8/8/2019 CRM in Banking A case study of

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B Y M A N J I N D E R M A N J I N D E R S I N G HS I N G H

--M O H I TM O H I T K A N S A LK A N S A L

---- I S H A NI S H A N S O O DS O O D

--GROUPGROUP --33

CRM in Banking A case studyof ICICI Bank

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About ICICI

y India's largest private sector bankand secondlargest overall in terms of assets.

y Total assets of Rs. 3,562.28 billion (US$ 77 billion)

y Profit after tax Rs. 30.19 billion (US$ 648.8million)2009

y ICICI reported a 1.15% rise in net profit to Rs.1,014.21 crore on a 1.29% increase in total income toRs. 9,712.31 crore

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y ICICI Bank offers a wide range of banking productsand financial services to corporate and retailcustomers.

y Successful due to their CRM Strategies and differentCRM initiatives.

y Their CRM activities helped them making customersloyal.

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Why CRM The Changing Environment

1. Increased Competition

2. Growth of Product

3. Diminishing Margins

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CRM Strategies

Key drivers of customer loyalty:-

1. Positive staff attitude

2. Honesty integrity and reliability

3. Proactive Advice

4. Consistent delivery of superiority quality service

5. After sale service

6. A effective complaints resolution policy

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Steps minimizing the work regarding adoption ofCRM strategy-:

y Identification of proper CRM initiatives

y Implementing adequate technologies in order to assist

CRM initiativey Setting standards (targets) for each initiative and each

person involved in that circle

y Evaluating actual performance with the standard or

benchmarky Taking corrective actions to improve deviations

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Steps followed in implementing CRM

1. Identify CRM initiatives with reference to theattained (such as increased no. of customers.)

2. Setting measurable targets for each initiative in

terms of growth in profits , no. of customers3. Evaluating and choosing the appropriate CRM

package that will help the company achieve itsCRM goal ( A comparison of pay-offs against

investment could be carried out during theevaluation exercise.)

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Benefits of effective CRM

y Reduced costs, because the right things are being done(ie., effective and efficient operation)

y Increased customer satisfaction, because they are getting

exactly what they wanty Ensuring that the focus of the organization is external

y Growth in numbers of customersy Maximisation of opportunities (eg., increased services,

referrals, etc.)y Increased access to a source of market and competitor

informationy long term profitability and sustainability

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ICICI Banks CRM initiative

1. Mobile ATMs

2. Bulk Deposits

3. ATMs for the visually challenged

4. Other services through ATMs

- Prepaid mobile recharge

- Buying and renewing internet packs

- Mutual Fund transaction- Bill Payments

5. Mobile phone as virtual Wallet

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y Customer touch points.

y Customer feedback and actions on these feedbacks.

y Telephonic awareness regarding new services.

y Latest ads.

y Warm wishes to customers on different festivals.

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Use of CRM in ICICI Banking

1. Targeting Customers

2. Sales reference Material

3. Consistent interface with customers

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Benefits of CRM

1. Customers usage pattern

2. New product development

3. Central data management

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conclusion

y Customer Relationship Management is concernedwith attracting, maintaining and enhancingcustomer relationship. CRM enables the marketer to

estimate the customers sentiments and buyingintentions so that the customer can be provided withproducts and services before they starts demanding.Customers are the backbone of any kind of business

activities, maintaining relationship with them yieldbetter result.