TABLE OF CONTENT

S no. 1 2

Contents Customer Driven Growth of the ICICI Differentiation and Growth Focus on customer with companys CRM strategies

3 Sales management functionality of CRM in 4 5 ICICI Marketing management functionality of CRM in ICICI Customer service functionality of CRM in ICICI The benefits of implementing CRM in Business 7 8 9 Supporting Key Business Processes across enterprise Enhance business value through relationship marketing

Conclusions 10

Project Report on CRM Practices In ICICI Bank

Submitted toProf. Amit Kumar

Submitted byRohit Kumar

1. Customer Driven Growth of the ICICI :-

Growth Rate of ICICI

125. 00 100. 00 75. 00 50. 00 25. 00 2005 Ho u sin g Lo an s 2006 Cred it Card Au to Lo an s 2007 Oth ers

US$ bn 30% 88

114

40%
62

Robust growth in consumer credit in India Across product segments Growth to moderate to 12-15% due to the large base effect
Source: Reserve Bank of India
7

Consumer finance opportunity in India strong Strong consumption cycle Growing consuming class Rising incomes ICICI Bank identified retail banking as an opportunity for growth Focus on customer convenience Developing and leveraging technology channels Achieved market leadership in consumer finance in India

2. Differentiation and Growth (Distinguish your business) :-

Benchmarks/Results/RESULTS
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 customers precious time. Similarly, in the second table its 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.

3. Focus on customer with companys CRM strategies (customer focus strategies) :-

ICICI Banks consumer finance strategy

S t r o n g B r a n d
Multi product offerings Sound selling strategy Multi channel offerings Efficient operations The one stop financial shop Product differentiation

Aspirations
Pan-India provider of full suite of retail products

Leveraging corporate & channel relationships Focus on cross selling

Technology led delivery of products Superior service quality at optimum cost

Market leadership & Scale

The typical components of a CRM strategy at ICICI are as follows : 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 Customers Life Time Value (CLV). Develop and customize: - In a customer centric business environment, the products and processes have to be according to customers needs and preferences. ICICI has always focused on developing channels of service delivery according to customers need and service expectation.

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. 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.

4. Sales management functionality of CRM in ICICI :-

The sales functionalities of the CRM - Customer relationship management software are focused on helping the Sales team to execute and manage the presales process better and in an organized manner. Sales team is responsible for regularly capturing key customer interactions, any leads or opportunities they are working on etc, in CRM system. By organizing all the relevant data such as Prospective customer, expected budget, total spending, products interested in, expected closing date, Key players in the deal, important dates and milestones etc. regarding a prospective deal into one place, Opportunity Management of the CRM system helps by "Guiding" the Sales representative to carry out certain suggested activities for its various phases such as, initiation, identification, qualification, RFP received, quotation sent, final stage, won or lost. These recommendations are based on the company's sales policy. This is often referred as "Guided Sales Methodology". When opportunity management reaches a Quotation phase, a quotation is generated which if won gets converted into a sales order. The sales order then flow in to the Back end (ERP) system for further execution and Delivery.

As a result in the current scenario, CRM - Customer relationship management is the sine qua non in doing business. It constantly assesses performance with systematic feedback from the customer thus constantly renewing the organizations adaptability in the changing business environment. A modern CRM - Customer relationship management solution enables the business to manage the entire 9 yards of a customer lifecycle, from generating leads to closing sales and to providing superior support that results in additional business.

5. Marketing management functionality of CRM in ICICI :-

Marketing primarily deals with providing functionalities of Long term planning and Short term execution of marketing related Activities within an organization. For long term marketing plans, Quantitative as well as Qualitative measures (targets) can be set for a defined period and for different product groups which are then monitored based on the actual performance throughout the defined period.

Short Term execution includes running Marketing campaigns via different communication channels targeting a pre-defined group of potential buyers with a specific message referring to a product or a group of products.

One key objective of the Marketing function of the CRM - Customer relationship management software is to generate sales related leads, which finally get converted into Sales Revenues for the company. Lead management deals with processing these Leads, carrying out a sanity check, evaluating the genuineness of the information (Since, there is a lot of information that is gathered during Marketing Campaigns it becomes necessary to screen these leads), and finally converting them to Hot Leads or Cold Leads.

6. Customer service functionality of CRM in ICICI :-

Service related functionalities are focused on:

Effectively managing the customer service (Planned or Unplanned) Avoid "leakage" of Warranty based services Avoid "Penalties" arising due to Non conformity of SLA (Service Level Agreements) Provide first and Second Level support to Customers

Some of the service related functionalities can be:

Service Order Management Service Contract Management Planned Services management Warranty Management Installed Base (Equipment) Management SLA Management Resource Planning and Scheduling Knowledge Management (FAQs, How to guides) Call Center Support Resource Planning and Workforce Management

7. The benefits of implementing CRM in Business :-

Implementing a Technology - Based CRM Solution and Benefits Provide better CUSTOMER service. Increase CUSTOMER revenues. Increase CUSTOMER Lifecycle Value. Discover new CUSTOMERS. Cross Sell/Up Sell products more effectively. Help sales staff close deals faster. Make call centers more efficient. Simplify marketing and sales processes.

Many companies are turning to customer-relationship management systems to better understand customer wants and needs. Customer Relationship Management applications, used in conjunction with data warehousing, E commerce applications, and call centers, allow companies to gather and access information about customers' buying histories, preferences, complaints, and other data so they can better anticipate what customers will want and how to best retain them. The adoption of Customer Relationship Management is being fuelled by recognition that long-term relationships with customers are one of the most important assets of an organization, providing competitive advantage and improved profitability. IMPLEMENTATION OF THE RETAIL STRATEGY As part of plans, it is implementing various projects to establish world class CRM practices, which would provide an integrated view of its customers to everyone in the organization. CRM at ICICI involves increased communication between the virtual universal bank and its customers and prospects, as well as within the group itself. The underlying idea is to enhance every instance of contact with the customer. ICICI believes that a true customer centric relationship can only be accomplished by considering the unique perspectives of every single customer of the organization. Hence the pressing need to put in place a technology enabled CRM solution. Learning from customers and prospects, (having in depth knowledge of customer). Creating value for customers and prospects. Creating loyalty. Creating profits. Acquiring new customers.

Overall benefit some changes may have higher impacts on an organizations ability to increase customer value and loyalty.

8. Supporting Key Business Processes across enterprise :-

CRM

CRM

The bank has successfully leveraged the power of Finacle and has deployed the solution in the areas of core banking, consumer e-banking, corporate e-banking and CRM. With Finacle, ICICI Bank has also gained the flexibility to easily develop new products targeted at specific segments such as ICICI Bank Young Stars- a product targeting children, Women's Account addressing working women and Bank@campus targeting students. ICICI Bank is today recognized as a clear leader in the region and has won numerous accolades worldwide for its technology-driven initiatives. In 2003, the bank received the best multi-channel strategy award from The Banker magazine and this year it was rated as the 2nd best retail bank in Asia by The Asian Banker Journal. The bank has effectively used technology as a strategic differentiator, thus not only redefining the rules of banking in India, but also showcasing how technology can help in transforming a banks business. CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. Its philosophy focuses on each and every customers 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 crossselling.

9. Enhance business value through relationship marketing :The adoption of Customer Relationship Management is being fuelled by recognition that long-term relationships with customers are one of the most important assets of an organization, providing competitive advantage and improved profitability.

CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers & boost their business efficiency, thereby increasing profit and revenue generation capabilities. In most businesses, the cost of acquisition of customers is high. To make profits, it is important to keep the customer longer and sell him more products (cross sell, up sell, etc) to him, during his lifecycle. Customers stay, if they are provided with value, quality service and continuity. CRM solutions enables to do that. 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). 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. 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.

MAXIMIZING LIFE TIME VALUE Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.

INCREASE LOYALTY Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve.

10. Conclusions :Thus, we see that a focused and customer centric approach helped ICICI Bank become # 2 banks in India (till recently, as PNB has taken over it as the No 2 bank in India now). ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new generation private banks. It has invested a lot in ICT and spared no pains in giving best to the customers. Its multi-pronged approach towards managing customer relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India.

ICICI is focusing on customer convenience and developing and leveraging technology channels, because there is lots of growth in Indian market. The benchmarks set by ICICI are definitely of world class and clearly values customers precious time. Similarly, its evident that ICICI Bank and HDFC Bank have done very well compared to other banks in terms of CRM best practices. CRM also helped ICICI in valuation of its customers to understand customer profitability and Customers Life Time Value (CLV). The sales functionalities of the CRM - Customer relationship management software are focused on helping the Sales team to execute and manage the presales process better and in an organized manner. Sales team is responsible for regularly capturing key customer interactions, any leads or opportunities they are working on etc, in CRM system. One key objective of the Marketing function of the CRM is to generate sales related leads, which finally get converted into Sales Revenues for the company. There are many benefits of implementing CRM in ICICI, because it improves brand equity in the market. It provides better CUSTOMER service. It Increases CUSTOMER revenues, increases CUSTOMER Lifecycle Value. Discover new CUSTOMERS. It helps in Cross Sell/Up Sell of products more effectively. 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. CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers & boost their business efficiency, thereby increasing profit and revenue generation capabilities.

10. Bibliography :-

Mills, Josh 2001, CRM Overview, CRM Knowledge Base, Newell, Frederick 2000, loyalty.com: Customer Relationship Management in the New Era of Internet Marketing Blumberg, Donald 2003, CRM Strategy and its Relationship to Field Service and Support

www.icici.com