REPORT - Gnanasambandam 04VWCM6024

A
DISSERTATION REPORT
On
“A Study of End-user satisfaction of CRM systems in banking

sector”
Submitted in partial fulfilment of the degree of Master of Business

Administration of Bangalore University
Submitted By,
K.GNANASAMBANDAM
Reg. No – 04VWCM6024
Under the guidance of

Prof. Rathnakar Acharya,
Alliance Business Academy,
Bangalore.
ALLIANCE BUSINESS ACADEMY

BANGALORE - 560076
(Batch: 2004-06)
DECLARATION
I, K. Gnanasambandam, studying in Alliance Business Academy, Bangalore do

hereby declare that this Dissertation Report - “A Study of End-user satisfaction of
CRM systems in banking sector” is an original research work carried out by me, as
part of the requirements of the MBA Program of Bangalore University (Batch of 2004
– 2006).
My guide for the Dissertation work has been Prof. Rathnakar Acharya.
I further declare that this dissertation report has not been submitted earlier to any
other University or Institute for the award of any Degree or Diploma.
Date: K. GNANASAMBANDAM
Place: Bangalore Reg. No 04VWCM6024
ALLIANCE BUSINESS ACADEMY
CERTIFICATE
I, Prof. Rathnakar Acharya, hereby certify that this dissertation report

titled “A Study of End-user satisfaction of CRM systems in banking
sector” has been successfully carried out by K.Gnanasambandam with
Registration number – 04VWCM6024 under my supervision and
guidance.
Place: Bangalore
Date: Prof. Rathnakar Acharya,
Alliance Business Academy
Bangalore.
ACKNOWLEDGEMENT
I would like to express most heartfelt gratitude to Prof. Sudhir G. Angur,

Chairman, Alliance Business Academy, Bangalore and Dr.
B.V.Krishnamurthy, Director and Executive Vice President, Alliance Business
Academy, for providing me the much necessary encouragement to take up
this dissertation work.
My heartfelt thanks to my guide, Prof. Rathnakar Acharya, faculty,

Alliance Business Academy for his valuable guidelines and continuous
encouragement.
I record my thanks to all the respondents who spend their valuable time
providing the information which was imperative to this work.
In the end, I would like to thank all of my friends, colleagues and to the
best parents a kid can hope for, who were always my true sense of
inspiration.
K. Gnanasambandam
TABLE OF CONTENTS
CHAPTER TITLE PAGE.

NO NO.
LIST OF FIGURES
LIST OF TABLES
EXECUTIVE SUMMARY
1. INTRODUCTION TO CRM
1.1 RELATIONSHIP MANAGEMENT: CHANGING 1

PARADIGMS IN MARKETING
1.2 BUSINESS PROCESSES IN CRM 3
1.3 CRM CAPABILITIES 3
1.4 IMPLEMENTING CRM 6
1.5 ARCHITECTURE OF CRM 7
1.6 PURPOSES OF CUSTOMER RELATIONSHIP 11
MANAGEMENT
1.7 TECHNICAL FUNCTIONALITY 13
1.8 CRM IN BUSINESS 13
1.9 FEATURES OF GOOD CRM SYSTEM 14
2. DESIGN OF THE STUDY
2.1 PROBLEM STATEMENT 18

2.2 RESEARCH OBJECTIVES 18
2.3 RESEARCH PLAN 18
2.4 RESEARCH METHODOLOGY 19
2.5 SAMPLING PLAN 20
2.6 CONTACT METHODS 21
2.7 RESEARCH INSTRUMENT 21
3. THE CRM MARKET PROFILE
3.1 THE INDIAN MARKET CHANGING DYNAMICS 22

3.2 MARKET DRIVERS AND INHIBITORS 23
3.3 CRM LANDSCAPE 24
3.4 TRENDS IN CRM MARKET 26
4. CRM IN BANKING
4.1 RETAIL BANKING 29
4.2 CRM IN BANKING 31
4.3 OVERCOMING HURDLES WHILE 33
IMPLEMENTING
CRM
4.4 CRM IMPLEMENTATION IN BANKS IN INDIA 34
5. ANALYSIS AND INTERPRETATION
5.1 END-USER SATISFACTION MEASUREMENT 36

METHODOLOGY: GAP ANALYSIS
5.2 END – USER RATING OF CRM SYSTEMS ON 37
VARIOUS FACTORS
5.3 IMPACT OF DEPLOYMENT OF CRM SYSTEMS ON 40
INCREASED CUSTOMER SATISFACTION
INCREASED REVENUE
INCREASED USER PRODUCTIVITY
DECREASED OPERATING COSTS
5.7 TIME REQUIRED TO REALISE A RETURN ON 44

INVESTMENT

INCREASED CUSTOMER RETENTION
5.9 CRM MARKET SHARE IN BANKING SECTOR 46
5.10 RESPONDENT INVOLVEMENT WITH CRM 47
SYSTEMS
6. SUMMARY OF FINDINGS 48
7. RECOMMEDATIONS 51
CONCLUSION 53
BIBLIOGRAPHY 55
ANNEXURE
LIST OF FIGURES
FIGURE TITLE PAGE
NO. NO.
1.1 Business processes in CRM 3
1.2 CRM transformation Map 5
3.1 Best-fit sectors for CRM practices and packages 22
3.2 Top-of-mind CRM Packages 23
3.3 Market Drivers and Inhibitors 23
5.1 Desired End – User rating of CRM systems on various factors 37
on a scale of 1 to 10
5.2 Actual End–user satisfaction rating of CRM systems on 37
various factors on a scale of 1 to 10

5.3 GAP scores of CRM systems on various factors 38
5.4 Response Statistics for impact of CRM systems on increased 40
Customer satisfaction
revenue
User productivity
5.7 Response Statistics for impact of CRM systems on decreased 43
Operating costs
5.8 Response Statistics for time required to realise a return on 44
investment
Customer retention
5.10 CRM Market share in banking sector 46
5.11 Respondent involvement with CRM systems 47
LIST OF TABLES
FIGURE TITLE PAGE
NO. NO.
5.1 Responses for impact of CRM systems on increased Customer 40
satisfaction
5.2 Responses for impact of CRM systems on increased revenue 41
5.3 Responses for impact of CRM systems on increased User 42
productivity
5.4 Responses for impact of CRM systems on decreased 43
Operating costs
5.5 Responses for time required to realise a return on investment 44
5.6 Responses for impact of CRM systems on increased Customer 45
retention
5.7 Responses for what CRM system was in use in the 46
organisation
5.8 Responses for Respondent involvement with CRM systems 47
6.1 End-User rating of CRM system 48
6.2 Gap Scores for various factors 49
6.3 Correlations for GAP scores 49
EXECUTIVE SUMMARY
Today information technology conscious society has increasing appetite for the skills
of others; as a result the service industries are growing. Marketers have now realized
that in the global and highly competitive market place and market space, success rests
on the firm’s ability to attract, satisfy and retain its customers. This demands
marketing efforts to be more informative, customer and service oriented. CRM –
Customer Relationship Management is an innovative approach undertaken by the
marketers in the process of developing lifetime customers and maximizing lifetime
value of the customers.
CRM approach is still new for the corporate managers, as in India the customers are
still at the receiving end only. The concept of CRM and its implementation creates
chaos for the marketers, as they are unable to comprehend the benefits of this
approach to enhance their relationships with their customers and ultimately gain the
long-term profitability profits. This work tries to capture upon those key issues, which
are critical for evaluating and estimating the utility of CRM and its implementation in
Banking sector.
The financial services industry including banking and insurance, accounts for the
major customers of CRM vendors. Focusing further the banking sector holds a good
percentage for employment of Customer Relation Management software; hence this
work concentrates on banking sector.
The purpose of this work was to study the CRM environment in banking industry and
to find out the CRM market scenario in banking sector. The study also focuses on
finding out the Gap between expected level of performance and actual level of
performance of the CRM system in the end-user perspective.

The other major objective of the study was to determine the impact on User
productivity, Customer satisfaction, Customer retention, Change in revenue,
Operating costs, Return on investment in the banking sector due to deployment of
CRM systems.
In this research, the problem has been identified and the requirements have been
clearly defined in the problem definition and the objectives have been set. Hence a
descriptive study was appropriate for the work. Further questionnaires were
administered to gather the required primary data. The relevant population who were
information elements of this work was the Branch managers, Branch operations
managers, Relations officers, and assistant managers of various banks.
The work presents data on the factors driving satisfaction for the end-users of CRM
systems in banking. The results lighten up the actual rating of CRM systems by the
end-users on various factors. This research work has made a sincere attempt to study
the gap that exists between the expectations of the CRM users in banking industry and
the actual benefit offered by this approach and then has suggested strategies that could
be implemented to fill these gaps.

1. INTRODUCTION TO CRM
These are turbulent times in the world of organizations and there is every indication
that it will continue beyond the turn of the century and it into the new millennium.
Behind this turbulence lies a series of frequently cited environmental factors:
Technological advances, Deregulation of markets etc. that has created intensified
global competition. These forces have changed and continued to change the dynamics
of marketplace but the only tool that perceived to make sense, being the most potent
and effective to compete globally in this emerging marketing environment is
Customer Relationship Management.
The world is becoming a ‘buyers’ market, where increasing discerning customers are
freer than ever to select their global market place. Highly empowered and informed
customers have made Customer Relationship Management (CRM) – a most important
area to concentrate upon by the marketers.
Studies have proved the worth of CRM in turning the customer service into customer
sales. CRM works on the theme of retaining existing customers i.e., most businesses
get customers but successful businesses keep them. Keeping customers happy is not
just good public relations; it is an essential part of sound business strategy.
1.1 RELATIONSHIP MANAGEMENT: CHANGING PARADIGMS

IN MARKETING
Relationship management is emerging as the core marketing activity for businesses

operating in fiercely competitive environments. On average, businesses spend six
times more to acquire customers than they do to keep them. Therefore, many firms are
paying more attention to their relationships with existing customers to retain them and
increase their share of customer’s purchases. Banks have relationship managers for
select customers, airlines have frequent flyer programs to reward loyal customers,
credit cards offer redeemable bonus points for increased card usage, telecom service
operators provide customized services to their heavy users, and hotels have
personalized services for their regular guests.
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There is a radical shift from conventional to relationship marketing which can be
attributed to a number of reasons viz: competitive pressures, shrinking product life
cycles, brand proliferations, frequent new product introductions, changing customer
profile, active informed and cautious customer, fickle brand loyalties and rapid
customer turnover, industry maturity and recessionary pressures, harsh marketing
environment etc. these factors clearly reveal that marketers cannot totally depend on
new customers to take the place of lost customers. They are required to focus on
developing, keeping and improving current customers rather on acquiring new
customers as customers prefer to have an ongoing relationship with one organisation
that to switch continually in their search for value.
1.1.1 CRM – A SNAPSHOT VIEW
The development of information superhighway and opening up of the digital markets

has made marketing efforts more information oriented, service oriented and
relationship oriented. It has enabled the marketers to provide customized product or
service offerings and develop value laden long lasting relationships with the
customers.
As a philosophy Customer Relationship Management is the most significant

development in the evolution of marketing since the 1960s. It enables the marketing,
sales and service functions to be truly integrated, company priorities to be clarified
and resources to be more planned and cost-effectively deployed.
CRM, conceptually, is an enterprise-wide initiative that belongs in all areas of an

organisation. Customer-Driven business management should be embraced by all
functions at all levels. The full implications of customer relationship management
could mean a dramatic shift in emphasis by the supplier from organisation by function
to an organisation aligned to specific customers or groups of customers, which, in
turn, means changes in the structure of the business, the responsibilities and the
relative status of the individual in the business and maybe even the product itself.
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1.2 BUSINESS PROCESSES IN CRM
The goal of CRM is to share a single view of the customer across all touch points and
interactions before, during, and after the sales cycle. Therefore, it is incumbent upon
marketing, sales, and service managers to track customer history, interactions,
behaviour, and preferences and use this knowledge to build the relationship.
The various processes in CRM processes span across marketing, sales, and service
functions affecting employees, partners, and customers at all points of interaction in
the relationship cycle.
- Service Delivery
- Customer Segmentation - Sales force and Forecast
Mgmt
Inquiry and service
Campaign Management resolution
Account Management
Marketing Content Customer Satisfaction
Management Opportunity Management
measurement
Customer and Transaction Order Management

Analysis
Fig 1.1: Business processes in CRM
1.3 CRM CAPABILITIES
• Integration of interactive technologies and customer centric business processes

to identify, learn and predict buyer behaviour and to create one to one
marketing. Strategies.
• A business strategy to create “intelligent” opportunities to retain customers, up
sell, cross-sell and ultimately customize products and services.
• A customer centric business intelligent system to create decision support
systems for efficient sales, marketing and service processes.
3
The customer relationship management (CRM) solutions allow a company to bring
together the most complete repository of information about customer and competitors-
including market research data from both internal and external sources-within a
single, customer-centric data warehouse. Exploiting such a repository leads to a
deeper understanding of market trends and competitive marketing activities. This
enables a company to develop new products or reposition or abandon existing ones to
satisfy customer demands and give competitive advantage in the market place.
The CRM processes also incorporate newfound knowledge into existing customer
related operational systems and analyze the results of previous actions to predict
which customer segments are more likely to respond to which type of campaign or
product offering. They offer multidimensional data analysis and data mining
techniques to explain what drives profitability by identifying the most profitable
current customers and predicting future customer profitability.
1.3.1 REQUISITES TO PROMOTE CRM INITIATIVES
There are five key aspects that an organisation will have to change in order to truly
support and foster CRM initiatives. The stages of transformation are shown from left
to right – from Product to customer. It is a matter of an organisation shifting its
emphasis over time.
Transforming the business focus of an organization essentially means getting the

organization to buy into the customer-focused paradigm. The business focus may shift
from "How can we increase the sales of our products" to "What do our customers
need, and how can we meet those needs?"
Changing the organizational structure of a company goes hand in hand with the
change in business focus. The transformation to a customer-focused organization
should lead to literally organizing around your customers – assigning customer
segment manager’s responsibility for the acquisition, retention and growth of different
segments of customers.
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PRODUCTS SALES CHANNELS MARKETING SERVICES CUSTOMERS
PRODUCT PLACE PROMOTION CHANNEL CONTACT CUSTOMER

MGMT MGMT MGMT MGMT MGMT MGMT
PRODUCT PLACE PROGRAM CUSTOMER CUSTOMER CUSTOMER

PERFORMA PERFORMA PERFORMA REVENUES SATISFACTION LIFETIME VALUE
NCE NCE NCE LOYALTY
MASS CUSTOMER INDIVIDUAL

OPPORTUNISTIC
TRANSACTION PROMOTION TARGETED SEGMENT CONTACT PERMISSION
SPECIFIC
ENVIRONMENT CAMPAIGNS BASED
COMMUNICATION INTEGRATION INTERACTION
DATA DATA DATA CUSTOMER

TRANSACTION TOUCHPOINT
PROCESSING MAINTENANCE ACCESS WAREHOUSE DATA MARTS
SYSTEMS
Fig 1.2: CRM transformation Map

Source: www.Siebel.com
Transforming the business metrics should be a by-product of the changes previously

noted. In this case, the shift is from a single focus on product performance, and/or
promotion performance, or decentralized views of these metrics to a focus on
customer lifetime value and loyalty.
Changing the marketing focus or customer interactions within your organization from
mass to interactive dialogue is also essential. If you change your business focus and
organize around your customers, you have to be able to implement – to provide
differential customer experiences through marketing, sales and service.
Finally, there is an essential technology transformation. CRM technology must
support and enable meaningful customer dialogue at all points of contact.
It is important to keep in mind that all five of these areas need to change in order to
effectively support CRM. Four out of five or some other fractional level of
participation will not work, as in this case you are only as strong as your weakest link.
CRM in a nutshell can be described as a discipline as well as a set of discrete software

and technologies which focuses on automating and improving the business processes
5
associated with managing customer relationship in the area of sales, marketing,
customer service and support.
1.4 IMPLEMENTING CRM
A successful CRM strategy cannot be implemented by simply installing and

integrating a software package, a holistic approach is needed. This approach may
include training of employees, a modification of business processes based on
customers' needs and an adoption of relevant IT systems (including software and
maybe hardware) and/or usage of IT services that enable the organization or company
to follow its CRM strategy. CRM services can even replace the acquisition of
additional hardware or CRM software licences.
The term itself is meant to describe the whole business strategy (or lack of one)
oriented on customer needs. The main misconception of CRM is that it is only a
software, instead of a whole business strategy. To be effective, the CRM process
needs to be integrated end-to-end across marketing, sales, and customer service. A
good CRM program needs to:
 Identify customer success factor

 Create a customer-based culture
 Adopt customer-based measures
 Develop an end-to-end process to serve customers
 Recommend what questions to ask to help a customer solve a problem
 Recommend what to tell a customer with a complaint about a purchase
 Track all aspects of selling to customers and prospects as well as customer
support.
When setting up a CRM segment for a company it might first want to see what profile
aspects it feels are relevant to its business, such as what information it needs to serve
its customers, the customer's past financial history, the effects of the CRM segment
and what information is not useful. Being able to eliminate unwanted information can
be a large aspect of implementing CRM systems.
6
When designing a CRM's structure, a company may want to consider keeping more
extensive information on their primary customers and keeping less extensive details
on the low-margin clients.
1.5 ARCHITECTURE OF CRM
There are three parts of application architecture of CRM:
 Operational - automation to the basic business processes (marketing, sales,

service)
 Analytical - support to analyze customer behavior, implements business
intelligence alike technology
 Collaborative - ensures the contact with customers (phone, email, fax, web,
sms, post, in person)
1.5.1 OPERATIONAL CRM
Operational CRM means supporting the "front office" business processes, which
include customer contact (sales, marketing and service). Tasks resulting from these
processes are forwarded to employees responsible for them, as well as the information
necessary for carrying out the tasks and interfaces to back-end applications are being
provided and activities with customers are being documented for further reference.
Operational CRM provides the following benefits:
 Delivers personalized and efficient marketing, sales, and service through

multi-channel collaboration
 Enables a 360-degree view of your customer while you are interacting with
them
 Sales people and service engineers can access complete history of all customer
interaction with your company, regardless of the touch point
7
The operational part of CRM typically involves three general areas of business:
- Sales force automation (SFA)
SFA automates some of the company's critical sales and sales force management
functions, for example, lead/account management, contact management, quote
management, forecasting, sales administration, keeping track of customer preferences,
buying habits, and demographics, as well as performance management. SFA tools are
designed to improve field sales productivity. Key infrastructure requirements of SFA
are mobile synchronization and integrated product configuration.
- Customer service and support (CSS)
CSS automates some service requests, complaints, product returns, and information
requests. Traditional internal help desk and traditional inbound call-center support for
customer inquiries are now evolved into the "customer interaction center" (CIC),
using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure
requirements of CSS include computer telephony integration (CTI) which provides
high volume processing capability, and reliability.
- Enterprise marketing automation (EMA)
EMA provides information about the business environment, including competitors,

industry trends, and macroenviromental variables. It is the execution side of campaign
and lead management. The intent of EMA applications is to improve marketing
campaign efficiencies. Functions include demographic analysis, variable
segmentation, and predictive modeling occur on the analytical (Business Intelligence)
side.
Integrated CRM software is often also known as "front office solutions." This is
because they deal directly with the customer.
Many call centers use CRM software to store all of their customer's details. When a
customer calls, the system can be used to retrieve and store information relevant to the
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customer. By serving the customer quickly and efficiently, and also keeping all
information on a customer in one place, a company aims to make cost savings, and
also encourage new customers.
CRM solutions can also be used to allow customers to perform their own service via a
variety of communication channels. For example, you might be able to check your
bank balance via your WAP phone without ever having to talk to a person, saving
money for the company, and saving your time.
1.5.2 ANALYTICAL CRM
In analytical CRM, data gathered within operational CRM and/or other sources are
analyzed to segment customers or to identify potential to enhance client relationship.
Customer analysis typically can lead to targeted campaigns to increase share of
customer's wallet. Examples of Campaigns directed towards customers are:
 Acquisition: Cross-sell, up-sell

 Retention: Retaining customers who leave due to maturity or attrition.
 Information: Providing timely and regular information to customers.
 Modification: Altering details of the transactional nature of the customers'
relationship.
Analysis typically covers but is not limited to:
 Decision support: Dashboards, reporting, metrics, performance etc.

 Predictive modelling of customer attributes
 Strategy and research.
Analysis of Customer data may relate to one or more of the following analyses:
1. Campaign management and analysis

2. Contact channel optimization
3. Contact Optimization
4. Customer Acquisition / Reactivation / Retention
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5. Customer Segmentation
6. Customer Satisfaction Measurement / Increase
7. Sales Coverage Optimization
8. Fraud Detection and analysis
9. Financial Forecasts
10. Pricing Optimization
11. Product Development
12. Program Evaluation
13. Risk Assessment and Management
Data collection and analysis is viewed as a continuing and iterative process. Ideally,
business decisions are refined over time, based on feedback from earlier analysis and
decisions. Therefore, most successful analytical CRM projects take advantage of a
data warehouse to provide suitable data.
1.5.3 COLLABORATIVE CRM
Collaborative CRM facilitates interactions with customers through all channels

(personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee
teams and channels. It is a solution that brings people, processes and data together so
companies can better serve and retain their customers. The data/activities can be
structured, unstructured,conversational, and/or transactional in nature.
Collaborative CRM provides the following benefits:
 Enables efficient productive customer interactions across all communications

channels
 Enables web collaboration to reduce customer service costs
 Integrates call centers enabling multi-channel personal customer interaction
 Integrates view of the customer while interaction at the transaction level
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1.6 PURPOSES OF CUSTOMER RELATIONSHIP
MANAGEMENT
CRM, in its broadest sense, means managing all interactions and business with
customers. This includes, but is not limited to, improving customer service. A good
CRM program will allow a business to acquire customers, service the customer,
increase the value of the customer to the company, retain good customers, and
determine which customers can be retained or given a higher level of service. A good
CRM program can improve customer service by facilitating communication in several
ways:
 Provide product information, product use information, and technical assistance

on web sites that are accessible 24 hours a day, 7 days a week.
 Identify how each individual customer defines quality, and then design a
service strategy for each customer based on these individual requirements and
expectations.
 Provide a fast mechanism for managing and scheduling follow-up sales calls
to assess post-purchase cognitive dissonance, repurchase probabilities,
repurchase times, and repurchase frequencies.
 Provide a mechanism to track all points of contact between a customer and the
company, and do it in an integrated way so that all sources and types of
contact are included, and all users of the system see the same view of the
customer (reduces confusion).
 Help to identify potential problems quickly, before they occur.
 Provide a user-friendly mechanism for registering customer complaints
(complaints that are not registered with the company cannot be resolved, and
are a major source of customer dissatisfaction).
 Provide a fast mechanism for handling problems and complaints (complaints
that are resolved quickly can increase customer satisfaction).
 Provide a fast mechanism for correcting service deficiencies (correct the
problem before other customers experience the same dissatisfaction).
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 Use internet cookies to track customer interests and personalize product
offerings accordingly.
 Use the Internet to engage in collaborative customization or real-time
customization.
 Provide a fast mechanism for managing and scheduling maintenance, repair,
and on-going support (improve efficiency and effectiveness).
 The CRM can be integrated into other cross-functional systems and thereby
provide accounting and production information to customers when they want
it.
1.6.1 IMPROVING CUSTOMER RELATIONSHIPS
CRM programs also are able to improve customer relationships. Proponents say this is
so because:
 CRM technology can track customer interests, needs, and buying habits as
they progress through their life cycles, and tailor the marketing effort
accordingly. This way customers get exactly what they want as they change.
 The technology can track customer product use as the product progresses
through its life cycle, and tailor the service strategy accordingly. This way
customers get what they need as the product ages.
 In industrial markets, the technology can be used to micro-segment the buying
centre and help coordinate the conflicting and changing purchase criteria of its
members.
 When any of the technology-driven improvements in customer service
(mentioned above) contribute to long-term customer satisfaction, they can
ensure repeat purchases, improve customer relationships, increase customer
loyalty, decrease customer turnover, decrease marketing costs (associated with
customer acquisition and customer “training”), increase sales revenue, and
thereby increase profit margins.
 Repeat purchase, however, comes from customer satisfaction - which in turn
comes from a deeper understanding of each customer, their individual
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business challenges and proposing solutions for those challenges rather than a
"one size fits all" approach.
 CRM software enables sales people to achieve this one on one approach to
selling and can automate some elements of it via tailorable marketing
communications. However, all of these elements are facilitated by or for
humans to achieve - CRM is therefore a company-wide attitude as much as a
software solution.
1.7 TECHNICAL FUNCTIONALITY
A CRM solution is characterised by the following functionality:
 scalability - the ability to be used on a large scale, and to be reliably expanded

to whatever scale is necessary.
 multiple communication channels - the ability to interface with users via many
different devices (phone, WAP, internet, etc)
 workflow - the ability to trigger a process in the backoffice system, e. g. Email
Response, etc.
 assignment - the ability to assign requests (Service Requests, Sales
Opportunities) to a person or group.
 database - the centralised storage (in a data warehouse) of all information
relevant to customer interaction
 customer privacy considerations, e.g. data encryption and the destruction of
records to ensure that they are not stolen or abused.
1.8 CRM IN BUSINESS
The use of internet sites and specifically e-mail, in particular, are often touted as less
expensive communication methods in comparison to traditional ones such as
telephone calls. These types of technologies service can be very helpful, but it is
completely useless to a business that cannot reach its customers. Some major
companies believe that the majority of their clients trust other means of
communication, like telephone, more than they trust e-mail. Clients, however, are
13
usually not the ones to blame because it is often the manner of connecting with
consumers on a personal level making them feel as though they are cherished as
customers. It is up to the companies to focus on reaching every customer and
developing a relationship.
It is possible for CRM software to run an entire business. From prospect and client
contact tools to billing history and bulk email management. The CRM system allows
a business to maintain all customer records in one centralized location that is
accessible to an entire organization through password administration. Front office
systems are set up to collect data from the customers for processing into the data
warehouse. The data warehouse is a back office system used to fulfill and support
customer orders. All customer information is stored in the data warehouse. Back
office CRM makes it possible for a company to follow sales, orders, and
cancellations. Special regressions of this data can be very beneficial for the marketing
division of a firm/company.
1.9 FEATURES OF GOOD CRM SYSTEM
A “one size fits all” approach to CRM rarely brings substantial business value. Before
proceeding with a CRM system, a company must carefully define its CRM strategy
and evaluate the technology. Shortcomings on either side can lead to failure. With an
emphasis on business requirements and an understanding of the technology that
enables the strategy, the company can ensure a successful and profitable
implementation. There are several key characteristics of CRM software that are
important to keep in mind.
These include:
1.9.1 EASE OF INTEGRATION
A company’s customer data and processes are located in many different support
systems. To avoid replacing these support systems, companies need their CRM
systems to integrate seamlessly. A lack of proper integration can lead to longer project
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timelines and increased costs. Effective integration tools include adapters and object
interfaces, support for multiple integration methods, proper integration consulting and
training, and adoption of standards-based architectures. The most important factor to
consider is compliance with standards-based architecture. Such open architectures
make it far easier to develop interfaces to the many legacy and operational systems
that may be required for an implementation, and make it easier to maintain.
1.9.2 EASE OF CUSTOMIZATION
CRM should be easily customized to meet specific business needs. Upgradeability is

also a key consideration. To deliver ease of customization, CRM systems must
exemplify the following characteristics: system extensibility, including database, user
interface and business logic; ease of end-user configurability; an integrated
development environment; support for industry-standard customization tools;
upgradeability of all customizations; and extendable and modular architecture. Many
companies say that mapping their business rules to software is one of the biggest
“pain points” of implementing a CRM system. CRM software has change
management capabilities that allow IT departments, customer care executives and
marketing departments to quickly and easily query and modify systems to
accommodate the fast-changing needs of the marketplace. In any implementation, the
biggest mistake is to let the technology features drive CRM functionality.
CRM means changing your focus and the business processes to support it and then
applying technology to automate those new processes. This is why CRM needs to be
customized.
1.9.3 EASE OF SCALABILITY
Scalability is important because it addresses business needs into the future. For CRM
software to be successful, it must be able to handle the volume of customer inquiries,
orders and other information it receives daily. Scalability means not only adding new
users and application modules, but also supporting real-time distributed databases,
wireless and disconnected users, and multiple interaction channels. An open,
standards-based architecture is vital for delivering CRM scalability. Software is
15
needed that will grow with the business as it adds modules, features, users, customers
and Web users.
1.9.4 RICH OUT-OF-THE-BOX FUNCTIONALITY
The depth and robustness of a CRM vendor’s out-of-the-box functionality is critical to

a successful implementation. The greater the functionality, the less customization is
required. While it’s true that there is no such thing as off-the shelf CRM, quick and
easy functionality enables implementation, supports the organization’s business
processes and delivers faster return on investment.
1.9.5 BUSINESS PROCESS INTEGRATION
Process flows determine the course of the customer life cycle and the manner in
which it’s managed, ensuring repeatability, consistency and efficiency. With business
processes running through multiple front- and back-office systems, it’s imperative to
be able to manage and display these processes through a single, unified front end —
both to improve call centre effectiveness and customer satisfaction. Out-of-the-box
process flows and management tools deliver all of these benefits, as well as cutting
the amount of customization required — shortening the time to production and
lowering implementation costs.
1.9.6 ACTIONABLE CUSTOMER DATA
A CRM system can enable companies to cut costs and increase efficiencies in
business processes that touch every facet of an organization. In the contact centre,
agents require more than just data; they need information upon which they can act
quickly and confidently to maximize every customer interaction. Troubleshooting
groups resolve problems more efficiently and ensure that issues need be resolved only
once. Sales is provided greater insight into customers so it can anticipate their needs
and offer valuable solutions proactively, and analytics capabilities ensure that
marketing campaigns always have the highest possible success rate. Particularly in
16
high-volume contact centres, the total emphasis on the creation of a 360-degree view
of a customer leads to a flawed CRM strategy and doesn’t necessarily lead to more
profitable customer relationships. Agents require information that clearly directs them
to a desired outcome. Insights gleaned from customer analytics may not be presented
in an appropriate form for the agent. A better use of 360-degree knowledge of the
customer is to present this knowledge to the agent as actionable data. These prompts
can occur as a flash on the agent’s desktop or as an automatic trigger of relevant
scripts. But the key is to focus on providing actionable information that will achieve
the desired result.
In addition to all of the above issues, it’s critical to monitor and measure the success
of the CRM implementation on an ongoing basis. This isn’t a one-time event, but an
ongoing process, from presales through the many phases of the CRM implementation.
Measuring ROI is crucial in times of tight IT budgets. All business units must be a
part of the assessment in order to present an accurate picture of the ROI achieved. In
today’s increasingly competitive market, companies are becoming increasingly aware
of the need for CRM to focus on individual relationships and maximize profitability.
1.9.7 MEASURABLE ROI AND A VENDOR TRACK RECORD
Return on investment, like any measure, is the instrument for measuring success and
is not the success itself. Companies that are able to carefully select the most
appropriate CRM applications and match them carefully to the benefits they are
seeking will see a faster payback on their investments than enterprises that blindly
implement CRM applications. Many vendors tout promises of specific returns but
lack a track-record of success in delivering quantifiable results and are not willing to
stand behind their promises. Keeping all of these important factors in mind will
ensure a successful execution of a CRM strategy.
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2. DESIGN OF THE STUDY
2.1 PROBLEM STATEMENT
“A Study of End-user satisfaction of CRM systems in banking sector”
This was the statement of the problem that was undertaken to find out the satisfaction
level of end-users of CRM systems in banking sector.
2.2 RESEARCH OBJECTIVES
• To study the CRM environment in banking industry.

• To find out the CRM market scenario in banking sector.
• To find out the Gap between expected level of performance and actual level of
performance of the CRM system in the end-user perspective.
• To determine the impact on the following metrics due to deployment of CRM
systems:
 User productivity
 Customer satisfaction
 Customer retention
 Change in revenue
 Operating costs
 Return on investment.
2.3 RESEARCH PLAN
TYPE OF STUDY ADOPTED: DESCRIPTIVE RESEARCH
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Descriptive Research has been used due to the following reasons,
• The problem has been identified.

• The requirements have been clearly defined in the problem definition and the
objectives have been set.
• It is pre planned and structured.
Descriptive research is used to obtain information concerning the current status of the
phenomena to describe "what exists" with respect to variables or conditions in a
situation. The methods involved range from the survey which describes the status quo,
the correlation study which investigates the relationship between variables, to
developmental studies which seek to determine changes over time. Descriptive
research generally follows the following steps.
1. Statement of the problem

2. Identification of information needed to solve the problem
3. Selection or development of instruments for gathering the information
4. Identification of target population and determination of sampling procedure
5. Design of procedure for information collection
6. Collection of information
7. Analysis of information
8. Generalizations and/or predictions
2.4 RESEARCH METHODOLOGY
2.4.1 SOURCES OF DATA
SECONDARY DATA
Any data, which have been gathered earlier for some other purpose, are secondary
data in the hands of marketing research. Some of the information presented in this
work has been drawn from secondary data. Secondary data sources used in this work
19
include published articles, data from resource centres from CRM vendor websites,
industrial reports and external research agency reports.
PRIMARY DATA
Primary data is the data, which has been gathered at first hand by the researcher or by
someone especially for the specific research project.
Considering the type of data required for the research and depending upon the
purpose of the study, the type of the research adopted in this work is descriptive. The
most feasible method of collecting primary data in this research was by
questionnaires. Questionnaires were used to evaluate the CRM system on the grounds
of end-user.
2.5 SAMPLING PLAN
After deciding on the research approach and instruments, the marketing researcher
must design a sampling plan.
2.5.1 SAMPLING UNIT
The marketing researcher must define the target population that will be sampled. The
sampling plan attempts to identify at least two management level recipients at each
bank branch office—one on the business side and one on the IT side. The target
samples were Branch managers, Branch operations managers, Relations officers, and
Assistant managers of various banks.
2.5.2 SAMPLING SIZE AND PROCEDURE
Larger samples give more reliable results than small samples. However, it is not
necessary to sample the entire target population to achieve results. The scope of the
study is limited to the number of samples chosen for the survey. In this work, 50
20
samples are chosen. The sampling procedure adopted in this work was non probability
convenient sampling
2.6 CONTACT METHODS
Once the sampling plan has been determined, the researcher must decide how the
subject should be contacted. In this work personal meeting was the most versatile
method. The respondents were met and asked to provide necessary information
through the deployment of questionnaires. The accuracy of data obtained is directly
related to the knowledge base of the respondent and the involvement of the
respondent with CRM system in that organization. So this called for proper choice of
respondents to ensure reliability and validity of the survey.
2.7 RESEARCH INSTRUMENT
The research instrument used to collect primary data in this work was Questionnaire.
21
3. THE CRM MARKET PROFILE
3.1 THE INDIAN MARKET CHANGING DYNAMICS
The Indian ‘Customer Relationship Management’ market is today estimated to be of

the tune of INR 1000 million. Majority of this turnover being driven by the banking,
financial, insurance and allied services sectors. Traditionally it has been witnessed
that these industry verticals have been on the forefront of technology adaptation. This
is due to the fact that product and services offering within these segments gets cloned
in a very short span of time. Studies have indicated that on average it takes a period of
six weeks for any competitor to clone a product or service offering in the banking and
insurance segment. Similarly duplication of offerings in other service sectors also
exhibits a very short time span. An evidence of this is seen in the current mobile
telecommunication industry in India. With most of the global major
telecommunication organizations present in this market, service offering duplication
is taking place somewhat on a daily basis. Similar trends have been witnessed in the
insurance sector, after the opening up of this sector; where once again most of the
global insurance giants are fighting to gain market share.
Source: Icicle consultancy
Fig 3.1: Best-fit sectors for CRM practices and packages
22
To combat this competitive rivalry, these sectors have been driven by necessity to
embrace technology for enhancing their competitive advantage.
Fig 3.2: Top-of-mind CRM Packages

Siebel is the CRM market leader in India, followed by Oracle, Clarify, PeopleSoft and
Talisma. SAP has recently added modules to its CRM offerings and is focusing on the
Manufacturing and pharmaceutical verticals.
3.2 MARKET DRIVERS AND INHIBITORS
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Fig 3.3: Market Drivers and Inhibitors
• A need for improved Customer Service shall be the main driver for Industry
sectors that depend on the quality of their customer interactions to retain
existing customers and win new ones. High Global adoption is likely to drive
the MNCs to adopt CRM first in line with Global implementations
• While the first hurdle holding back the market is a lack of awareness,
respondents have put high cost of implementation as the main inhibitor.
Complete and comprehensive CRM packages such as those of Siebel and
Oracle costing in the range of Rs. 1 to 2.5 Crores (and more) are too expensive
for most Indian firms. However, with software vendors bringing down prices
and offering relatively affordable packages bundled with integration and
consulting services, this could soon change.
• In the Indian context, lack of customer orientation and poor existing IT
infrastructure can prove major factors. Firms need to evolve their customer
thinking by a significant extent before they accept CRM as the strategic
imperative it is, and internal systems and database management practices need
to be upgraded before CRM software can be used to any effect.
• Another major inhibitor is that Indian firms lack the skills and strategic vision
required to successfully implement CRM.
3.3 CRM LANDSCAPE
3.3.1 THE ASP FACTOR
While the CRM marketplace as a whole may be generating rather lacklustre results,
some classes of systems are generating very positive results. The most notable of
these is the ASP (application service provider) - class CRM systems: SalesForce.com,
Salesnet, NetSuite and Siebel OnDemand.
24
One of the strongest drivers for companies who are turning to ASP-based CRM is that
the price of these applications is very attractive. This is not only in terms of cost of the
subscription services themselves, but also a lower total cost of ownership.
A second advantage results from the fact that ASP solution providers view CRM as
not software, but a service. They host the applications for their customers, so many of
the technology issues associated with implementing and managing the applications
are lifted off the end user organization’s back.
The customer satisfaction and project success ratings from companies using ASP-
based CRM solutions are much higher than the norm. These solutions get high marks
not only for the functionality they provide, but also for their user interfaces, which
make it easy for professionals to find and share the key customer information they
need to do their jobs.
3.3.2 THE QUIET SUCCESS FACTOR
Right behind ASP-based systems in terms of high-end user acceptance and

satisfaction are the systems that can easily be installed on a PC for use by a single
user or professionals working for a small-to-midsize business (SMB). These types of
applications would include programs like ACT, Maximizer, Goldmine, Pivotal,
SalesLogix, Onyx, etc. While the large enterprise CRM systems — Siebel, Oracle,
PeopleSoft and SAP — garner most of the press, these class of systems continue to
quietly grow a solid following in the marketplace.
In case of this systems , in some cases, individuals can get access to tools to help
make them be more efficient and effective in terms of managing their time and
activities, tracking projects, generating correspondence, keeping track of customer
records, managing opportunities and the like just for a few hundred dollars. These
types of capabilities are especially attractive to segments of the marketplace including
real estate, insurance, automotive dealerships and retail businesses.
25
The value of these quiet CRM systems to SMB organizations is clearly being
recognized by business professionals, as they continue to buy well over one million
copies of these software applications each month.
3.3.3 TECHNOLOGY AND PROCESS FACTOR
Another interesting factor is how the combination of CRM technology and formal
sales process can significantly improve the performance of sales teams. Every CEO
would get excited about seeing their organization significantly improve their ability to
target prospects, effectively present benefits, and cross-sell and up-sell. And here
there is a path to achieve those objectives.
The CRM industry and the process industry also are recognizing this fact, and many
players are starting to work much more closely together to imbed sales process
support into CRM tools. Leading this charge are firms including Salesnet,
SalesForce.com, Siebel, ShadeTree Technology, Sales Performance International,
Miller Heiman, Customer Centric Selling to ensure that CRM tools support, reinforce
and enforce a structured way of selling.
3.4 TRENDS IN CRM MARKET
Several new innovations are emerging that also will contribute significantly to helping
CRM achieve its true potential and to reenergize the marketplace. Let’s examine four
of these.
3.4.1 THE CONTENT MANAGEMENT FACTOR
Directly attacking the issue of populating and maintaining useful information in CRM
systems is becoming the mission of a broadening base of solution providers. Focusing
on collecting and aggregating information from external data sources that marketing,
sales and support people need, are firms like OneSource/InfoUSA, Factiva, DataFlux,
26
Hoovers and Dun & Bradstreet. Taking a similar approach to obtain data, knowledge
and insights from internal data sources (within a company) are firms like Involve
Technology, Savo and Purisma.
The benefit of this collaboration will be that account teams will have key information
imported into CRM applications automatically for them. Beyond just product data and
customer contact data they will automatically receive knowledge on competitive
intelligence, changes in customer accounts and their marketplace and best sales and
service practices.
In effect, CRM system will become a personal research assistant for account teams,
gathering and making available the key information they need to do their jobs. With
this type of knowledge available easily through CRM applications, the user adoption
rates are expected to increase as the value of the information they can access
increases.
3.4.2 THE VERTICALIZATION FACTOR
Another trend driving CRM adoption is the customization of applications to fit the
needs of account teams in specific vertical industries. The market is witnessing three
approaches to this issue. The first is vendors that are focusing on optimizing the
customization of CRM applications so that end-user firms can modify the applications
themselves to fit the uniqueness of their industry. SalesForce.com and Frontrange
systems are examples of these types of vendors.
The second approach is vendors delivering vertical industry-focused versions of their

systems. Here you find companies including Siebel Systems and Dendrite
International in the Pharmaceutical space; Salesnet in commercial leasing, real estate,
insurance, and automotive dealerships; Firstwave Systems in sports marketing; and
Pivotal in healthcare sciences and home building.
A third approach is vendors delivering a technology framework that people with

domain expertise can use to, in effect, build their own semi-custom applications. Two
examples are Salesnet’s OEM version of their platform and SugarCRM.
27
The key advantage that verticalization will give account teams is that they get
applications that are directly tied to their workflow processes, their marketplace
vocabulary and their information needs. We are seeing a direct relationship being the
degree to which a CRM application is tailored to a marketplace and the user adoption
rate the company achieves.
3.4.3 THE MOBILE COMPUTING FACTOR
With the advent of mobile computing, the value of CRM seems augmented. Up until
recently, the two main things CRM helped account teams do was plan for a customer
meetings and follow-up on one. But the applications were rarely used during a
meeting, with the exception of presentations tools like PowerPoint.
Mobile Computing is changing all that. With the explosion of PDA and smart phone
devices, professionals now can tap into a wealth of CRM-based information in their
car, at the coffee shop, or even sitting across the desk from a customer. Add to that the
development of robust Tablet PC-based applications from solution providers such as
MobilePoint, Dovario and Kenetic Data, designed to optimize customer meetings.
With anytime, anywhere access to key information, account teams can be more in
favour of servicing the customers. Because of this increased access to information, the
value of CRM applications will increase in terms of helping account teams deal with
their everyday tasks more efficiently.
3.4.3 THE OPEN SOURCE CODE FACTOR
The Open Source Code Factor is the newest and potentially most disruptive factor.
The impact that open source programs could have on the CRM marketplace could be
exciting, because a number of companies still write them own CRM applications, it’s
clear that commercial CRM solution providers are not addressing everyone’s needs.
For those end-user firms there now will be an alternative to writing applications from
scratch — enter the world of open source consortiums.
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The premise of open source is that when programmers leverage the work of others-
review, repurpose and modify source code for an application — the programs advance
quickly. As members of a community work together, enhancements and bug fixes can
occur much more rapidly than in the case of conventional development approaches.
And in keeping with the philosophy of the open source world, much of the software is
available to users for free. This fresh wave of innovation, or low cost alone could be
the flame that rekindles excitement in this marketplace.
4. CRM IN BANKING
4.1 RETAIL BANKING
Retail banking refers to mass-market banking where individual customers typically

use banks for services such as savings and current accounts, mortgages, loans (e.g.
personal, housing, auto, and educational), debit cards, credit cards, depository
services, fixed deposits, investment advisory services (for high net worth individuals)
etc.
Before Internet era, consumers largely selected their banks based on how convenient
the location of bank’s branches was to their homes or offices. With the Advent of new
technologies in the business of bank, such as Internet banking and ATMs, now
customers can freely chose any bank for their transactions. Thus the customer base of
banks has increased, and so has the choices of customers for selecting the banks.
This is just the beginning of the story. Due to globalization a new generation of
private sector banks and many foreign banks have also entered the market and they
have brought with them several useful and innovative products. Due to forced
competition, public sector banks are also becoming more technology savvy and
customer oriented.
Thus, Non-traditional competition, market consolidation, new technology, and the

proliferation of the Internet are changing the competitive landscape of the retail
banking industry. Today’ retail banking sector is characterized by following:
 Multiple products (deposits, credit cards, insurance, investments and

securities)
29
 Multiple channels of distribution (call centre, branch, Internet and kiosk)
 Multiple customer groups (consumer, small business, and corporate)
Today, the customers have many expectations from bank such as
(i) Service at reduced cost
(ii) Service “Anytime Anywhere”
(iii) Personalized Service
With increased number of banks, products and services and practically nil switching
costs, customers are easily switching banks whenever they find better services and
products. Banks are finding it tough to get new customers and more importantly retain
existing customers.
According to a research by Reichheld and Sasser in the Harvard Business Review, 5%

increase in customer retention can increase profitability by 35% in banking business.
Therefore banks are now stressing on retaining customers and increasing market
share.
4.1.2 LONG TERM STRATEGIES FOR RETAIL BANKING
The banks now need to find out what to sell, whom to sell, when to sell, how to sell
and how to be different to increase profitability. Banks need to differentiate
themselves by adding value-added service, offerings and building long-term
relationships with their customers through more customized products, enhanced value
offerings, personalized services and increased accessibility. Banks also need to
identify customers and products that would be most profitable and target customers
with products that are most appropriate to their needs and serve the customers with
greater cost efficiency.
Banks also need to find out the avenues for increased customer satisfaction, which
leads to increased customer loyalty. This may be explained better from two initiatives
bank took in the past:
30
1. Earlier what drove many bankers to invest in ATMs was the promise of reduced
branch cost, since customers would use them instead of a branch to transact
business. But what was discovered is that the financial impact of ATMs is a
marginal increase in fee income substantially offset by the cost of significant
increases in the number of customer transactions. The value proposition,
however, was a significant increase in that intangible called customer
satisfaction. The increase in customer satisfaction has translated to loyalty that
resulted in higher customer retention and growing franchise value.
2. Bankers invested in Internet banking, believing that the Internet was a lower-
cost delivery channel and a way to increase sales. Studies have now shown,
however, that the primary value of offering Internet banking services lies in
the increased retention of highly valued customer segments. Again customer
satisfaction drives the value proposition.
Thus, banks need to retain existing customers with enhanced personalized services
and products, which best suits their needs and satisfies them the most.
4.2 CRM IN BANKING
CRM primarily caters to all interactions with the customers or potential customers,
across multiple touch points including the Internet, bank branch, call centre, field
organization and other distribution channels.
CRM can help banks in following ways:
 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
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execute targeted, personalized multi-channel marketing campaigns to reach
these customers and maximize the lifetime value of those relationships.
 Customer Information Consolidation
Instead of customer information being stored in product centric silos, (for e.g.
separate databases of savings account & credit card customers), with CRM the
information is stored in a customer centric manner covering all the products of
the bank. CRM integrates various channels to deliver a host of services to
customers, while aiding the functioning of the bank.
 Marketing Encyclopaedia
Central repository for products, pricing and competitive information, as well

as internal training material, sales presentations, proposal templates and
marketing collateral.
 360-degree view of company
This means whoever the bank speaks to, irrespective of whether the
communication is from sales, finance or support, the bank is aware of the
interaction. Removal of inconsistencies of data makes the client interaction
processes smooth and efficient, thus leading to enhanced customer
satisfaction.
 Personalized sales home page
CRM can provide a single view where Sales Mangers and agents can get all
the most up-to-date information in one place, including opportunity, account,
news, and expense report information. This would make sales decision fast
and consistent.
 Lead and Opportunity Management
32
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.
 Activity Management
It helps managers to assign and track the activities of various members. Thus
improved transparency leads to improved efficiency.
 Contact Centre
It enables customer service agent to provide uniform service across multiple

channels such as phone, Internet, email, Fax.
 Operational Inefficiency Removal
CRM can help in Strategy Formulation to eliminate current operational

inefficiencies. An effective CRM solution supports all channels of customer
interaction including telephone, fax, e-mail, the online portals, wireless
devices, ATMs, and face-to-face contacts with bank personnel. It also links
these customer touch points to an operations centre and connects the
operations centre with the relevant internal and external business partners.
 Enhanced productivity
CRM can help in enhanced productivity of customers, partners and employees.
 CRM with Business Intelligence
Banks need to analyze the performance of customer relationships, uncover

trends in customer behaviour, and understand the true business value of their
customers. CRM with business intelligence allows banks to assess customer
segments, which help them calculate the net present value (NPV) of a
customer segment over a given period to derive customer lifetime value.
Customers can be evaluated within a scoring framework. Combining the
behaviour key figure and frequency to monetary acquisition analysis with a
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marketing revenue quota can optimize acquisition costs and cut the number of
inefficient activities. With such knowledge, banks can efficiently allocate
resources to the most profitable customers and reengineer the unprofitable
ones.
4.3 OVERCOMING HURDLES WHILE IMPLEMENTING CRM
Customers may not want what they get: A CRM system apart from improving front
office operations and customer servicing also helps in coping with many services that
do not need manual intervention. These are serviced by channels like IVR, Internet
and ATM. Customers can get account information, information on credit balance,
issue instructions for drafts or even transact through these. At the same time there
may be a few customers who still prefer the traditional methods of banking. Banks
need to be flexible enough to continue to extend the "personal touch" that such
customers prefer.
Make changes internally before going for CRM: Many banks have spent a lot of
money on CRM, finding it easier to buy CRM technology than to make the major
internal changes necessary to really make CRM work for them. Unfortunately for
these banks, the software has often failed to deliver.
CRM is Business Transformation: Too often banks have focused on the wrong areas
of CRM. CRM is really about business transformation—changing the business from
services-centric to customer-centric.
Have defined Objectives - Many CRM implementations have been approved without
examining aspects like profitability, turnover etc. CRM implementations should have
well defined objectives, such as ROI, Sales etc.
Consider Complete Life Cycle Costs while budgeting - Measurements of profit are
often constructed to embrace only the initial cost of sale. This is of little use if the
ongoing cost of servicing a customer outweigh the margin of profit that customer is
generating. It is critical that banks have recognized and embraced the importance of
the trend towards customer development, and that this is reflected in actual marketing
budget allocation.
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4.4 CRM IMPLEMENTATION IN BANKS IN INDIA
According to Nasscom report “Strategic Review 2004”, Indian CRM market was
estimated at US $ 14 million and is forecast to grow to US $ 26 million in 2005.
Banking and financial services segment has a high growth potential and accounts for
22 percent of CRM license revenue. There are many banks such as ICICI Bank,
HDFC Bank and Citibank, which are using CRM products.
Disciplined work along four dimensions can significantly improve results from CRM
initiatives:
 Customer Segmentation
Do intensive data analysis and value-based segmentation to highlight the value of

different customer segments and the underlying drivers of that value.
 Design programs
Design innovative programs focusing on customer acquisition, cross-sell,

retention, loyalty, and customer service, based on customer insights, experience
and industry best practices.
 Design Processes
Design internal and external processes to support and sustain successful programs.
 Good Decisions based on Right Information
The information from a CRM program can often guide better operational business
decisions at many levels of the organization. Gather customer information at a
broader set of touch-points, perform in-depth analysis, and make critical information
available to relevant stakeholders.
The retail banking industry is undergoing revolutionary change. There are many
players and competition is tough. Customer Relationship Management is an important
weapon in this fight. The ability to mass customise the customer experience and
refresh the value proposition is necessary to retain the right to do business with the
35
customer. Consolidation and technology would become must for sustenance and
growth. The pressure will be on banks to integrate data from every channel and know
what customers say so that the banks deliver what they want. As the competitions
increase, banks will require the robust CRM functionalities in order to manage their
most valued asset – their customers
5. ANALYSIS AND INTERPRETATION
5.1 END-USER SATISFACTION MEASUREMENT

METHODOLOGY: GAP ANALYSIS
The end-user survey asks customers to rate their CRM Systems on specific business,
Product, and service attributes that drive overall customer satisfaction, success, and
Loyalty. For example, the questionnaire asks customers to assess “Product
effectiveness, training and technical support offered with the system, product
functionality, ease of using this product on a day-to-day basis and ease of system
administration and system reliability”
On questions where end-users are asked to provide a quantitative evaluation, the

survey employs a methodology called “gap analysis.” For each factor being evaluated,
customers are asked to rate, on a scale of 0 (lowest) to 10 (highest), the importance of
the factor to them or the expected level of system performance on that factor and their
satisfaction with that factor. The first rating measures how important the factor is to
the customer in continuing doing business with the current CRM Systems provider,
while the second rating measures the customer’s satisfaction with CRM Systems’
performance on that factor. The difference between the two ratings—that is, the gap—
36
is calculated by subtracting the Actual satisfaction rating from the Expected
satisfaction rating
In Gap analysis for software products, the following correlations are used to draw
conclusions on the satisfaction levels of the end-users and customers.
• Gaps greater than 3.0 indicate a serious vulnerability (or opportunity).

• Gaps of 2 to 3 indicate vulnerability (opportunity).
• Gaps of 1 to 2 are in balance and are targets for the industry.
• Gaps of less than 1 indicate world-class performance.
5.2 END – USER RATING OF CRM SYSTEMS ON VARIOUS

FACTORS
9 9.04 PRODUCT
9.2
EFFECTIVENESS
9
TRAINING AND TECH
8.8 SUPPORT
8.4 8.4 PRODUCT
8.6
8.28 FUNCTIONALITY
8.4
EASE OF SYS.
8.2 8
ADMINISTRATION
8 EASE OF DAY TO DAY
USE
7.8
SOFTWARE
7.6 RELIABILITY
7.4
Desired End-User satisfaction level
Ratings
Fig 5.1: Desired End – User rating of CRM systems on various factors on a scale of 1
to 10
37
PRODUCT
9 EFFECTIVENESS
8.08 TRAINING AND TECH
8.5
SUPPORT
8 7.56
7.24 PRODUCT
7.08 7 FUNCTIONALITY
7.5
7 6.7 EASE OF SYS.
ADMINISTRATION
6.5
EASE OF DAY TO DAY
6 USE
5.5 SOFTWARE
RELIABILITY
5
Actual End-User satisfaction level
Ratings
Fig 5.2: Actual End–user satisfaction rating of CRM systems on various factors on a
scale of 1 to 10
Fig 5.3: GAP scores of CRM systems on various factors
The respondents were asked to rate the expected system performance and the
satisfaction level of the existing CRM system on the following factors on a scale of 0
(lowest) to 10 (highest).
38
5.2.1 PRODUCT EFFECTIVENESS
Product effectiveness gives a rating of the satisfaction of the end-user on the overall
performance of the CRM system on grounds of installation, configuration,
functionality and ease of use.
5.2.2 TRAINING ANDTECHNICAL SUPPORT
Technical Support measures end-user satisfaction with product knowledge as well as

the timeliness and quality of response provided by Technical Support team and
Training measures customers’ satisfaction with the effectiveness of CRM technical
training and End User Education services.
5.2.3 PRODUCT FUNCTIONALITY
Product functionality measures how well the CRM system’s functionality meets the
business needs. It is a measure of the fit between the software and its actual functional
requirement.
5.2.4 EASE OF SYSTEM ADMINISTRATION
Ease of system administration gives a rating of the satisfaction of the end-user on how
easy is it to administer the CRM system. The factor deals with the setup and
maintenance of computers and networks. The functions of system administration
extends to the responsibility of running the system, or running some aspect of it.
5.2.5 EASE OF DAY TO DAY USE
Ease of day-to-day use gives an end-user rating of how easy is to use the CRM system
for day-to-day business operations. In day-to-day business complex and high-volume
data entry, inquiries, reporting and querying is done on a routine basis. This factor
measures how easy it is for the end-users to operate the system on the above grounds.
39
5.2.6 SOFTWARE RELIABILITY
This factor is a direct measurement of the satisfaction level of end-users on the

reliability of the CRM system. Software reliability is the ability of a program to
perform its required functions accurately and reproducibly under stated conditions for
a specified period of time. It is the probability that software will not cause the failure
of a system for a specified time under specified conditions. In simple words, Software
Reliability is the probability of failure-free software operation
5.3 IMPACT OF DEPLOYMENT OF CRM SYSTEMS ON

INCREASED CUSTOMER SATISFACTION
Particulars 10 - 20 % 20 - 30 % 30 - 50 % ABOVE 50%

No of
10 14 20 6
Respondents
Table 5.1: Responses for impact of CRM systems on increased Customer satisfaction
12%
20%
40%
28%
10 - 20 % 20 - 30 % 30 - 50 % ABOVE 50%
40
Fig 5.4: Response Statistics for impact of CRM systems on increased Customer
satisfaction
INTERPRETATION
The questionnaire had four ranges ranging from 10 – 20 %, 20 – 30 %, 30 – 50% and

above 50%. The result were distributed with 40% of the sample surveyed quoting that
the deployment of CRM system in their organization had increased customer
satisfaction by 30 – 50%. The technology-driven improvements in customer service
contribute to long-term customer satisfaction, they ensure repeat purchases, improve
customer relationships, increase customer loyalty, and best of all deliver customer
delight.

INCREASED REVENUE
Particulars 2-5% 5 - 10 % 10 - 20 % ABOVE 20%

No of
0 10 18 22
Respondents
Table 5.2: Responses for impact of CRM systems on increased revenue
0% 20%
44%
36%
2-5% 5 - 10 % 10 - 20 % ABOVE 20%
41
Fig 5.5: Response Statistics for impact of CRM systems on increased revenue
INTERPRETATION
The samples were given four categories: 2 – 5 %, 5 – 10 %, 10 – 20 %, above 20 % to

quote their responses on the impact of CRM systems on increased revenue to the
organisation. Though around 36% of the respondents said their CRM system
increased the revenues by 10-20 %, the Major portion of the responses agreed that
their CRM system contributed to the increase of above 20% of their revenues. With a
proper CRM system in place, long lasting relationships with customers can be build
and strategies can be framed to utilise the customer’s life time value.

INCREASED USER PRODUCTIVITY
Particulars 5 - 10 % 10 - 20 % 20 - 30 % ABOVE 30%

No of
2 16 22 10
Respondents
Table 5.3: Responses for impact of CRM systems on increased User productivity
4%
20%
32%
44%
5 - 10 % 10 - 20 % 20 - 30 % ABOVE 30%
42
Fig 5.6: Response Statistics for impact of CRM systems on increased User
productivity
INTERPRETATION
The target samples were given four choices: 5 – 10%, 10 -20 %, 20 – 30 % and above
30 % regarding the impact of CRM systems on increased user productivity. A clear
majority of 44 percent of the samples who were surveyed have experienced 20 – 30 %
improvement in user productivity. CRM Technology Automates Business Processes
at the Desktop; Helps Enforce Procedures and Delivers Enhancements to Optimize
Employee Productivity

DECREASED OPERATING COSTS
Particulars > 2% 2-5% 5 - 10 % 10 - 20 %

No of
0 14 26 10
Respondents
Table 5.4: Responses for impact of CRM systems on decreased Operating costs
20%
0%
28%
52%
> 2% 2-5% 5 - 10 % 10 - 20 %
43
Fig 5.7: Response Statistics for impact of CRM systems on decreased Operating costs
INTERPRETATION
The implication of the question is to gain knowledge on the impact of CRM systems
on decreasing the operating costs. The samples responded with a 52 % majority
experiencing 5 – 10 % decrease in operating costs. CRM makes business processes
transparent. Everyone in the organisation benefits with CRM in place, since they are
aware of the entire business process. An integrated CRM solution gives employees a
centralized place to store data and access information. It helps to cut down the
operating costs.
5.7 TIME REQUIRED TO REALISE A RETURN ON

INVESTMENT
Particulars 6 - 10 10 - 18 < 18
> 6 MONTHS
MONTHS MONTHS MONTHS
No of
0 15 24 11
Respondents
Table 5.5: Responses for time required to realise a return on investment
22%
48%
0%
30%
> 6 MONTHS 6 - 10 MONTHS

10 - 18 MONTHS < 18 MONTHS
Fig 5.8: Response Statistics for time required to realise a return on investment
44
INTERPRETATION
Return on investment is an important impact measure of any technology investment.

Because of the executive involvement in decision making, CRM solutions need to
show a measurable, if not quick, ROI. Many companies have found ROI as a critical
factor driving the evaluation phase of implementing a CRM system. The
questionnaire had four ranges ranging from less than 6 months, 6 – 10 months, 10 –
18 months and above 18 months. 48 % of the sample surveyed agreed that their
organization needed 10 – 18 months to breakeven and realize a return on investment.
About 22% of the samples were more optimistic and said their organization needed 6
– 10 months to realize a Return on Investment.
INCREASED CUSTOMER RETENTION
Particulars > 10 % 10 - 20 % 20 - 30 % ABOVE 30 %

No of
0 10 25 15
Respondents
Table 5.6: Responses for impact of CRM systems on increased Customer retention
0%
20%
30%
50%
> 10 % 10 - 20 % 20 - 30 % ABOVE 30 %
Fig 5.9: Response Statistics for impact of CRM systems on increased Customer
retention
45
INTERPRETATION
In today's extremely aggressive and competitive marketplace, commercial

organisations need new and radically different strategies to attract and then retain
quality customers who have good lifetime profitability potential. CRM systems again
offers customer retention strategies to retain and utilize the value of the customer.
About 30% of the sample had said that their organizations had improved customer
retentions by more than 30 %. A majority 50 % of the sample surveyed agreed that
their organization had 20 – 30 % increased customer retentions due to the deployment
of CRM systems.
5.9 CRM MARKET SHARE IN BANKING SECTOR
Particulars ORACLE FINACLE FLEXCUBE SIEBEL

OTHERS
CRM CRM CRM CRM
No of
Respondents 17 13 10 8 2
Table 5.7: Responses for what CRM system was in use in the organisation
4%
OTHERS 16%
SIEBEL CRM 20%
FLEXCUBE CRM
26%
FINACLE CRM
34%
ORACLE CRM
0 5 10 15 20 25 30 35
Percentage Market share (values in %)
Fig 5.10: CRM Market share in banking sector
46
INTERPRETATION
The implication of the question is to find out the CRM system used by the Bank for
its operations. The Indian CRM market share when focussed on banking sector
slightly varies to the overall market metrics. The various CRM software systems used
by different banks are Oracle CRM, Finacle CRM, Flexcube CRM and Seibel CRM.
Oracle CRM with 34 % of the respondents agreeing that their organisations employ it,
projects to be the preferred CRM system over other systems. Infosys’s Finacle CRM
(F-CRM) is also used as a part of operations and the bank’s CRM requirements. The
respondents have rated I-Flex’s flexcube CRM and Seibel CRM with 20 and 16
percent of the market share in banking sector.
5.10 RESPONDENT INVOLVEMENT WITH CRM SYSTEMS
Particulars CLOSELY SOMEWHAT NOT VERY

KEY PERSON
INVOLVED INVOLVED INVOLVED
No of
10 21 16 2
Respondents
Table 5.8: Responses for Respondent involvement with CRM systems
42%
60
32%
20%
40
4%
20
0
Percentage Respondent involvement with CRM
%
KEY PERSON CLOSELY INVOLVED
SOMEWHAT INVOLVED NOT VERY INVOLVED
Fig 5.11: Respondent involvement with CRM systems
INTERPRETATION
47
The implication of the question is to find out the validity and reliability of the
research. The above-mentioned factors are a direct measurement of the quality of the
sample considered. The quality of the sample considered for research is found out by
knowing the respondent’s involvement with CRM systems in the organisation. 20
percent of the respondents chosen are key persons, 42 percent of the respondents
chosen are closely involved with CRM, 32 percent of the respondents chosen are
somewhat involved with the CRM system and just about 4 percent of the respondents
are not so involved with the CRM system.
6. SUMMARY OF FINDINGS
FACTORS ON WHICH CRM DESIRED ACTUAL

SYSTEM WAS RATED SATISFACTION SATISFACTION
LEVEL - LEVEL -
RATINGS RATINGS
PRODUCT EFFECTIVENESS 9 8.08
TRAINING AND TECHNICAL
SUPPORT 8.4 7.08
PRODUCT FUNCTIONALITY 8.4 7.24
EASE OF SYSTEM ADMINISTRATION 8 6.7
EASE OF DAY TO DAY USE 9.04 7.56
SOFTWARE RELIABILITY 8.28 7
Table 6.1: End-User rating of CRM system
 The survey sheds light on the factor considered important by the end-users
of CRM in banking sector.
 The respondents have rated ‘Ease of day to day use’ of the CRM system as
the most important factor driving satisfaction with an overall rating of 9.04
on a scale of 10.
 The end-users expect a very good product effectiveness to gain satisfaction
from the CRM system. The rating for product effectiveness was 9 on the
same scale.
48
 The factors training and technical support and product functionality trail
close with a rating of 8.4 each on the same scale.
 The desired satisfaction level on the factors software reliability and ease of
system administration were given a rating of 8.28 and 8 on the above
scale.
The satisfaction scores given by the respondents for the current CRM system also
draw certain implications.
 The factor on which the end-users are most satisfied with their current CRM
system was the ‘Product Effectiveness’ which has a overall rating of 8.08 on a
scale of 10.
 End-users have given the lowest rating of 6.7 on a scale of 10 to ‘Ease of
System Administration’ and are least satisfied with the CRM system with
regard to that factor and in comparison to other factors.
FACTORS ON WHICH CRM SYSTEM WAS RATED GAP SCORES

PRODUCT EFFECTIVENESS 0.92
TRAINING AND TECHNICAL SUPPORT 1.32
PRODUCT FUNCTIONALITY 1.16
EASE OF SYSTEM ADMINISTRATION 1.3
EASE OF DAY TO DAY USE 1.48
SOFTWARE RELIABILITY 1.28
Table 6.2: Gap Scores for various factors
 The Gap analysis results details on the difference in the desired and the actual
CRM systems on the various factors used and discussed earlier in this work.
Empirical analysis of gap data for user satisfaction of CRM system by a research
organisation has shown the following correlations:
GAP SCORES CORRELATION

<1 World-Class
1–2 Meets/Exceeds industrial standard
2–3 Vulnerability
>3 Serious Vulnerability
49
Table 6.3: Correlations for GAP scores
 The least gap is for the ‘product effectiveness’. A gap of 0.92 exists. With
reference to the above table, the product has a world-class performance in that
factor.
 All other gaps exist in the range of 1 – 2. It relates that the CRM product used
by various banks meets or just exceeds the industry standard.
 Though a gap of 1.48 for the factor ‘Ease of day to day use’ falls under the
category of meeting industrial standard, it has been rated as the highest gap by
the end-users and the CRM vendors must concentrate on this factor to move
into the world-class category.
The survey asks recipients to provide data about the impact of their CRM
Applications deployment on six different metrics:
 Percentage change in user productivity
 Percentage change in customer satisfaction
 Percentage change in customer retention
 Percentage change in revenue
 Percentage change in operating costs
 Return on investment (measured in months until ROI)
The majority of the CRM end-users reported the following results as a result of using
their CRM Applications:
 20 - 30 percent increase in employee productivity

 30 - 50 percent increase in customer satisfaction
 20 - 30 percent increase in customer retention
 Above 20 percent increase in revenue
 5 - 10 percent reduction in operating costs
 Return on investment in 10 - 18 months
50
RECOMMEDATIONS
TO CRM VENDORS
 The CRM vendors must organise an end-user or customer satisfaction survey

semi-annually or quarterly to figure out the actual need of individual
customers.
 The concept of Mass Marketing is not synchronous with CRM as a product.

As individual customization is required to bring in the CRM product –
Business process fit. The requirements must be clearly communicated initially
and further satisfaction surveys should be followed up.
 Training and technical support is a major component to be taken care of. From
the research work, a significant gap does exist with reference to this factor and
the CRM vendors should minimize this existing gap to gain a competitive
edge. Training the end-user to use the system is the first phase in the
interaction of the system and the end-user; hence there is a state of uncertainty
with the end-users. Training and further technical support can make issues a
lot easier for the customers.
 The end-users have rated ‘Ease of day to day use’ as the top priority factor
driving satisfaction. The CRM vendors have a opportunity to improve the
system on the attribute to gain a competitive advantage in the market.
TO CRM BUYERS
51
 A product evaluation should be done before implementing CRM software. The
extent to which the CRM product’s functionality fits the desired functionality
should be analysed. The ease of integrating the CRM system with the other
existing systems should be considered as one of key criteria in the evaluation.
 The organisation should be ready for CRM before its implementation. i.e.,
internal changes within the organisation which are required to really make
CRM work should be adopted.
 The buyer should have proper well defined objectives like sales, ROI etc.
before CRM implementation.
 The CRM implementation should be driven by motive of transforming the

business to a customer - centric environment and not for a technology –
centric environment.
52
CONCLUSION
Relationship marketing is emerging as a new area of focus for service firms in India.
But these are mainly based on some loyalty programs and investments in technology
for enhancing the capability of databases. Managers should ensure that while
investing in databases, technology, human resources and relationship marketing
programs, attempts should also be made to develop milestones, which help them
sustain these initiatives. These milestones become benchmarks against which future
programs get evaluated. Measurement metrics get developed over a period of time
when one s tarts collecting information about customers, their buying patterns, usage
behaviour, referrals, etc and start linking them to the marketing programs. Successful
firms take a long-term strategic view of customer relationship management. It cannot
be solely managed through periodic programs. A holistic approach which leads firms
to develop customer centric process, integrate technology through customer oriented
approaches, motivate employees to perform to their full potential through
empowerment are prerequisites for firms to successfully utilize their customer
knowledge to enhance relationships with their customers.
Customer relationship management is do-able. Presently in India, companies have
wonderful opportunity to fully utilize the power of a CRM Software Solutions. It is
unrealistic to implement all the features and integration possibilities all at once. If a
phased approach is adopted in a planned manner with cross functional teams
53
implementing the customized solutions under the co-leadership of both the IT and
strategists, it will obtain the appropriate approvals at each stage and organization will
have a successful CRM system to compete globally.
The vendors have an important role to accomplish even after the implementation. The
desired performance of the CRM systems has to be analysed by the CRM vendors by
post implementation research and surveys. It leads to the improvement of the CRM
system which the vendors offer and may even result in genesis of new opportunities.
The CRM vendors should apply best practices in the design, management, and
execution of its customer satisfaction program. These practices include regular
surveys of its customer base, comprehensive reviews of the survey data, and action
plans to follow up on the results. These customer and end-user satisfaction surveys
figure and analyse the performance of the CRM system as required by the end-user. It
leads to the improvement of the CRM system which the vendors offer and may even
effect in genesis of new opportunities.
54
BIBLIOGRAPHY
BOOKS
 Philip Kotler, Marketing Management - Eleventh Edition, Pearson

Education.
 Donald R. Cooper, Pamela S. Schindler, Business Research
Methods, Tata McGraw Hill.
WEBSITES
 www.crmguru.com
 www.crm-daily.com
 www.destinationcrm.com
 www.crmcommunity.com
 www.insightexec.com
 www.filenet.com/financialservices
 www.seibel.com
 www.mysap.com
55
ANNEXURE
Questionnaire
Dear Sir/Madam,
I am a student of Alliance Business Academy doing my Masters in Business

Administration. As a part of the curriculum, I am doing a dissertation entitled “A
study on End-user Satisfaction of CRM systems in banking sector”. I request you to
kindly spare a few minutes of your valuable time in filling this questionnaire which
will help me in completing the dissertation. I assure you that the information provided
will be kept confidential and will be used only for the above said purpose.
Rate the expected system performance and the satisfaction level of the existing CRM
system on the following factors on a scale of 0 (lowest) to 10 (highest). (For questions
from 1 - 6)
1. PRODUCT EFFECTIVENESS: - Where do rate the overall performance of

the CRM system on grounds of installation, configuration, functionality and
ease of use?
Expected System Performance on this factor


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
Actual System Performance on this factor:


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
2. TRAINING ANDTECHNICAL SUPPORT: - Where do rate the effectiveness

of the end-user educational services, technical training provided by the vendor
and the timeliness and quality of response provided by technical support?
Expected System Performance on this factor:
56

0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
3. PRODUCT FUNCTIONALITY: - Rate how well the CRM system’s

functionality meets the business needs.


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
4. EASE OF SYSTEM ADMINISTRATION: - Rate how easy is it to administer

the CRM system.


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
5. EASE OF DAY TO DAY USE: - Rate how easy is to use the CRM system for
day to day business operations.
57

0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
6. SOFTWARE RELIABILITY: - Where do you rate the reliability of your

CRM system?


0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)

0 1 2 3 4 5 6 7 8 9 10
(Lowest) (Highest)
7. To what level do you customers feel more satisfied on deployment of CRM

system?

10 – 20 % 20 – 30%
30 – 50% Above 50 %
%
8. To what level the deployment of CRM system contribute towards increased
revenue?

2–5% 5 – 10 % 10 – 20% Above 20 %
58
9. To what extent the deployment of CRM systems contribute to increasing user
productivity?

5 –10 % 10 – 20 % 20 – 30 % Above 30 %
10. To what extent the deployment of CRM system contributes to decreasing the
operating costs?

Less than 2–5% 5 – 10% 10 - 20 %
2%
11. What amount of time was required to realize a return on investment for its
CRM deployment?

Less than 6 – 10 10 – 18 Above 18
6 Months Months Months Months
12. To what extent the CRM system has enhanced and improved the retention of
customers?

Less than 10 – 20 % 20 – 30% Above 30 %
10 %
13. Which CRM system are you using for business operations?
Respondent Profile:
Name:
Company Name:
59
Job Designation:
Involvement with CRM system:

Key Closely Somewhat Not very
Person Involved Involved involved
. . . Thank you for your valuable time . . .
60

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A

“A Study of End-user satisfaction of CRM systems in banking

Submitted in partial fulfilment of the degree of Master of Business

Under the guidance of

ALLIANCE BUSINESS ACADEMY

I, K. Gnanasambandam, studying in Alliance Business Academy, Bangalore do

I, Prof. Rathnakar Acharya, hereby certify that this dissertation report

I would like to express most heartfelt gratitude to Prof. Sudhir G. Angur,

My heartfelt thanks to my guide, Prof. Rathnakar Acharya, faculty,

CHAPTER TITLE PAGE.

1.1 RELATIONSHIP MANAGEMENT: CHANGING 1

2. DESIGN OF THE STUDY

2.1 PROBLEM STATEMENT 18

3. THE CRM MARKET PROFILE

3.1 THE INDIAN MARKET CHANGING DYNAMICS 22

5. ANALYSIS AND INTERPRETATION

5.1 END-USER SATISFACTION MEASUREMENT 36

5.7 TIME REQUIRED TO REALISE A RETURN ON 44

5.8 IMPACT OF DEPLOYMENT OF CRM SYSTEMS ON 45

FIGURE TITLE PAGE

various factors on a scale of 1 to 10

FIGURE TITLE PAGE

marketing efforts to be more informative, customer and service oriented. CRM –

Customer Relationship Management is an innovative approach undertaken by the

marketers in the process of developing lifetime customers and maximizing lifetime

value of the customers.

percentage for employment of Customer Relation Management software; hence this

work concentrates on banking sector.

performance of the CRM system in the end-user perspective.

productivity, Customer satisfaction, Customer retention, Change in revenue,

Operating costs, Return on investment in the banking sector due to deployment of

managers, Relations officers, and assistant managers of various banks.

be implemented to fill these gaps.

1.1 RELATIONSHIP MANAGEMENT: CHANGING PARADIGMS

Relationship management is emerging as the core marketing activity for businesses

1.1.1 CRM – A SNAPSHOT VIEW

The development of information superhighway and opening up of the digital markets

As a philosophy Customer Relationship Management is the most significant

CRM, conceptually, is an enterprise-wide initiative that belongs in all areas of an

Customer and Transaction Order Management

Fig 1.1: Business processes in CRM

1.3 CRM CAPABILITIES

• Integration of interactive technologies and customer centric business processes

1.3.1 REQUISITES TO PROMOTE CRM INITIATIVES

Transforming the business focus of an organization essentially means getting the

PRODUCT PLACE PROMOTION CHANNEL CONTACT CUSTOMER

PRODUCT PLACE PROGRAM CUSTOMER CUSTOMER CUSTOMER

MASS CUSTOMER INDIVIDUAL

DATA DATA DATA CUSTOMER

Fig 1.2: CRM transformation Map

Transforming the business metrics should be a by-product of the changes previously

CRM in a nutshell can be described as a discipline as well as a set of discrete software

1.4 IMPLEMENTING CRM

A successful CRM strategy cannot be implemented by simply installing and

 Identify customer success factor

1.5 ARCHITECTURE OF CRM

There are three parts of application architecture of CRM:

 Operational - automation to the basic business processes (marketing, sales,

1.5.1 OPERATIONAL CRM

Operational CRM provides the following benefits:

 Delivers personalized and efficient marketing, sales, and service through

- Sales force automation (SFA)