Khushbu Vora-A045-Final Project

A PROJECT REPORT ON
THE STUDY OF CUSTOMER RELATIONSHIP MANAGEMENT

AND E-CRM IN BANKING SECTOR
SUBMITTED BY
KHUSHBU MANISH VORA
T.Y.B.M.S. [SEMESTER VI]
DIV.: A
ROLL NO.: 045
ACADEMIC YEAR
2021 – 2022
UNDER THE GUIDANCE OF

MS. REETA JAIN
DATE OF SUBMISSION
24th MARCH 2022
SVKM’S NARSEE MONJEE COLLEGE OF COMMERCE AND ECONOMICS

(AUTONOMOUS)
VILE PARLE (W), MUMBAI - 400 056
AFFILIATED TO
UNIVERSITY OF MUMBAI
DECLARATION
I,Khushbu Manish Vora, of SVKM’s Narsee Monjee College of Commerce and

Economics (Autonomous) of TYBMS [Semester VI] hereby declare that I have
completed my project, titled ‘The Study of CRM and E-CRM in banking sector’ in the
Academic Year 2021 – 2022. The information submitted herein is true and original to the
best of my knowledge.
Khushbu Manish Vora
2
CERTIFICATE
I, Ms. Reeta Jain, hereby certify that Khushbu Manish Vora of SVKM’s Narsee Monjee
College of Commerce and Economics (Autonomous) of TYBMS [Semester VI] has
completed the project on ‘The Study of CRM and E-CRM in banking sector’ in the
academic year 2021 – 2022 under my guidance. The information submitted herein is true
and original to the best of my knowledge.
_________________________ _________________________
Ms. Reeta Jain Dr. Parag Ajagaonkar
Project Guide Principal
_________________________
External Examiner
3
ACKNOWLEDGEMENT
It has always been my sincere desire as a management student to get an opportunity to

express my views, skills, attitude and talent in which I am proficient. A project is one
such avenue through which a student who aspires to be a future manager does something
creative. This project has given me the chance to get in touch with the practical aspects of
management.
I am extremely grateful to SVKM’s Narsee Monjee College of Commerce And

Economics (Autonomous) for having prescribed this project work as part of the academic
requirement in the Bachelor of Management (BMS) course.
I wish to appreciate the SVKM management and the college for providing all the required
facilities. I would like to thank the Principal and the Vice Principal, for their dynamic
leadership. I would also like to thank the BMS Coordinator, Mr. Conrad Coelho, for all
his support and help.
I sincerely thank my Project Guide, Ms. Reeta Jain for guiding me throughout the project
and without whose support; the project may not have taken shape.
I wish to extend my special thanks to the following members for providing me all the
necessary information regarding the topics, related to their companies and guiding me:
 Manager of Union Bank (Kandivali east branch)
I also appreciate all the support provided by the library staff and the teaching and
supporting staff of the college for providing all the necessary academic content and
resources to enable the completion of my project.
Finally, I thank all my friends and family members who have directly or indirectly helped
me towards the completion of this project.
4
Executive summary
Customer relationship management (CRM) is an approach to manage a company's
interaction with current and potential customers. It uses data analysis about customers'
history with a company to improve business relationships with customers, specifically
focusing on customer retention and ultimately driving sales growth.
In the present Indian Banking Scenario, two prominent phenomena that people pay
attention involve emerging practices and policies. These are ‘Technology’ and
‘Relationship Marketing’. The power of technology that has revolutionized banking
services and practices. ‘Relationship Marketing’ is seen as the only differentiating factor
given the almost commoditization of banking services. On observation of the recent
restructuring, rebranding and reengineering efforts of many banks, we find that the key
motive towards these is to utilize customer centricity as a strategy. Further, catalyzing the
importance of Technology and Relationship marketing is the Core Banking Solution
(CBS). The intense competition which bank has to face, both as a consequence of growth
of nonbanking financial institutions as well as securitization has created the fear of high
risk and has increased the attention towards customer relationship management .
Customer Relationship Management of Indian banking is integration of technology and
relationship marketing. It has a potential to bring about dynamic changes in marketing
practices of banks in near future, with the objective of business growth through managing
customers as assets, Systematically collecting, analyzing and disseminating customer
information and use of this customer information for acquiring, retaining and better
servicing customer.
5
Table of contents:
Chapter Topic Page

number
1 Introduction
1.1 Introduction 7
1.2 Meaning 7
1.3 Benefits of CRM 8
2 Review of Literature
2.1 CRM in Indian banks 11
2.2 CRM in banking : Global scenario 12
2.3 Objectives of CRM in banks 13
2.4 Need of CRM in banks 13
2.5 Challenges solved by CRM 15
2.6 Implementation of CRM 16
2.7 Challenges faced by banks after implementation 20
2.8 CRM formation process 21
2.9 Key principles 21
2.10 Customer retention 25
2.11 E-CRM 28
2.11.1 Features of E-CRM 29
2.11.2 E-CRM techniques 29
2.11.3 Benefits of E-CRM 31
2.11.4 Impact on banks 32
2.12 CRM in public sector bank 34
2.13 CRM in private sector bank ( Union Bank Case study) 35
3 Research Methodology
3.1 Objectives of the study 41
3.2 Scope of the study 41
3.3 Limitations of the study 41
3.4 Significance of the study 41
3.5 Research methodology 42
4 Data interpretation and analysis 46

5 Findings, suggestion and conclusion 59
Bibliograply 64
Annexure 67
6
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
Customer relationship management (CRM) is an approach to manage a company's

interaction with current and potential customers. It uses data analysis about
customers' history with a company to improve business relationships with
customers, specifically focusing on customer retention and ultimately driving sales
growth.In other words Customer relationship management helps in profiling
prospects, understanding their needs, and in building relationships with them by
providing the most suitable products and enhanced customer service.It integrates
back and front office systems to create a database of customer contacts, purchases,
and technical support among other things.
Once thought as a type of software,CRM now has evolved into a customer centric
philosophy that must permeate an entire organization.There are three key elements
to a successful CRM initiative: people, process, and technology.CRM helps create
time efficiency and savings on both sides of business spectrum.Through correct
implementation and use of CRM solutions, companies gain a better understanding
of their strongest and weakest areas and how can they improve upon
these.Therefore,customers gain better products and services from their choices of
business.In order to achieve better insights on CRM, it is essential to consider all of
its components.
1.2 MEANING
Customer relationship management (CRM) is a business strategy that spans your

entire organization from front office to back-office. It is a commitment you make to
put customers at the heart of your enterprise. The right CRM strategy and solutions
can help you securely, reliably and consistently delight your customers every time
they interact with your business by empowering them with any time, anywhere, and
any channel access to accurate information and more personalized service. Reach
7
more customers more effectively, increase customer retention and boost customer
loyalty by leveraging opportunities to up-sell and cross-sell.Today’s customers face
a growing range of choices in the products and services they can buy. They base
their choices on their perception of quality, value, and service. Each Consumer has a
specific behavior. But buying habits are sometimes difficult to understand.
Therefore companies always want to gain some insight about consumer behavior
and habits in order to better control this behavior. Having an impact on consumer
behavior means being able to change consumer’s perception of the product or
service, to establish a relation between the company and its clients.
1.3 BENEFITS OF CRM
1. Improve customer services: In general, customers would have some questions,

concerns or requests. CRM services provide the ability to a company for
producing, allocating and managing requests or something made by customers.
For example, call center software, which helps to connect a customer to the
manager or person who can best assist them with their existing problem, is one
of the CRM abilities that can be implemented to increase efficiency.
2. Increased personalized service or one-to-one service: Personalizing customer

service or one-to-one service provides companies to improve understanding and
gaining knowledge of the customers and also to have better knowledge about
their customers' preferences, requirements and demands.
3. Responsive to customer's needs: Customers' situations and needs can be

understood by the firms focusing on customer needs and requirements.
4. Customer segmentation: In CRM, segmentation is used to categorize customers,

according to some similarity, such as industry, job or some other characteristics,
into similar groups. Although these characteristics, can be one or more
8
attributes. It can be defined as a subdividing the customers based on already
known good discriminator.
5. Improve customization of marketing: Meaning of customization of marketing is

that, the firm or organization adapt and change its services or products based on
presenting a different and unique product or services for each customer. With
the purpose of ensuring that customer needs and requirements are met
Customization is used by the organization. Companies can put investment in
information from customers and then customize their products or services to
maintain customer interests.
6. Multichannel integration: Multichannel integration shows the point of co

creation of customer value in CRM. On the other hand, a company's skill to
perform multichannel integration successfully, is heavily dependent on the
organization's ability getting together customer information from all channels
and incorporate it with other related information.
7. Time saving: CRM will let companies to interact with customers more
frequently, by personalized message and communication way which can be
produced rapidly and matched on a timely basis, and finally they can better
understand their customers and therefore look forward to their needs.
8. Improve customer knowledge: Firms can make and improve products and
services through the information from tracking customer behavior to customer
tastes and needs. CRM could contribute to a competitive advantage in
improving firm's ability of customer information collecting to customize
products and services according to customer needs.
9
CHAPTER 2: REVIEW OF LITERATURE
2.1 CRM IN INDIAN BANKS
(Arun Kumar agaria, 2012) Indian banks had presumed that their operations were
customer-centric, simply because they had customers. These banks ruled the roost,
protected by regulations that did not allow free entry into the sector. And to their
credit, when the banking sector was opened up, they survived by adapting quickly
for long to the new rules of the game.Many managed to post profits. For them an
unexpected bonanza came from government bonds in which most were hugely
invested.Ironically, the Reserve Bank of India's moved to cut aggressively the
interest rates after 1999, pushed up the prices of bonds. So banks had a windfall
doing almost nothing. The bond profits, like manna from heaven, improved the
balance-sheets of all banks irrespective of their core performance.
(Chaudhari, 2020)The era of lazy banking ended soon. The mesh of rules that
propped up the Indian banking industry to dismantle rapidly.According to a RBI
road-map, India begin to have a competitive banking market after 2009. As one of
the most attractive emerging market destinations, India saw entry of foreign banks
with more freedom to come in, grow and acquire.Therefore, it was imperative that
Indian banks to wake up to the reality and re-focus on their core asset — the
customer. A greater focus on Customer Relationship Management (CRM) was the
only way the banking industry can protect its market share and boost growth.CRM
also realized Indian bankers that the purpose of their business is to "create and keep
a customer" and to "view the entire business process as consisting of a tightly
integrated effort to discover, create, and satisfy customer needs."What is CRM, and
what will it deliver to the banks? CRM is, probably, one of the least clearly defined
business acronyms, as there is no single definition for it.It is probably easier to say
what CRM is not.CRM is variously misunderstood as a fancy sales strategy, an
expensive software product, or even a new method of data collection. It is none of
these.
10
(Kumar, 2018)CRM is a simple philosophy that places the customer at the heart of a
business organization’s processes, activities and culture to improve his satisfaction
of service and, in turn, maximize the profits for the organization.A successful CRM
strategy aims at understanding the needs of the customer and integrating them with
the organization’s strategy, people, and technology and business process Therefore,
one of the best ways of launching a CRM initiative is to start with what the
organization is doing now and working out what should be done to improve its
interface with its customers. Then and only then, should it link to an IT
solution.While this may sound quite straightforward, for large organizations it can
be a mammoth task unless a gradual step-by-step process is adopted.It does not
happen simply by buying the software and installing it. For CRM to be truly
effective, it requires a well-thought-out initiative involving strategy, people,
technology, and processes. Above all, it requires the realization that the CRM
philosophy of doing business should be adopted incrementally with an iterative
approach to learn at every stage of development. With the help of these strategies
Indian banks take on the competition from foreign entities.
2.2 CRM IN BANKING: GLOBAL SCENARIO
(Jelena Cvijovic, 2017) Worldwide banks have explored and realized 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 utilized CRM
to develop models of assessment of customer profitability and life time value.
These were then included in determining customer decisions like – Customized
Marketing campaign, establishing service levels, segmentation, targeting,
product design and pricing. Customer‟s vulnerability to attrition also is analyzed
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
11
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.
2.3 OBJECTIVES OF CRM IN BANKS

(Chaudhari, Role of CRM in Indian Banking Sector, 2020) The aim of the study is to
evaluate critically the status of Customer relationship management in Indian banking
sector.
In order to achieve the above aim, the study has four main objectives
1. To evaluate critically the literature relating to bank selection in general and

specifically relating to customers and their bank accounts
2. To produce and disseminate a questionnaire to customer to establish what factors

influence their choice of bank and to what extent they engage in ‘Customer
relationship Management;
3. To critically analyze the results of the questionnaire to establish a better

understanding of what factors affect the Customer relationship management in
Banking sector;
4. To evaluate the results and provide detailed conclusions based on the primary
research findings.
Use the conclusions to make recommendations for businesses and further academic
research
12
2.4 NEED OF CRM IN BANKS
(Joseph Vella, 2019)CRM primarily caters to all interactions with the customers or
potential customers, across multiple touch points including the Internet, bank
branch, call centre, field organization and other distribution channels.
CRM can help banks in following ways:
1. 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 analyzing 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 multichannel marketing campaigns
to reach these customers and maximize the lifetime value of those relationships.
2. 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.
3. Marketing Encyclopedia: Central repository for products, pricing and competitive

information, as well as internal training material, sales presentations, proposal
templates and marketing collateral.
4. 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.
13
5. 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.
6. 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.
7. Activity Management: It helps managers to assign and track the activities of

various members. Thus improved transparency leads to improved efficiency
8. Contact Centre: It enables customer service agent to provide uniform service

across multiple channels such as phone, Internet.
2.5 CHALLENGES SOLVED BY CRM IN BANKING SECTOR
(T.VIJAYAKUMAR, 2013) As per this paper, following are the few

challenges solved by CRM in banking sector:
Evolving Customer Profiles
With a CRM, new lead records can be automated, sorted and assigned for further
action by employees and resources. Strategies and processes for managing web
landing pages and site visitors can be easily implemented. The CRM can also score,
track, update customer profiles and generate new lead records for further action by
bank staff or other CRM processes and modules.
Connecting the Dots
CRM-based customer service modules can provide traditional customer service

capabilities that are further enhanced by providing a complete picture of all
14
customer interactions. The creation and management of individualized or service-all
marketing initiatives and pricing strategies are also streamlined and organized. Most
CRM systems also include social media listening tools that allow you to track and
respond to social media sentiment in real-time.
Responding Appropriately
Dealing and troubleshooting customer problems is a high priority for any service
industry. A CRM can help by providing timely and discretionary decision support
information for management, front line staff and other resources. By providing
enhanced levels of customer service, new opportunities for conversions can be
realized. A CRM is a great enterprise tool for addressing these 3 customer-centered
challenges that financial institutions face. When implementing a CRM system at
financial services firms, there are also two common challenges that need to be
addressed: security requirements and integration with other banking systems.
Security Considerations for Banks
Information security and access control is critical for the banking and financial
sectors, who, in some cases, also have enhanced sensitivity to geographic location
of information in some cases. Some CRM systems are cloud-based only, which may
create issues with data storage locations. Other options such as Microsoft Dynamics
CRM, offers the choice of on premise, hosted (also known as “private cloud”), or
hybrid solutions. Modern CRM systems provide very granular role-based security
and access control. Many CRM’s, Microsoft for example, can be aligned to the
Active Directory providing convenient and user friendly single sign-on. CRM
security role(s) and field level security control access and abilities can also be set in
the CRM system.
Integration with Other Banking Systems
Integrating a CRM with other banking systems is a complex task. Luckily, this is
fully supported by a variety of robust and mature tools that provide standardized
15
tools and methodologies. Scribe Software is very CRM aware and provides the
platform and tools to build custom, embedded integration experiences for SaaS,
cloud, premise or hybrid scenarios. Scribe provides native support for a variety of
CRM products such as Salesforce, Microsoft Dynamics
CRM, ExactTarget, Marketo, SilverPop, Oracle and SAP. Today, CRM’s are
quickly becoming the hub of customer data focusing on the dynamic customer
profile, enhanced marketing, integration capabilities, and measurement. Banks and
financial service companies can increase customer engagement and conversions
from a well-aligned CRM system.
2.6 IMPLEMENTATION OF CRM
(Suhail Ahmad Bhat, 2016)Successful implementation determines successful CRM

strategy. An unprepared organization runs the risk of relying on the CRM
technology to compensate for poor planning. When this happens, the CRM
technology and features become the CRM strategy. By definition, implementation
means setting a plan in motion. Here is a glossary of principal terms as they relate to
CRM implementation:
• Adoption: Create a user-adoption plan for your CRM implementation. Start by

targeting the 80 percent of users. Then, have a plan for the 20 percent that
ultimately pushes back on change. Listen to users, and gather feedback on their
ideas. Make sure your plan incorporates C-level leadership and board-level
commitment. Measure and reinforce standards early and often. CRM strategy
initiatives that fail to get support from early adopters and top performers,
especially in sales, risk becoming another CRM failure statistic.
• Benchmark: Establish criteria for successful implementation, create formulas,

and measure frequently. Remember, success factors include more than
financial benchmarks: you should also measure the intangible benefits of
technological, user-based business processes and cultural standards, in addition
to revenue or customer-retention results.
16
• Budget: Work with your CRM provider, partner consultants, and your internal
implementation team to set a realistic budget. Discuss expectations for the
individual components of system implementation, and consider a phased
approach to additional features. Anticipate the future costs of training and
onboarding beyond the original estimate.
• Capture: Gather data before implementing new CRM processes and

technology. If this data is not available internally, capture data from external
sources. The data capture does not need to be excessive and should relate to
your overall strategy. Which type of information is most useful for your
customer relationship strategy? Defining this data before implementation is
mandatory.
• Customize: Customization ensures that you meet unique customer needs after
implementation.
(Nikhil Malhotra, 2015)Customized products and services meet unique customer needs as
well as the value proposition behind them. Communication should also meet those needs.
Customize new CRM processes and technology to support the level of customer
communication and service. When engaging in this customization, be sure to consider
customer needs.
Differentiation: Decide which customers receive which product or service based on their
unique needs and your value proposition. Your strategy for identifying and serving your
target customers impacts your CRM implementation and the level of customer service
you provide. Also, differentiate between the various kinds of data that drive these
decisions. How will you organize the CRM data from different customer segments and
optimize the business processes they impact?
Evolution: The CRM technology you implement doesn’t need to be in final form after
the initial execution. First, decide which features are necessary and the level of service
and training you require from your vendor partners. Which departments will leverage the
technology first? After this test phase, ask: does it make sense to add additional teams
and customizations? Over time, phase in additional technology and services based on the
evolution of your customer relationship strategy.
17
Framework: Your culture and CRM strategy determine the structure of your CRM
implementation. Adjust the implementation plans to accommodate your customer
relationship framework.
Identification: Collect data and design a clear understanding of which customers you
target.
Develop a simple database to gather information and profile customers before

implementing CRM technology with a superior database. Determine how your CRM
implementation impacts new customers versus existing customers. In addition to
identifying the customers you serve, identify their unique needs, and consider creative
ways in which CRM processes and technology empower your ability to meet these
requirements.
Integration: Understand which existing applications and systems need to integrate with
new
CRM processes and technology. Modern CRM software needs to receive and push data
from application to application. Do you have the necessary internal resources to integrate
technology, or do you need to hire outside consultants or rely on the CRM vendor for this
function? Remember to consider a phased approach that fits the evolution of your overall
CRM strategy.
Launch: Get excited about your CRM implementation. Use internal marketing and
communication techniques to frame the message and develop a positive approach to
change. Announce a start date for new processes and technology, and celebrate that day.
Set the tone for the CRM implementation by demonstrating an internal culture that
positively impacts the external customer relationships
Map: Which business processes need to be fixed or changed? Which ones should remain
intact and be enforced by new CRM processes and technology? Consider designing
internal documentation, such as a flowchart that demonstrates how to manage new and
existing processes. Mapping out your business process before implementing new
technology reinforces the importance of customer relationships during the distraction of
the implementation stage. Design and follow an implementation timeline that accurately
portrays your capabilities and aligns with existing business processes.
18
Outcomes: What do you need to measure to achieve your overall customer relationship
strategy? Which business metrics lead to the success of your organization? How will you
progress and adjust based on the outcomes of your CRM implementations? Anticipate
and track CRM strategy goals, and ensure that the proper features, reports, and
dashboards are in place to do.
Prepare: Readiness extends beyond the policy and planning phases discussed earlier in
this article. Do you have the appropriate hardware in place to leverage new technology?
Is your physical workspace set up to succeed after implementation is underway? Where
have you stored the current customer data, and how will you import it? Do you need to
hire external resources with data expertise to help with data management?
Prioritize: In addition to keeping the customer at the center of your decision making and
business processes, prioritize the customer at all stages of CRM implementation. Interact
with customers proactively, and develop alternate methods of communication to avoid
negatively impacting the customer relationship before, during, and after implementation.
Are existing customers adversely affected by new CRM strategy or at any stage of
planning and implementation? Is this a sacrifice that makes sense for your overall goals?
Project: Implementation requires a focused project team. Hire or assign a qualified
project manager to oversee the CRM implementation, and if possible, involve them in all
phases of strategy and planning. Ongoing cooperation with different teams and
departments is critical to successful implementation. The project manager interacts with
leadership, sponsors from individual departments, and IT teams (or external vendors) to
identify risks, gain acceptance, and execute tasks. Documentation, such as a flowchart
that demonstrates how to manage new and existing processes. Mapping out your business
process before implementing new technology reinforces the importance of customer
relationships during the distraction of the implementation stage. Design and follow an
implementation timeline that accurately portrays your capabilities and aligns with
existing business processes.
• Vision: Remember that CRM is rooted in the relationship between the buyer
and the seller. CRM is a philosophy first and foremost. Technology supports
the customer-centered vision - it is not the result
19
2.7 CHALLENGES FACED BY BANKS IN SUCCESSFUL IMPLEMENTATION
OF CRM
(Pokharel, 2016)
1. The difficulty of obtaining a complete view of customers.
2. The need to move away from disjointed, standalone, and inconsistent

channels to provide a cohesive, multichannel offering.
National Conference on Marketing and Sustainable Development October 13-
14, 2017
3. The burden of disconnected legacy systems and disparate databases that

store client financial data.
4. The cost and complexity of meeting stringent government regulatory and
client security and privacy requirements.
5. The pressure on margins and growth prospects from increased competition.
6. The costs associated with retaining customers and developing customer

loyalty. Although CRM can help banking institutions efficiently manage
their customers, many banks fail to meld the concept into the prevailing
work culture. But the high incidence of CRM failure has very little to do
with the CRM concept itself. Usually it's a case of the banks failing to pay
attention to customer data they already have. A lot of banks underestimate
the magnitude of CRM. They tend to treat it just like any other application
technology, without realizing that CRM, if done properly, is a strategic
initiative that touches all areas of an organization
20
2.8 CUSTOMER RELATIONSHIP MANAGEMENT FORMATION PROCESS
(D., 2020)
1. CORRELATE A series of transaction that make up a dialogue between customer, end

user and an organization.this is the data that is collected from from all contact points and
communication.
2. COMBINE The mapping and management of interactions points between a customer,

channel, end user and an organization.
3. COGNIZE The insight gained through capture and analysis of detailed information is
to create continuous learning from the data warehouse and knowledge base that is
created, interrogated and analyzed.
4. CONNECT The application of insight to create relevant interaction or communication

with the consumers, customers, channel suppliers, and partners that build value
relationships.
2.9 KEY PRINCIPLES OF CRM IN BANKS
The main principles of CRM can be grouped into six guiding factors:
(Dr. Brijesh Kumar Yadav, 2018)Customer Focus The first and foremost important guiding
principle in CRM is customer focus.
The first question that arises in this regard is to define the 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
21
disgruntled customer always counsels his friends, and fellow members not to go to banks
where his experience proved to be wrong bitter 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 duly enhancing customers’ satisfaction.
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 counseling 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 right in choosing his requirements. The
following points may be found helpful in this regard: ¾ 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. ¾ Ways and means should be identified and practiced in getting and
staying closer to customers. ¾ Proper regard should be extended to the customers. All
relevant information about them should be collected from them with a humble and
discrete approach. Proper value should be given to their feedback. ¾ 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.
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 for 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: ¾ 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. ¾ All processes should meet the legal and statutory requirements to perform
the activity or deliver the product or service. ¾ Time involved in processing should be
less with least waiting time for the customers. If required delegation of authority and
22
assignment of accountability at various executive levels should be addressed, they should
be revised and fine tuned to meet the requirements. ¾ All the processes should be
properly integrated to meet the goal of congruence and should not function at cross-
purpose and ¾ there should be in built control mechanism for ease of measuring,
reviewing and taking corrective action.
(Viktorovych, 2021)
System Approach Customer’s requirement is one level of commitment. That level

implies a system that is reactive and provides customers what they want but the target
should be to achieve more and to exceed the customer’s expectation to accommodate
their future requirements 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 ongoing 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 on the product to be manufactured, the services to be offered, the
quality to be embedded , the price to be fixed , markets and customers to targeted upon
and similar other issues.
(Samppa Suoniemi, 2022)
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’s 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
23
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; financial, social and structural relationships 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 and the like. A social relationship program revolves round a
social bonding between company and its customers and establishes brand loyalty.
Bankers, nowadays, make house calls, offer different services outside their formal
activities, share the feelings and emotions of clients and even send clients bouquets 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 cited as an 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 training and total quality management.
Continuing Improvement Another objective of CRM is the efforts towards continuous

improvement in the customer relationship through the provision of value added services
at a favorable 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 in the market place with a constant stream of innovative products and
services. They will be the winners.The major areas to be targeted are: ¾ improving the
effectiveness of marketing. ¾ Implementing multichannel trigger driven marketing ¾
Implementing a strategic analysis capability to support strategic decision making and ¾
the ability to deliver the increasing levels service demanded by customers. Also building
24
a transparent communication system and employee participation to better define the
needs of the customers and deliver the right services and products are equally important.
2.10 CUSTOMER RETENTION
(Chaudhari, Role of CRM in Indian Banking Sector, 2020) The business scenario is in constant
evolution with the empowered customer accessing unlimited information through the
media and internet. The digital revolution has marked a shift in power from the hands of
business heads to the customers are highly aware of the competitive scenario and hence
are entitled to freedom of choice amongst their products.
It is essential to maintain a healthy on-going relationship with client. For that, the
objective should shift to developing a customer centric framework, which inculcates
insights that cater to customer’s needs and requirements. Therefore, the business leaders
have to start thinking more on the thought-processes of marketers to boost up the revenue
scale. One needs to engage buyers into latest trends in the market to offer maximum
benefit and here is where CRM is of great value.
The basic objective of a CRM solution is to improve customer retention. Its secondary
objective is to increase customer acquisition at a low cost, without jeopardizing existing
customer relations and ensuring the smooth transition of a new customer to a loyal,
longterm client.
(Chopra, 2016) Here are a few ways in which CRM aid in customer retention:
1. Builds up a comprehensive viewing of “customer journey” map.
Gathering data on customer is essential, as it helps keep tabs on the impacts of the
marketing strategy, in regards to consumer interaction. Also, needs and demands of the
target audience can be tracked. The raw data is not enough to communicate the
experiences of customers.Mapping the
customer journey helps in jotting down focal points of customer’s experience: from initial
contact(awareness), through the process of engagement (urging the customer to purchase)
25
and into a long-term relationship (post purchase involvement).Customer relationship
management tools helps in providing an insight into the touch points of consumer
interaction and post-purchase engagement, in collation with data of the journey map. This
will help you asses the strengths and weaknesses of your marketing strategy and also
provide guidelines to re-engage the customer, if the rate of engagement has been less.
2. Targets customers through tailor-made offers.
Every customer has a purchase/ consumption pattern, through which one can extract the
point of interaction suitable to engage for further loyalty. CRM software gathers
customer’s media consumption and purchase history to plot what kind of offers will be
appealing to each individual and in turn add relevancy, which will keep the brand
recognition value high.Identifying ways to convert customer interest into an actual
purchase is the main onus here, which can be achieved through providing discounts and
offers to add value to the experience. This helps in building a proactive customer
relationship, where repeat purchase would be possible due to smart target centric
offerings to enhance the value.
3. Helps create Loyalty programs.
Every brand has its share of loyal customers, whose experience urges them to revert back
on frequent basis. Information gathered in CRM software can bring out the varied levels
of engagement by the customers, revealing which of the accounts are responsible for the
most revenue. This information helps you create loyalty programs for those valued
customers. This ensures a proactive relationship with these profitable customers, creating
a memorable experience for them and also referrals from these loyal customers, to extend
target reach. You can create a list of your most profitable customer, through CRM
software. After which, you can start to follow up by letting them know about the rewards
and incentives, so that they continue to stay as your most profitable customers.
4. Personalizing the interactions.
26
A relationship is something that is established between people. CRM software helps you
see your customer beyond the rotes of revenue.The effects of personalization is of great
impact to not only purchase but post-purchase relationship, where it is equally essential
to reach out to the customers on a frequent basis, to increase the value of your service. As
recent research in the UK found that personalization, user preferences and other relevant
information found in CRM software delivers a high impact ROI, with a greater extension
in outreach and new target-base covered. This often happens as the optimized experience
urges satisfied customers to refer the services on various platform, hence increasing the
point of interest in untapped sections.When finalizing the information fields for
registering a contact, use personal details such as birthday, hometown so onto personalize
your outreach. Armed with this information, you can adjust your follow-up strategies
accordingly.
5. Helps assess performances
Feedbacks are essential for conceiving and executing a successful marketing campaign.
One needs to be aware of the success rate and the shortcomings of his strategy to proceed
in making it more effective. There’s no better place to obtain it from than the customers
themselves. CRM can be utilized here through dashboards to review service execution
and pinpoint areas for improvement. Also, metrics to identify repeated support problems
examine the percentage of issues are being resolved in a single call. Use this insight to
develop incentive schemes that reward staff for outstanding performance in key metrics.
27
2.11 E-CRM
(Pushpender Kumar, Electronic customer relationship management (E-CRM), customer

experience and customer satisfaction: evidence from the banking industry, 2021) The eCRM or
electronic customer relationship management encompasses all the CRM functions
with the use of the net environment i.e., intranet, extranet and internet. Electronic CRM
concerns all forms of managing relationships with customers making use of information
technology (IT). ECRM is enterprises using IT to integrate internal organization
resources and external "marketing" strategies to understand and fulfill their customer’s
needs. Comparing with traditional CRM, the integrated information for eCRM
intraorganizational collaboration can be more efficient to communicate with customers.
As the internet is becoming more and more important in business life, many companies
consider it as an opportunity to reduce customer-service costs, tighten customer
relationships and most important, further personalize marketing messages and enable
mass customization ECRM is being adopted by companies because it increases customer
loyalty and customer retention by improving customer satisfaction, one of the objectives
of eCRM. E-loyalty results in long-term profits for online retailers because they incur
less costs of recruiting new customers, plus they have an increase in customer retention.
Together with the creation of sales force automation (SFA), where electronic methods
were used to gather data and analyze customer information, the trend of the upcoming
Internet can be seen as the foundation of what we know as eCRM today.
As we implement eCRM process, there are three steps life cycle:
1. Data collection: About customers preference information for actively (answer

knowledge) and passively (surfing record) ways via website, email, questionnaire.
2. Data aggregation: Filter and analysis for firm’s specific needs to fulfill their
customers.
3. Customer interaction: According to customer’s need, company provide the proper

feedback to them
28
2.11.1 FEATURES OF E-CRM
(Pushpender Kumar, 2021)
• Driven by a data warehouse.
• Focused on consistent metrics to assess customer actions across channels
• Built to accommodate the new market dynamics that place the customer in
control.
• Structured to identify a customer's profitability or profit potential, and to

determine effective investment allocation decisions accordingly, so that most
profitable customers could be identified and retained and the resources could
be invested in relationships, which are most profitable.
Technological and Business issues involved
The technology and business issues involved in e-CRM are,
• Switching Costs: involved in shifting to the new system.
• Scalability and Reliability: Whether the system would be able to adapt to new
levels of usage and functionality.
• Security: The information risks arising because of the threats to data integrity,
violations of confidentiality and data integrity should be taken care of.
2.11.2 E-CRM TECHNIQUES USED BY BANKS
(Siddharth Shastri, 2020)Banks modern technology can develop innovative customer

solutions to attain growth and profitability within the framework of sound risk-
management practices. Techno-savvy banks are tapping into online services to initiate a
new era in relationship management to create one to one relationships as well as one too
29
many relationships to enhance their competitive advantage. The following techniques are
used by Indian banks:-
Table-1: Techniques used by Indian banks Communication Technology (SWIFT)
• Automated Teller Machines (ATMs)
• INFINET and VAST Network
• Phone Banking / Tele Banking
• Wireless Banking Services
• Internet Banking – e-Banking
• Electronic cleaning services
• Mobile banking
• Point of Sale Terminal
• Total Branch Mechanization (TBM)
• Data Warehousing and Data Mining
• Electronic Funds Transfer (EFT)
With the introduction, implementation and adoption of above techniques/instruments by

the bank have totally revolutionized the functions, operations, administration, decision
making and management information system. All these techniques/instruments helped the
banks in retaining the existing customers, attracting new customers, and provide lot of
services with the help of these instruments to give them satisfaction.
30
2.11.3 BENEFITS OF E-CRM IN BANKS
(Jelena Cvijovic, 2017) E-CRM in banks has enabled banks to get a global presence. They
become customer focused organizations by using the various electronic channels. These
channels help the banks in understanding their needs and wants and providing them
various services. All this make the customers loyal and happy. In this way with the
utilization of various electronic, automated channels banks are making long term
relationship with their customers and get various benefits.
Thus e-CRM benefited banks through:
1. Increased sales revenues.
2. Increased convenience.
3. Improved customer service rating.
4. Decreased administrative costs.
5. Ability to introduce new schemes at a faster rate.
Benefits of E-CRM to customers:
1. Customer interaction and satisfaction.
2. Convenient.
3. Speed of processing the transactions.
4. Service quality.
5. Trust
31
2.11.4 IMPACT OF E-CRM ON BANKS:
(Abu-Shanab, 2015)The adaptation and good maintenance of CRM systems can build a
long lasting relationship with customers and generate more revenue and profit. Banks
should recognize the strategic role of CRM and the diversity of needs of different
customers. Moreover, professional employees should be hired by banks to deal with the
complexity of systems and make them work in an efficient way. The focus lies in
highlighting the basic role of IT in enhancing the interaction experience of customers,
where the content of e-CRM is similar to CRM. The banking industry utilizes IT to
facilitate the use of information to create customers’ profiles, grasp the money flow,
reduce expenditures and maintain mutually benefiting partnerships
E-CRM is a useful tool to make organizations more profitable by keeping their existing
customers, reducing their costs, and increasing the value of interaction. This will lead to
a number of important trends including:
1. Concentration on the relationship marketing instead of on transactional marketing
2. Focusing on customers as an important business asset and not simply as commercial

audience
3. Moving from functions to processes in structuring organizations
4. Paying attention to the benefits of using information proactively rather than reactively
5. Maximizing the value of information through greater utilization of technology
6. Recognizing the need for the trade-off between extracting and delivering customer
value.
The advantages of using e-CRM in the banking sector to be the following:
1. Customer interaction and satisfaction is found to be the key advantage

32
2. Transactions have been processed with high speed and accuracy
3. Comfort and convenience are the main benefits provided to customers
4. Availability of the latest information and the reliable employees provided by banks
provide extra benefits
5. Trust in the overall services provided by organizations to customers is an important

advantage.
Some of the e-CRM techniques used to help customers to interact and communicate
with their banks are:
1. Internet banking which is used by customers to get information about bank’s services
and products through the bank’s websites.
2. Telebanking, which helps customers in getting knowledge about their bank balance
and conduct transactions through their telephones. Also, they can get messages for their
transactions, withdrawal and deposit over the phone.
3. E-mail service which is considered as one of the effective and cheapest means of
communication. It is used by banks to inform customers regarding the various schemes
and policies. It is an effective tool to send urgent notice immediately to customers and
receive a quick reply from them.
4. Finally, mobile banking which helps banks to combine telephone and the internet to cut
costs and provide convenience to customers when they conduct their transactions through
mobile phones
Customers can distinguish between banks that have implemented e-CRM and those
that have not by using the following criteria;
1. They can contact their banks at any time and from any place
33
2. They acquire personalized information and services
3. Their banks present to them a complete customer information
4. Their main banks supply them with up-to-date information
2.12 CRM STRATEGY IN PUBLIC SECTOR BANK
(Pandey & HKSingh., 2017)Public sector CRM strategy must be aligned to the
organization’s purpose in order to realize a sustained achievement of CRM objectives
and successful customer relationships. While CRM strategies differ among
implementers, the most successful strategies have several criteria in common.
Alignment between the organization’s mission and the CRM strategy; a good strategy is a
direct reflection of the mission and supports the mission in direct, clear and easy to
understand terms.
Strategies must be customer focused; they speak to the positioning and evolvement of the
customer relationship.
CRM strategies require executive sponsorship and complete buy in; the rank and file
take their queues from the executive team so the executives must visibly, vocally and
actively sponsor the CRM strategy for it to be successful.
Strategies are an iterative process; as the the organization evolves so to will the
CRM strategy.
They mainly focus on the following:
 To win back or save customers.

 To attract new and potential customers
 To create loyalty among existing customers
 To up sell or offer cross services.
34
2.13 CRM STRATEGY IN PRIVATE SECTOR
CASE STUDY
Union Bank of India (UBI; BSE: 532477) is one of the largest government-owned banks
of India; the government owns over 90% of its share capital. It is listed on the Forbes
2000, and has assets of US$13.45 billion. UBI has around 4,300 branches. Four of these
are overseas in Hong Kong, Dubai, Antwerp, and Sydney. UBI also has representative
offices at Shanghai, Beijing and Abu Dhabi. Lastly, UBI operates in the United Kingdom
through its wholly owned subsidiary, Union Bank of India (UK).
 Union Bank of India (Union Bank) was registered on 11 November 1919 as a

limited company in Mumbai and was inaugurated by Mahatma Gandhi. At the
time of India's independence in 1947, Union Bank of India had four branches –
three in Mumbai and one in Saurashtra, in trade centers. By the time the Indian
government nationalized it in 1969, it had 240 branches. Shortly after
nationalization, Union Bank of India acquired Belgaum Bank, a private sector
bank established in 1930 that had itself merged in a bank in 1964, the Shri
Jadeya Shankarling Bank (Bijapur; incorporated on 10 May 1948). Then in 1985
35
Union Bank of India acquired Miraj State Bank, which was established in 1929,
and which had 26 branches. In 1999 the Reserve Bank of India requested that
Union Bank acquire Sikkim Bank in a rescue after extensive irregularities had
been discovered at the non-scheduled bank.
Union Bank expanded internationally in 2007 with the opening of offices in Abu Dhabi,
United Arab Emirates, and Shanghai in the People's Republic of China. The next year,
Union Bank established a branch in Hong Kong, its first branch outside India. In 2009,
Union Bank opened a representative office in Sydney, Australia.
PRODUCTS AND SERVICES OFFERED BY UNION BANK:
 Deposits Account:
 Cumulative Deposit Scheme
 Deposit Reinvestment Certificate
 Union Flexi-Deposit
 Union Insured Recurring Deposit
 Union 94 Months Double Scheme
 Monthly Income Scheme
 Tax Exemption Deposits
 Union Float Deposits
 Union Unfixed Deposits For NRI
 FCNR (B)
36
 Foreign Currency Deposit etc.
Apart from these the other services provided by bank are:
1. SMS banking
SMS banking is a form of mobile banking. It is a facility used by some banks or other
financial institutions to send messages (also called notifications or alerts) to customers'
mobile phones using SMS messaging, or a service provided by them which enables
customers to perform some financial transactions using SMS.
2. Internet banking
Online banking allows a user to execute financial transactions via the internet. Online
banking is also known as "internet banking" or "web banking." An online bank offers
customers just about every service traditionally available through a local branch,
including deposits, which is done online or through the mail, and online bill payment.
3. ATM facilities
An automated teller machine (ATM) is an electronic banking outlet that allows

customers to complete basic transactions without the aid of a branch representative or
teller. Anyone with a credit card or debit card can access most ATMs.
4. Telebanking
Telephone banking is a service provided by a bank or other financial institution, that

enables customers to perform over the telephone a range of financial transactions which
do not involve cash or documents (such as cheques), without the need to visit a bank
branch or ATM. Telephone banking times are usually longer than branch opening times,
37
and some financial institutions offer the service on a 24-hour basis. However, some
banks impose restrictions on which accounts may be accessed through telephone
banking and usually limit the amounts that can be transacted.
The types of financial transactions which customers may transact through telephone
banking include obtaining account balances and list of latest transactions, electronic bill
payments, and funds transfers between a customer's or to another's accounts.
5. Credit Card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to
pay a merchant for goods and services based on the cardholder's promise to the card
issuer to pay them for the amounts plus the other agreed charges. The card issuer
(usually a bank) creates a revolving account and grants a line of credit to the cardholder,
from which the cardholder can borrow money for payment to a merchant or as a cash
advance. In other words, credit cards combine payment services with extensions of
credit.Complex fee structures in the credit card industry may limit customers' ability to
comparison shop, helping to ensure that the industry is not price-competitive and
helping to maximize industry profits. Due to concerns about this, many legislatures have
regulated credit card fees.
6. Debit Card
A debit card (also known as a bank card, plastic card or check card) is a plastic payment
card that can be used instead of cash when making purchases. It is similar to a credit
card, but unlike a credit card, the money is immediately transferred directly from the
cardholder's bank account when performing a transaction.
38
CRM Strategies Adopted By Union Bank of India
Nowadays, many businesses such as banks, insurance companies, and other service
providers realize the importance of Customer Relationship Management (CRM) and its
potential to help them acquire new customers retain existing ones and maximize their
lifetime value. At this point, close relationship with customers will require a strong
coordination between IT and marketing departments to provide a long-term retention of
selected customers.
Union Bank aims to increase customer profitability with any customer retention. It is a
sound business strategy to identify the bank’s most profitable customers and prospects,
and devotes time and attention to expanding account relationships with those customers
through individualized marketing, pricing, discretionary decision making.
According to Union Bank of India 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 tough 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.
Union Bank of India has a database of its customers and informs them about the various
schemes offered by the bank.
The bank has a suggestion box in which customers of the bank can give their views and
suggestions.
The bank also has a helping desk where the customers can ask their queries. This is a very
good strategy to retain the customer.
The bank provides the information to its customers about any change in the interest rate
of advances.
39
They attend all the customers who are present in the bank, so that they do not feel
neglected and not switch to any other bank.
Steps followed by banks for customer retention
1. Quality service is provided for building good relations
2. Quality Management
3. Keeping a track of all complaints.
4. Increasing Customer satisfaction.
5. Building up a positive corporate image.
6. Customer loyalty
40
CHAPTER 3: RESEARCH METHODOLOGY
3.1 OBJECTIVES OF THE STUDY
1) To study the meaning and concept of CRM
2) To analyze the need for CRM in Banking Industry.
3) To examine E CRM in banking industry.
4) To study general working of banks and their response towards customers.
5) To study CRM strategies required and adopted by the bank
3.2 SCOPE OF THE STUDY

Project also focuses on importance of CRM in banking industry as well as its impact on
banking sector and the impact of good CRM strategy on consumers.
3.3 LIMITATIONS OF THE STUDY:
1. Study is limited to the people having account in Union Bank. This study can be
relevant for other banks also however for the convenience purpose Union bank was
selected for the survey.
2. Restricted sample size: Due to limited time and resources available, this study and
survey was conducted with a smaller sample size than the ideal. This study has taken into
consideration only the people living in Mumbai, a city in Maharashtra of India. However
the sample were collected from diverse backgrounds to reduce inaccuracy.
3. Limited access to the data of Union bank: Some confidential yet important data
couldn’t be retrieved due to company’s policy.
4. Findings of this study cannot be generalized towards other cities and banks.
3.4 SIGNIFICANCE OF THE STUDY:
Importance of the study is to analyze why banks need Customer Relationship

management programs and what is the impact on the bank after increasing customer
relations.
41
3.5 RESEARCH METHODOLOGY
Research methodology simply refers to the practical “how” of any given piece of
research. More specifically, it’s about how a researcher systematically designs a study to
ensure valid and reliable results that address the research aims and objectives.
Primary Data: Data that has been generated by the researcher himself/herself, surveys,
interviews, experiments, specially designed for understanding and solving the research
problem at hand. It is real time data and it can be gathered through surveys, observations,
experiments, questionnaire, personal interviews etc.
Primary data for the study was collected through conducting survey amongst 140 people.
Questionnaire was sent via social media applications and responses were collected
through the same.
Secondary Data: Using existing data generated by large government Institutions,

healthcare facilities etc. as part of organizational record keeping. The data is then
extracted from more varied data files. It is the past data and it can be gathered through
Government publications, websites, books, journal articles, internal records etc.
Secondary data was collected through various books and going through certain previous
research paper related to similar topic.
Pie Diagrams: A pie chart is a type of graph that represents the data in the circular
graph. The slices of pie show the relative size of the data, and it is a type of pictorial
representation of data.
Benefits of using Pie chart
 The picture is simple and easy-to-understand
 Data can be represented visually as a fractional part of a whole
 It helps in providing an effective communication tool for the even uninformed

audience
42
 Provides a data comparison for the audience at a glance to give an immediate
analysis or to quickly understand information
 No need for readers to examine or measure underlying numbers themselves,

which can be removed by using this chart
 To emphasize a few points you want to make, you can manipulate pieces of data
in the pie chart
Bar Diagram: A bar chart or bar graph is a chart or graph that presents categorical
data with rectangular bars with heights or lengths proportional to the values that
they represent. The bars can be plotted vertically or horizontally. A vertical bar
chart is sometimes called a column chart.
Benefits of using Bar diagram
 Show each data category in a frequency distribution

 Display relative numbers or proportions of multiple categories
 Summarize a large amount of data in a visual, easily interpretable form
 Make trends easier to highlight than tables do
 It helps in studying patterns over long period of time
 It is used to compare data sets. data sets are independent of each other
 Most widely used method of data representation. therefore, it is used by various
industries
 Estimates can be made quickly and accurately
 Permit visual guidance on accuracy and reasonableness of calculations
 Accessible to a wide audience
 can easily compare two or three data sets
Percentage Analysis: It refers to a special kind of rates, percentage are used in

making comparison between two or more series of data. A percentage is used to
determine relationship between the series. Percentage is appropriate when it is important
to know how many of the participants gave a particular answer.
43
Benefits of percentage analysis:
 Helps in forecasting and planning by performing trend analysis.
 Helps in estimating budget for the firm by analysing previous trends.
 It helps in determining how efficiently a firm or an organisation is operating.
 It provides significant information to users of accounting information regarding

the performance of the business.
 It helps in comparison of two or more categories.
44
Chapter 4: DATA ANALYSIS AND INTERPRETATION
The following data was collected through conducting survey amongst 140 people.
Questionnaire was sent via social media applications and responses were collected
through the same. Survey was conducted to know people’s opinion about customer
relationship management and their responses were taken into consideration for the
analysis.
Important to maintain customer
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5
(Source: Primary Data)

1 being least important, 5 being most important
1. According to the survey, it was found that 82% people think that is it very
important to maintain customer relations.
2. Whereas others find it moderately important.
45
Possible Reason to switch the bank
Quality of service Ease of

6%use Interest rates Quality of Advice
others
22%
44%
14%
14%

1. 44% people give more importance to the quality of service provided by the
bank. If it is not satisfactory then they will switch the bank.
2. 22% people also feel that the quality of advice given by the bank also matters
a lot.
Duration bank takes to resolve the issue
Within a day 2-3 days more than 3 days
16%
35%
49%
1. 34% people said that the bank resolves the issue with a day whereas 48%
people said that it usually takes 2-3days to get the issue resolved
2. Remaining people said that the bank is quite slow as it takes more than 3
days to solve the issue.
46
Bank must have 24/7 customer service available
100%
90%
80%
70%
60%
50% no
yes
40%
30%
20%
10%
0%
Yes/No
1. 80% people believe that banks must have 24/7 customer service available while
remaining 20% people don’t want.
Use Mobile application provided by the bank (net banking)
Yes Bank have the app but I don’t use it

Bank doesn’t have the app
28%
72%
47
1. 82% people use the mobile application provided by the bank whereas 18% don’t
use the app even though it is provided by the bank
2. .A user with an active mobile net banking application can make transactions every
day, transfer money from one bank account to another, pay bills and more.
Conveniency of using mobile application
60%
50%
40%
30% Conveniency of usine mobile

application
20%
10%
0%
1 2 3 4 5

1 being least convenient and 5 being most convenient
1. 56% people find it moderately convenient to use mobile application.

2. 4 % people find it least convenient whereas 12% people find it most convenient.
People having account with Union bank – Out of 140 responses, 112 people had their
account with union bank. Further survey is only of those who had an account with union
bank in various branches.
48
 Number of years of having an account in Union bank.
since 1 year since 2-3 years since more than 3 years
17% 19%
64%

1. 64% people have their account in Union bank since 2-3 years
2. 19% people had their account since a year whereas remaining had their account in
Union bank since more than 3 years
Union bank is best in dealing with complaints and feedbacks.
40%
35%
30%
25%
20%
15%
10%
5%
0%
strongly disagree disagree neutral agree strongly aggree
49
1. 19% people strongly agree and 38% people agree that union bank is best in
dealing with complaints and feedbacks.
2. 29% people neither agree not disagree to the statement.
3. 12 % people disagree and 2% people strongly disagree with the above statement.
Customers satisfied with the quality of services by the bank staff.
Yes No Maybe
6%
30%
64%

1. 64% people are satisfied whereas 30% people are not satisfied and 6% people are
not sure about it.
Customer care service of Union bank
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Good enough Can do better Not satisfied
1. 47% people think that customer care service of Union bank is good enough
50
2. .41% people expect that the customer care service can be improved whereas
12% are not satisfied with the customer care service.
Bad experience with the bank staff.
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No

1. The data shows that 32% of people have had bad experience with the bank staff
and others haven’t faced any such issues yet.
Main issue for the above problem
Staff wasn’t available They didn’t knew how to resolve the issue
They ignored the problem Other
13%
24%
20%
43%
1. 43% people faced this issue because the staff didn’t knew how to resolve the
issue.
51
2. 24% people faced this issue because the staff wasn’t available
3. 20% people faced this issue because the staff was being ignorant and 13% people
faced this issue because of other reasons.
Usage the mobile application of your bank
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Once a week 2-3 times a week More than 3 times a week

1. As we can see, 33% people use mobile banking just once a week whereas
47% people 2-3times a week.
2. There are 20 % people who use mobile banking more than 3 times a week.
Receiving regular updates from bank if you receive any amount or any specific amount is
debited from your account
52
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No

1. 85% of people receive regular updates from the bank whereas other don’t
receive the updates.
Receiving emails or messages regarding any new schemes launched by bank

80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No

1. 75% people receive regular updates about new schemes whereas others don’t
receive any updates about this.
53
Opportunity to fill feedback form for the bank
Once a month Twice a month Once in 6 months

Once a year No feedback is taken
9%
13%
40%
38%

1. 40% people said that feedback is taken by the bank just once a year whereas
13% people said that it’s taken once a month.
2. 9% people said that no feedback is taken at all by the bank.
Issue of facing server down
60%
50%
40%
30%
20%
10%
0%
Yes No

1. 45% people frequently face server down issue whereas others don’t face it
frequenty.
54
First reaction as soon as you face server down issue.
Call customer care to know the exact issue Wait for sometime and make transaction later
44%
56%

1. 56% people care customer care as soon as they face any server down issues.
2. Whereas others wait and then make the payment later.
Behavior of staff towards people who have no knowledge about bank procedure
60%
50%
40%
30%
20%
10%
0%
Good Humble and patient Rude and ignorant

1. 18% people have experienced rude and ignorant staff members when had
doubts and didn’t have much knowledge about the banking procedure
2. 28% people felt that the staff was good and 54% people felt that the staff
was helpful, humble and patient.
55
 System for updating the passbook
Self service (directly from machine) Bank staff available
Mobile updates
32%
43%
25%

1. As per the survey, 43% people have self service for updating their passbook in
their union bank branch.
2. 25% people have bank staff available to instruct and others have direct mobile
updating applications for passbook
System for using ATM machine
Self Service Staff available for assisting Remains out of service frequently
33%
44%
22%
1. As per the survey, 45% people at ATM branch have self service, 22% people said
that they have staff available for assisting.
2. 33% people said that the union bank ATM near them is frequently out of service.
56
Management of the staff with regards to covid 19 protocols and maintaining social
distance and simultaneously answering to customers doubts
40%
35%
30%
25%
20%
15%
10%
5%
0%
1 2 3 4 5

1 being least convenient and 5 being most convenient (for customers)
1. 35% people felt that the bank was moderately convenient when it comes to
maintaining covid 19 protocols along with solving the queries.
2. 13% people felt that it was very convenient and 8% people felt that it was
least convenient.
Importance of having customer relationship management
Customer reteion
Customer loyaty
Customer satisfaction
Enhance service quality
Prompt redressal of greviences
57
1. As per the survey report, 50% people think that the main reason for having CRM is to
provide customer satisfaction.
2. 28% people think that it is to enhance the quality of services whereas 4% people think
it is for customer retention.
3. 10% people think it is important for prompt redressal of greviences whereas 8% people
think it is important for customer loyalty.
58
Chapter 5
5.1 FINDINGS
Findings of the study:
 CRM is not a technology initiative; many have confused as a technology

initiative, and assigned the CRM implementation project to their
implementation project to their information system or IT group.
 The CRM program is set up with the purpose of accomplishing three

objectives:
o To enhance service quality
o To enable Up-selling and cross-selling
o To ensure customer satisfaction or Prompt redressal of customer
complaints or grievances.
 The main benefits of implementing the CRM programme in the banks

are customer retention followed by customer loyalty and later customer
satisfaction.
 E-CRM has improved customers relationship with the organization and
has improved staff behavior.This has ended delay of delivery of services
 (Such organizations welcome suggestions from the customers and take action and
always invite their customer for feedback)
Findings from the data analysis:
 As per the survey, it was seen that people think CRM is an important factor in
customer retention and customer loyalty. These activities help people in solving
their issues, create easy and speedy work environment and helps the bank to
maintain its goodwill.
59
 It is also important to take the feedback of the customers in order to realize where
the changes are needed and what changes are required for the bank to excel and
provide the best services.
 There should be a bank personnel staff available for services such as ATM,
depositing cash or passbook updating system in order to guide people the
procedure for the same.
 E-CRM with the help of mobile application is required because
o It is available 24/7
o Easy to use and read information about banking procedures
o Can do the transaction at anytime and at any place. It is convenient.
o Customer care is available 24/7
o Updates regarding new schemes and new policies are available.
60
5.2 Suggestion
A good CRM strategy can completely change the whole customer experience. The
banking experience today looks completely different than it did a decade ago. It’s
becoming harder to keep clients engaged, satisfied, and loyal. Banking customers expect
a modern and consistent experience throughout the purchasing journey. They expect
convenience, 24/7 accessibility, and immediate support. CRM is a major player in the
digital landscape, and the banking industry must become part of that digital landscape to
be relevant to today’s consumer. CRM software for the financial sector can pinpoint
customer intent, digitize and automate experiences, and help banks proactively service
customers.
1. Banking CRM gives financial institutions the opportunity to automate select tasks
and communication processes, freeing up more time to focus on what’s important.
Teams can automate query responses and notifications based on specific trigger
actions to keep prospects from slipping through the cracks. Once a client activity
is completed, CRM can auto update the data to reflect the most current record of
each client’s touch point history. When properly configured, banking CRM auto-
assigns case escalation notifications to alert staff that a due date is approaching
and update the case priority. Automated workflows can standardize the customer
service process by forcing teams to follow a prescribed set of actions in a
particular order. If a crucial step is not completed or a piece of information is not
entered, the rep cannot progress through the rest of the workflow. This helps
provide a reliable experience for customers while also keeping teams aligned to
your bank’s best practice standards.
2. Customer-centric business strategies are crucial to creating the ultimate banking

customer experience. Banking CRM should organize customer data, transaction
records, and notes so departments can mitigate issues more effectively,
recommend solutions faster, and identify potential cross-sell and upsell
opportunities sooner.
61
3. Financial literacy should be given to consumers. Hosting educational workshops
and fairs, getting involved in community outreach, and partnering with local
schools and colleges to develop financial literacy curriculum for classrooms is a
mean to conduct financial literacy. This not only empowers younger generations
to make smarter financial decisions but also comes with the added benefit of
enabling banks to engage with prospective future customers.
4. Investing in comprehensive training of employees is very important. They can

build an internal knowledge base that employees can refer to when they
encounter questions they don’t know the answers to. This knowledge base
should serve as a centralized repository for everything from policies and
procedures to relevant industry regulations and should be well-organized and
easy-to-navigate to prevent customers from waiting on answers any longer than
is necessary. It must regularly update knowledge base so that it includes only the
most accurate and relevant material.
62
5.3 CONCLUSION
Providing excellent customer service is no easy task. This aspect of business is a major
force that can make or break profits. However, customer service is rarely mentioned in
an organization's mission statement nor is it the top of the discussion list for staff
meetings or training sessions. Providing the type of customer service that is expected by
customers take a lot of thought and flexibility on the part of management as well as staff
members. 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 technology 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 in terms of customized technical
solutions and banks use the same for long term, mutually beneficial relationships.
Hence in conclusion, from this study company which implement successful CRM
strategy such as provides good quality services and products, design the products to suit
customer needs and wants, maintain interaction with customers regularly and so on. It
also will affect company profitability like successful CRM will increase company
revenue, vice versa. Besides, IT takes an important role in the process of implement
CRM such as communication channel through internet, television and radio. Company
should implement CRM by using the modern CRM tools like e-CRM and web based
survey tools.
This study shows that customer relationship management has significant effect on the
customer satisfaction and both variables have positive relation. Company makes its CRM
as strong and reliable the customer will be more satisfied and retain with the
company.The increase in the satisfaction level will allow the customer to co me again and
again to use the bank’s services.
63
Bibliography
Abu-Shanab, E. (2015, January). Impact of electronic customer relationship management in

banking sector. Retrieved from
https://www.researchgate.net/publication/289893695_Impact_of_electronic_customer_rel
ationship_management_in_banking_sector
Arun Kumar agaria, D. S. (2012). CRM Index Development and Validation in Indian Banking
Sector. Retrieved from https://www.igi-global.com/article/content/66425
Bihari, D. S. (2018, March). CRM is all about bringing people, processes & technology together -
a case study of banking sector in India. Retrieved from
https://www.proquest.com/openview/1bc34eb9999df54a7d9b385c6660e8bb/1?pq-
origsite=gscholar&cbl=54303
C. Padmavathy, M. B. (2012, june 8). Measuring effectiveness of customer relationship

management in Indian retail banks. Retrieved from
https://www.emerald.com/insight/content/doi/10.1108/02652321211236888/full/html
Chaudhari, V. M. (2020). Role of CRM in Indian Banking Sector. Retrieved from

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3559989
Chaudhari, V. M. (2020, April 17). Role of CRM in Indian Banking Sector. Retrieved from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3559989
Chopra, U. (2016, March 10). The Customer Retention Strategies of Banks in India. Retrieved
from http://ijrar.com/upload_issue/ijrar_issue_20542982.pdf
D., N. G. (2020). Formation of CRM systems, classification of opportunities for companies using
CRM system. Retrieved from
https://esa-conference.ru/wp-content/uploads/files/pdf/Nogoieva-Nogoeva-G.D.-2-st..pdf
Dr. Brijesh Kumar Yadav, D. V. (2018, December). Customer Relationship Management (CRM),
Relationship Quality and customer loyalty in Indian banking sector. Retrieved from
https://www.bhu.ac.in/fms/BHUMgmReview/BHUMRvOL6.pdf#page=13
Jasvin kaur, B. k. (2016, September 23). The Influence of e-CRM Competitive Advantage on e-
CRM Performance in the Indian Banking Industry. Retrieved from
https://onlinelibrary.wiley.com/doi/abs/10.1002/jsc.2079
Jelena Cvijovic, M. K.-S. (2017). Customer relationship management in banking industry:

Modern approach. Retrieved from
https://aseestant.ceon.rs/index.php/industrija/article/view/15975
Joseph Vella, A. C. (2019, January). Encouraging CRM systems usage: a study among bank
managers. Retrieved from
https://www.emerald.com/insight/content/doi/10.1108/01409171211195152/full/html
64
Kumar, G. P. (2018, May 16). Importance of CRM in Indian Banking System. Retrieved from
https://www.indianjournals.com/ijor.aspx?
target=ijor:ijemr&volume=8&issue=2&article=021
Nikhil Malhotra, C.-T. B. (2015, January 6). Factors and barriers affecting the implementation of
crm. Retrieved from
https://ieeexplore.ieee.org/abstract/document/5681733/authors#authors
Pandey, P., & HKSingh. (2017). The Relationship Between CRM Dimensions and Customer
Retention in Indian Banking Industry: An Empirical Study of Public and Private Sector
Bank. Retrieved from
https://www.proquest.com/openview/1fa8ad323a41fba3e51ddea53964ba05/1?pq-
origsite=gscholar&cbl=2030934
Perwej, D. A. (2010). Effective Management of Customer Relationship Management.
Pokharel, B. (2016). Customer Relationship Management: Related Theories, Challenges and

application in banking sector. Retrieved from
https://www.nepjol.info/index.php/BJ/article/view/5140/4272
Pushpender Kumar, A. K. (2021, May 27). Electronic customer relationship management (E-
CRM), customer experience and customer satisfaction: evidence from the banking
industry. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/BIJ-10-
2020-0528/full/html?
utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest
Pushpender Kumar, A. K. (2021, May 27). Electronic customer relationship management (E-
CRM), customer experience and customer satisfaction: evidence from the banking
industry. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/BIJ-10-
2020-0528/full/html?
utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest
Samppa Suoniemi, A. Z. (2022, January 11). CRM system implementation and firm performance:
the role of consultant facilitation and user involvement. Retrieved from
https://www.emerald.com/insight/content/doi/10.1108/JBIM-08-2021-0380/full/html
Siddharth Shastri, R. S. (2020, September 2). An empirical study on influence of e-CRM towards
customer loyalty in banking sector. Retrieved from
https://www.inderscienceonline.com/doi/abs/10.1504/IJPSPM.2020.110135
Suhail Ahmad Bhat, M. A. (2016, may 16). Customer relationship management: An approach to
competitive advantage in the banking sector by exploring the mediational role of loyalty.
Retrieved from https://www.emerald.com/insight/content/doi/10.1108/IJBM-11-2014-
0160/full/html?mobileUi=0&fullSc=1&mbSc=1
T.VIJAYAKUMAR, D. R. (2013). CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN

RETAIL BANKING INDUSTRY.
65
Viktorovych, N. A. (2021). CRM-SYSTEM AS A TOOL OF BUSINESS MANAGEMENT
STRATEGY. Retrieved from
https://ojs.ukrlogos.in.ua/index.php/interconf/article/download/10269/9768
66
Annexure
Questionnaire
1. Which age group do you belong to?

 18-20
 21-25
 Above 25
2. How often do you visit bank?

 Once a week
 Once a month
 Twice a month
 More than 4 times a month
3. Which bank do you generally visit?

 Government bank
 Private bank
4. Are you satisfied with the response from bank personnel?

 Yes
 No
5. According to you on a scale of 1 to 5, how important it is to maintain

customer relations? (1 being least important and 5 being most important)
6. What could possibly be the reason for you to switch the bank?
 Quality of service
 Ease of use
67
 Interest rates
 Quality of advice
 Others
7. How fast is your bank in resolving your issues?

 Within a day
 2-3days
 More than 3days
8. Would you want your bank to have 24/7 customer service availability?
 Yes
 No
9. Do you use mobile application provided by your bank for transactions and
other information regarding the bank? (mobile-banking)
 Yes
 Bank have the app but I don’t use it
 Bank doesn’t have the application
10. On a scale of 1 to 5, how convenient is it to use mobile banking app? (1 being

least convenient and 5 being most convenient)
11. Do you have a Bank account with Union bank?

 Yes
 No
12. Since how long do you have an account in Union bank?

 Since 1 year
 Since 2-3 years
 Since more than 3 years
68
13. Union bank is best in dealing with complaints and feedbacks
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
14. Are you satisfied with the quality of services provided by Union bank staff?
 Yes
 No
 Maybe
15. Is the customer care service by union bank up to the mark?

 Good enough
 Can do better
 Not satisfied
16. Have you ever experienced a bad customer service from the bank?
 Yes
 No
17. If yes, then what was the problem?

 Staff wasn’t available
 They didn’t knew how to resolve the issue
 They ignored the issue
 Other
18. How often do you use the mobile application of your bank for transactions?
 Once a week
69
 2-3 times a week
 More than 3times a week
19. Do you receive regular updates from bank if you receive any amount or any
specific amount is debited from your account?
 Yes
 No
20. Do you receive emails or messages regarding any new schemes launched by
bank?
 Yes
 No
21. How often do you get an opportunity to fill feedback form for the bank?
 Once a month
 Twice a month
 Once in 6 months
 Once a year
 Other
22. Have you ever faced server down issue while doing transactions online?
 Yes
 No
23. What is your first reaction as soon as you face server down issue?
 Call customer care to know the exact issue
 Wait for sometime and make the transaction later
70
24. How well does the staff behave with the inexperienced or a new person who
doesn’t have much knowledge about the banking procedure & details?
 Good
 Humble
 Patient
 Rude and ignorant
25. What is the system at your bank for updating passbook?

 Self service (directly from machine)
 Bank staff available
 Mobile updates
26. How much user friendly is ATM at your bank?

 Self service
 Staff available for assisting
 Remains out of service frequently
27. On a scale of 1-5, how well did they manage the covid 19 protocols &
measures like social distancing & simultaneously attending the customers to
solve their query? (1 being least convenient and 5 being most convenient)
28. Why is it important to have customer relationship management in banking

sector according to you?
 Customer retention
 Customer loyalty
 Customer satisfaction
 Enhance service quality
 Prompt redressal of customer greviences
71

Khushbu Vora-A045-Final Project

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Khushbu Vora-A045-Final Project

Uploaded by

Copyright:

Available Formats

A PROJECT REPORT ON

THE STUDY OF CUSTOMER RELATIONSHIP MANAGEMENT

UNDER THE GUIDANCE OF

SVKM’S NARSEE MONJEE COLLEGE OF COMMERCE AND ECONOMICS

I,Khushbu Manish Vora, of SVKM’s Narsee Monjee College of Commerce and

Khushbu Manish Vora

Ms. Reeta Jain Dr. Parag Ajagaonkar

Project Guide Principal

It has always been my sincere desire as a management student to get an opportunity to

I am extremely grateful to SVKM’s Narsee Monjee College of Commerce And

 Manager of Union Bank (Kandivali east branch)

Chapter Topic Page

4 Data interpretation and analysis 46

Customer relationship management (CRM) is an approach to manage a company's

Customer relationship management (CRM) is a business strategy that spans your

1.3 BENEFITS OF CRM

1. Improve customer services: In general, customers would have some questions,

2. Increased personalized service or one-to-one service: Personalizing customer

3. Responsive to customer's needs: Customers' situations and needs can be

4. Customer segmentation: In CRM, segmentation is used to categorize customers,

5. Improve customization of marketing: Meaning of customization of marketing is

6. Multichannel integration: Multichannel integration shows the point of co

2.1 CRM IN INDIAN BANKS

2.2 CRM IN BANKING: GLOBAL SCENARIO

2.3 OBJECTIVES OF CRM IN BANKS

1. To evaluate critically the literature relating to bank selection in general and

2. To produce and disseminate a questionnaire to customer to establish what factors

3. To critically analyze the results of the questionnaire to establish a better

CRM can help banks in following ways:

1. Campaign Management: Banks need to identify customers, tailor products and

2. Customer Information Consolidation: Instead of customer information being

3. Marketing Encyclopedia: Central repository for products, pricing and competitive

6. Lead and Opportunity Management: These enable organizations to effectively

7. Activity Management: It helps managers to assign and track the activities of

8. Contact Centre: It enables customer service agent to provide uniform service

2.5 CHALLENGES SOLVED BY CRM IN BANKING SECTOR

(T.VIJAYAKUMAR, 2013) As per this paper, following are the few

Evolving Customer Profiles

Connecting the Dots

CRM-based customer service modules can provide traditional customer service

Security Considerations for Banks

Integration with Other Banking Systems

2.6 IMPLEMENTATION OF CRM

(Suhail Ahmad Bhat, 2016)Successful implementation determines successful CRM

• Adoption: Create a user-adoption plan for your CRM implementation. Start by

• Benchmark: Establish criteria for successful implementation, create formulas,

• Capture: Gather data before implementing new CRM processes and

Develop a simple database to gather information and profile customers before

1. The difficulty of obtaining a complete view of customers.

2. The need to move away from disjointed, standalone, and inconsistent

3. The burden of disconnected legacy systems and disparate databases that

6. The costs associated with retaining customers and developing customer

1. CORRELATE A series of transaction that make up a dialogue between customer, end

2. COMBINE The mapping and management of interactions points between a customer,

4. CONNECT The application of insight to create relevant interaction or communication

2.9 KEY PRINCIPLES OF CRM IN BANKS

System Approach Customer’s requirement is one level of commitment. That level

(Samppa Suoniemi, 2022)

Involvement of People The fundamentals of CRM bear the genes of customer

Continuing Improvement Another objective of CRM is the efforts towards continuous

2.10 CUSTOMER RETENTION

1. Builds up a comprehensive viewing of “customer journey” map.