Shubhrat Sharma
AGENDA
• GENERAL STATISTICS
• CRM BY SBI PRISM
• CRM AT SBI
Why customers quit ?
• 1% DIE
• 3% MOVE AWAY
• 5% DEVELOP OTHER FRIENDSHIPS
• 9% LEAVE FOR COMPETITIVE REASONS
• 14% ARE DISSATISFIED
• 68% QUIT BECAUSE OF AN ATTITUDE OF INDIFFERENCE
General Statistics
The average business never hears from 96% of its unhappy customers
91% never come back
Getting a repeat customer from this group is 1 in 11
Dissatisfied customers may tell 9-10 people about their experience
For every positive they tell 4-5 people
General Statistics…
Of the customers who register a complaint, as many as 70%will do business again with
your organization if the complaint is resolved
effectively,
This figure goes up to 95% if the complaint
has been resolved quickly,
40% of complaints are the result from customer mistakes or incorrect
expectations,
A complaint that is handled efficiently is actually better
than no complaint at all,
Customers who complain and get
satisfactory results are 8% more loyal than
if no complaint at all,
SBI PRISMWHY CRM:
• INCREASING AWARENESS
• INCREASING AFFLUENCE IN THE EMERGING ECONOMIES
• CUSTOMER DIVERSITY
• TECHNOLOGICAL ADVANCES
• PROCESS
• ALTERNATE DELIVERY CHANNELS
• COMMUNICATION
• INCREASED NUMBER OF PRODUCTS IN THE LONG RUN
• HELPS IN UNDERSTANDING NEEDS OF CUSTOMERS
CRM Objectives
Lifetime Value (LTV)
• Refers to the net present value of the potential revenue stream for any particular customer over a # of years
• Starts with current purchase activity then extrapolates to include potential additions from cross-selling, upgrades, total ownership, etc.
Customer Ownership
• Attempts to “own” the lion share of customer spending and/or “share of mind” in a particular product category
• Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is critical
• 5% points increase in customer retention=20-125% increase in profit
CUSTOMER RELATIONSHIP MANAGEMENTDuration of Customer Relationship
Va
lue
BUILDING CRM
Increase longevity of customer relationship
Manage expectations better
Specialised Services
Personal Touch
Customise products as per their needs
Increase trust
Understand need of the customers
Differentiate customers in terms of value to the Bank (leverage database available)
Identify prospects and customers
BUILDING CRM
Gain more control in interaction with customers
Manage expectations better (90-10 rule)
Understand what customers really want
Provide products that better serve
customers
Competitive advantage
Targeting Acquisition Retention Expansion
Customer Relationship Management can be simply defined as everything involved with
managing the customer relationship.
•Who do we target
•What segments are
most profitable
•What segments
match our Value
Proposition
•What is the best
segmentation
strategy for us / our
industry
•What is the best
channel for each
segment
•What is the
acquisition cost
for a channel /
segment
•Do certain
channels deliver
certain types of
customers
•Cost effective
acquisition
•How can we retain
•What is our
average CRM
length
•How can we hold
customer for as
long as possible
•What is the most
cost effective
method of
retention
•How many
products does our
average customer
buy
•How can we
induce our current
base to buy more
products
•Who are the prime
targets for
expansion
•What is the cost of
expansion
Customer Relationship Management
CRM AT SBI
SBI divide its customers into following categories
• P-segment (personnel banking)
• Agriculture segment
• Corporate/govt segment
• Sme
For different segments sbi provide different products
Separate meeting for the different segment are called and their needs are asked for.
Providing the alternate channels • A T M CUM DEBIT CARD / SME DEBIT CARD
• MOBILE BANKING
• INTERNET BANKING
• GREEN REMIT CARDS / INSTA DEPOSIT CARDS
• CASH DEPOSIT MACHINE
• GREEN CHANNEL COUNTER
• SELF SERVICE KIOSK
• CONTACT CENTRE
• AVAILABILITY OF 24X7 SERVICE
• TO CATER TO THE NEEDS OF YOUNGER GENERATION.
• QUICKER AND CONVENIENT TRANSACTIONS.
• PAPERLESS / ENVIRONMENT FRIENDLY TO A GREAT EXTENT.
• TXNS AT TIME AND PLACE OF CUSTOMERS' CHOICE
• DECONGESTION OF BRANCHES
• CHEAPER TRANSACTION COSTS.
Providing the alternate channels
90-10 rule
• 10% OF LIFE IS MADE UP OF WHAT HAPPENS TO YOU.
• 90% OF LIFE IS DECIDED BY HOW YOU REACT.
• EMPLOYEES OF SBI USE THIS RULE TO REACT THEIR CUSTOMERS DEMANDS AND QUERIES BETTER .
Customer Portfolio Management
Problem
Valu
e
I
II III
IV
Exit
Ring
fence
Protect &
leverage
Problem
identification
Nurture
Low High
High
“
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