CHAPTER 1 INTRODUCTION

Human Resouce Management Human resource management (HRM, or simply HR) is the management process of an organization's workforce,or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizationalleadership and culture and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a trades union). HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such

aspayroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talentmanagement, successionplanning, industrial and labor and diversity and inclusion. In startup companies, HR's duties may be performed by trained professionals. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have created programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications. HR is also a field of research study that is popular within the fields of management and industrial/organizational psychology. In the current global work environment, all global companies are focused on retaining the talent and knowledge held by the workforce. All companies are focused on lowering the employee turnover and preserving knowledge. New hiring not only entails a high cost but also increases the risk of the newcomer not being able to replace the person who was working in that position before. HR departments also strive to offer benefits that will appeal to workers, thus reducing the risk of losing knowledge. relations,

The CRM strategy Setting up a successful CRM system in a company demands a vision covering the entire scope of operations starting at the highest organisational level. When we define the guidelines for future cooperation with customers, we need a strategy for achieving our goals. The CRM strategy takes into account the financial objectives and business strategy of the company and represents an upgrade of its marketing strategy. It determines how the company will create profitable relations with its customers and gain their loyalty. The strategic goals must be measurable by CRM metrics. The main focus of attention is not the product itself, but meeting your customers' needs and thus building their satisfaction and loyalty. This is the only way to ensure sustainable competitive advantages and long-term success in the market. However, the mere introduction of CRM technology does not make a company customer-oriented. The company also needs to change its frame of mind, culture, behaviour and organisational structure. In introducing a comprehensive CRM system, SRC offers support from a qualified team of business administration experts, rich experience and its own proven methodology.

Features of CRM Customer Relationship Management is a strategy which is customized by an organization to manage and administrate its customers and vendors in an efficient manner for achieving excellence in business. It is primarily entangled with following features:
1. Customers Needs

An organization can never assume what actually a customer needs. Hence it is extremely important to interview a customer about all the likes and dislikes so that the actual needs can be ascertained and prioritized. Without modulating the actual needs it is arduous to serve the customer effectively and maintain a long-term deal.
2. Customers Response

Customer response is the reaction by the organization to the queries and activities of the customer. Dealing with these queries intelligently is very important as small misunderstandings could convey unalike perceptions. Success totally depends on the understanding and interpreting these queries and then working out to provide the best solution. During this situation if the supplier wins to satisfy the customer by properly answering to his queries, he succeeds in explicating a professional and emotional relationship with him.

3. Customer Satisfaction

Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel customer expectation. In todays competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. Hence, the more is customer satisfaction; more is the business and the bonding with customer.
4. Customer Loyalty

Customer loyalty is the tendency of the customer to remain in business with a particular supplier and buy the products regularly. This is usually seen when a customer is very much satisfied by the supplier and re-visits the organization for business deals, or when he is tended towards re-buying a particular product or brand over times by that supplier. To continue the customer loyalty the most important aspect an organization should focus on is customer satisfaction. Hence, customer loyalty is an influencing aspect of CRM and is always crucial for business success.
5. Customer Retention

Customer retention is a strategic process to keep or retain the existing customers and not letting them to diverge or defect to other suppliers or organization for business. Usually a loyal customer is tended towards sticking to a particular brand or product as far as his basic needs continue to be properly fulfilled. He does not opt for taking a risk in going for a new product. More is the possibility to retain customers the more is the probability of net growth of business.
6. Customer Complaints

Always there exists a challenge for suppliers to deal with complaints raised by customers. Normally raising a complaint indicates the act of dissatisfaction of the customer. There can be several reasons for a customer to launch a complaint. A genuine reason can also exist due to which the customer is dissatisfied but sometimes complaints are launched due to some sort of misunderstanding in analyzing and interpreting the conditions of the deal provided by the supplier regarding any product or service. Handling these complaints to ultimate satisfaction of the customer is substantial for any organization and hence it is essential for them to have predefined set of process in CRM to deal with these complaints and efficiently resolve it in no time.

7. Customer Service

In an organization Customer Service is the process of delivering information and services regarding all the products and brands. Customer satisfaction depends on quality of service provided to him by the supplier. The organization has not only to elaborate and clarify the details of the services to be provided to the customer but also to abide with the conditions as well. If the quality and trend of service go beyond customers expectation, the organization is supposed to have a good business with customers. Importance of CRM 1. A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business. 2. CRM contains each and every bit of details of a customer, hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not. 3. In CRM system, customers are grouped according to different aspects according to the type of business they do or according to physical location and are allocated to different customer managers often called as account managers. This helps in focusing and concentrating on each and every customer separately. 4. A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system which is also called an Opportunity of Business. The Sales and Field representatives then try getting business out of these customers by sophistically following up with them and converting them into a winning deal. All this is very easily and efficiently done by an integrated CRM system. 5. The strongest aspect of Customer Relationship Management is that it is very cost-effective. The advantage of decently implemented CRM system is that there is very less need of paper and manual work which requires lesser staff to manage and lesser resources to deal with. The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business. 6. All the details in CRM system is kept centralized which is available anytime on fingertips. This reduces the process time and increases productivity. 7. Efficiently dealing with all the customers and providing them what they actually need increases the customer satisfaction. This increases the chance of getting more business which ultimately enhances turnover and profit.
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Characteristics of CRM
Customer Relationship Management includes the following characteristics: 1. Relationship management is a customer-oriented feature with service response based on customer input, one-to-one solutions to customers requirements, direct online communications with customer and customer service centers that help customers solve their questions. 2. Salesforce automation. This function can implement sales promotion analysis, automate tracking of a clients account history for repeated sales or future sales, and also oordinate sales, marketing, call centers, and retail outlets in order to realize the salesforce automation. 3. Use of technology. This feature is about following the technology trend and skills of value delivering using technology to make up-to-the-second customer data available. It applies data warehouse technology in order to aggregate transaction information, to merge the information with CRM solutions, and to provide KPI (key performance indicators). 4. Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a goodforecasting model to integrate sales history with sales projection.

Tips for CRM Success 1. Strategy first, technology second Business experts agree that CRM projects go off track when companies buy technology before they have their CRM business goals clearly in mind. The first step is to develop a strategy that addresses the needs of current and potential customers. Consider the lifecycle value of customers, taking into account different groups of customers, and which ones are likely to yield the highest returns over the long run. Then select the technology and vendors to help capture customer data and external sources, and consolidate the information to add intelligence to the overall CRM strategy. Iron out the organizational and people issues so that companies must overcome such issues before a systems that ties analysis and action can be fully effective. For example, marketing staffs and salespeople dont always communicate well, let alone share data. This is particularly true in the traditional insurance industry where independent brokers represent more than one companys insurance products. Marketing, sales, and service must work as a team and share information. In order to facilitate sharing information, the business users (not just management) must realize benefits to them before they adopt and advocate shared information via any software system.

2. Develop the right contact strategy By knowing which offers and incentives to offer to which customers and when, an organization wont over market to customers and it will build loyalty and retention. Such goals can be at least as important as realizing cross-sell opportunities. 3. Integrate, analyze, and refine data Using the derived knowledge of the customer, various strategies, such as one-to-one mass marketing, have the potential to enable improved business and financial planning. First, collect and consolidate customer-related data from the customer touch points, current accounts, non-account internal information, and external data sources. Next, integrate analysis across all customer touch points and from additional customer profiling data measuring customer profitability, customer segmentation, and customer retention. Finally, once knowledge is gained from data integration and analysis, refine and focus business processes and organizational structures based on improved customer understanding. 4. Change accounts into customers The traditional approach in many organizations has been to associate their customers with accounts to the point of calling the account the customer and vice versa. Customers feel when they are treated like a number instead of a person with personal needs and a history. A conventional account structure usually contains very little information and recommendations about the people, their needs, and relationships to other people and organizations in the marketplace. 5. Build customer loyalty by offering excellent service In a competitive marketplace where price is not a differentiator, customers are easily lost through indifferent service. It can be as simple as not calling a customer back when promised, through to delivering an inferior product without prompt rectification. Investment in a CRM system that tracks customer interactions with the business and facilitates automating business processes (workflow management) will lead to service excellence, paying dividends in higher customer retention levels. 6. Improve profitability by matching channel cost to customer value. Today, more than ever, it is important to identify the profitable customers of a company, and to retain and grow them. This will be achieved by regularly re-evaluating the profitability of all customers typically done by intensive analysis of information in a data warehouse and feeding back the revised profitability indices to business users of a CRM system. A practical outcome of this exercise can be priority call routing in call centers, where profitable customers get preferential treatment.
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7. Streamline customer communications A CRM system can help identify situations where multiple bills or marketing materials are sent to the same physical location or postal address. This usually indicates that the systems performing these functions all contain their own sources of customer information. Consolidation of this information will reduce billing and marketing costs and enhance customer relationships by streamlining communications. 8. Provide security and privacy Customers demands for security and privacy are increasing. Therefore, it is essential to develop an authentication mechanism that provides security and password protection. Developing a consumer household view rather than an account view is important, but consumer privacy demands that the CRM system enable household constituents to opt-out and not receive solicitations that other members may choose to subscribe to or opt-in.

Tools and Process for CRM

Customer application forms Centralized software where the whole data is collected Wide range of offerings Cross selling Feedback forms

Components of CRM
Customer Information Sales Marketing Trends Marketing Efficiency

CHAPTER 2 CUSTOMER RELATIONSHIP MANAGEMENT IN PRIVATE SECTOR BANKS

CRM Objectives in Banking Sector The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues.It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. Solid CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. Over the last few decades, technical evolution has highly affected the banking industry. For more than 200 years, banks were using branch based operations. Since the 1980s, things have been really changing with the advent of multiple technologies and applications. Different organisations got affected from this revolution; the banking industry is one of it. In this technology revolution, technology based remote access delivery channels and payment systems surfaced. ATM displaced cashier tellers, telephone represented by call centers replaced the bank branch, internet replaced the mail, credit cards and electronic cash replaced traditional cash transactions, and interactive television will replace face-to-face transactions. In recent years, banks have moved towards marketing orientation and the adoption of relationship banking principles. The key motivators for embracing marketing principles were the competitive pressure that arose from the deregulation of the financial services market particularly in India.

This essentially exposed clearing banks and the retail banking market to increased competition and led to a blurring of boundaries in many traditional product markets (Durkin, 2004). The bank would need a complete view of its customers across the various systems that contain their data. If the bank could track customer behaviour, executives can have a better understanding, a predicative future behaviour and customer preferences. The data and applications can help the bank to manage its customer relationship to continue to grow and evolve. According to Stone et al. (2002) most sectors of the financial services industry are trying to use CRM techniques to achieve a variety of outcomes. In the area of strategy, they are trying to: Create consumer-centric culture and organisation; Secure customer relationships; Maximize customer profitability; Integrate communications and supplier customer interactions across channels; Identify sales prospects and opportunities; Support cross and up-selling initiatives; Manage customer value by developing propositions aimed at different customer segments; Support channel management, pricing and migration. CRM is a sound business strategy to identify the banks most profitable customers and prospects, and devotes time and attention to expanding account relationship with those customers through individualised marketing, reprising, discretionary decision making, and customised service through the various sales channels that the bank uses. Any financial institution seeking to adopt a customer relationship model should consider six key business requirements they are:

1. Create a customer-focused organisation and infrastructure. 2. Gaining accurate picture of customer categories. 3. Assess the lifetime value of customers. 4. Maximise the profitability of each customer relationship. 5. Understand how to attract and keep the best customers. 6. Maximise rate of return on marketing campaigns.

CRM is developing into a major element of corporate strategy for many organisations. A greater focus on CRM is the only way the banking industry can protect its market share and boost growth. With intensifying competition, declining market share, deregulations, smarter and more demanding customers, there is competition between the banks to attain a competitive advantage over one another or for sustaining the survival in competition. In India, the banking sector has been operating in a very stable environment from last thirty -forty years. In current scenario of banking sector, the falling of interest rates and tough competition between these players had made Indian bankers to realise that the purpose of their business is to create and retain a customer and to see that the entire business process is consistent with an integrated effort to discover, retain and satisfy customer needs. But the success of' CRM Strategy depends upon its ability to understand the needs of the customer and to integrate them with the organisation's strategy, people, technology andbusiness process. Financial services are in a structural change whereby competition and customer demands are increasing.

Utility of CRM in Banks CRM primarily caters to all interactions with the customers or potential customers, across multiple touch points including the Internet. bank branch, call center. 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 multi-channel 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 thc functioning of the bank.

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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. 5. Personalized sales home page CRM can provide a single view where Sales Mangers and agents can get all the most up-todate information in one place. including opportunity, account, news, and expense report information. This would make sales decision fast and consistent. 6. Contact Center It enables customer service agent to provide uniform service across multiple channels such as phone. Internet. email. Fax. 7. 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 8. Activity Management It helps managers to assign and track the activities of various members.Thus improved transperancy leads to improved efficiency. 9. Operational Inefficiency Removal CRM can help in Strategy Formulation to eliminate current operational inefficiencies. An effective CRM solution supports all channels of customer interaction including telephone, fax, e-mail, the online portals, wireless devices. ATMs. and face-to-face contacts with bank personnel. It also links these customer touch points to an operations center and connects the operations center with the relevant internal and external business partners.
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10. Enhanced Productivity CRM can help in enhanced productivity of customers,partners and employees. 11. CRM with Business Intelligence Banks need to analyze the performance of customer relationships, uncover trends in customer behavior, and understand the true business value of their customers. CRM with business intelligence allows banks to assi.ss customer segments, which help them calculate the net present value (NPV) of a customer segment over a given period to derive customer lifetime value. Customers can be evaluated within a scoring framework. Combining the behavior key figure and frequency to monetary acquisition analysis with a marketing revenue quota can optimize acquisition costs and cut the number of inefficient activities. With such knowledge, banks can efficiently allocate resources to the most profitable customers and reengincer the unprofitable ones. Data warehousing solutions have been implemented in Citibank. Reserve Bank of India. State Bank of India. IDBI. ICICI. MaxTouch, ACC, National Stock Exchange and PepsiCo. And Business Intelligence players hope many more will follow suit. Challenges of Implementing CRM The challenges faced by many of the banks whilst implementing CRM can be summarized as the followings: Getting management sponsorship Quality of customer data Alignment issue (Alignment of people and processes) Lack of skilled people Determining the right time for customer needs Using customer data more intelligently Incorporating customer data and customer preferences to the customer data base Real time data cross all customer channels Having 360- degree view of customers (Single view of customers)

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The retail banking market is fiercely competitive and saturated.The competition is forcing banks to find new ways of satisfying customers and quick adaptation to changes. The competition among the banks itself is also very major domestic players on the arena. Banks are aware of this fact and exploit new trends to continue their existence in the market. CRM is one of these trends that are highly adopted by many banks. The satisfaction level of customers who agree that they are treated as a valued customer is the measuring part for CRM's success in the bank. This could be attributed to the distinctive communication capabilities, which target to establish an emotional link with the customer. This is highly related with organizational learning philosophy and adaptive culture of the banks. Application of CRM in Banking Sector Based on the discussions made above, appropriate and effective application strategies of CRM are given to improve bank's competitive position in the market. Changing Mindsets: Customer Centric, Adaptive, Innovative Culture Any bank's long heritage brings rigid and conservation mindsets together which makes the change adaptation difficult, which is essential for CRM as mentioned in the "Critical Success Factors of CRM" part. Although this rigidity seems to be decreasing, a mindset change is needed for the bank. The rigidity of management and the conservative hierarchical organization structures decrease the speed of CRM implementations and operation in banks. Banks can use any other good bank which is implementing CRM as benchmarks, which have more flexible and innovative cultures and where organizational structure is flatter. The charge of mindsets must start from the management level and continue to the all the level of the organization with the support of management. At this point a paradigm shift is needed which can be summarized as follows: A customer centric and relationship-oriented culture must be adopted instead of operation centric and sales oriented culture. Management's attitude to employee must be proactive instead of being reactive; instead of employee compliance, continuous improvement must be supported. Training culture must be improved to organization learning philosophy where self-learning is supported.

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 Employee must be empowered in order to carry on their responsibilities faster and efficiently. Teamwork and coaching must be developed, instead of individuation. Measurement basis must be objective, fair and transparent. Employee must be motivated by rewards and supportive attitude of their managers. Leaders play an important role in this change process. So that banks can invest in experienced professionals with leadership skill, which can influence the organization to encourage and convince for change. Banks also must consider employee career development and leadership training. They can overcome the problem of absence of skilled people regarding with CRM by training employee with the help of leadership coaching. Mission statement of bank must be revised and statements that are stressing the customer focused, innovative culture must be put in place. This focus must be supported with in-house training and the message should be clearly passed down to each level in the organization to ensure solid commitments. Organizational Learning Philosophy Organizational learning is more than providing training sessions to employees when it is needed; it is a philosophy. Banks must introduce organizational learning philosophy to nurture new and expansive patterns of thinking where innovative thinking is supported. Organizational learning philosophy consists of a fast adaptive culture, which is an important core competence for today's banking industry. Leadership coaching can help in adaptation process. Also e-leanings about technical and non-technical issues can be provided via intranet connection of Banks. Banks can exploit organizational learning philosophy while implementing its CRM strategies employees and customers are the end user of CRM strategies and implementations, so that it can capitalize on their feedbacks, expectations, satisfaction and dissatisfaction points to improve its strategies and implementations. Banks can conduct regular discussion sessions with employee and customers. New products, services of the bank can be shared and customers' offering for better products and services than its competitor can be learned customers' further expectations can be sought which would be crucial for further product and service design. This help bank to understand needs of customer's factor competitors, which result with innovative product and services. This is also an important way to explore and rectifies problems face by users quickly, which paves the way for operational excellence and customer intimacy. All these mindset changes will help banks to overcome the alignment problems, alignment of people and processes, which are obstacle in the CRM success.
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Building Brand Image If banks seem to have an introverted culture; it must adopt a more extroverted culture to promote its brand. This needs a change in mindsets from management level to employees level. By using CRM, it can build strong relationships with customers. The successful service excellence and customer intimacy strategies can result with good word of mouth which is the most effective way of advertisement.Employees can play a critical role in building a strong brand. Banks must equip its employee with necessary mindsets and skill so that they will play as an ambassador role in promoting brand identity. Banks have some CRM capabilities that the order banks don't have so it must promote its superior capabilities better a build a strong brand. They can use more advertisements on TV, newspapers, and magazines, Internet etc. By using CRM capabilities, banks can find out customers' needs and expectations faster than rivals and accordingly can launch innovative products and services. Innovative products attract new customers and promote brand as a pioneer in the market. Re-Integration of Operational Analytical and Collaborative CRM Although many banks have very high analytical CRM capabilities, they have deficiencies in operational and collaborative CRM. So banks can overcome the challenge of insufficient quality of customer data by using an integrated CRM system and interacted channel management. To enhance its operational CRM, bank should adopt the mindset changes to equip its sales force with necessary mindset and skill to integrate them to new processes. To improve customer service automation and collaborative CRM capabilities, banks should use an "Interacted channel management" Online banking is very crucial for today' bank's customers. So banks should direct its customers of online channels, which reduce cost and increase speed of transactions for both parties. It will also ease the tracking of customer information. Various systems such as web-chat and call back services to its communication channels add value to CRM. Also, banks must develop its telephone banking. And all channels must be integrated with each other. Effective Use of ATMs ATMs are very important for the bank choice of people. Banks have to capitalize on their ATMs better by expanding their branch network, locating ATMs into strategic points where they can each more people. With new ATMs in existence, customers can update their information, which is a strategic way to improve customer data. As it is a new service. Introduction brochures must be placed near ATMs, explaining their use and also a demo may be put into web site, which shows which transactions can be done by ATMs and may show all the ATM transactions step by step. So that customer feels more confident when they first use it. Because people are afraid to their bankcards might get caught in the ATMs because of any misuse.
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The use of Customer Relationship Management (CRM) in banking has been essentially done for the following purposes:
1.

Targeting customers: It is necessary for banks to identify potential customers for approaching them with suitable

offers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. For example, a customer interacts with the banks for savings accounts, credit cards, home loans, car loans, demat accounts, etc. the data generated through all these services needs to be integrated to enable effective targeting. After the integration is done, a profitability analysis of the customer needs to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers.
2.

Sales reference material A consolidated information database on all products, pricing, competitor information, sales

presentations, proposal templates and marketing collateral should be accessible to all the people concerned. These prove to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instantaneous access to all relevant material as and when it is required (especially when he/she is in a meeting with a client.)
3.

Consistent interface with customers The communication to customers from various departments like sales, finance, customer

support, etc. should be consistent and not contradictory. Therefore, all departments should be privy to a unified view of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal co-ordination. This is bound to enhance customer satisfaction. The contact centres used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, e-mail, fax, etc.

Banks can use the data on customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine value for that segment. Accordingly, suitable campaigns can be designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and upselling.

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Customer Relationship Management at ICICI Bank

ICICI was set up as a development bank to provide products and services for the corporate segment.It diversified into the retail segment of the financial markets in the early 1990s while transforming itself into a technology intensive financial service group.In the mid-nineties,ICICI raised debt from the retail market.Since then it has been trying to increase its reach to this segment by mobilizing resources and offering services through ICICI Infotech Services,a subsidiary of ICICI.In 1994,it established ICICI Bank as a commercial bank that is flexible,innovative and prompt in meeting customer requirements.It also offers other retail initiatives such as personal services,capital services,Web trade,life insurance and other services.

Emphasizing on the importance of CRM one of the ICICI employees said, "With the overall improvement in the ETL process made possible by Power Center, we benefited from greater data immediacy for business users and more reliable information, which resulted in quicker analysis and timely reporting."-Mr. K Ashish Senior General Manager.

CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. Its philosophy focuses on each and every customer's satisfaction.CRM facilitated coordination of multiple business functions & multiple channel of communication with the customers to carry out customer management more efficiently. It also automated the process flow tracking in the product sales process and helped generate customized reports and promote cross-selling.

History of CRM at ICICI Bank

Implemented in 1995 Most important initiative for compelling success of bank Helps in sales, customer services and analytics Crossing selling of home loans, insurance policies, credit cards and personal loans Customer requests-1,50,000 per day Collaboration with Teradata Customers-Account Checking,FDs and Credit Cards More than 1200 parameters connected Bank-data detection,data cleansing,data preparation

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Components of CRM at ICICI bank

1. Understand and differentiate Understanding customers is important in order to develop a sound relationship with them.Customer profiling is done in order to understand demographics,purchase pattern and channel preference.CRM also helped ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV). 2. Develop and Customize In a customer centric business environment,the products and processes have to be according to customers needs an d preferences.ICICI has always focused on developing channels of service delivery according to customers need and service expectation.
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3. Interact and Deliver To foster a strong customer relationship ICICI ensured that all areas of the bank have easy access to relevant,actionable customer information and employees should be trained on how to use customer information to tailor interactions based on both customer needs and potential customer value. 4. Acquire and Retain CRM helped ICICI to figure out valuable customers and made it easy to formulate retention strategies for them.It also helped it cope up with the change in customers life cycle and offer services accordingly.

IMPLEMENTING CRM AT ICICI BANK The key to implementing CRM was in understanding organization and customers in a better way. There are five interrelated areas that were taken care of before implementing CRM:

Business Focus Organizational Structure Business Metrics Marketing Focus and Technology

Business Focus There are various components of CRM like customer information,sales,marketing trends and maketing efficiency that acted in tandem to improve relationship between ICICI and its customers.A CRM solution from Siebel was implemented for the automation of customer handilng in all key retail products of the group.The solution allows customer service agents to track all customer complaints and requests.It also allows target setting and centralized tracking of turnaround times for request fulfillment.The solution went live in phases during fiscal 2002.The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office.This central view of the total customer relationship is being used extensively for identying opportunities to cross-sell new products and services to the existing customer base.

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Technology Focus ICICI Bank continues to leverage ICT as a strategic tool for its business operations to gain competitive advantage.Its technology strategy emphasizes level of customer services through 24*7 avalability,multi-channel banking and straight through processing, and cost efficiency through optimal use of electronic channels, wider and focused market reach and opportunities for cross-selling. The Technology Management Group (MG) is the focal point fur the ICICI Group's technology strategy and Group-wide technology initiatives

A key to ICICI's success has been its ability to harness business information to CRM initiatives that have fueled growth and helped attract more than 30 million customers. The foundation for ICICI Bank's wide-ranging CRM programs is a Sybase IQ-based data warehouse. Developers had used a combination of PL/SQL and BTEQ scripting, a proprietary technology specific to the data warehouse, for data extraction, transformation, and loading (ETL). With its growing customer base, IT administrators recognized that the bank needed a more powerful, sophisticated data integration system to help ensure the warehouse lived up to its potential as an analytic CRM engine that delivered tangible bottom-line results.

To step up to the next level of data integration, ICICI Bank officials agreed with a recommendation from Teradata's professional services division, which provided systems integration support for the data warehouse, to implement the Informatica PowerCenter enterprise data integration platform. (The Bank initially used Teradata as its data warehouse platform and migrated to Sybase IQ a year ago.)

ICICI Bank deployed PowerCenter in 2003 as it embarked on the next phase of its warehouse, which would add data from five new sources, in addition to the initial three sources of retail banking, credit cards, and securities information.

The next step in the CRM implementation process was gap analysis which essentially is assessing different loopholes in: 1. Marketing,sales and service practices 2. Collection,capture,processing and deployment of customer information 3. Distribution and operations effectiveness at customer touch points.

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ICICI Banks CRM Initiatives ICICI Bank has to manage more than 13 million customers. The bank has over 550 branches, a network of 2025 ATMs, multiple call centres, Internet banking and mobile banking. Its customers often use multiple channels, and they are increasingly turning to electronic banking options. Business from the Internet. ATMs and other electronic channels now comprises more than 50 per cent of all transactions.In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers.

The Teradata solution focuses on a Customer Relationship Management (CRM) platform. Information from various legacy and transaction systems is fed into a single enterprise called wide data warehouse. This allows the bank to generate a single view of its customers. The warehouse has the capability to integrate data from multiple sources comprising Oracle and flat files. The Behaviour Explorer enables profiling of customers and querying on various parameters. These enable the bank staff create suitable campaigns for targeting individual customers on the basis of their requirements. The logistics in the system have also led to other benefits like interactive reports, unearthing cross-selling opportunities as well as finding out about the channel usage undertaken by a segment. The data access was facilitated through the use of Cognos Power Cubes.

The Benefits of CRM

1.

Customers usage pattern ICICIs CRM data warehouse integrates data from multiple sources and enables users to find

out about the customers various transactions pertaining to savings accounts, credit cards, fixed deposits, etc. The warehouse also gives indications regarding the customers channel usage.
2.

New product development Analysis at ICICI guide product development and marketing campaigns through Behaviour

Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customers needs and desires, enabling the bank to satisfy customers through better personalization and customization of services.
3.

Central data management The initial implementation of CRM allowed ICICI to analyse its customer database, which

includes information from eight separate operations systems including retail banking, bonds, fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM.
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Telephonic Interview with an employee

Shibin: Good evening Mr. Jose Paul,I am Shibin Jose: Good evening Shibin. Shibin: Is it the right time to talk? I need your help regarding CRM Processes at ICICI. Mr. Jose : Sure Shibin, Tell me how can I help you? Shibin: Can you just brief me regarding CRM process of ICICI bank? Mr. Jose: CRM at ICICI is an extensive process which involves communication with existing customers and prospective customers. There are multiple channels through which we communicate with customers to carry out customer management process. We use different softwares to carry out these process. Shibin: I have also heard that ICICI Bank is the number one bank in India in customer relationship management.What is ICICI doing different than other banks? Mr. Jose: We use latest software to understand our customers, their demographics and needs. We try to provide them customized products as per their requirements. You must be aware of different credit card schemes provided by us to customers. Shibin: CRM is the activity done at various levels of the organization, how does ICICI implement it? Mr. Jose: Implementation part is done by Top management and I am not aware of the whole process. I can just tell you that "GAP analysis "is done before we embark on CRM implementation. Shibin: Thank you very much Mr. Jose. Mr. Jose: You're welcome Shibin. Feel free to contact if you need further assistance. Have a nice day. Reference: Mr. Jose Paul (Branch Manager-Kerala,Adimaly Branch) josepaul@gmail.com ICICI Bank Limited Kerala Adimaly PIN:685561 Mob:09946612475
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Time Norms for various Banking Transactions

In the first table, we can see that the benchmarks set by ICICI are definitely of world class and clearly values customer's precious time. Similarly, in the second table it's evident that ICICI Bank and HDFC Bank have done very well compared to other banks in terms of CRM best practices. Moreover, the standard deviation is also very less compared to most of the other banks. Clearly this has helped ICICI bank acquire a large customer base (about 30 million) in a short span of time.
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Develop and Customize In a customer-focused world,product and channel development has to follow the customers wants,determine the value and desire of the customer etc. O r g a n i z a t i o n s a r e i n c r e a s i n g l y d e v e l o p i n g p r o d u c t s a n d s e r v i c e s , a n d e v e n n e w c h a n n e l s based on customer needs and service expectations. I C I C I b e l i e v e s t h a t t h e e x t e n t o f c u s t o m i z a t i o n should be based on the potential value delivered by the customer segment.

Interact and Deliver To foster relationships,oranisation need to ensure that 1. All areas of organization has easy access to relevant,actionable customer information. 2. All areas are trained how to use customer information to tailor interactions based on both customer needs potential value. ICICI is strongly of the opinion that value is not just based on the price of the product or the discount offered but are based on a number of factors including the quality of products and services,convenience,speed,ease of use,responsiveness and service excellence.

Acquire and Retain The more the ICICI learns about customers,the easy it is to pinpoint those that are producing greatest value for the organization.They aim to continue to learn more about each customer segment and use it for successful customer retention.As ICICI moves step further in CRM they hopes to gain insight and understanding that enchance the susbsequent efforts.The organization shall become increasingly sophisticated in the implementation of CRM processes and over a period of time shall become increasingly profitable by doing so.

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Some of the selected customers were asked to rate the banks as per the criteria given.The rating scale was from 1 to 10.Following chart represents the average of all the rates of the respondents.And the traits are given below: Services provided Safety and Security Satisfaction CRM Convenience

From the above graph we can come to a conclusion that CRM in ICICI is more than SBI and AXIS. Suggestions 1. More security as far as use of ATM card and Credit card is concerned 2. Educate more customers about the various services available and how to use them.
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Some Noteworthy CRM Initiatives of ICICI Bank

Mobile ATMs Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings.

Bulk Deposits The ICICI Banks Bulk Deposit ATMs enable customers to deposit large amounts at one time. Unlike conventional ATMs, which are able to accept only 30 notes at a time, these ATMs allow the deposit of huge amounts. The Bulk Deposit ATM is available in Mumbais Vashi sector branch office of ICICI. The bulk deposit facility can be availed of by select customers who need to deposit huge amounts of cash. ICICI Bank issues a special card called the `Deposit Only Card to facilitate this service. This card allows for deposit transactions only. The service is further facilitated by the provision of special bags at ATMs in which a customer can put his money. After the deposit slip is filled, the bag can be inserted in the ATM. The transaction slip is then generated by the ATM as an acknowledgement of the deposit. ICICI Bank also has cash pick-up service for business customers under the business banking segment.

ATMs for the visually challenged ICICI Bank has launched ATMs with special voice-guided systems, which guide a visually challenged person to access ATMs without any help. The jack on the terminal enables headphones to be connected to it and voice commands enable the customer to transact business. Customers may choose a suitable language to get voice commands. After the language selection is done, the customer is guided to ensure that the ATM card is inserted in the right slot and thereafter, guidance is provided for entering the PIN by using the keypad. A raised button is provided on number 5 to enable users to identify the numbers easily through touch. The slot for cash collection has such raised `pips that enable easy identification through touch.

Social Events ICICI Bank organized the largest domestic invitational amateur golf event for HN1 (high-net-worth individuals) customers. This nation-wide golf tournament had over one lakh high-net-worth clients of ICICI Banks private banking division participating in the event.
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Other Services through ATMs Apart from the usual transactions involving the bank, some other services can also be availed of by ICICI Bank customers. These include: Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Internet service provider and Sify). Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine. Mutual fund transactions, andBill payments

Mobile phone as a Virtual Wallet The mobile phone has been transformed into a virtual wallet a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq a revolutionary new service which is a credit card using the mobile phone. This is the first mobile-tomobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase and also the problems associated with the point of sale (POS) terminal since the mobile phone services as a secure POS and a payment mechanism.

Mobile Banking Benefits Mobile banking enables the customer to avail of many facilities by just sending an SMS. These facilities, which are currently offered free of cost, are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account

Call Centre To facilitate CRM,the bank has an effective call centre to support.So for most of the banking requirements and for almost all types of customer complaints,customer are only required to call to the call centre of the bank and the rest is the banks job.
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Grievence -handling Mechanism The different grievance handling mechanism are given as follows:

1. Bank's SIEBEL software effectively takes care of customer's queries and complaints. The software automatically records the complaints and forwards it to the person concerned. If the complaint is not redressed within the set turn around lime (TAT),the matter reaches to the person up in hierarchy. 2. The bank realized that greater attention to customer problems, query and complaint should he segregated. Earlier, every teller was handling queries and complaints. This resulted in lack of control over activity and at times it was difficult to trace who received complaint and who redressed it. Ii was also felt by the bank that its segregation would clearly demarcate this activity and would help in identifying those responsible for redressal within the set TAT .

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

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Technological Initiatives for CRM

SIEBEL Software To accomplish the objectives through specific software,ICICI bank has rolled out Customer Relationship Management software,SIEBEL.The customer touches the bank from a number of channels,namely call centre,bank branch,ICICI call centre,ATM,web and SMS.SIEBEL provides a common platform so as to have an integrated single view of the end customer across product lines and channels.To begin with,it will automate process-flow tracking in the product-sales process and enable to generate customized reports and promote cross-selling.It will also help efficient campaign management by providing a software interface for definition,tracking,execution and analysis of campaigns.Similarly,even the customer service and support function has well-defined processes depending on the nature and the type of query and complaints.SIEBEL primarily addresses the following points:

1. Complaint and query management SIEBEL addresses complaints in a systematic manner. Any case requiring the authorisation of an officer automatically goes to the officer's mailbox and moves forward only after his approval. Service requests (SRs) and complaints can be routed to the respective departments through an inbuilt escalation matrix, which means. if

Sits/complaints are not resolved within the prescribed turn-around time (TAT), it will get escalated to the higher levels in the hierarchy. This, in turn, ensures effective control and redressal of complaints.

2. Customer retention The software enables the branch head to know exactly when and which account is showing any abmpt behaviour. He/she can then know its reason and ultimately check his/her detachment from the bank.

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3. Cross-selling and up-selling The software can be used for cross-selling and up-selling purpose:. In the above illustration, if the branch head comes to know that a particular customer has withdrawn significant money from his account for purpose of some investment, it can immediately ask his sales teant to reach the customer and offer the investment avenues that the bank has such as fixed deposit schemes, hond.s, and insurances. If the customer intends to purchase a property or car, the sales team may even pursue for their own home or auto loans.

4. Customer contact management SIEBEL enables the bank to record complete profile. and contact history of its customers. It also helps in greeting the customer at various occasions such as birthday, wedding day, and insurance premium submission date. These help the bank in inducing personal touch with the customers.

5. Sales force automation SIEBEL endeavours to track all banking accounts-related opportunities from the point a prospect expresses interest in the product till the sales process gets logically closed. It even calculates incentive compensation for the outbound sales team (OBST),

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CHAPTER 3 RESEARCH METHODOLOGY, SUMMARY AND CONCLUSION

3.0 Research Methodology

SECONDARY METHOD: Secondary data means data that are already available i.e. they refer to the data which have already been collected and analyzed by someone else. Published secondary data was used to get an overall idea about the growth in insurance sector after globalization with the help of sources like:

Books Websites

Secondary research or desk research is so called because it is usually concerned with the use of secondary data or information that is already available. This means such data have already been collected and analyzed someone else. Such information has not been gathered afresh specifically for any research project. This information is inclusive of wide range of material Book, Magazines, Websites and Newspaper by commercial market research agencies.

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3.1 SUMMARY OF THE STUDY:

According to the study conducted on customer relationship management in private sector bank with reference to ICICI bank its understood that it is need of an hour and no business may be it is banking business; retailing or something else can ever survive without proper introductionof CRM. This study strongly supports the connection that consumer were more satisfied with professional service provider who engaged in both courteous expressions and personal connections forms of sociality. Moreover, finding revealed that regardless of services context customers expect service provider to be courteous usually ,most conversation begin or endwith a courtesy expression and includes some form of personal connection content. The important point is that sociality communication can play a pivotal role in moving the provider and consumer for mere encounters to higher degree of relational development.

3.2 CONCLUSIONS
The general discussion can be said that the bank is yet to develop an integrative approach which focuses on the customer needs and to deliver to it. As shown by the study, the bank is farfrom developing a customer centric approach both for the customer as well as for the employees.Thus, for customer relationship management to deliver to its expectations, it should play anintegrative role within the bank and ensure that all processes are integrated in the bank globalstrategy, which is far from reality in the study above. In view of this, to implement a CRMintegration strategy, the following recommendations can be adopted:

1. The Indian Banking Sector is flooded with different banks of the same molecule. In such a competitive environment, the Banks should adopt suitable marketing skills rather than depending on the trading skills. Hence, new services should be constantly introduced to ensure the growth of the Banks and to be competitive in the market and to keep up the enthusiasm of the employees and customers etc. 2. Implement a Customer Centric Process in Banks. 3. Employee Relationship Management first before Customer Relationship Management. 4. Increase customer experience through the web site.
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5. Develop channel integration for effective Customer Relationship Management.

6. Proper training should be given to the bank personnel regarding the behavioral patterns by the Banks they come and work in the field.

7. More importance should be given to handling online transaction and using mcommerce and mobile banking services. 8. It should be realised that customer relation cannot be built overnight. CRM should be considered as Continuous Relationship Management. 9. Data gathered from the customers should be given proper value and it should be properly utilised Decision making authority should be extended to field force and some resources should be given For faster implementation. 10. The Banking sector is developing and getting higher day by day in urban and semi urban areas;there is large number of customers using the services in the urban and semi urban areas. So a wide scope rural areas is expected in future.

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APPENDICES

ABBREVIATIONS USED IN THE PROJECT:

CRM:Customer Relationship Management KPI:Key Performance Indicators ATM:Automated Teller Machine NPV:Net Present Value ICICI:Industrial Credit and Investment Corporation of India CLV:Customer LifeTime Value ETL:Extraction Transformation and Loading MG:Management Group HDFC:Housing Development Finance Corporation UTI:Unit Trust of India

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BIBLIOGRAPHY

REFERENCES BOOKS 1. CRM in banking-V.V Gopal 2. Understanding CRM-R.S Prasad

WEBLIOGRAPHY www.issu.com www.mbaknol.com www.managementstudyguide.com

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