CRM IN ICICI BANK

INTRODUCTION TO CUSTOMER RELATIONSHIP MANAGEMENT

Today, banks are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. Banks have realized that managing customer relationships is a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies. The key which takes the share price of the bank at top most level is the customer. Customer is the most important person for a business. He is not an interruption to our work but the purpose of it. He is not an outsider; he is a part of it. We are not doing him a favour; he is doing us a favour by giving us an opportunity to serve him. By Mahatma Gandhi. Many organizations have realized that to sustain in the market they have to do more than selling of their product. For this the only mantra is to provide customized and personalized services to customers, which in management is also known as practicing Customer Relationship Management. This concept is tremendously gaining importance in corporate circles and is emerging as the business theme for the 21st century.

CUSTOMER A customer refers to an individual or a group that purchases goods and services generated within the economy. Customer who was considered to be the king of market is now regarded as the emperor of market. Since all the organizations have the same technology and more or less the same price offering, it is only the customers loyalty which can take their business sky high. A customer may be: Your paying client:They give you money and you give products and services. Your employee:You give them a pay cheque benefits and bonus and they give you hopefully productive worth in return. Your supplier/vendor:You have suppliers who give you products and services and you give them money. Your partner:They give you leads/sales, added value services you give them a sales or percentage of sales. They help in making. 1|P a g e

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RELATIONSHIP Till recently for large companies to form relationship with customer was impossible. How can a company know the preference and dislike of customers? This is an area where technology can help business for lasting relationship with customers to keep them loyal and increase the value of the company. Every time a customer approaches a business there arises a expectation. It may be a service need or new product but in every case they have an expectation that the company has to fulfil. What happens next will form an experience that shapes customers behaviour. A good experience may increase customers loyalty and tendency to purchase again and a bad experience may transfer the business to the competitor. The ability to recognize this process and to actively manage it forms the basis of customer relationship management.

MANANGEMENT Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal. Loyalty is equal to profit which both customers and businessman gain. The management part of customer relationship management demonstrates that it is the business which controls the relationship with the customer. It provides the right information at the right time so that the customers are happy to stay with that service provider or organisation.

DEFINITION OF CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management is a comprehensive set of processes and

technologies for managing the relationship with potential and current and business partners across marketing, sales and services regardless of the communication channels. Customer relationship management is the way to do business that touches all areas. It is a process used to learn more about the customer needs and behaviour to develop strong relationship with them. There many technological components of customer relationship management. But thinking about customer relationship management in primarily technological terms is a mistake. Customer relationship management is a business philosophy and not only a set of technologies.

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EMERGENCE OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management is a concept that became very popular during the 1990s. It offered long term changes and benefits to businesses that chose to use it. The reason for this is because it allowed companies to interact with their customers on a whole new level. While CRM is excellent in the long term, those who are looking for short term results may not see much progress. One of the reasons for this is because it was difficult to effectively track customers and their purchases. It is also important to realize that large companies were responsible for processing tremendous amounts of data. This data needed to be updated on a consistent basis. In the last few years, a number of changes have been made to Customer relationship management that has allowed it to advance. These capabilities have allowed CRM to become the system that was once envisioned by those who created it. However, the biggest problem with these newer systems is the price. A number of personalized Internet tools have been introduced to the market, and this has driven down the cost of competition. While this may be a boon for vendors who are selling expensive systems, it is a bonanza for small companies that would otherwise not be able to afford CRM programs. The foundation for CRM was laid during the 1980s. During this time, it was referred to as being database marketing. The term "database marketing" was used to refer to the procedure of creating customer focus groups that could be used to speak to some of the customers of the company. The clients who were extremely valued were pivotal in communicating with the firm, but the process became quite repetitive, and the information that was collected via surveys did not give the company a great of information. Even though the company could collect data through surveys, they did not have efficient methods of processing and analyzing the information. As time went on, companies begin to realize that all they really needed was basic information. They needed to know what their customer purchased, how much they spent, and what did with the products they purchased. The 1990s saw the introduction of a number of advances in this system. It was during this time that term Customer relationship management was introduced. Instead of merely gathering information for the purpose of using for their own benefit, companies started giving back to the customers they served. Many companies would begin giving their customers gifts in the form of discounts, perks, or even money. The companies believed that doing this would allow them to build a sense of loyalty in those who brought their products. 3|P a g e

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Customer relationship management is the system that is responsible for introducing things such as frequent flyer gifts and credit card points. Before CRM, this was rarely done. Customers would simply buy from the company and little was done to maintain their relationship. While this may have worked prior to the 1980s, the introduction of the information age allowed people to make better decisions about which companies they would buy from and global competition made it easier for them to switch if they were not happy with the service they were getting.

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AN OVERVIEW OF INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA (ICICI)

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion at March 31, 2011 and profit after tax Rs. 51.51 billion for the year ended March 31, 2011. The Bank has a network of 2,533 branches and 6,601 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Following are the global recognitions of ICICI Bank: Bank of the Year and Best Multi-Channel Strategy - The Banker, UK Best managed bank in Asia Euro money Best Bank in India and Best Trade Finance Bank in India - Global Finance Best Consumer Internet Bank in India - Global Finance Bank of the Year from the Emerging Markets- The Banker, UK Excellence in retail banking - Asian Bankers Journal

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CRM IN ICICI BANK

The CRM initiatives in Indias ICICI Bank hold together its compelling story of growth in customer base, channels, and product and service offerings. Since its inception in 1995, the bank has grown to have 15.8 million customers, holding about 17 million accounts. The banks network has expanded to 2533 branches and standalone counters and over 6601 ATMs. CRM has been envisioned by the bank to support its goals in sales, customer service, and analytics. Already, about 30.40% of the banks home loans are cross-sold to existing customers. Similar ratios have also been reported in the sale of insurance policies. Ratios of about 50.60% have been seen out of the credit cards and personal loans business. The banks stated intention is to take these ratios to as high as 60.75%. ICICI Bank states that these high levels of relationship maximization are made possible by how its CRM system is able to "know and understand the customer better. which customer is most suitable for what kind of product and at what point in time." In the area of service, the bank receives as many as 150,000 customer requests per day, a challenge not only to channel capacity but also to how the bank is able to ensure that each request is recorded, tracked, and resolved. Last, customer analytics have been used to support various strategic decisions of the bank. ICICI Banks CRM capability is built on a data warehousing that integrates data from multiple sources. The system provides users with information about each customers checking accounts, fixed information. CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. Its philosophy focuses on each and every customers satisfaction. CRM facilitates coordination of multiple business functions & multiple channel of communication with the customers to carry out customer management more efficiently. It also helps ICICI Bank in automating the process flow tracking in the product sales process and generates customized reports and promote cross-selling. deposits, credit cards, and other financial

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COMPONENTS OF CRM IN ICICI BANK

The typical components of CRM strategy at ICICI Bank are as follows:

Interact and Deliver

1. Deliver incresed

Acquire and Retain

value to customer 2. Interact with customers 1.Acquire customers 2.Retain valuable customers

1. Customize by customer segment 2. Develop products, services and channels to meet customer needs

1. Understand customer needs

2. Defferentiate on the basis of needs, behaviour and characteristics

Develop and Customize

Understand and Differentiate

Understand and differentiate: Understanding customers is important in order to develop a sound relationship with them. Customer profiling is done in order to understand demographics, purchase pattern and channel preference. CRM also helped ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV) Develop and customize: - In a customer centric business environment, the products and processes have to be according to customers needs and preferences. ICICI has always focused on developing channels of service delivery according to customers need and service expectation.

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Interact and Deliver: To foster a strong customer relationship ICICI ensured that all areas of the bank have easy access to relevant, actionable customer information and employees should be trained on how to use customer information to tailor interactions based on both customer needs and potential customer value. Acquire and Retain: CRM helped ICICI to figure out valuable customers and made it easy to formulate retention strategies for them. It also helped it cope up with the change in customers life cycle and offer services accordingly.

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TOOLS AND PROCESS OF CRM IN ICICI BANK

The tools and the processes of customer relationship management in ICICI Bank are as follows Customer application form Centralized software where the whole data is collected Wide range of offering Cross selling Feedback forms Customer application forms Bank collects all the data from customer application form and gets personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants. Centralized software where the whole data is collected The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross selling. Wide range of offering After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes a person as a valuable customer then is offers a more customized service. Cross selling It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example: If customer has savings account with the bank then they offer him insurance, fixed deposits etc. This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. If more business is given by the customer to the bank, then more are his chances of receiving offer for special services.

Feedback forms The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used employee behavior and promptness in solving customers problems. These forms are taken and then they are analyzed.

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PURPOSE OF FOLLOWING CRM AT ICICI BANK

The CRM process at ICICI Bank is followed for the following purposes: Targeting customers Sales reference material Consistent interface with customers

Targeting customers

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

A combined information database on all products, pricing, competitor information, sales presentations, proposal templates and marketing should be accessible to all the people concerned. This proves to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instant access to all relevant material as and when it is required especially when he/she is in a meeting with a client. Consistent interface with customers:

The communication with customers from various departments like sales, finance, customer support, etc. should be constant and not contradictory. Therefore, all departments should have knowledge of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal coordination. This is bound to enhance customer satisfaction. The contact centres used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, e-mail, fax, etc. Banks can use the data of customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine value for that segment. Accordingly, suitable campaigns can be 10 | P a g e

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designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and up-selling.

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IMPLEMENTATION OF CRM AT ICICI BANK

The steps that ICICI bank follows in implementing Customer Relationship Management (CRM) are as follows: Identifying CRM initiatives with reference to the objectives to be attained (such as increased number of customers, enhanced per-customer profitability, etc.), Setting measurable targets for each initiative in terms of growth in profits, number of customers, etc. and Evaluating and choosing the appropriate Customer Relationship Management (CRM) package that will help the company achieve its CRM goals (a comparison of pay-offs against investments could be carried out during the evaluation exercise).

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DIFFERENT SERVICES PROVIDED BY ICICI BANK

ICICI Bank has to manage more than 13 million customers. Its customers often use multiple channels, and they are increasingly turning to electronic banking options. Business from the Internet, ATMs and other electronic channels now comprise more than 50 per cent of all transactions. In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers. Following are different channels provided by ICICI bank keeping CRM in mind for accessing its services: Mobile banking Mobile phone as a virtual wallet Insta banking Cash pick up Demat a/c facility Mobile ATMs Bulk deposits ATMs for the visually challenged

Other services through ATMs

Mobile banking ICICI bank mobile banking enables a customer to bank while being on the move. Mobile banking enables the customer to avail of many facilities by just sending an SMS. The various mobile banking facilities offered by ICICI bank are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account

Mobile phone as a virtual wallet The mobile phone has been transformed into a virtual wallet a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq a revolutionary new service which is a credit card using the mobile phone. This is the first mobile-to-mobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel

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Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase. Insta banking ICICI Banks Insta Banking enables the customer to conduct banking transactions anytime from anywhere. They can avail of this anywhere-anytime banking service through ICICIs 24-hour channels like ATM, Internet Banking, Instant Voice Response (IVR) Banking and Mobile Banking which is from 8 a.m. to 8 p.m. These unique and user-friendly channels have brought banking services to the customers fingertips. From balance enquiry to checking cheque status to ordering a new cheque book, customer can communicate with ICICI Bank from the comfort of their home or in the middle of a busy day at the office. Cash pick-up ICICI also facilitates cash pick-up service for business customers under business banking segment. Demat a/c facility ICICI bank gives an option of opening DEMAT A/c and trading A/c simultaneously with saving A/c through which customer can do share trading online. Mobile ATMs Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings. Bulk deposits The ICICI Banks Bulk Deposit ATMs enable customers to deposit large amounts at one time. Unlike conventional ATMs, which are able to accept only 30 notes at a time, these ATMs allow the deposit of huge amounts. The Bulk Deposit ATM is available in Mumbais Vashi sector branch office of ICICI. The bulk deposit facility can be availed by selected customers who need to deposit huge amounts of cash. ICICI Bank issues a special card called the `Deposit Only Card to facilitate this service. This card allows for deposit transactions only. The service is further facilitated by the provision of special bags at ATMs in which a customer can put his money. After the deposit slip is filled, the bag can be inserted in the ATM.

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

Other services through ATMs

Apart from the usual transactions involving the bank, some other services can also be availed of by ICICI Bank customers. These include: Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Internet service provider) Making donations for Tirupati, Tirumala, Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine Mutual fund transactions, and Bill payments

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CRM APPROACH AT ICICI BANK

ICICI follows a customer centric approach for CRM. CRM, according to ICICI consists of following approaches: Getting personalized information on customers. Value of the relationship. Customized offerings to the customers. Converting a prospective customer into a true customer. Getting personalized information on customers The bank collects all the information about the customers for processing. ICICI bank has mainly 4 service offerings via: loan account, saving account, current account and fixed deposits. Moreover, the bank has many customers in each category. So, they collect the data on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form. Value of the relationship After the collection of the personalized information on every customer, the department checks out the value of the relationship with each and every customer. Later, they decide how to approach the customer for knowing what his needs and wants are. After this is done, the company offers him the customized product. Customized offerings to the customers The step which comes after deciding the value of the customer is that the company offers the person the customized product. Moreover, they also practice a concept called cross- selling over here. Cross selling refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example: If customer has saving account with the bank then he is offered loan, insurance and other investments. Converting a prospective customer into a true customer The last approach of CRM according to ICICI bank is that they try to convert the prospective customer into a true customer. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly.

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CRM OF ICICI DIFFERENT FROM OTHER BANKS

Most banks have their own databases but because of the huge technological investments done by ICICI the databases in all the branches are integrated, which means they can be accessed from anywhere and at anytime. ICICI bank has tied up with Terradata Company for making their software and is the only bank doing this. The difference can be known through matching tool parameter. This refers to, on the server of ICICI some standards are set in terms of value of the customer and whenever the customer reaches the set standard, the server automatically informs the department to offer him another product. CRM helps ICICI to know the needs and wants of the customer. So, on the basis of this, company can decide which product should be offered to which customer. More over, under CRM, ICICI has identified that cross selling is the best weapon. It enhances the relationship value with the customer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the company. This helps in retaining the market share. Now, the satisfied customers help in reference sales, which eventually increase their market share.

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INTERVIEW
For knowing in deep about customer relationship management (CRM) in Industrial Credit and Investment Corporation of India (ICICI) we had visited Mulund (west), station road branch of ICICI Bank. Over there we met Mrs. Manjari Naik who is an employee in ICICI Bank, Mulund. The ease with which we could approach to this employee itself speaks volumes about the ICICI culture and its customer centric approach. Questionnaire: 1. Can you just brief us regarding the CRM process at ICICI Bank? 2. We have heard that ICICI Bank is the number one bank in India in customer relationship management. What is ICICI doing different than other banks? 3. CRM is the activity done at various levels of the organization, how does ICICI implement it? Answers: 1. CRM at ICICI is an extensive process which involves communication with existing customers and prospective customers. There are multiple channels through which we communicate with customers to carry out customer management process. We use different softwares to carry out this process. 2. We use latest software to understand our customers, their demographics and needs. We try to provide them customized products as per their requirements. You must be aware of different credit card schemes provided by us to customers. 3. Implementation part is done by top level management and I am not aware of the whole process. I can just tell you that GAP analysis is done before we embark on CRM implementation.

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CONCLUSION
Thus, we see that a focused and customer centric approach helped ICICI Bank become second largest bank in India. ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new generation private banks. It has invested a lot in Information and Communication Technologies (ICT) and spared no pains in giving best to the customers. Its multi-pronged approach towards managing customer relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India. Thus after grabbing details of CRM in ICICI bank we can say that ICICI bank is well ahead of other banks as far as Customer Relationship Management is concerned. However at the same time keeping intense competition into account, ICICI bank should constantly keep improving its technology.

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