Customer relationship management IN

Submitted to: Mr. Anil Vashisht

Submitted by: Deepika Bora Manveer Singh Rachna Yadav

ACKNOWLEDGEMENT
We express our immense gratitude to our Associate Professor Anil Vashisht who not only guided us throughout the project but also gave us an opportunity to be acquainted with the present scenario and enhance our practical knowledge. His motivation and constant mentoring has helped us in the completion of the project. Mutual understanding and coordination amongst the group members is also highly appreciated.

Contents

Introduction of CRM Introduction of ICICI Bank Why CRM in ICICI Bank CRM Solution Importance of CRM Benefits from CRM Six frame-work model Hexagon Model IDIC Model Results of implementing CRM Competitive Advantage Recommendations

Introduction of C.R.M
The term CRM stands for Customer Relationship Management. Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It is a process or a methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. This process helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs.

INTRODUCTION OF ICICI BANK

Profile ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI Bank is also the largest issuer of credit cards in India. Business Focus ICICI wants to leverage their people, technology, speed and financial capital to:

Be the banker of first choice for our customers by delivering high quality, world-class products and services. Expand the frontiers of our business globally. Play a proactive role in the full realization of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders.

Distribution ICICI Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,528 branches and 6000 ATMs in India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the

need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposit and loan products. Moreover, ICICI Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Why CRM in ICICI Bank

The environment within which financial institutions operate has changed in recent years. It is now one of: Increased competition Growing product commoditization, and Diminishing margins Banking customers have also changed in recent years. Customers today are more knowledgeable, sophisticated and assertive than ever before. They demand higher levels of customer service, are less loyal, and more inclined to switch to a competitor. Modern customers thus necessitate flexibility in hours of operation, greater convenience, customization, transparency, accessibility and control. This has led to a shift in business focus from transactional to relationship marketing. The use of CRM in ICICI bank has been essentially done for the following purposes: Targeting customers It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. For example, a customer interacts with the banks for savings accounts, credit cards, home loans, car loans, demat accounts, etc. the data generated through all these services needs to be integrated to enable effective targeting. After the integration is done, a

profitability analysis of the customer needs to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers. Sales reference material A consolidated information database on all products, pricing, competitor information, sales presentations, proposal templates and marketing collateral should be accessible to all the people concerned. These prove to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instantaneous access to all relevant material as and when it is required (especially when he/she is in a meeting with a client.) Consistent interface with customers The communication to customers from various departments like sales, finance, customer support, etc. should be consistent and not contradictory. Therefore, all departments should be privy to a unified view of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal co-ordination. This is bound to enhance customer satisfaction. The contact Centres used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, email, fax, etc. Banks can use the data on customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine value for that segment. Accordingly, suitable campaigns can be designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and up-selling.

ICICI Banks CRM Initiatives ICICI Bank has to manage more than 13 million customers. The bank has over 550 branches, a network of 2025 ATMs, multiple call centers, Internet banking and mobile banking. Its customers often use multiple channels, and they are increasingly turning to electronic banking options. Business from the Internet. ATMs and other electronic channels now comprises more than 50 per cent of all transactions. In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers. The Teradata solution focuses on a CRM platform. Information from various legacy and transaction systems is fed into a single enterprise called wide data warehouse. This allows the bank to generate a single view of its customers. The warehouse has the capability to integrate data from multiple sources comprising Oracle and flat files. The Behavior Explorer enables profiling of customers and querying on various parameters. These enable the bank staff create suitable

campaigns for targeting individual customers on the basis of their requirements. The logistics in the system have also led to other benefits like interactive reports, unearthing cross-selling opportunities as well as finding out about the channel usage undertaken by a segment. The data access was facilitated through the use of Cognos Power Cubes.

The Benefits of CRM

Customers usage pattern ICICIs CRM data warehouse integrates data from multiple sources and enables users to find out about the customers various transactions pertaining to savings accounts, credit cards, fixed deposits, etc. The warehouse also gives indications regarding the customers channel usage. New product development Analysis at ICICI guide product development and marketing campaigns through Behaviour Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customers needs and desires, enabling the bank to satisfy customers through better personalization and customization of services. Central data management The initial implementation of CRM allowed ICICI to analyse its customer database, which includes information from eight separate operations systems including retail banking, bonds, fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM. Some Noteworthy CRM Initiatives of ICICI Bank Mobile ATMs Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings.

Table Mumbai Mobile Van

Timings 9.00 am to 10.00 am

Locations Junction of Nehru Road and M.O. Road, near Ram temple, Vile Parle (E)

11.00 am to 12.00 noon 1.00 pm to 2.00 pm 3.30 pm to 5.00 pm

Opp.J.W. Marriott Hotel, Juhu Lokhandwala Circle, Andheri (W) Outside Vasanth Sagar, 120 ft. Road, Hakur Village, Khandivali (E)

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

acknowledgement of the deposit. ICICI Bank also has cash pick-up service for business customers under the business banking segment. ATMs for the visually challenged ICICI Bank has launched ATMs with special voice-guided systems, which guide a visually challenged person to access ATMs without any help. The jack on the terminal enables headphones to be connected to it and voice commands enable the customer to transact business. Customers may choose a suitable language to get voice commands. After the language selection is done, the customer is guided to ensure that the ATM card is inserted in the right slot and thereafter, guidance is provided for entering the PIN by using the keypad. A raised button is provided on number 5 to enable users to identify the numbers easily through touch. The slot for cash collection has such raised `pips that enable easy identification through touch. 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, Sify and VSNL). Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine. Mutual fund transactions, and Bill payments

Mobile phone as a Virtual Wallet The mobile phone has been transformed into a virtual wallet a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq a revolutionary new service which is a credit card using the mobile phone. This is the first mobile-to-mobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase and also the problems associated with the point of sale (POS) terminal since the mobile phone services as a secure POS and a payment mechanism. Social Events ICICI Bank organized the largest domestic invitational amateur golf event for HN1 (high-net-worth individuals) customers. This nation-wide golf tournament had over one lakh high-net-worth clients of ICICI Banks private banking division participating in the event. Mobile Banking Benefits Mobile banking enables the customer to avail of many facilities by just sending an SMS. These facilities, which are currently offered free of cost, are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account

DRAW a 6 market frame work

Internal market the employees of the bank are very crucial for success. For customer the employee is the bank as he tract with him daily. If the staff are not satisfied or in good mood then that will be reflected in the services they provide. So the banks policy should be that they try to keep all the employees satisfied. Recruitment marketing selecting right person for a right job is a difficult task. ICICI Bank has to plan all the requirements and job specification, according to that they have to select the employee. As said earlier in banking sector employee play a key role in success. Referral market the word of mouth marketing works a lot. When a customer is satisfied, he tells his friends, relatives and known that ICICI Bank services are good, their interest rate of loan is not high, the deposit rates are high. This helps the bank increase customer base and profits. Influence marketing ruling body of bank i.e. RBI, policy plays an important role in functioning of banks. They lay all the important policy which the banks have to follow. The lending rate, deposit rates all are affected by the policy of RBI. Supplier Market the raw material in banks are computers, software, furniture, etc. So the bank has to put focus on all the suppliers of these commodities. In bank performance enhancement technology plays a vital role. The bank should be updated with technologies.

DRAW HEXAGON PROFILE MODEL

In ICICI Bank the initial customers are less as compared to repeat customers. This is because if customers are satisfied with the services they keep on doing business with banks. They do regular transactions. The bank tries to do cross selling. If customers is saving a/c holder they try to sell insurance policy, demat a/c, credit and debit card, etc. There are many customers who would like to give suggestions to bank for improvement in product and services. Their valuable insights are important for bank, and they are used for product development. These types of customers are called the advocates.

IDIC MODEL Identify (learn about customers) ICICI Bank has to first learn about the customers. In banking the very important thing while opening an a/c is KYC i.e. Know Your Customers. The bank has to first know about the customers. They should know the name, age, sex, address, family, etc. Along with all these they should also know their past and present status of the customers, their needs and wants. Differentiate ICICI Banks have many products and services. They have to differentiate the customers according to their income, status, needs and requirements. They then have to plan and develop products catering to a specific group of people. This is the type of differentiation banks are following. Interact there are various touch points where customers can interact. They can retrieve and send information from telephone, e-mail, internal portals, fax, face to face interaction with employee. The banks collect all the information about the customer they can. They try to develop a good relationship with the clients. They try to maintain all personal information also so that better relationship can be developed. Customize ICICI bank develop many products according to the income, status, needs and requirement. They have wealth manager who cater the requirements of the clients. They focus on high net worth individuals. They plan and suggest the customers where to invest and how much to invest.

Results
CRM helped ICICI Bank to become the 3rdbest bank in India. With Affinium, ICICI Bank has boosted customer retention by four percent, and executed acquisition campaigns, which resulted in reduction of acquisition cost by 60 percent due to effective targeting and channel optimization. Following the implementation of Affinium, the campaign volume increased by over 200 percent The credit card activation campaign has achieved an incremental activation rate of 30 percent compared to activation efforts without predictive modeling. Debit card early activation program resulted in incremental response of five percent over the normal activation rates. Now ICICI Bank could provide various facilities to its customers like demat a/c, insurance policy, bills payment facilities, etc. other than its core business of providing loans and keeping deposits of customers; CRM solution gave ICICI Bank an upper edge in fighting with its competitors.

Competitive advantage
ICICI Bank comes in 3rd ranking of all commercial banks in India. It has a great competitive advantage over all other banks. This is because the relationship which they with their customers is too good. They have been focusing on it from the beginning. The parameters on which ICICI Bank has given maximum weight age to build business are Employees they have very good front end employees, who deal with customers on regular basis. They have been trained in such a way that they always maintain good relationship with clients. They always have a smile on their face and treat customers as their family members. Technology ICICI Bank tries to be updated in technology department. They use all the new technology which will be beneficiary for them to deal with customers. They try to make transaction and system easy for customers. Customer Relationship bank has always maintained a policy of knowing the customer well. Their first aim is to understand the customer plan, need and requirement. For this they need to know the financial position and status of the customers. They always try to maintain good relationship with them.

Recommendations
Make the customer relationship building more strong try to improve the relationship, so that customers dont ever think to shift to other banks. Provide wealth manager to valuable customers, so that they design their investment policy. This helps in strong relation building and retaining customers. Try to do more cross selling CRM solution helps in cross-selling. Try to target the customers for using more and more products. Introduce more loyalty programs like giving more schemes and offers on credit cards. Improve ways to reduce customer grievances ICICI Bank should work on reducing customer problems, if they face. Try to solve all the problems as quick as possible because small issues can lead to big problems and make customer dissatisfied.

Take customer feedback regularly and work on it