AN IMPACT OF E-MARKETING ON BANKING SERVICE

MASTER PROJECT MBA BY: SWASTI KUMARI SHRESTHA

TABLE OF CONTENT CHAPTER 1 Introduction 1.1 Constitutes an e-marketing 1.2 E-Marketing: 1.3 Six simple steps to start e-Marketing 1.4 Overall research purpose CHAPTER 2 Literature Review 2.1 E-CRM- benefits to bank 2.2 Relationship with customer. 2.3 Using E-mail for business communication 2.4 Personalized services or one to one sevices 2.5 Establishing a web site to market products or services 2.6 Transaction security 2.7 E-CRM-Benefits to customers 2.8 Customer interaction and satisfaction

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CHAPTER - 3 Methodology 3.1 Objective of study: 3.2 Research Process 3.3 Scope of study: 3.4 Limitation of study: CHAPTER -4 Analysis and Interpretation 4.1 Cost/Benefit Analysis 4.2 Budgeting 4.3 Situation Analysis CHAPTER 5 Collection of data 5.1 Synopsis 5.2 How can the benefits of E_CRM foe the banks be described? 5.3 How can the benefits of E-CRM for banks customers be described 5.4 RECOMMENDATIONS CHAPTER 6 REFERENCES

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CHAPTER-1
Introduction
Changes are taking place dramatically in the marketing environment during the last few years. Information technology has encouraged several new innovations in the fields of marketing and business. Effects of information technology in the fields of marketing and management have emphasized the importance of re-arranging a new plan for marketing that gets benefited from web technology. In year 1990, many organizations were focusing on how to perform their transactions with the customers, and how they are going to address their strategies for sales promotions effectively. But after 1990 it was found that many companies have diverted their attention towards how organizations can maintain positive and long lasting relationship with customers. At the same time how to raise loyalty of customers. Thus strategies of organization have shifted towards customer-oriented strategies. Important factors like providing added services, recognizing the needs of the customers are termed as factors to decide the fate of companies. Organizations investigations have put light on importance of retaining customers is not a great deal than that of attracting new ones. Relationship marketing has turned out to become important factor in financial services. 1.1 Constitutes an e-marketing The e-marketing plan is built exactly on the same principles as the classical plan. There is no different approach, but there might be some formal differences given by the uniqueness of the internet environment. Many of these differences come from the necessity to ensure a high rate of responsiveness from the customers, since the e-world is moving faster and requires faster reaction from its companies, compared to the traditional offline market place. In a broad sense, e-Marketers generally start by analyzing the current micro- and macro economic situation of the organization. E-Marketers must observe both internal and external factors when developing an e-Marketing plan as trends in both micro and macro environment affect the organizations ability to perform business. Examples of micro environment elements are: pricing, suppliers, customers. Examples or macro environment are: socioeconomic, political, demographic and legal factors. In order to produce a viable e-Marketing solution, eMarketers must first understand the current situation of the company and its environment, profile, segment the target the right market and then strategically position the products as to achieve optimal response with the target market. This is generally achieved through SWOT analysis. By assessing organizations strengths and weaknesses and looking at current opportunities and threats one can devise an e-Marketing strategy that can improve the organizations bottom line. Even though it is perfectly acceptable and is a common practice to use the 8-stage classic model for the e-marketing plan as well, you might want to consider the simplified version, which identifies four major steps to build the e-marketing plan. Strategic analysis: consists in continuous scanning of the macro- and micro environment. The accent should fall on the consumers needs that change very rapidly in the online market, as well as on surveying the competitors actions and evaluating the opportunities offered by new technologies.
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Defining strategic objectives: the organization must have a clear vision and establish if the media channels will complement the traditional ones, or will replace them. We must define specific objectives (dont forget to check if they are SMART) and we must also specify the contribution of the online activities to the organizations turnover. Formulating strategies: we do that by addressing the following essential issues: - develop strategies towards the target markets; - positioning and differentiating strategies; - establish priorities of online activities; - focus attention and efforts on CRM and financial control; - formulate strategies for product development; - develop business models with well-established strategies for new products or services, as well as pr icing policies; - necessity for some organizational restructuring; - changes in the structure of communication channels. Implementing strategies: includes careful execution of all necessary steps to achieve established objectives. It could refer re-launching of a website, promo campaigns for a new or rewritten site, monitoring website efficiency and many more 1.2 E-Marketing: Before trying to define the term of E-marketing (or electronic marketing, so to speak), we should first take a look at the premises of its apparition and development. The theories concerning E-Marketing have not been unified yet, due to a large diversity in specialists' opinions. Still, one of the aspects that is established and has ceased being discussed in contradictory is the fact that electronic marketing first appeared under the form of various techniques used by companies distributing their products through online channels (Internet based). That happened back in the pioneering age before 1995. These companies that opened the road were called "E-tailers", as opposed to the traditional retailers (also known as "brick-andmortar" retailers). During their limited life, these electronic retailers began to develop and frenetically introduced new marketing techniques based on the support offered by the internet. The online technologies mentioned above developed in the context created by the E-Tailers, they are widely used these days by B2C and B2B organizations. In other words, they evolved towards what we call now E-Marketing (you can also spell it e-Marketing if you wish, the "e-" stands in both cases for "electronic"). You might find as extremely useful and suggestive the perspective offered by the EMarketing Association (EMA). You heard a lot, especially over the past 2 years, about the decline of online businesses (or the decline of dotcoms), but this temporary difficulty can be viewed as a similarity to the impasse of Columbus during his expedition that made him famous more than half millennium ago. The initial "business plan" with which Columbus started this trip (that of bringing the Asian resources in his country and getting fabulously rich) was a complete disaster: catastrophic estimations, not enough resources allocated, total lack of information upon the environment he will develop his "business" in, but... he discovered America instead and changed the world for ever. In a similar manner, we can say that the dotcoms, despite their terrible strategies (if any), "discovered" by mistake the world of E-Marketing. As we already noticed, defining E-Marketing is still highly problematic.
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Still, what do we mean when we use this term? As many other English words, the term was born by adding the prefix "e-" to a term already known and used, in this case "marketing". The prefix "e-" is actually the extreme contraction of the word "electronic" and is quite omnipresent in todays language of many people: "e-marketing", "e-business", "e-mail", "elearning", "e-commerce. Definition of E-Marketing:

E-Marketing is the use of internet as a media to market and promote your business
globally.

E-Marketing is a generic term utilized for a wide range of activities advertising, customer communications, branding, fidelity programs etc Advantages of E-Marketing: When compared to traditional marketing, E-Marketing is the apt way to promote your products and services globally. There are many advantages some of which are listed below. Global Reach - No physical or geographical limitations- The use of the internet as the mainstay of operations virtually eliminates geographical boundaries. - Access to unknown buyers and sellers. - Own your virtual office. - Always accessible (24/7) - Enhance your business prospects and profits. - Reach target audience. - Publicizing your business through various chambers of commerce & Industry and Trade Associations.

Easy Marketing - Classified information on competitive products. - Acquire product knowledge. - Compare products & Services.

Economics - Cost effective strategies. - Faster & easier access to products, buyers and sellers. - Save Time and money you spend on sending faxes, couriers etc. - Save money you spend on printing Catalogs, Brochures and other promotional material. Updates - Change of content is possible immediately. - Add new products and services. - Link other principle sites to your e Brochures for wider content reach. - Add latest news, events and other information immediately.

More attractive compared to physical brochures - Graphical user interface. - Provide product animations. E-Marketing services In order to effectively use e-Marketing to promote your products and services globally, there are various methods and tools used to do the same. You can use our services listed below to enable you in effectively e-Market you company. E-brochure Similar to a normal printed brochure, an E-brochure (Web site) also provides company related information. The difference arises from its power to reach global markets at a negligible cost. An E-brochure contains information such as company history, team, infrastructure, products, services, contact information and an Enquiry-Form for prospective clients to send enquiries. E-Catalog Just as any printed catalog, an E-catalog provides product information. However, the Ecatalog furnishes product details on a more intricate level, supported by superior presentation techniques.Category-wise product description, Different views of products including an animated presentation with voice facilities can be achieved through the E-catalog. E-Mailer E-mail is the fastest and most economical method of communication in business communities. You can rarely find a business card without an E-mail address. The potential uses an E-mailer can be put to be.

Sending promotional material to buyers or suppliers. Updating clients or users about the latest upgrades on the product. Reminders about renewal of business contracts or services.
1.3 Six simple steps to start e-Marketing
Starting e-Marketing is easy but walking on the right path is not so easy. There are just too many options you can consider! However, typically I would recommend my clients to follow 6 simple steps to plan and start doing e-Marketing and they are: 1. Building Effective Website 2. Designing Compelling Messaging 3. Sending Strategic Newsletters 4. Online Advertising 5. Managing Customer Databases 6. Building Alliances Building an Effective Website - I have shared in other articles how important it is a website for e-Marketing to be successful. It is not only design and layout but also the real business strategy behind. You have to consciously to make your website effective for your business and engaging your customers interactively. A website will only perform well when it is being revised and updated according to the environmental changes with Compelling Messaging.
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Designing Compelling Messaging - It is really back to marketing basics about communications. You have to high play your products/services' benefits rather than functionality in order to distinguish your differential advantages over your competition. A lot of time, customers' buying decisions are based on trusts that built on the success references you are giving of other cases. Before you get this right, e-Marketing will never be a success. Sending Strategic Newsletters - e-Newsletters are so easy to send out if you have any emails of our suppliers, partners, customers and prospects. However, your compelling messaging must be ready before your e-Newsletters can be successful. In additional, you need to send out useful information or knowledge occasionally other than sales promotions in order to attract your target audience to keep subscribing your newsletter. Online Advertising - The most basic Online Advertising option I recommend is Search Engine Marketing. It is becoming mandatory for any companies nowadays to make sure their company information/advertisements are showing on the first page of search results. Without doing this, your website will just never be found in a very long while, Other Online Advertising options can be Web Banner Ad on your target customers populated websites or contextual advertising, etc. Managing Customer Databases - When you start doing e-Marketing, the next important thing is to keep up with your customer database(s). This is very crucial because your customer database will grow throughout your e-Marketing activities. The most basic way to do this is to use Excel or Outlook or any other mail clients but as you grow your customer database, it is better to adopt Customer Relationship Management software or a e-Marketing campaign software. Building Alliances - No one can be successful by doing e-Marketing alone and this is the fact! Hence, building alliances and letting your alliances to promote your products/services in their websites and other channels are the very key to success with e-Marketing. You potential return on investment (ROI) will grow even better than you can imagine.

1.4 Overall

research purpose

Considering the discussion above, the purpose of this study is to gain a better understanding of the benefits of e-CRM to customers and organization in banking industry. To justify the purpose the following questions are addressed: RQ1: How can the benefits of e-CRM for banks are described? RQ2: How can the benefits of e-CRM for bank customers are described?

CHAPTER 2
Literature Review
2.1 E-CRM- benefits to bank Computers, information technology, and networking are fast replacing labor-intensive business activities across industries and in government. Since the early 1990s, the computer, the Internet, and information technology have been merged to become a viable substitute for labor- and paper intensive banking processes between and across commercial banks. This has been seen in the widespread use of the ATM, credit cards, debit cards, smart cards, and lending through e-CRM via the Internet. This type of computer-based bank-to-bank, bank to consumer and consumer-to consumer transactional and informational exchange has been referred to as Electronic Commerce (EC). The term EC which taken place out of e-CRM and benefits of e-CRM to bank and its customers presented below. 2.2 Relationship with customer. A CRM is an idea, which has its heredity line in the technology. In the earlier days relationship marketings sole aim was to get information about the preferences of the customers and the information, which was stored by them in their databases, So as to protect and deal with one to one relationship with customers CRM was developed. Once when the organization acquires the customers and is able to have them lastingly forever, this implies that the customer becomes more loyal and making good use of the services of the organization. Trust, cooperation and satisfaction have to be seen as the face of assurance between both the parties, for a long lasting relationship with customers. Organizations need to be in constant touch with their customers in order to build up long-term relationships. 2.3 Using E-mail for business communication The most popular tool for customer service is e-mail. Inexpensive and fast, e-mail is used to disseminate information (e.g. catalogues), to send product information and order confirmations, to conduct correspondence regarding any topic with customers and business partners, and responding to enquiries from customers. To answer a large number of emails quickly and cost efficiently automated e-mail reply systems are increasingly implemented. Automated e-mail reply responses to customer inquiries are developed using intelligent agents that recognize key words and quickly respond to common queries. However, the greatest advantage of e-mail as a communication tool is providing quick and accurate information to all customer queries. E-mails can include forms, reviews, referrals and new contacts sent to customers as attached files and how e-CRM bringing bridge between bank and customer through email business communication. 2.4 Personalized services or one to one sevices Personalization is a strategy that can be easily differentiated and which cannot be simulated by competitors in the market. A good personalized idea will enhance in the increase of sales, improves the customer relationship. Personalization can be defined as serving the unique needs of individual customers. By improving the customer conversations the organization can improve the customer relationships. Personalized services are not only limited in cheering new sales, but its successful implementation allows the organization to improve its effectiveness and efficiency in serving the customers established already. Identifying the
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needs of the customers and providing them a best solution before he makes a request shows excellence in service of the customers. Presently customers do not visit their banks for other kind of additional services such as finance, credit cards etc. customers still see the banks as providing bank services. Customers of the banks are becoming choosier and the success of the banks does depend upon this. 2.5 Establishing a web site to market products or services E-CRM providing cost savings, opportunism, and threats drive action and innovation even in conservative banks. They have influenced how banks must reposition themselves to take advantage of new opportunities that include establishing new service delivery channels and new markets for existing services (loans, letters of credit, etc.) Many banks have already built web sites on the Internet, offering banking services. Leveraging the power of the web is a move from static pages to dynamic applications that are connected to bank data. (ibid) 2.6 Transaction security Safety was seen as a major barrier to Internet banking. Banks were worried about unauthorized access to their systems, and customers were concerned about the protection of their personal data and the risk of false transactions. Banks have been able to manage security with least repercussions. Banks are exploring alternate security measures such as electronic signatures, digital certificates, smart cards and biometrics. A major problem with most of these measures is, their complications and cost to adopt and maintain. Furthermore, in many countries, electronic signatures are not enforceable by law. the e-purse bombed several years ago, and smart cards have been lukewarm at best. It is evident that banks are trying to ensure secure payment on the Internet. However, most favorable solutions keep on avoiding them. 2.7 E-CRM-Benefits to customers Bank customers form expectations derived from many sources proposed that customers form expectations of what will happen in their next encounters based on what they deserve. Identify two levels of expectations, desired service and adequate service. Desired service represents the wished for level of performance and adequate service reflects showing more basic service expectations. The model permits exploration of the perceived difference between expected service and the experienced service, particularly the zone of tolerance developed by Parasuraman. Theyre by customer specific benefits are under for the study.

2.8 Customer interaction and satisfaction The importance of e-CRM technology in bank-customer interactions remains undisputed, commentators; nevertheless, emphasize how customer evaluation is shaped by social and personal forces. Interaction has got a very prime place in the banking services. However in order to make the interactions good it is highly important that both banks as well as customers actively involve themselves in the interaction. The relationship, which is maintained between customer and organization, has always a special place in the banking industry when compared to other industries. The interaction process has includes three major factors. 1.) Information exchange 2.) Business or financial (transactions) 3.) Social exchange
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He further explained thus the transaction process involves engaging both bank and customers in common satisfying terms. The bank should know what exactly the client wants; at the same time client should also make sure that has enough knowledge about the bank offerings. Social exchange involves more of maintaining long-term relationship with the customers. Confidence, trust, ethics and friendship to some extent are the aspects of the social exchange.

Convenience
With the increasing knowledge and superiority, of the customers banks are now trying to woo the customer by determining the aspects, which are really vital for them. Thus the aspects may include facilities, reputations, service, operation hours, interest on savings as well as on loan, location of the bank, convenience, friendliness, responsiveness, efficiency of employees, ambience of the banks, etc. Convenience plays a vital role when selecting a brand and if the customers are not happy with the convenience of a particular brand. It doesnt take much time to switch brands. The extent of influence of the convenience on the customer is that it can also make the loyal customers to switch the brands. Location is considered to be convenient if it helps the customer to reduce the travel costs. Location also has broader impact on convenience includes time, place, acquisition etc. It has also greater influence on other convenience dimensions and is believed to be a precondition for other types of convenience. A convenient location is often considered o be an additional service aspect of the core services. Speed of Processing the transaction through E-Response Faster processing the transaction by e-CRM, the fact that responses to customer queries, order acknowledgement, delivery and payment information via emails or automated responses are greatly appreciated by customers. It has also been highlighted that the nature of e-responses also helps strengthen the relationship between the supplier and the customer and makes up for the personal response that prevails in the traditional shopping arena. One of the business respondents emphasized that via e-mail order acknowledgment, we recognize and address our customers by their first names, strengthening e-relationships with this service. Another business viewed that a close relationship with customers can be developed from a distance with e-responses. E-mail responses were widely used by businesses to acknowledge receipt of orders, payment and delivery of information. An e-response to say thank you, an apology for any delays, tailored emails from analysis of shopper profile to provide online shopping guidance and to announce the release of new products and specials supported online shoppers. Customer responses confirmed the value of e-responses in the B2C e-space, E-CRM how timely responds to customer for their requirement? Trust It is an attitude of trust among the partners of substitute. Its a vital aspect for understanding the potency of marketing relationships. Trust is an essential relationship structure, which is found in most of all relationship models. Trust factor can be seen in many ways like motivation to depend on a substitute partner and one who sees confidence in him. Service quality Service quality has its connections with the events that are behavioral like the outcomes from a mouth of a human being. Theres a lot of attention that has been focused in the relationship between service quality and its outcomes such as profitability and retention of customers and their loyalty. Five proportions of service quality are reliability, responsiveness, quality,
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empathy and assurance. Service quality is an important criterion that is being used by the customers in selecting a bank. Accounts, transactions accuracy, carefulness, factors in subject with functional quality, availability of the information technology, helpful and friendly personal and effectiveness in correcting mistakes are the most important determinants for the customers to determine the bank.

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CHAPTER - 3
Methodology
3.1 Objective of study:

To analyze about E-Marketing. To analyze the importance of E-Marketing in financial services. To analyze how E-Marketing differs from traditional marketing. To analyze the advantages of E-Marketing to the organizations. To analyze the impact of E-marketing in banking services. To analyze about E-Marketing strategies in banking industry. How are the characteristics of banking evolving within the financial sector as a whole
as a consequence of e-commerce?

What is the influence of electronic commerce on the value-added structure of the

Banking market? 3.2 Research Process Probable sample size of 100 respondents 3.3 Scope of study: Two types of data have been collected for completing the study, those were:-

Primary Data Secondary Data

Primary Data:

Primary data was collected through Questionnaire Data was collected from employees separately. Sample of the employees was taken on random basis.

Secondary Data: Secondary Data was update from companys Broachers, Internet, Journals, and Magazines etc.

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3.4 Limitation of study: Although sincere efforts were made to collect maximum and authentic information from the respondents, even then this report is subject to following limitations and problems:

The respondents were quite reluctant in providing exact data. The time was also major hindrance, which was not enough for research. While formulating the questionnaire there might be some errors that could affect the research. Data was collected from limited people due to time constraint.

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CHAPTER -4
Analysis and Interpretation
4.1 Cost/Benefit Analysis
Benefits from E-Marketing:
Cost of E-Marketing: Revenue increases ISP Costs Cost decreases Hardware and Software Costs Intangible benefits Design Costs Goodwill Maintenance Costs Brand/Image Building Relationship Building

4.2 Budgeting
Evaluate the cost/benefits analysis & Identify Potential Revenue Streams

E-Commerce Do we sell on-line Content Sponsorship Banners, Buttons, Sponsorships Intermediary Fees Broker and Agent Fees

Revenue Streams
Initial funds to support a Web site come from: Investors Loans

Firms operating budget Revenue streams that produce Internet profits come mainly from: Direct sales Advertising sales Other fees

Cost Savings by Selling and Marketing On-line

Eliminating elements of the traditional distribution chain Increases possibilities of greater revenue
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Saves on traditional marketing costs (printing, postage) Increases target market to world-wide audience

Intangible Benefits
The industry is developing exponentially creating new marketing opportunities, although they may be hard to measure.

Goodwill Brand Equity Audience Measurement Public Relations Customer Satisfaction

4.3 Situation Analysis

Conduct an Environmental Scan

Legal/Political Environment: Taxation, access, copyrights, & encryption Technological Environment Communication Infrastructures Bandwidths, and New browsing devices

Conduct an Environmental Scan

USER Trends: Focus on how the net audience has changed over the last six months, last year, etc Are there any trends. Is there any important target segments coming online. World Economies Understand overseas economies, also do they have the proper infrastructures to support what we are doing? Develop a Market Opportunity Analysis

Market Opportunity Analysis includes both demand and supply analyses. The demand portion reviews various market segments in terms of potential profit. The supply analysis review competition in selected segments that are under consideration The purpose of the supply analysis is to assist in forecasting segment profitability and
finding competitive advantages in the online market.

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SWOT Internal Capability Customer interactions Examples E-commerce, customer service, distribution channels SCM, production management scheduling, inventory

Production and fulfillment

People

Culture, skills, knowledge management, leadership and commitment to e-business ERP systems, legacy applications, networks, Web site security, IT skills Financial systems, R&D, HR

Technology

Core infrastructure

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CHAPTER 5
Collection of data
5.1 Synopsis

This study attempted to shed lights on benefits of E-CRM both with the organization and the bank customer who are benefited with E-CRM in relation to the E-business environment. In particular the purpose of my research was to gain a understanding of the benefits of E-CRM to customer and organization in banking industry. Based on this purpose researcher formulated the two research questions which researcher thought would provide us with a good insight regarding the E-CRM benefits. These research questions aimed to explore how the companies would take these benefits into consideration and implement to acquire more customers in order to generate more revenue to the organization. And, how the benefits would benefit the customer. Since benefits of E-CRM theory refers to the application of the concept as part of the companys strategies the empirical data be collected from the organization management perspective. Thus the analysis of the acquired of the empirical data can provide the researcher with a more holistic and general picture of E-CRM benefits that the companies and customers would bet benefited. However the data is collected for these two research questions by interviewing the bank employees and customers in order to get good quality of data. In general researcher believes that respondent provided the relevant information which balanced the quality of the two research questions. Taking the above into consideration below researcher discussing the findings and conclusions regarding each research question. 5.2 How can the benefits of E-CRM foe the banks be described? Researcher has found that banks have maintained good relationship with customers due to the usage of E-CRM by mainly providing good products and services according to the need of the customer. Banks are using e-mail to a very little extent in order to communicate with their customers and this is mainly due to the security and privacy reasons it was further founded in the banks havent been working on a large scale for using e-mail for communication to market their products and services. E-CRM has enabled both the banks to provide personalized services and one to one services to their customers both the bank have successfully implemented e-CRM in order to ensure efficiency and effectiveness in the service to its customers but these services are offered only at the request of the customers. Organizations have ensured and have taken enough measures to see that the latest and updated information is available through their websites. Websites have become their new and effective means of communication with the customers. Information about their products and services can be found very easily. With the implementation of e-CRM and the latest technologies banks have ensured full security for the transaction processed by their customers. Initially convincing them to use the online banking facilities was found to be a hard task. But banks have demonstrated their abilities for safe and secure transaction which resulted in customer making full usage of the online services.

Conclusion
The following conclusions are drawn from the above findings. - E-CRM enables financial institutions and organization to maintain relationship with customers.. - E-CRM facilitates the organization to provide personalized and one to one effective
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service. - The organizations have made it certain that latest and updated information is available in their organization website. - Latest techniques and measure and E-CRM were used to improve and maintain transaction security of the customers. 5.3 How can the benefits of E-CRM for banks customers be described Almost all of the customers considered customers interaction and satisfaction as an important benefits provide by the banks through the usage of E-CRM, they emphasized the importance of good response to the customer queries, providing assistance to the customers, exchange of business information and employees having excellent knowledge about the offerings and services of the bank. All the customer perceived convenience factor a vital benefit provided by E-CRM. All of the customer considered location of the bank, friendliness of the bank staff their services as important benefits for building good relationship. Most of the customers considered speed of processing transaction through e-response as an important benefit though few did not consider it as an important benefit. Speed of processing the transaction through eresponse was found to be an important advantage perceived by most of the customer. But few customers were found to have partially negative feeling towards the speed at which their transactions have been processed.Quality in the products and services of the bank is an important benefit perceived by the customer. Reliable employees of the organization responsive rate of bank personal availability of the latest information technology were found to be the most important determinant advantages perceived by the customers. Trust in the services all the customers in their respectful bank found activities of the organization. Confidence in the banks personal their effectiveness in handling the accounts of the customers were seen as some of the factors enhancing the trust factor of the customer. This is an essential benefit that improves customers relationship with the organization. Conclusions - Customer interaction and satisfaction is found to be an important benefit provided by Banks using E-CRM. - Convenience is a major benefit provided to the customer of the banks. - Speed at which the transactions have been processed and their rate of accuracy is an advantage provided by banks through the usage of E-CRM. - Reliable employees availabilities of the latest information technology were some of the added benefits provided by banks to its customers. - Trust in all overall services of the organization is an important benefit provided to the customers

5.4 RECOMMENDATIONS Banking CRM needs to improve

Banks are facing increased competition, credit crunch consolidation and a need to improve brand image, so you'd think that CRM would be a major priority, helping them to identify and retain profitable customers. And it is up to a point. According to a report commissioned by SAP and conducted by the European Financial Management and Marketing Association (EFMA), banks are moving towards a customer-centric approach, but it is proving to be a very slow process. More than half of banks in Europe and the Middle East claim to view customer-centric activities as a strategic differentiator and plan to invest in CRM technology,
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but also cite many challenges including price competition, pressure to lower operating costs, fragmentation of customer segments and channel proliferation. "In the current economic climate, it is more important than ever for banks to have as much insight as possible into the financial needs and behaviors of their customers and prospects "In recent months, SAP has experienced the investment banks are making in standardized software for their core processes," said Julian Johnson, senior vice president, industry business solutions, Global Field Operations, SAP."As the survey results support, a bank's customer-facing activities are now an integral part of its business and included in its criteria for selecting standardized software. The value this brings to a bank is seamless integration of its back-office functions, which will provide a true endto-end view of the customer." The report also found that CRM at a typical bank is driven by individual departments and is primarily a front-end process, rather than extended across the enterprise and that once implemented, banks have limited information to measure the success or otherwise of their CRM deployments. Respondents to the survey said that their CRM strategies are still primarily frontend focused and situated on old legacy systems that lack the flexibility and scalability needed to look across the enterprise and connect customers in different lines of business to each other. Martha Bennett, research director, financial services technology at Data monitor, said; "Providing a level of service that makes the client feel well-looked after and valued is as critical as the ability to offer the most optimal product at the right time. In order to achieve this, banks need to ensure that they have systems and processes in place that allow a view across distribution channels and avoid organizational silos.

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CHAPTER 6
REFERENCES
1. www.google.Com 2. www.wikipedia.Com 3. CRM in Banking edited by- V.V. Gopal 4. Effective CRM edited by- Braj Mohan Chaturvedi 5. E-MARKETING- The Emerging Trends ICFAI

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