healthcare provision.
Several factors affect the adoption of CRM solutions, such as customer data
confidentiality concerns and information technology budget challenges. Many
CRM vendors provide customized solutions for the healthcare vertical market
and many implementation partners provide vertical-specific expertise in making
CRM applications work in healthcare. These things also can relate in banking
sector.

 Peelen, Edvan Montfort,Kee Beltman, Rob Klerkx, Arnoud(2009) studied

that Customer Relationship Management (CRM) has attracted the attention of
both marketing practitioners and researchers over the last decade. Significant
progress has been made in identifying and researching the components of CRM
individually and in the design of a strategic framework. The role of CRM
applications, customer information, customer interaction, customer loyalty and a
customer-centric strategy has been the subject of research lately. However no
comprehensive research has been conducted into the role of these CRM
components in achieving CRM success across the line. Also we have yet to find
research that empirically shows evidence for the relationship between each CRM
component. The goal of our research is to determine the impact of CRM
components on each other and on CRM success. We will strive to do so by using
explorative qualitative research into CRM practitioners to formulate propositions.
These propositions will in turn be tested in a quantitative analysis of data
collected from 250 Dutch companies. Through building a Structural Equations
Model (SEM), we determine the role and influence of the key components of
CRM on each other and on CRM success.
 Koh Hian Chye, Chan Kin Leong Gerry(2002 ) studied that Advances in
computer hardware and data mining software have made data mining accessible
and affordable to many businesses. Hence, it is no surprise that data mining has
gained widespread attention and increasing popularity in the commercial world in
recent years. Data mining provides the technology to analyse mass volume of
data and/or detect hidden patterns in data to convert raw data into valuable
information. This paper discusses the potential usefulness of data mining for
customer relationship management (CRM) in the banking industry. First, the
paper introduces the CRM concept and summarizes the data mining methodology
and tools. Second, it discusses the data mining literature, particularly its
applications in banks. Third, it illustrates a possible CRM application of data
mining in banking. Finally, it suggests other potential data mining banking
applications and highlights some of the limitations of data mining.

 Eid, Riyad(2007) studied that In recent years, customer relationship

management (CRM) has been the favored theme for numerous studies and
reports. Yet, there is a lack of systematic empirical evidence regarding the critical
success factors (CSFs) for the CRM implementation, the activities that are
affected by the use of the CRM programmes, and their consequent performance
outcomes. In this article, he document the role of the CRM programmes in the
banking sector and identify marketing activities that are affected by CRM usage.
Taking a sample of 159 banks that utilize a CRM system, we found a substantial
positive effect of the CRM usage on relationships effectiveness and marketing
objectives. The results of this study have major implications for marketing
people, as they suggest the notion that the CRM critical success factors should be
implemented holistically rather than piecemeal to achieve the full potential of the
CRM. The findings also stress the central role of customer services in the
successful implementation of CRM programmes within banks.
 Dibb, Sally Meadows, Maureen(2004) considers the shift towards
relationship marketing principles and the implementation of CRM in the retail
financial services sector. Many players offering personal banking and related
products have now 'bought in' to the concepts behind relationship marketing, and
are investing heavily (particularly in new information technology) to enhance
customer relationships and improve retention rates. This trend is considered from
the perspective of an organization that is one of those leading the change. An in-
depth case study reveals the progress made in recent years towards the company's
goals, focusing especially on the introduction of new systems and moves to
enhance customer data. However, the analysis also suggests that major
challenges remain if the benefits of CRM are to be fully realized.
Issues involving the structure of the organization and its approach to a range
of staff issues such as recruitment and training are of particular concerns for the
implementation of CRM principles.

 Blery, Evangelia; Michalakopoulos, Michalis(2006) studied that today,

banks are facing an aggressive competition and they have to make efforts to
survive in a competitive and uncertain market place. Banks have realized that
managing customer relationships is a very important factor for their success.
Customer relationship management (CRM) is a strategy that can help them to
build long-lasting relationships with their customers and increase their profits
through the right management system and the application of customer-focused
strategies. CRM in the banking sector is of strategic importance. In this study, a
single descriptive case study of one major Greek bank that has implemented
CRM is presented. The aim of this study is to analyse the design and
implementation of CRM in the bank, identify the benefits, the problems, as well
as the success and failure factors of the implementation and develop a better
understanding of CRM impact on banking competitiveness as well as provide a
greater understanding of what constitutes good CRM practices.
 E.W.T. Ngai,told that The Purpose of this research to review the academic
literature on customer relationship management (CRM), provide a
comprehensive bibliography and propose a method of classifying that literature.A
range of online databases were searched to provide a comprehensive listing of
journal articles on CRM. Six hundred articles were identified and reviewed for
their direct relevance to CRM. Two hundred and five articles were subsequently
selected. Each of these articles was further reviewed and classified. The review
and classification process was independently verified. All papers were allocated
to the main and sub-categories based on the major focus of each paper.Papers and
research on CRM falls into five broad categories (CRM – General, Marketing,
Sales, Service and Support, and IT and IS) and a further 34 subcategories. The
most popular areas covered by the papers lay in the sub-category of CRM
management, planning and strategy; and CRM general, concept, and study
followed by papers in software, tools and systems; data mining, knowledge
management, and e-commerce.This is the first identifiable academic research.
The bibliography provides an academic database of the literature between 1992
and 2002 covering 89 journals. The classification approach provides a means to
conceptualise the coverage of CRM and the relative popularity of CRM topic
areas.

 Eleni K. Kevork and Adam P. Vrechopoulos(2008) studied that While

electronic customer relationship management (e-CRM) has been thoroughly
investigated via multiple research perspectives and multidisciplinary approaches
in the past, until today, there has been no available work providing an integrated
framework of the relevant e-CRM literature and its corresponding classification
schemes. To that end, this paper manipulates a database of approximately 400
references and classifies e-CRM research activity via classification variables,
sector investigated, journal/year of publication, type of research employed (e.g.,
experiment vs. case study), discipline(s) involved, etc. This review paper serves
as a useful point of reference for both researchers and practitioners, as it provides
a broadened understanding of conceptual and functional e-CRM features, while
clarifying the types of research conducted within the e-CRM spectrum as a
whole. Further, this paper describes how e-CRM dimensions are labeled and
treated within the boundaries of the various disciplines/research areas.
 Andra Brige says that This paper aims to give a short overview on
bank/customer relationship experience in the Latvian banking system and the
impact of developing technology in banking. Without usage of technology
commercial banks cannot provide customers with effective services, but short
banking history increases the danger of such a reduced loyalty towards the
services supplier.Satisfaction with services provided is not the only factor
influencing customer loyalty level. Customers experiencing a short banking
history can be loyal to the service provider due to the lack of financial literacy. A
great impact on loyalty level is made by other factors, such as: image, prestige,
word of mouth, etc.

The sample used for research did not include all 23 commercial banks of Latvia.
Further research should be developed to compare customer loyalty levels in the
more technologically developed and less technologically developed banks, and
additional loyalty-influencing determinants could be included.An analysis of ITC
development in banking side-effects provides useful information not only for
transitional countries but also for developing countries.

 Eleni K. Kevork, Adam P. Vrechopoulos says that The purpose of this

paper is to review the literature on customer relationship management (CRM) to
obtain a comprehensive framework of mutually exclusive CRM research areas
and sub-areas free of all potentially disruptive factors (plethora of CRM
definitions, personal judgments, etc.).The keywords reported in 396 CRM
articles published during the period 2000-2006 are used to uncover first a great
number of detailed keyword sub-groups and, by subject summation, the CRM-
related research areas. This classification scheme is considered unbiased, in
contrast with any direct classification of articles alone among CRM research
areas fixed in advance. An up-to-date conceptual and functional CRM framework
emerges, consisting of a total of nine distinct research areas having their own
weights, importance and popularity among the research community. Newly
emerging CRM research areas are self-identified as attracting the interest of the
researchers and managers. Keywords are activated, for a first time, as an added
value characteristic reflecting genuinely the authors' beliefs about the subject
content fields of their articles, important enough to reveal a self-supported and
self-weighted unbiased and exhaustive CRM framework, useful to researchers
and marketing practitioners. The paper offers strong evidence that e-CRM is too
complex to be comprehensively classified by mere procedures and simple criteria
alone.

 Kalyani Menon and Aidan O'Conno argues that retail banks need to focus
more strongly on components of their Customer Relationship Management
(CRM) strategy that will generate customer affective commitment and lead to an
increase in customer retention, share of wallet, and advocacy. It is suggested that
affective commitment is generated during 'moments of truth' or episodes of
interpersonal interaction between customers and bankers. As shown in social
psychology, effective interpersonal interactions are a function of the
assertiveness and affiliation demonstrated during the interaction. Applying this to
retail banking, bankers should mine their databases to identify customers in terms
of their levels of profitability and longevity, and should deliver levels of
assertiveness and affiliation appropriate to each customer. Testable research
propositions are developed regarding how affective commitment might evolve
during a customer's tenure with a retail bank, when bankers should deliver
assertiveness and/or affiliation to customers of differing longevity and
profitability, and how these strategies to increase affective commitment will
impact retention, share development, and advocacy. Overall, the call is to
complement the emphasis on the use of high-tech CRM strategies that generate
huge databases with a more high-touch strategy that will indicate to bankers how
to interact with each individual customer.
 S.S. Hugar and Nancy H. Vaz (D'Costa)(2007) studied that )India is on the
threshold of a stark global competition, especially so for the banking sector with
the likelihood of the economy opened for global banks soon. The Indian public
sector banks which have come face-to-face with competition just since last
decade are found wanting both with regard to performance as well as their
customer orientation. This paper, first of all, evaluates the need for CRM
implementation in the Indian public sector banks (PSBs) through the study of
secondary as well as primary data. With the insight received from the exercise,
and the review of other implementation models found in CRM and related IT
literature, an optimum model for CRM implementation for Indian PSBs has been
suggested in the second part.

 Anumala, Srinivas; Kumar Reddy, Bollampally Kishore(2007) said that

The customer relationship management (CRM) is essential and vital function of
customer oriented marketing. Its functions include gathering and accumulating
customer-related information in order to provide effective services. e-CRM is a
combination of IT sector but also the key strategy to electronic commerce. e-
CRM is a combination of software, hardware, application and management
commitment. Aim of e-CRM system is to improve customer service, develop a
relationship and retain valuable customers. e- CRM is a concern for many
organizations especially banking sector. The purpose of this study is to gain a
better understanding of the benefits e- CRM to customers and organization in
banking industry. To justify the purpose two research questions have been
addressed and on the basis literature review, a frame of reference was developed
which helped us to answer the research questions and collect data. A qualitative
research approach was used for this study. Empirical data was collected through
in- depth interviews were conducted with two Swedish banks and a group of their
customers. In the last chapter findings and conclusions were drawn on the basis
on research questions. Our findings indicate that Swedish banks are well aware
of the benefits and applications of the e-CRM and use the system to maintain
good relationships with their customers. Our findings also indicate that with the
implementation of e-CRM and the latest technologies. We have found that both
the banks seem to have same description about the benefits of e-CRM. We found
that both banks have maintained good relationships with customers due to the
usage of e-CRM. Our finding indicates that with the implementation of e-CRM
and the latest technologies banks have ensured full security for the transactions of
their customer‘s. E-CRM facilitates the organizations to provide one to one
services and also maintain the transaction security of the customers.

 Sivaraks, P. Krairit, D. Esichaikul(2010) attempts to examine and measure

outcomes of e-CRM system implementation in the Thai Banking industry. The
research is divided into two main sections. The first section is based on a
qualitative approach to define e-CRM implementation in Thai banks. The second
section uses a quantitative approach to determine the relationships between e-
CRM implementation and outcomes from the customers' point of view. The
contribution of this research lies in the fact that most e-CRM implementations are
done in the back-office part, which cannot be directly seen or recognized by the
customers, so a new construct called e-CRM Service attribute‖ was introduced in
this research in order to enable the measurement of e-CRM outcomes from the
customers' perspectives. From the 13 constructs that have been collected from the
literature, the exploratory factor analysis was performed and the results showed
that the outcomes of e-CRM implementation from the customers' perspective can
be grouped into three factors. The first one is the information factor, the second
one is convenience and the third one is communication channel factor. In
addition, the T-test was also employed to test the differences in e-CRM outcomes
from the customers' perspectives between the customers of the banks that
implemented e-CRM and those that did not.

 Rajeev Kumra told the potential impact of E-CRM on cost savings, revenue
growth, and increased customer‘s convenience has generated considerable
interest and speculation across the industries. The immense growth of E-CRM
market has opened new vistas of business for E-CRM vendors. However, with
plethora of vendors and products available in the market it makes the choice of
the companies difficult. The present study after reviewing the literature of E-
CRM attempts to do a comparative analysis of various E-CRM vendors.
 Tim Coltmant said that the market enthusiasm generated around investment
in customer relationship management (CRM) technology is in stark contrast to
the naysaying by many academic and business commentators. This raises an
important research question concerning the extent to which banks should
continue to invest in CRM technology. Drawing on field interviews and a survey
of senior bank executives the results reveal that a superior CRM capability can
deliver improved performance. The paper then demonstrates that in order to be
most successful, CRM programs require a combination of technical, human and
business capabilities.

 Abbas Keramati , M. Farshid , E. Salehi-Sangari , J. Toufighi

Zavareh(2007) define the aim of this research is to investigate customer
relationship management (CRM) activities in e-banking among Iranian banks.
These banks are already adopting CRM and approaching it differently, and
achieving different rates of success in terms of customer satisfaction and CRM. A
comparative approach of their attitudes toward CRM, therefore, will reveal
important insights. Following similar approaches researchers have employed in
Europe, Pakistan, Malaysia, the UK and Ireland, we investigated the touch points
and services that connect banks to their customers. According to these researches
in other countries, we have developed a theoretical framework to investigate CRM
activities in public and private Iranian banks by interviewing with qualitative
approach case study. The main components of our research framework are:
communicational/collaborative CRM, operational CRM and analytical CRM. We
also consider the relationship among the components. This research will reveal
Iranian banks' positioning with regard to their view, concept and the benefits of
CRM, with a cross-case comparison between Iranian banks' CRM activities and
also some conclusions for practitioners
 Arpita Khare studied that Technology is fast altering the business services
cape. Its role in improving customer service levels is being used strategically and
increasingly by service organizations. The service attributes and quality can be
enhanced by deployment of technology. The Internet has facilitated convenience
in customer interactions and transactions with the banks. Online banking is
currently emerging as a new approach in India for providing improved
accessibility and expediency to customers. Most banks have their own websites
for improving the customer interface and offering online services. The article
studies the applicability of online banking in India and its role in fostering
relationships with customers and giving them more value. The research was
conducted on customers familiar with online banking in India, and their
perceptions about online banking were studied. The findings reveal that
customers are using the services but are sceptical about the financial transactions
and service quality dimensions.

 K. Askool, S.S.Nakata (2010) said that Web 2.0 at a high level is described
as the convergence of technologies that enable people to easily interact and
collaborate. The use of these tools as a channel for communication and sharing
information by individuals has also an effect on customer relationship
management (CRM). This paper reports on a scoping study that explored the
current situation of CRM adoption in banking industry in Saudi Arabia. It aims to
identify the factors that influence the use of social CRM (SCRM). Various
models have been proposed to study technologies acceptance and usage. This
paper proposes an enhancement of the Technology Acceptance Model (TAM),
by incorporating a range of factors identified in the business relationships
literature believed to influence SCRM adoption.
 CHAPTER 4:-DATA ANALYSIS, INTREPRETATIONS &
PRESENTATIONS
1. What kind of bank is better in services?

(A) Private =86% (b) Public = 14%

INTERPRETATION:-

In first question I found that most of the costumers are engaged with private banks. In
my questionnaire I directly asked that what kind of banks are better of services and out
of sample of fifty 86% customers went with private banks. Only 14% customers like the
services of public bank.

2. Does your bank use "CRM" activities?

(a) Yes = 61.4% (b) No = 10.5%

(c)Maybe = 28.1%
INTERPRETATION:-

In second question I found that most of the customers are not aware about the crm
activities in banks. Out of all customers 10.5% told that they have no idea about crm
activities or works in bank. 28.1% of customers told that their bank does not use crm
activities but they were not confident about their saying, so somewhere I felt that they
had not so much knowledge about crm activities. 61.4% customers spoke positively
about crm.

3. Do you think that your bank caters all your banking needs?
(a) Yes = 84.2% (b) No = 15.8%
 INTERPRETATION:-

In this research I found 84.2% of people think that their bank caters all their banking
needs and 15.8% of people think that their bank does not cater all their banking needs.

4. What is the level of use of technology in services in your bank?

(a) Low = 1.7% (b) Average = 70.2%

(c) High = 28.1%

INTERPRETATION:-

In this research when I asked to customers about technology uses in banks then I
found that most of the banks are using high level of technology in their operation.
Private banks are using high and costly technology. 28.1% of customers said that their
band are using high technology and all these customers engaged with private banks.
70.2% of customers said that their bank are using average technology and rest 1.7% of
customers think that their bank are using low technology.

5. Which database your bank use to manage information about you?

(a) Electronic = 61.4% (b) Traditional paper database = 36.8%

(c)Other = 1.8%
INTERPRETATION:-

In research I found that customers are aware about database but not about their types.
61.4% of customers think that with the technology advancement banks prefer electronic
database about their information. 36.8% customers told that banks are using traditional
paper database for security purpose and rest 1.8% customers were not aware about
database.

6. When your bank arrange meeting with you?

(a)Weekly = 12.3% (b) Monthly = 57.9%

(C) Yearly = 29.8%

INTERPRETATION:-

In this research I found that most of the private banks conduct meetings with their
customers regularly. Especially HDFC and ICICI are conducting monthly meetings with
customers. 57.9% of customers said that their banks monthly conduct the meeting.
12.3% of customers went with option weekly and rest 29.8% customers told that their
bank conduct yearly meeting. So I brought a conclusion that banks are conducting more
and more meetings to understand and retain the customers and to solve their problems.

7. Does your bank provide facility of "Any time banking"?

(a) Yes = 94.7% (b) No = 5.3%

INTERPRETATION:-

Any time banking is a common function using by banks now a days. Out of 50
customers 94.7% of customers are agree that their bank is giving any time banking
facility only 5.3% of customers told that night service of their banks are not good, so
they do not count it in any time banking. As a conclusion I found that any time banking
is a general function of banks.
8. When does your bank organize engagement activities?

(a) On customer day, week = 49.1% (b) On Bank anniversary = 21.1%

(c) On Festivals = 28.8%

INTERPRETATION:-

In the answering of this question I got same weight age for all the options. Banks
conduct engagement activities on various occasions like customer day, week , bank
anniversary , on festivals etc. Respectively I got 49.1%, 21.1% and 29.8% for above
option.

9. Does your bank solve your queries or problems within an hour?

(a) Yes = 87.7% (b) No = 12.3%
INTERPRETATION:-

In this research I found that problem solving of a customer is the main aim in crm
activities. Banks takes immediate action about a query or a problem. In my survey
87.7% customers said that their bank solve their problem within given time period.
12.3% customers were not happy with the service of bank.

10. How does your bank provide solution for your problem?

(A) Online = 22.8% (b) On phone = 35.1%

(C) On place = 42.1%

INTERPRETATION:-

As a conclusion of my questionnaire if I found that most of the customers of private

banks are satisfy with the overall services of bank.

In research I found that most of the private banks solve the problem at place and in
the case problem can‘t be solve on the place then they try to give solution on phone or
online. 22.8% of customers marked option online, 35.1% of customers marked on
phone and 42.1% marked option on place.
 FACTS AND FINDINGS

 HDFC is the number 1 bank in using CRM activities and services.

 ICICI comes at second position in using CRM activities and services.

 CRM helps in understanding the customers, their needs, wants, motives,

likes, dislikes, taste and performances.

 CRM facilitates identifying a bank‘s target customers satisfaction and

focusing on the best one which helps the bank to optimize their sales and revenue.

 CRM maximizes customer satisfaction and boosts customer loyalty

which builds long term relationship.

 CRM provides appropriate training and development to the employees who

offer scope for growth and continuous improvement to the staff.

 CRM also helps the key functionalities of the bank which includes
marketing, sales, research and development, services, lead, and opportunity
management.

SWOT ANALYSIS

SWOT of HDFC Bank

Strengths: -

1. Right strategy for the right products.

2. Superior customer service vs. competitors.

3. Great Brand Image.

4. Products have required accreditation.

 5. High degree of customer satisfaction.

6. Good place to work

7. Lower response time with efficient and effective service.

8. Dedicated workforce aiming at making a long-term career in the field.

Weakness: –

1. Some gaps in range for certain sectors.

2. Customer service staff need training.

3. Processes and systems,

4. Management cover insufficient.

5. Sectorial growth is constrained by low unemployment levels and competition

for staff

Opportunities: –

1. Profit margins will be good.

2. Could extend to overseas broadly.

3. New specialist applications.

4. Could seek better customer deals.

5. Fast-track career development opportunities on an industry-wide basis.

6. An applied research centre to create opportunities for developing techniques to

provide added-value services.

Threats: -

1. Legislation could impact.

2. Great risk involved

3. Very high competition prevailing in the industry.

4. Vulnerable to reactive attack by major competitors.

 5. Lack of infrastructure in rural areas could constrain investment.

6. High volume/low cost market is intensely competitive.

ICICI Bank

Strengths:

Strong Balance Sheet

Expanding international and rural business

Well-established subsidiaries in life and non-life insurance and AMC business

strong bench-strength

Weaknesses:-

Frequent capital dilution

Lesser share in low-cost deposits, still to fix liability mix

Large retail portfolio may breed NPAs going forward

No promoters, shareholding quite scattered

Opportunities: –

Bank –Insurance services: The bank should also provide insurance services. That
means the bank can have a tie-up with an insurance company. The bank will
advertise & promote the different policies introduced by the insurance company
& convince their customers to buy insurance policies.

Increase in percentage of Returns on increase: The bank should provide higher

returns on deposits in comparison of the present situation. This will also upto
large extent help the bank earn profits & popularity.

Recruit professionally guided customers: Bank & Insurance is a special non-aid

course where the customers specialize in the functioning & services of the bank
 & also are knowledge about various tax policies. The bank can recruit these
customers through tie-ups with colleges. Such customers will surely prove as an
asset to the bank.

Associate with social cause: The bank can also associate itself with social causes
like providing relief aid patients, funding towards natural calamities. But this
falls in the 4th quadrant so the bank should neglect it.

Threats: -

Competition: ICICI Bank is facing tight competition locally as well as internationally.

Bank like CITI Bank, HSBC, ABM, Standard Chartered, HDFC also provide
equivalent facilities like ICICI do and also ICICI do not have consistency in its
international operation.

Net Services: ICICI Bank provides all kind of services on-line. There can be easy
access to the e-mail ids of the customers through wrong people. The confidential
information of the customers can be leaked easily through the e-mail ids.

Decentralized Management: Each branch manager is given the authority of taking

decisions in their respective branches. The decisions made by different managers are
diverse and any one wrong decision can laid to heavy losses to the bank.

No Proper Facilities To Uneducated customers: ICICI Bank provides all services

through electronic computerized machines. This creates problems to the less
educated people. But this threat falls in the 4th quadrant so it’s negligible. The
company can avoid this threat.
 CHAPTER 5:- CONCLUSION & SUGGESTIONS

SUGGESTIONS

Customer Relationship Management (CRM), the most exciting strategies that emerged
from networking technology revolution of the nineties, is today fast emerging one of the
most important cooperates strategies. A well-executed Customer Relationship Strategies
can result in number of quantitative benefits, including greater ability to sell and cross
sell, improved retention besides cost of services.

Customer Relationship Management is do-able. However the following must

take into consideration before embarking upon its implementation. All aspects of
customer relationship management, including technology solution, must be
fully explored effectively deliver the competencies required to realize the business
benefits.

1. Tackling any one competence alone will lead to a dysfunctional business.

One competence does not customer relationship management make.
2. Take pragmatic steps with a clear view on delivery of all the components in the
medium term, rather than piecemeal in the short term.
3. Successful mass customization is crucial to reducing customer acquisition cost and
improving the cross selling capacity.
4. Channels are a delivery mechanism. The effectiveness of the mechanism is achieved
when it is faultless
5. 75% of all Customer Relationship Management projects have failed due to lapses in
implementation. Technology is not enough, implementation is the key and this is
where the people aspect comes into the forefront.
6. Customer Relationship Management implementation is effective when companies are
able to identify the internal and external customer and integrate them with its core
business process.
 CONCLUSION
Banking can be mysterious for consumers and how they interact with their finances can
be a complex matter. The challenges faced by banks and their customers are many but
the trick lies in de-mystifying complex financial relationships.

Technical solutions deployed by banks today are flexible, user-friendly and meant to
facilitate specific workflow and requirements in implementation processes. In order
to simplify lives, banks have begun to implement end-to-end technologies
through all departments with the intention of removing human error from processes.
Previously existing manual environments could not have been adequate for future
visions, growth plans and strategies.

In this day and age, customers enjoy complete luxury in terms of customized
technical solutions and banks use the same to cement long-term, mutually-beneficial
relationships. For a bank to succeed in adopting a CRM philosophy of doing business,
bank management must first understand CRM as a holistic concept that
involves multiple, interlocking disciplines, including market knowledge,
strategic planning, business process improvement, product design and pricing
analysis, technology implementation, human resources management, customer
retention, and sales management and training. Turning the business strategy
into actionable items is a difficult undertaking. For which Customer
Relationship Management works a magic wand
 BIBLIOGRAPHY

www.nseindia.com
www.wikiinvest.com
www.icicidirect.com
www.indiabulls.com
www.angelbroking.com
www.hdfsec.com
www.kotakstreet.com
www.motilaloswal.com
www.moneycontrol.com
www.capitalline.com
www.sharekhanltd.com
www.indiainfoline.com
www.karvy.com

LITERATURE REVIEW

 Krasnikov, Jayachandran and Kumar (2009)

 Han-Yuh Liu(2007)
 Wettemann (2007)
 Peelen Edvan Montfort, Kee Bettman, Rob Klerlx, Around (2009)
 Koh Hian Chye, Chan Kin Leong Gerry (2002)
 Eid, Eivad (2007)
 Dibb, Sally Meadows, Maureen (2004)
 Blery, Evangelia; Michadakopoulos, Michalis (2006)
 E.W.T. Ngai
 Eleni K. Kevork and Adam P. Vrechopoulos (2008)
 Andra Brige
 Eleni K. Kevork, Adam P. Vrechopoulos
 Kalayani Menon and Aidan O’Conno
 S.S. Hugar and Nancy H. Vaz (D'Costa)(2007)
 Anumala, Srinivas; Kumar Reddy, Bollampally Kishore(2007)
 Sivaraks, P. Krairit, D. Esichaikul(2010)
 Rajeev Kumra
 Tim Coltmant
 Abbas Keramati , M. Farshid , E. Salehi-Sangari , J. Toufighi Zavareh(2007)
 Arpita Khare
 K. Askool, S.S.Nakata (2010)
 ANNEXURE
1. What kind of bank is better in services?

(a) Private

(b) Public

2. Does your bank use "CRM" activities?

(a) Yes

(b) No

(c) No idea

3. Do you think that your bank caters all your banking needs?

(a) Yes

(b) No

4. What is the level of use of technology in services in your bank?

(a) Low

(b) Average

(c) High

5. Which database your bank use to manage information about you?

(a) Electronic

(b) Traditional paper database

(c)Other

6. When your bank arrange meeting with you?

(a)Weekly

(b) Monthly

(c) Yearly
7. Does your bank provide facility of "Any time banking"?

(a) Yes

(b) no

8. When does your bank organize engagement activities?

(a) On customer day, week

(b) On Bank anniversary

(c) On Festivals

9. Does your bank solve your queries or problems within given time period?

(a) Yes

(b) No

10. How does your bank provide solution for your problem?

(a) Online

(b) On phone

(c) On place