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    Project ReportOn

    HDFC

    CRM SYSTEM

    SUBMITTED TO:- SUBMITTED BY:-

    Mr. Anil Vashisht GROUP NO.-8

    Neha Yadav

    Bhumika Gandhi

    Roopkaran Kaur

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    TABLE OF CONTENTS

    S.NO Subject covered Description

    1. Objective of the project -To understand CRM andprocess involved, identify the

    requirement of CRM, studydifferent aspects of bankingindustry.

    2. Methodology -Primary and secondarysources.

    3. Indian Banking Industry -The Indian banking marketand its growth, upcomingforeign banks in India.

    4. Introduction of CRM -Introduction of CRM,

    Principles CRM, Need andfuture challenges in CRM

    5. CRM In Banking Industry -CRM and banking ,Privatebanking and CRM

    6. HDFC -Introduction of HDFC,Company profile, Businessstrategy, Recent developmentand achievements

    7. CRM at HDFC -CRM technology, CRMsolutions, CRM Banking

    benefits, Key Modules atHDFC

    8. Security issues in CRM -Security issues,Improving thecompliance posture, CRM

    banking benefits.

    9. Analysis, Conclusion,Recommendations, Limitation of study

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    OBJECTIVE OF THE PROJECT

    1) To Understand the significance of Customer Relationship Management and theprocesses involved in doing so.2) To identify the requirements of Customer Relationship Management3) To Study the Customer Relationship Management methodologies and itsdifferent aspects in industry (Banking Industry to be considered).

    METHODOLOGY

    Primary as well as Secondary source has been used for study. Primary data hasbeen collected with the help of telephonic conversation with the bank managers ofHDFC separately. Secondary data has been collected from the banks website, anddifferent other websites whose the links are been given in the bibliography section.

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    INDIAN BANKING INDUSTRY

    The Indian banking market is growing at an astonishing rate, with Assets expectedto reach US$1 trillion by 2011. An expanding economy, middle class, andtechnological innovations are all contributing to this growth.The countrys middle class accounts for over 320 million people .In correlationwith the growth of the economy, rising income levels ,increased standard of living,and affordability of banking products are promising factors for continuedexpansion. The Indian banking Industry is in the middle of an IT revolution,Focusing on the expansion of retail and rural banking. Players are becoming

    increasingly customer - centric in their approach, which has resulted in innovativemethods of offering new banking products and services. Banks are now realizingthe importance of being a big player and are beginning to focus their attention onmergers and acquisitions to take advantage of economies of scale and/or complywith Basel II regulation.Indian banking industry assets are expected to reachUS$1 trillion by 2010 and are poised to receive a greater infusion of foreigncapital, says Prathima Rajan, analyst in Celent's banking group and author of thereport. The banking industry should focus on having a small number of large

    players that can compete globally rather than having a large number of fragmentedplayers."

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    UPCOMING FOREIGN BANKS IN INDIA

    By 2009 few more names is going to be added in the list of foreign banks in India.

    This is as an aftermath of the sudden interest shown by Reserve Bank of Indiapaving roadmap for foreign banks in India greater freedom in India.

    The following are the list of foreign banks going to set up business in India :-

    Switzerland's UBS

    US-based GE Capital

    Credit Suisse Group

    Industrial and Commercial Bank of China

    Customer Relationship Management

    Customer Relationship Management or CRM is the establishment, development,maintenance and optimization of long-term mutually valuable relationships

    between consumers and the organizations. It focuses on understanding the needsand desires of the customers and is achieved by placing these needs at the heart ofthe business by integrating them with the organization's strategy, people,technology and business processes. The core theme of all CRM and relationshipmarketing perspectives is its focus on co-operative and collaborative relationships

    between the firm and its customers, and/or other marketing actors. An importantfacet of CRM is customer selectivity. As several research studies have shown notall customers are equally profitable (In fact in some cases 80% of the sales comethrough 20% of the customers). The company must therefore be selective and tailor

    its program and marketing efforts by segmenting and selecting appropriatecustomers for individual marketing programs. By reducing customer defection (by

    as little as 5%) will result in increase in profits by 25% to 85% depending fromindustry to industry. So, we can say, Customer Relationship management is acomprehensive strategy and process of acquiring, retaining and partnering withselective customers to create superior value for the company and the customer.

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    Key CRM principles

    For successful implementation of CRM, understanding the customer is veryimportant. A customers reaction to a cellular company operator may be quitedifferent as compared to a car dealer. Besides for the same product or the service

    not all customers can be treated alike and CRM needs to differentiate between ahigh value customer and a low value customer. What during CRM an enterpriseneeds to understand while differentiating customers is:- Sensitivities, Tastes, Preferences and Personalities- Lifestyle and age- Culture Background and education- Physical and psychological characteristics

    The key principles of CRM are as follows:

    Differentiating Offerings Low value customer requiring high value customer offerings Low value customer with potential to become high value in near future High value customer requiring high value service

    High value customer requiring low value service

    1. Keeping Existing Customers

    Grading customers from very satisfied to very disappoint should help theorganization in improving its customer satisfaction levels and scores. As thesatisfaction level for each customer improves so shall the customer retention withthe organization.

    2. Maximizing Life time valueExploit up-selling and cross-selling potential. By identifying life stage and lifeevent trigger points by customer, marketers can maximize share of purchase

    potential. Thus the single adults shall require a new car stereo and as he grows intoa married couple his needs grow into appliances.

    3. Increase LoyaltyLoyal customers are more profitable. Any company will like its mindshare status toimprove from being a suspect to being an advocate. Company has to invest interms of its product and service offerings to its customers. It has to innovate andmeet the very needs of its clients/ customers so that they remain as advocates onthe loyalty curve. Referral sales invariably are low cost high margin sales.

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    Need for CRM

    A Relationship-based Marketing approach has the following benefits:

    1. Growth: Over time, retail bank customers tend to increase their holding of the

    other products from across the range of financial products / services available.

    2. Referrals: Long-term customers are more likely to become a referral source.

    3. Cross-Sell: The longer a relationship continues; the better a bank can understandthe customer and his/her needs & preferences, and so greater the opportunity totailor products and services and cross-sell the product / service range.

    4. Retention and cost reduction: Customers in long-term relationships are morecomfortable with the service, the organization, methods and procedures. This helpsreduce operating cost and costs arising out of customer error. According to theresearch 5% increase in customer retention can increase profitability by 35% in

    banking business, 50% in insurance and brokerage, and 125% in the consumer

    credit card market. Therefore, banks are now stressing on retaining customers andincreasing market share.

    Future Challenges of CRM

    - Enhancing ability to demonstrate value through performance measurement data.- Incorporating Service Level Management (ITIL) principles into the CRM role.- Filling the competency gaps in the face of talent shortage.- Improving client recognition of the CRM function and how to leverage the rolemost effectively.-Keeping pace with the rapid pace of technology change and how it can transformservice delivery for clients.

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    CRM in Banking Industry

    With the advent of new technologies in the business of bank, such as InternetBanking and ATMs, now customers freely chose any bank for their transactions.The pressures of competitive and dynamic markets have contributed to the growthof CRM in the Financial Services Sector. 5% increase in customer retention canincrease profitability by 35% in banking business, 50% in insurance and brokerage,and 125% in the consumer credit card market. Therefore, banks are now stressing

    on retaining customers and increasing market share. Private Banks havetraditionally viewed themselves as exceedingly 'Customer Centric' offering what

    they believe to be highly personalized services to the High Net Worth Customers.However, changes in the customer behavior and accumulation of wealth areresulting in the needs of HNW customers becoming more diverse and complex interms of the sorts of products they want, the channels through which they want toaccess them and the associated range of advice. Technical solutions deployed by

    banks today are flexible, user-friendly and meant to facilitate specific workflowand requirements in implementation processes. In order to simplify lives, bankshave begun to implement end-to-end technologies through all departments with theintention of removing human error from processes. Previously existing manual

    environments could not have been adequate for future visions, growth plans andstrategies.

    CRM Objectives in Banking Sector

    The idea of CRM is that it helps businesses use technology and human resourcesgain insight into the behavior of customers and the value of those customers. If itworks as hoped, a business can: provide better customer service, make call centersmore efficient, cross sell products more effectively, help sales staff close dealsfaster, simplify marketing and sales processes, discover new customers, andincrease customer revenues. It doesn't happen by simply buying software andinstalling it. For CRM to be truly effective , an organization must first decide whatkind of customer information it is looking for and it must decide what it intends to

    do with that information. For example, many financial institutions keep track ofcustomers' life stages in order to market appropriate banking products likemortgages or IRAs to them at the right time to fit their needs. Next, the

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    organization must look into all of the different ways information about customerscomes into a business, where and how this data is stored and how it is currentlyused. One company, for instance, may interact with customers in a myriad ofdifferent ways including mail campaigns, Web sites, brick-and-mortar stores, callcenters, mobile sales force staff and marketing and advertising efforts. Solid CRMsystems link up each of these points. This collected data flows between operationalsystems (like sales and inventory systems) and analytical systems that can help sort

    through these records for patterns. Company analysts can then comb through thedata to obtain a holistic view of each customer and pinpoint areas where betterservices are needed. In CRM projects, following data should be collected to run

    process engine:-1) Responses to campaigns2) Shipping and fulfillment dates3) Sales and purchase data

    4) Account information5) Web registration data6) Service and support records7) Demographic data8) Web sales data.

    Private Banking and CRM

    Private Banks have traditionally viewed themselves as exceedingly 'Customer

    Centric' offering what they believe to be highly personalized services to the High Net Worth Customers. However, changes in the customer behavior andaccumulation of wealth are resulting in the needs of HNW customers becomingmore diverse and complex in terms of the sorts of products they want, the channelsthrough which they want to access them and the associated range of advice. Thewealthier the customers, the more demanding they are - and the clients expectmore and more from their banks .Competition for "Supremely elite" is increasing.

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    WE UNDERSTAND YOUR WORLD

    The Housing Development Finance Corporation Limited (HDFC) was amongst thefirst to receive an 'in principle'approval from the Reserve Bank of India (RBI) toset up a bank in the private sector, as part of the RBI's liberalization of the IndianBanking Industry in 1994.The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',with its registered office in Mumbai, India. HDFC Bank commenced operations asa Scheduled Commercial Bank in January1995. HDFC Bank has embracedsophisticated information technology to pursue its expansion from corporate

    banking to become a world-class provider of wholesale and retail financial servicesHDFC is India's premier housing finance company and enjoys an impeccable track

    record in India as well as in international markets .Since its inception in 1977, the

    Corporation has maintained a consistent and healthy growth in its operations toremain the market leader in mortgages. Its outstanding loan portfolio covers wellover a million dwelling units. HDFC has developed significant expertise in retailmortgage loans to different market segments and also has a large corporate client

    base for its housing related credit facilities. With its experience in the financialmarkets, a strong market reputation, large shareholder base and unique consumerfranchise, HDFC was ideally positioned to promote a bank in the Indianenvironment. HDFC Bank began operations in 1995 with a simple mission : to be a

    World Class Indian Bank.

    HDFC Bank is using sophisticated solutions from SAS to generate an entirely new

    class of analysis and insights relating to customer relationship management,

    regulatory compliance, credit assessments and more.

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    CRM in HDFC Bank

    In HDFC, the CRM is integrated with core banking solutions and offers end to end

    functionality to effectively address the needs of the complete cycle of marketing,

    sales and service of banking products.

    Key Modules:

    -Enterprise customer information file

    -Sales

    -Loan origination

    -Service

    -Call centre

    -Marketing

    SAS provides a broad range of analytics to help HDFC Bank make creditdecisions, enhance its cross-sell and up-sell marketing, and comply with strict

    regulations.

    The HDFC bank has implemented a data warehouse solution that would eliminatethe inconsistencies of working with disparate sources. The warehouse pullsinformation from the different customer interface channels the bank offers,centralizing them in a single database. In early 2002, the bank completed the

    interface of the warehouse with the retail banking liability system, followed by theassets system and the depository system by the end of 2002.The bank gives certainprofitable customers preferred status in service deliveries and pricing. This helpsthe bank to know which channels the particular customer prefers to use. The bank

    then sets up its investments in that channel. The bank undertakes analytics-drivendatabase driven marketing efforts based on the banking behavior of the customer.If he has used his card in an apparel shop, customized incentive mailers are sent to

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    him; or marketing programs are sent to merchants who facilitate usage of thebanks cards on the banks terminals. The data warehouse with over two tera byteof data under management empowers the product managers to study and monitorthe customer and business trends over the last six quarters in an online manner.According to researchers, 81% customers recommend HDFC BANK products,91% of these are having good purchasing experience with the company.

    58% of the customers said that the maintenance charges charged by the company ismoderate, 55%of which are having good purchasing experience and 85% of whichrecommend HDFC BANK to others.63% customers are satisfied with the existingservices rendered by the organization. Majority (67%) of customers rated theHDFC BANK products as good and 67% of which are highly satisfied with theservice of the company. According to HDFC Bank, a customer is an asset to thecompany only if he is a loyal customer. Approximately 76% customers of HDFC

    BANK are discovered to be loyal. This is the area where the organization can and plans to improve in the near future. HDFC Bank uses iFlex's Micro banker andFinware for its core banking operations. It plans to transfer to their new ``UniversalBanking Services'' package as soon as the acceptance tests currently under way arecompleted. The bank also uses their Internet banking software.

    For the, the IT activities span three segments:-

    1. Back-office, which enables all transactions

    2. Distribution of the bank's products and services in the market. That is, enablingcustomer interaction through the Internet, ATMs, the mobile phone. HDFC'scorporate customers need not visit the bank for many of their transactions either.PC-based corporate banking lets authorized personnel in corporate open letters ofcredit or pays suppliers and integrates the transaction with the ERP system.

    3. The third sort of automation enables the business intelligence and CRM aspectsof a bank's business. For cash management, the bank uses a package from a Punecompany called Cash Tech. The banks Depository systems run on software

    provided by Mumbai-based Kal pataru. For loans, bank uses the Nucleus Software.To provide round-the-clock service and support to its customers, HDFC Bank hasUnix-based systems from Sun Microsystems as hosts for its banking software. It isin the process of moving the application to a mainframe-class UNIX machine (theE10000 from Sun) in the near future.

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    STRATEGY USED BY HDFC

    HDFC Bank views cross selling to existing customers as a crucial growth strategy.

    One of the most important functions of our data warehouse is to achieve aconsolidated view of the relationship our bank has with each customer. HDFCwant a 360-degree view that shows us the credit card account, fixed-deposits, assetaccounts the totality of their relationship so that we can segment our most

    profitable customers to offer more attractive products, services and pricing, andcreate an overall better relationship with them.

    SAS, combined with the banks CRM solution, helps HDFC Bank model its

    customer data and assign propensity to buy, spend and (for credit and debit cards)

    activate. SAS helped the bank target sales communications to its customers thereby

    reducing the number of calls each customer receives. Additionally, the highest-

    performing, highest-margin strata of customers - the Imperia customers receive

    an almost concierge-like experience with aggressive, attractive pricing and

    multiple cross-selling offers. HDFC knows that the customer is high in the value

    chain so there should be a stronger level of profitability in that relationship. Sothey reach a greater number of higher-margin customers at far lower cost.

    The correct product for cross-sales promotion is identified using the customer

    profile, life stage and behavioral dynamics. The predictive power of this analysis

    encouraged the bank to extend the use of SAS to inbound channels; thereby further

    reducing the number of calls from the bank without compromising meaningful

    interactions with the customer. Today, more than 70 percent of HDFC Banks

    credit card portfolio is a result of cross-sales to existing customers of standard

    liability products, such as savings and salary accounts.

    Security Issues in Customer Relationship Management Systems

    The objective of customer relationship management (CRM) is to identify, acquire,

    and retain customers. CRM software or systems include sales, services and

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    customer support, call centers, sales force automation systems, and order

    management. In the last ten years, software companies attempts to consolidate

    some of these incongruent technologies into an integrated system . The sale of

    CRM applications is expected to reach more than 5 billion in 2005.

    Because the CRM system is customer-centered, a multi-channel strategy is used by

    major CRM software. All kinds of machines such as handheld computers, fax

    machines, and cellular phones can be interface devices for accessing CRM

    systems. Among them, Internet access becomes a necessary requirement for most

    CRM systems. A major part of a CRM system can be classified as a B2C system.

    Convenience is a major characteristic for CRM systems; however, it also opens the

    doors for various security attacks. These attacks range from denial of service

    (DOS), Mal-ware attacks, and identity theft. Methods to prevent these attacks in

    CRM systems become an emerging issue. The purpose of this paper is to discuss

    the security issues in CRM systems and possible methods to prevent security

    attacks .

    MAJOR CRM SYSTEMS AND MAJOR COMPONENTS

    Major CRM systems in the market today are Siebel, mySAP, and Oracle. Web-

    based software, such as Salesforce.com is becoming very popular. Major

    components of a CRM system include:

    1. Sales

    2. Call centers

    3. Sales force automation systems

    4. Order management

    5. Customer supportHDFC Bank'spayment gateway EPI provides seamless real-time transfer of fundstransacted on the portal. It is a state-of-the-art facility which has been successfully

    implemented by as many as 15 B2B portals, such as VSNL, Sifymall, Fabmart,

    etc. HDFC Bank has a dedicated HELP DESKset up in the four metro cities and

    Hyderabad and Bangalore along with a round the clock maintenance with efficient

    back-up.

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    The entire operation takes place through a secure channel. The security

    features include:-

    -Firewalls

    -128 - bit encryption

    -SET certification for digital signature

    Improving the compliance posture

    Anti-money laundering regulation creates strict burdens for banking institutionsaround the world and India is no exception. HDFC Bank uses SAS as part of a

    stringent and focused program for monitoring and identifying potentiallyfraudulent transactions. For instance, SAS helps identify suspicious activity suchas layering or moving money to multiple accounts, finding large single-day cashdeposits, opening a number of accounts in a short period of time or sudden activity

    in long-dormant accounts.

    The Know Your Customer [KYC] aspect of banking is very important in anti-

    money laundering regulations. As they on-board the customer, they run customer

    through certain profiles and cross-check against a list of banned individuals.

    Identifying a customer and matching him against good and bad lists requires veryclean data. SAS helps us do some enrichment and data cleansing to strengthen our

    KYC compliance.The comprehensiveness of SAS scenario modeling has made

    monitoring of transactions from an anti-money laundering perspective,

    qualitatively rich and dependable, and has enabled the bank to file qualitative

    suspicious transaction reports to the Financial Intelligence Unit.

    HDFC bank is very good at its Grievance Redressal Mechanism. HDFC Bank

    realizes that quick and effective handling of complaints as well as prompt

    corrective & preventive actions to improve processes are essential to provideexcellent customer service to all segments of customers. Any complaints receivedeither verbally, via email or in writing - from the customers, will be logged into

    the state-of-the art web-based software namely Nexstep CRM and Vision Plus

    (for Credit Card related complaints). The bank will not only ensure that all the

    complaints received are recorded and resolved, but also ensure effective

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    monitoring / escalation mechanism to the senior functionary responsible so as to

    ensure that none of the complaints remain unresolved.

    CRM Banking Benefits

    In the absence of a unique identification, such as a Social Security number, SAShelps identify group and customer level debt exposure. This benefits the bank in

    many ways:

    y The credit officer can view customer level debt exposure across all otherloans within the bank.

    y The bank can reject customers who have a derogatory repayment in otherloans within the bank. On an average, every month the bank rejects up to 2

    percent of applicants because of an existing derogatory repayment.

    Assuming a probability of default and loss given default of 50 percent,HDFC Bank is saving nearly 1 percent of its total annual disbursement from

    potential credit losses.y In accordance with regulatory guidelines, SAS helps identify standard

    exposures of defaulted customers so the bank can initiate preventivemeasures and provisions. On average 8-10 percent of HDFC Banks totalgross non-payment accounts (NPA) are related NPAs (meaning thiscustomer has another defaulted exposure).

    CRM Banking Focuses on the Customer

    CRM manages to places the customer at the focal point of the organization in order

    to cater to his needs, satisfy him and thus maximize the profits of the organization.

    Banking CRM understands the needs of the customer and integrates it with people,

    technology, resources and business processes. It focuses on the existing data

    available in the organization and uses it to improve its relationship with customers.

    Banking CRM uses information and analytical tools to secure customer focus.

    Thus it is completely essential that banks implement CRM in order to secure this.

    Overall Profitability

    CRM enables banks to give employee's better training that helps them face

    customers easily. It achieves better infrastructure and ultimately contributes to

    better overall performance. The byproducts of CRM banking solutions are

    customer acquisition, retention and profitability. Banks that don't implement CRM

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    will undoubtedly find themselves with lesser profitability coupled with a sharp

    decline in the number of customers.

    Satisfied Customers

    It is important to make a customer feel as if he / she is the only one - this will go along way in satisfying and retaining them. Bankers need a return on investment

    and it has been proved that increase in customer satisfaction more than contributes

    a fair share to ROI. The main value of CRM banking lies in satisfaction and

    increased retention of customers.

    Centralized Information

    CRM banking solutions manage to clearly integrate people, processes and

    technology. CRM banking provides banks with a holistic view of all banktransactions and customer information as well and stores it in a single data

    warehouse where it can be studied later.

    CRM Banking Boosts Small Banks

    Banking CRM software meets the needs of banks of all sizes in terms of attaining

    the required accuracy and understanding of customers. Merely assuming that banks

    that are considerably smaller in size have a better customer approach and are able

    to deal with their customers in a better manner is wrong. They are just as much inneed of CRM aid as the others. Small banks on account of a limited amount of

    money have had to realize that a large contribution to profits is directly the result

    of good customer service. CRM makes sure that the bank delivers exactly what the

    customer expects.

    Customer Segregation

    CRM enables a bank to see which customers are costing them and which are

    bringing benefits. CRM provides them with the required analytical tools that willto avail of the maximum returns. After this segregation is done CRM help them

    focus on the importance of segregating these two and doing what is required easily

    enables banks to increase their communication and cross-selling to their customers

    effectively and efficiently

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    ANALYSIS

    yCRM aims to provide organizational effectiveness by reducing sales cycle and sellingcost, identifying markets and channels for expansion, and improving customer value,satisfaction , profitability, and retention.

    yWhile choosing CRM software, the COST is one of the important factors. The quality,customizability, and flexibility of the software are few other factors considered.

    y An efficient and effective CRM model is one which answers what the differentcustomer segments are, who more likely to respond to a given offer is, which customersare the bank likely to lose, which customer is most likely to default on credit cards, whatthe risk associated with this loan applicant is.

    yThe data warehouse is the first step in building an effective customer relationshipmanagement (CRM) solution that will help banks such to overcome the danger ofbecoming increasingly impersonal as business grows and customers are reduced toPIN numbers. All new private banks are aware of this and are now putting in place thesystems that will enable them to focus on individuals. In the private sector - HDFC Bank

    have put in place the building blocks for an elaborate CRM solution. Bank hasimplemented a CRM software with respect to its priority banking offering for its high networth clients, where the software carries out profiling and analysis, contactmanagement, data analysis and cross-selling.

    yIn every organization, for successful implementation of CRM Training is provided. Thecost of training provided forms a small percentage of total cost. Generally, Banks preferto provide training by Train the trainer method. In the banking industry, generally, noresistance from the employees is faced.

    yThe biggest advantage that private banks brought to customers was anywhere-anytime-banking. Customers no longer needed to dash out during lunch hour to queueup at counters to withdraw money. But because of a large number of products like debit

    cards, demat accounts, loans and credit cards an efficient effective CRM is required.yThe Banks use SAS as well as the Ownership Model. They use the open and also theclosed model.

    yThe software is implemented in phases and it takes months for the completeimplementation of the CRM. The cost of the software depends on the company and theindustry.

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    CONCLUSION

    Customer relationship management is a multifaceted process, mediated by a set of

    information technologies that focuses on creating two-way exchanges with customersso that firms have an intimate knowledge of their needs, wants, and buying patterns. In

    this way, CRM is intended to help companies understand, as well as anticipate, theneeds of current and potential customers.CRM is a sound business strategy to identifythe banks most profitable customers and prospects, and devotes time and attention toexpanding account relationships with those customers through individualized marketing,re-pricing, discretionary decision making, and customized service-all delivered throughthe various sales channels that the bank uses.CRM aims to provide organizationaleffectiveness by reducing sales cycle and selling cost, identifying markets and channelsfor expansion, and improving customer value, satisfaction, profitability, and retention.CRM helps to acquire new customers, retain existing customers and maximize theirlifetime value. This close relationship with customers requires a strong coordinationbetween IT and marketing departments to provide a long-term retention of selected

    customers.With the growth of private banks in India, the biggest advantage brought to customerswas any where any time-banking. But over time as these banks introduced a number ofnew products like debit cards, demat accounts, loans and credit cards the problemsbegan to show. While operating costs were low, customer grievances were increasingday by day. The banks responded to this by moving over from a product-centric tocustomer-centric approach by installing CRM solutions that enable them to recognizecustomer needs before hand. Unlike an IT system which merely processes transactions,a CRM system keeps track of a database of account holder and a historical database ofvarious transactions these account holders have entered into.This helped the customersto obtain information from any branch about any of the accounts he holds with the bank

    without being passed around from counter to counter.CRM helps in enhancing thecustomers Life Time Value by efficiently servicing the customers needs.Greater satisfaction leads to customer advocacy. At the very least this helps the bankacquire business from the customers family. More importantly, for the bank CRMsolution helps to map profitability of every individual customer rather than an individualaccount. An employee manning the call centre can now get a unified view of all therelationships that a customer has with the bank.

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    RECOMMENDATIONS

    The recommendations are based on the basis of data collected through internet,Experts, Bank officials and my colleagues:

    y HDFC Bank are using Finacle,SFA,SAS as CRM software. The banks, in general,are using Core Banking Software and not CRM software. They should use softwarelike SAP or PEOPLE SOFT which will help in handling large volume of data and willintegrate seamlessly with the IT and is customizable.

    yThey should work on capturing faith of the existing customers. They should work ongrowing the existing customers. Better CRM software can help in growing the existingcustomers, increasing the customer base, acquiring new customers.

    yThey need to implement a more effective CRM which requires a front-line informationsystem that shares relevant customer information across all interface units. Relationaldatabases, data warehousing and data mining tools are thus very valuable for CRMsystems and solutions and should be worked upon for better customer satisfaction and

    loyalty.yThey need to find and implement the implementation tools to support interactivesolutions for customer profitability analysis, customer segmentation, demandgeneration, account planning,opportunity management, contact management,integrated marketing communication, customer care strategies, customer problemsolving, virtual team management of large global accounts, and measuring CRMperformance would be the next level of solution sought by most enterprises.

    yCustomize CRM to a high degree so that they are able to handle a rapidly scaling callworkload without any disruption in services and allow call centre agents to have analways connected view of the database.

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    LIMITAIONS OF THE STUDY

    The report has been prepared on the basis of primary data collected by interactions withthe bank officials and experts of the industry and the secondary data. The report and myfindings are subjected to the following limitations:

    The information shared by the officials of the bank may not be up to the mark.2.The Branch officials may be biased.3.The qualitative aspect of the benefits received by CRM implementation cannot bemeasured.4.The research conducted is confined to the Banks and their branches in delhi .Forunderstanding the financial implication of CRM in a bank.


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