Customer Relationship Management in Banks

Description
Before we begin to examine conceptual foundations of C.R.M. It will be useful to define what CRM is. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts.

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INTRODUCTION
CHAPTER : 1
WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?
Before we begin to examine conceptual foundations of C.R.M. It will be useful to define
what CRM is. A narrow perspective of customer relationship management is database
marketing emphasizing the promotional aspects of marketing linked to database efforts.
Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in
which a variety of after marketing tactics is used for customer bonding or staying in touch
after the sale in made.
In today hyper competitive scenario, more than three quarters of the money and time spent
by companies go towards acquiring and retaining customers. Customer-centricity has
become the buzzword and the ones with clear and relentless focus on customers, enjoy a
better competitive position. This is proved time again. Yet, companies go through
meticulous processes to gradually and consistently mature into an “ ORGANIZATION
FOR THE CUSTOMERS” But, how would you mature into a customer focused or
customer-centric organization? The answer is ; By reading and understanding your
customers. Yes, this is all need to do! And this you need to do not just once, but regularly
and consistently over the lifetime of your customer and beyond.
Reading the customer demographics and understanding their needs (both explicit and
implicit) is what customer insight is all about. Customer insight is the basic point or the
foundation for building a customer centric organization. Everything in the value chain
revolves around this. This is the raw material . This is more a conversion process rather,
since the end product is customer loyalty! Over decades, many organizations had
successfully completed the conversion process and tasted higher returns, most
organizations miserabely failed in their efforts
CRM relies on customer data to create customer loyalty. The concept of CRM was again
the result of an evolution born out of necessity . When companies understood the need to
obtain and maintain customer data, Which was exhaustive and scattered in nature and were
desperately looking for a tool that could compile, preserve use the data in a way they want,
technology came to the rescue with exclusive methods called data mining , data
warehousing and thus data base management techniques were born. Technology is
mechanistic and did not know what is required and what is not. A managerial tool was
needed to perform the directors role in order to decide the path and processes. Thus CRM
was engineered as a tool to manage customer data using IT-enabled techniques
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CRM gives framework for the activities. It decides on what to do – the objectives, what is
required to do it – the resources, who should do it – the people, how to do it – the
processes, how long to do it – the time frame. CRM could be ready made, tailor made or
hand made depending on the specific objectives it is set to achieve. CRM is unique in the
respect that it follows a set of pre-determined processes to accumulate and manage
customer data, which was hitherto unpracticed Hence, CRM is defined as :
“Customer relationship management (CRM) is a business strategy to acquire and manage
the most valuable customer relationships. CRM requires a customer- centric business
philosophy and culture to support effective marketing , sales and service processes. CRM
applications can enable effective customer relationship management, provided that an
enterprise has the right leadership, strategy and culture”
As is implicit in the above definition, the purpose of CRM is to improve marketing
productivity. In CRM, marketing efficiency is achieved because cooperative and
collaborative processes help in reducing transaction cost and overall development costs for
the company. Two important processes for CRM include proactive customer business
development and building partnering relationship with most important customers. These
lead to superior value creation. The basic concept is that the customer is not someone
outside the organization, he is a part of the organization

Purpose of CRM
CRM in its broadest sense, means managing all interactions and business with customers.
This includes, but is not limited to, improving customer service. A good CRM program
will allow a business to acquire customers. Service the customer, increase the value of the
customer to the company, retain good customers, and determine which customers can be
retained or given higher level of service. A good CRM program can improve customer
service by facilitating communication in several ways:
? Provide product information, product use information, and technical assistance on web
sites that are accessible 24 hours a day, 7 days a week.
? Identify how each individual customer defines quality, and then design a service
strategy for each customer based on these individual requirements and expectations.
? Provide a fast mechanism for managing and scheduling follow-up sales calls to assess
post purchase cognitive dissonance, repurchase probabilities, repurchase times, repurchase
frequencies.
? Provide a mechanism to track all points of contact between a customer and the
company, and do it in an integrated way so that all sources and types of contact are
included, and all user of the system see the same view of the customer (reduces confusion).
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? Help to identify potential problems quickly, before they occur.
? Provide a user-friendly mechanism for registering customer complaints.
? Provide fast mechanism for handling problems and complaints.
? Provide a fast mechanism for correcting service deficiencies.
? Use internet cookies to track customer interests and personalize product offerings
accordingly.
? Use the Internet to engage in collaborative customization or real-time customization
? Provide a fast mechanism for managing and scheduling maintenance, repair, and on-
going support (improve efficiency and effectiveness)
? The CRM program can be integrated into other cross-functional systems and thereby
provide accounting and production information to customers when they want it.

KEY CRM PRINCIPLE
? Differentiate Customers
All customers are not equal; recognize and reward best customers disproportionately.
Understanding each customer becomes particularly important. And the same customers
reaction to a cellular company operator may be quite different 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 a high value customer and a low value customer.
What CRM needs to understand while differentiating customer is:
1. Sensitivities, Tastes, Preferences and Personalities
2. Lifestyle and age
3. Culture Background and education
4. Physical and psychological characteristics

? Differentiating Offerings

1. Low value customer requiring high value customer offerings.
2. Low value customer with potential to become high value in near future.
3. High value customer requiring high value service.
4. High value customer requiring low value service.

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? Keeping Existing Customers

Grading customers from very satisfied to very disappointed should help the organization in
improving its customer satisfactions levels and scores. As the satisfaction level for each
customer improves, so shall the customer retention with the organization.

? Maximizing Life time value

Exploit up-selling and cross-selling potential. By identifying life stage and life event
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 into a married couple his needs
grow into appliances.

? Increase Loyalty

Loyal customers are more profitable . Any company will like its mindshare status to
improve from being an advocate. Company has to invest in terms of its product and
service offerings to its customers . It has to innovate and meet the very needs of its
clients/customers so that they remain as advocates on the loyalty curve. Referral sales
invariably are low cost high margin sales.

Summarizing CRM activities

The CRM cycle can be briefly described as follows:

1. Learning from customers and prospects, (having in depth knowledge of customer)
2. Creating value for customer and prospects
3. Creating loyalty
4. Acquiring new customers
5. Creating profits
6. Acquiring new customers

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WHY CRM IS NECESSARY?

Several companies are turning to customer-relationship management systems and
strategies to gain a better understanding of their customers want and needs. Used in
association with data warehousing, data mining, call centers and other intelligence-based
applications, CRM “allows companies to gather and access information about customers
buying histories, preferences, complaints, and other
data so they can better anticipate what customer will want. The goal is to instill greater
customer loyalty.” Other benefits includes:
? Faster response to customer inquiries.
? Increased efficiency through automation.
? Deeper understanding of customers.
? Increased marketing and selling opportunities.
? Identifying the most profitable customers.
? Receiving customer feedback that leads to new and improved products or services.

BENEFITS OF CRM

Implementing a customer relationship management (CRM) solution might involve
considerable time and expanses. However, there are many potential benefits. A major
benefit can be the development of better relations with your existing customers, which can
lead to:

? Increased sales through better timing due to anticipating needs based on historic trends
? Identifying needs more effectively by understanding specific customer requirements
? Cross-selling of other products by highlighting and suggesting alternatives or
enhancements
? Effective targeted marketing communications aimed specifically at customer needs
? A more personal approach and the development of new or improved products and
services in order to win more business in the future
? Enhanced customer satisfaction and retention, ensuring that your good reputation in
the marketplace continues to grow
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? Increased value from your existing customers and reduced costs associated with
supporting and servicing them, increasing your overall efficiency and reducing total cost of
sales

HISTORY OF CRM

Customer Relationship Management (CRM) is one of those magnificent concepts that
swept the business world in the 1990 with the promise of forever changing the way
businesses small and large interacted with their customer bases. In the short term, however,
it proved to be an unwieldy process that was better in theory than in practice for a variety
of reasons. First among these was that it was simply so difficult and expensive to track
and keep the high volume of records needed accurately and constantly update them.

In the last several years, however, newer software systems and advanced tracking features
have vastly improved CRM capabilities and the real promise of CRM is becoming a
reality. As the price of newer, more customizable Internet solutions have hit the
marketplace ; competition has driven the prices down so that even relatively small
businesses are reaping the benefit of some custom CRM programs.

IN THE BEGINNING….

The 1980 saw the emergence of database marketing, which was simply a catch phrase to
define the practice of setting up customer service groups to speak individually to all of a
company customers.
In the case of larger, key clients it was a valuable tool for keeping the lines of
communications open and tailoring service to the client needs. In the case of smaller
clients, however, it tended to provide repetitive, survey-like information that cluttered
database and did not provide much insight. vAs companies began tracking database
information, they realized that the bare bones were all tht was needed in most cases: what
they buy regularly, what they spend, what they do.

ADVANCES IN THE 1990`S

In the 1990 companies began to improve on Customer Relationship Management by
making it more of a two-way street. Instead of simply gathering data for their own use.
They began giving to back their customers not only in terms of the obvious goal of
improved customer service, but in incentives, gifts and other perks for customer loyalty.
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This was the beginning of the familiar frequent flyer programs, bonus points on credit
cards and host of other resources that are based on CRM tracking of customer activity and
spending patterns. CRM was now being used a say to increase sales passively as well as
through active improvement of customer service.

TRUE CRM COMES OF AGE

Real Customer Relationship Management as its thought of today really began in earnest in
the early years of the century. As software companies began releasing newer, more
advanced solutions that were customizable across industries, it became feasible to really
use the information in a dynamic way.

Instead of feeding information into a static database for future reference, CRM became a
way to continuously update understanding of customer needs and behavior. Branching of
information, sub-folders, and custom
tailored features enabled companies to break down information into smaller subsets so that
they could evaluate not only concrete statistics, but information on the motivation and
reactions of customers.

The Internet provided a huge boon to the development of these huge databases enabling
offsite information storage, where before companies had difficulty supporting the
enormous amounts of information . The Internet provided new possibilities and CRM took
off as providers began moving toward Internet solutions.

With the increased fluidity of these programs came a less rigid relationship between sales,
customer service and marketing. CRM enabled the development of new strategies for more
cooperative work between these different divisions through shared information and
understanding, leading to increased customer satisfaction from order to end product.

Today , CRM is a still utilized most frequently by companies That rely heavily on two
distinct features : customer service or technology . The three sectors of business that rely
most heavily on CRM – and use it to great advantage – are financial services , a variety of
high tech corporations and the telecommunications industry .

The financial services industry in particular tracks the level of client satisfaction and what
customers are looking for in terms of changes and personalized features . They also track
changes in investment habits and spending patterns as the economy shifts . Software
specific to the industry can give financial service providers truly impressive feedback in
these areas.
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In recent years however , several factors have contributed to the rapid development and
evolution of CRM . These include:-
1. The growing de intermediation process in many industries due to the advent of
sophisticated computer and telecommunication technologies that allow producers to
directly interact with end – customers . For
2. Example ,in many industries such as airlines , banks insurances , software or
household appliances and even consumables , the de-intermediation process is the nature
of marketing and consequently making relationship marketing more popular . databases
and direct marketing tools give them the means to individualize their marketing efforts .
3. Advances in information technology , networking and manufacturing technology have
helped companies to quickly match competition . As a result product quality and cost are
no longer significant competitive advantages.
4. The growth in service economy . Since services are typically produced and delivered
at the same institution ,it minimizes the role of the middlemen .
5. Another force driving the adoption of CRM has been the total quality movement .
When companies embraced TQM it became necessary to involve customers and suppliers
in implementing the program at all levels of the value chain . This needed close working
relationships with the customers .Thus several companies such as Motorola , IBM ,
General Motors , Xerox , Ford, Toyota etc formed partnering relations with suppliers and
customers with practice TQM . other programs such as JIT and MRP also made use of
interdependent relationships between suppliers and customers .
6. Customers expectations are changing almost on a daily basis . Newly Empowered
customers who choose how to communicate with the companies across various available
channels. Also nowadays consumers expect a high degree of personalization .
7. Emerging real time , interactive channels including e-mail , ATMs and call centre that
must be synchronized with customer?s non-electronic activities . The speed of business
change , requiring flexibility and rapid adoption to technologies .
8. In the current era of hyper competition , marketers are forced to be more concerned
with customer retention and customer loyalty .
9. As several researches have found out retaining customers is less expensive and more
sustainable competitive advantage than acquiring new ones .
10. On the supply side it pays more to develop closer relationships with a few suppliers
than to develop more vendors
11. The globalization of world marketplace makes it necessary to have global account
management for the customers .

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CHAPTER 2 :
CRM PROGRAMS & ACTIVITIES
One - to-one Marketing
Meeting and satisfying each customer?s need uniquely and individually . In the mass
markets individualized information on customers is now possible at low cost due to the
rapid development in the information technology and due to availability of scalable data
warehouses and data mining products . By using online information and database on
individual customer interactions , marketers aim to fulfill the unique need of each mass –
market customer. Information on individual customers is utilized to develop frequency
marketing , interactive marketing and after marketing programs in order to develop
relationship with high – yielding customers . In the context of business – to-business
markets , individual marketing has been in place of quite sometime . Known as Key
Account Management Program, here marketers appoint customer teams to husband the
company resources according to individual customer needs .
CONTINUITY MARKETING PROGRAMS
Take the shape of membership and loyalty card programs where customers are often
rewarded for their member and loyalty relationships with the marketers. The basic premise
of continuity marketing programs is to retain customers and increase loyalty through long-
term special services that has a potential to increase mutual value through long-term
special services that has a potential to increase mutual value through learning about each
other .
Partnering programs
The third type of CRM programs is partnering relationships between customer and
marketers to serve end user needs . In the mass markets , two types of partnering programs
are most common : co-branding and affinity partnering .
Traditionally customer relationship management ( CRM ) revolves around the three
functions of selling , marketing and support . various process models have been built
around how these functions are integrated and operated in a customer oriented enterprise.
There is however a fourth critical function that is lacking in most CRM models .
The fourth function that often is the source of a competitive edge is that of innovation .
companies must continually reinvent themselves to deliver an improved and often a totally
new value offering to their customer base . CRM must provide the customer intelligence
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that feeds information back in to the enterprise?s knowledge management process where it
can trigger new innovation process . When CRM is integrated into the innovation process ,
significant value can be derived from faster time to market cycle times and with new
process and services .
Marketing automation must ensure that the innovation processes are actually market
driven. A market driven innovation process must include both strategies that are focused
on satisfying customer requirements as well as strategies focused at redefining customer
requirements. Sales automation should be integrated with the innovation process by
ensuring that all sales channels are prepared and ready to take new processes and services
to market before competitive forces can react. Customer service automation must be
designed to empower the customer with the option of assisting with the design of the value
offering. Redefining CRM around innovation, sales, marketing and service can identify
new competitive opportunities for an enterprise.
There are three parts of application architecture of CRM:
? Operational - Automation to the basic business processes (marketing, sales, service)

? Analytical – support to analyze customer behavior, implements business intelligence
alike technology
? Collaborative – ensures the contact with customers (phone, email, fax, web, sms, post,
in person)

Operational CRM
Operational CRM means supporting the “front office” business processes, which include
customer contact (sales, marketing and service). Tasks resulting from these processes are
forwarded to resources responsible for them, as well as the information necessary for
carrying out the tasks and interfaces to back-end applications are being provided and
activities with customers are being documented for further reference.
Operational CRM provides the following benefits:
? Delivers personalized and efficient marketing, sales, and service through multi-
channel collaboration.
? Enables a 360-degree view of your customer while you are interacting with them.
? Sales people and service engineers can access complete history of all customer
interaction with your company, regardless of the touch point.

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The operational part of CRM typically involves three general areas of business:
? Sales Force Automation (SFA)
SFA involves of the company?s critical sales and sales force management functions, for
example, lead/account management, contact management, quote management, forecasting,
sales administration, keeping track of customer preferences, buying habits and
demographics, as well as performance management. SFA tools are designed to improve
field sales productivity. Key infrastructure requirements of SFA are mobile
synchronization and integrated product configuration.

? Customer Service and Support (CSS)
CSS automates some service requests, complaints, product returns, and
information requests. Traditional internal help desk and traditional internal inbound call-
center support for customer inquiries are now evolved into the “customer interaction center
(CIC), using multiple channels ( Web, phone/fax, face-to-face, kiosk, etc.). Key
infrastructure requirements of CSS include computer telephony integration (CTI) which
provides high volume processing capability, and reliability.

Enterprise Marketing Automation (EMA)
EMA provides information about the business environment, including competitors,
industry trends, and macro-environmental variables. It is the execution side of campaign
and lead management. The intent of EMA applications is to improve marketing campaign
efficiencies. Functions include demographic analysis, variable segmentation, and
predictive modeling occurs on the analytical (Business Intelligence) side.
Integrated CRM software is often also known as “front office solutions” This is because
they deal directly with the customer. Many call centers use CRM software to store all of
their customer?s details. When a customer calls, the system can be used to retrieve and
store information relevant to the customer. By serving the customer quickly and
efficiently, and also keeping all information of a customer in one place, a company aims to
make cost savings, and also encourage new customers.
CRM solutions can also be used to allow customers to perform their own service via a
variety of communication channels. For example, you might be able to check your bank
balance via your WAP phone without ever having to talk to a person, saving money for the
company, and saving your time.
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Analytical CRM
In analytical CRM, data gathered within operational CRM and/or other sources are
analyzed to segment customers or to identify potential to enhance client relationship.
Customer analysis typically can lead to targeted campaigns to increase share of customer?s
wallet. Examples of campaigns directed towards customer are:
? Acquisition: Cross-sell, up-sell
? Retention: Retaining customers who leave due to maturity or attrition.
? Information: Providing timely and regular information to customers.
? Modification: Altering details of the transactional nature of the customer?s
relationship.
Analysis typically covers but is not limited to:
? Decision support: Dashboards, reporting, metrics, performance etc.
? Predictive modeling of customer attributes
? Strategy and research.
Analysis of customer data may relate to one or more of the following analysis :
? Contact cannel optimization
? Contact Optimization
? Customer Acquisition/Reactivation/Retention
? Customer Segmentation
? Customer Satisfaction Measurement / Increase
? Sales Coverage Optimization
? Fraud Detection and analysis
? Financial Forecasts
? Pricing Optimization
? Product Development
? Program Evaluation
? Risk Assessment and Management

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Collaborative CRM
Collaborative CRM facilitates interactions with customer through all channels (personal,
letter, fax, phone, web, e-mail) and supports coordination of employee teams and channels.
It is a solution that brings people, processes and data together so companies can better
serve and retain their customers. The data/ activities can be structured , unstructured,
conversational and/ or transactional in nature.
Collaborative CRM provides the following benefits:
? Enables efficient productive customer interactions across all communications
channels.
? Enables web collaboration to reduce customer service costs.
? Integrates call centers enabling multi-channel personal customer interaction.
? Integrates view of the customer while interaction at the transaction level.

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CHAPTER 3:
TOOLS FOR CRM
CUSTOMER DATABASE
A good customer information system should consist of a regular flow of information,
systematic collection of information that is properly evaluated and compared against
different points in time, and it has sufficient depth to understand the customer and
accurately anticipate their behavioral patterns in future. The customer databases helps the
company to plan, implement, and monitor customer contact. Customer relationships are
increasingly sustained by information systems. Companies are increasingly adding data
from a variety of resources to their databases. Customer data strategy should focus on
processes to manage customer acquisitions, retention, and development.

Call Centre
A call centre is a centralized office used for the purpose of receiving and transmitting a
large volume of requests by telephone.
A call centre is operated by a company to administer incoming product support or
information inquiries from customers. Outgoing calls for telemarketing, clientele, and debt
collection are also made. In addition to a call centre, collective handling of letters, faxes,
and e-mails at one location is known as a contact centre.
A call centre is often operated through an extensive open workspace, with work stations
that include a computer, a telephone set/ headset connected to a telecom switch, and one or
more supervisor stations. It can be independently operated or networked with additional
centers, often linked to a corporate computer network, including mainframes,
microcomputers and LANs.
Increasingly, the voice and data pathways into the centre are linked through a set of new
technologies called computer technology integration (CTI)

Most major businesses use call centers to interact with their customers. Examples include
utility companies, mail order catalogue firms, and customer supports for computer
hardware and software. Some businesses even service internal functions through call
centers. Examples of this include help desk and sales supports.
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Systems Integration
While CRM solutions are front office automation solutions, ERP is back office automation
solution. An ERP helps in automating business functions of production, finance, inventory,
order fulfillment and human resource giving an integrated view of business, where as
CRM automates the relationship with customer covering contact and opportunity
management, marketing and product knowledge, sales force management, sales
forecasting, customer order processing and fulfillment, delivery, installation, pre-sale and
post-sale services and complaint handling by providing an integrated view of the customer
It is necessary that the two systems integrate with each other and complement information
as well as business workflow. Therefore, CRM and ERP are complementary.
This integration of CRM with ERP helps companies to provide faster customer service
through an enabled network, which can direct all customer queries and issues through
appropriate channels to the right place for speedy resolution.
This will help the company in tracking and correcting the product problems reported by
customers by feeding this information into the R&D operations via ERP.

Data Mining for CRM: Some Relevant Issues
Data Mining is an important enable for CRM. Advances in data storage and processing
technologies have made it possible today to store very large amounts of data in what are
called data warehouses and then use data mining tools to extract relevant information.
Data mining helps in the process of understanding a customer by providing the necessary
information and facilitates informed decision-making.

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CHAPTER 4 :
IMPLEMENTATION OF CRM
HOW TO IMPLEMENT CRM?
The implementation of a customer relationship management (CRM) solution is the best
treated as a six-stage process, moving from collecting information about your customers
and processing it to using that information to improve your marketing and the customer
experience.
? Stage one – collecting information
The priority should be capture the information you need to identify your customers
and categorise their behavior. Those businesses with a website and online customer service
have an advantage as customers can enter and maintain their own details when they buy.
? Stage two – Storing information
The most effective way to store and manage your customer information is in a relational
database – a centralized customer database that will allow you to run all your systems from
the same source, ensuring that everyone uses up-to-date information.
? Stage three – Accessing information
With information collected And stored centrally, the next stage is to make this information
available to staff in the most useful format.
? Stage four – Analysing Customer Behaviour
Using data mining tools in spreadsheet programs, which analyse data to identify patterns or
relationships, you can begin to profile develop sales strategies.customers and
? Stage five – Marketing more effectively
Many businesses find that a small percentage of their customers generate a high percentage
of their profits. Using CRM to gain a better understanding of your customer?s needs,
desires and self-perception, you can reward and target your most valuable customers.
? Stage six – Enhancing the customer experience
Just as a small group of customers often take up disproportionate amount of staff time. If
their problems can be identified and resolved quickly, your staff will have more time for
other customers.
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TYPES FOR IMPLEMENTING CRM

? Purchasing or Licensing Software
Owning the Software and running it on your own servers is ideal if you have highly
customized enterprise resource planning, or ERP, or order management system, or OMS,
software. If you have third-party software for your back-office processes (accounting,
ERP, OMS, etc.) and your front-end systems (content management, merchandising,
checkout, personalization engine), then you should be able to find CRM software that
works with at least some of your systems without extensive customization. It?s
unavoidable that you will have to do some customization, but by working with vendors
that have partnerships and interfaces with your existing vendors and their software – or
with vendors that have partnerships with the ASPs that host your existing solutions – you
can keep customization to a minimum. Customization is not only expensive when you first
install third-party software. But it?s also expensive every time you try to apply a patch or
van upgrade.
The advantages of purchasing or licensing the software and implementing it on your own
servers are that you have complete control over the software and over the data. There
aren?t any of the privacy issues that might arise from having your data residing with a third
party. If you already have a customer service department with trained associates, and you
don?t expect rapid growth or you believe you are equipped to handle rapid growth – then
there?s no point in paying to train CSRs elsewhere

? CRM via ASP
Only recently have CRM services become available via an ASP There are two kinds of
ASPs providing CRM solutions. With one type, of which shop Tok is one example, the
ASP hosts its own CRM software. The other5 type hosts a best of bread third party
solution. The disadvantage of third type is that when something isn?t working with the
software, you don?t always the whether the problem rests with the ASP or with the
software ,and you can?t necessarily get it fixed. with ASPs that5 hosts their own software,
the vender hears you requirements for new features and your complaints about existing
functionality.
When you work with an ASP, the first thing you will want to know the degree to which
you can customize the software so that your other business software will take to your CRM
software . after all ,your CSRs need to know what a customer has purchased to handle
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inquiries from that customer, requiring between the order-management system and the
CRM system. If the customer database doesn?t talk to the CRM system, then your
marketing department can?t segment customers based on purchases and the use the
analytical tools frequently built into CRM software to make intelligent decisions on what
kind of promotions to make to attract the highest-value customers.

? Outsourcing Customer Service
While you can outsource customer service, which is one component of CRM, you can?t
outsource business intelligence , which is the component of CRM. If the strategic
component of CRM. If you don?t need to integrate with existing system, or you only need
limited integration, then the fastest route to take is to outsource your customer service to a
full-service provider who will give you Web access to the business-intelligence tools. Most
full-service customer-service providers will work with best-of-breed CRM vendors and
offers you a choice of CRM systems with which to manage your customers. Some are also
willing to purchases and install the CRM software of your choice on their servers, but be
aware that this will eliminate the advantage of a quick

implementation, lower entry costs and CRSs who already know the software. The cost
associated with outsourcing CRM is usually a significant startup cost for developing your
materials, their training materials and your knowledge base, then a monthly fee based
either on the number of hours of CRS you want available or on the number of
calls/messages they receive for your site. The pay-as-you-go model can be very attractive
to smaller members. The ability to grow quickly can be an advantage for any size Web
merchant.

CRITICAL SUCCESS FACTORS FOR IMPLEMENTATION
OF CRM SYSTEMS
Critical success factors have been defined as the elements that make a project a success,
and as the „events and conditions in a few key areas which absolutely must go right for the
business to succeed? These include trust, effective communication, and top management
support. For this to occur, proper measurement tools and metrics must be utilized to
effectively control the project. The Key CSF for CRM projects are:
Key stakeholder support
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Support from all stakeholders in the organization, including top management and all
management levels, employees, government, suppliers, strategic partners and investors.
Includes the timely reporting of the project status with accurate information.
Sufficient Resources
Resources of money, equipment and expertise available with appropriate support structures
in place. Includes time and budget allocations for training.

? Clearly Defined Objective
A clearly defined mission with a set of defined goals and objectives communicated to all
stakeholders through clearly defined communication channels, with alignment of project
and corporate goals. This is managed through a detailed project plan.
? Managing Change
Project changes are implemented through formally defined process, with appropriate
approvals sought. Any scope changes are mutually agreed and documented, with
appropriate analysis of resource requirements.

Challenges of CRM Implementation
Organizations face a number of key challenges in implementing CRM systems. These
include:
? Methodology driven by end users
IT personal do not have knowledge or authority to influence corporate decisions makers
? Lack of customer centric culture
CRM projects are mostly driven by a functional head, such as a VP or sales/marketing, and
rarely produce an enterprise view of customers.
? Lack of customer centric culture
An acceptable return on investment will no be achieved if the organization does not have a
strong customer centric culture

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CHAPTER5:
CRM RELATED CONCEPTS
? Knowledge Management
Knowledge Management (KM) refers to a range of practices used by organizations to
identify, create, represent, and distribute knowledge for reuse and learning across the
organization.
Knowledge Management programs are typically tied to organizational objectives and are
intended to lead to the achievement of specific business outcomes such as improved
performance, competitive advantage, or higher levels of innovation.
While Knowledge Management programs are closely related to Organizational Learning
by its Organizational Learning initiatives. Knowledge Management may be distinguished
from Organizational Learning by its greater focus von the management of specific
knowledge assets and development and cultivation of the channels through which
knowledge flows. In recent years, Personal Knowledge Management (PKM) practice has
arisen in which individuals apply KM practice to themselves, their role in the organization
and their carrier development.
Knowledge Management is a continually evolving discipline, with a wide range of
contributions and a wide range of views on what represents good practice in knowledge
Management.

KNOWLEDGE MANAGEMENT PLAYS A KEY ROLE IN CRM
SUCCESS
CRM and KM were once considered entirely different disciplines, with the two sharing
little but perhaps the same data warehouse hardware and a vague understanding that both
efforts were meant to improve business efficiency and customer satisfaction. It has become
clear, however, that the two disciplines were really working toward the same goal, and that
to deliver continuous improvement to business clients, they would have to start speaking
the same language.
KM focuses largely on finding the right solution to a problem that requires detailed insight,
be it locating the right experts, at the right time, or ensuring that the solution to a complex
problem can be written once but reused many times.

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? Regain Management
“The cost of acquiring a new customer is 9 to 12 times that of holding on to an existing
customer.” – Philip Kotler
Goal of customer regain management is to reinitiate valuable customer relationships,
which have been already terminated. Regain management has to detect such „lost?
customers, select valuable relationships and attempt to regain them in an efficient way, for
which a systematic process is necessary. Addition to this process structure, there is an
information base needed , which enable the exchange of collected information along the
customer regain process.
- An incentive strategy tempts to regain business relation by offering customers some
form of incentive like for example ticket for events, gifts & discounts.
- A compensation strategy aims to compensate some disservices, which as the motive
for termination. For example the company could offer some form of vouchers.
- A dialogue strategy tries to regain trust through a dialog.
- A convincing strategy aims to persuade customers by means of use argumentations &
Explanation of some product advantages.

? CRM in Supply Chain Management (SCM)

Supply Chain management (SCM) is a business system of enterprise strategies, business
processes & information technologies for improving the planning, execution &
collaboration of material flows, information flows,

financial flows & workforce flows in the supply chain. SCM is supported by modular
software applications that integrate activities across organizations, from demand
forecasting, product planning, parts purchasing, inventory control, manufacturing and
product assembly to product distribution. In the context of SCM, where alliances &
partnership are keys to success, CSM plays an important role in building long-term
relationships. The success of relationship depends upon sharing of saving from the supply
chain, which may be reinvested to further enhance its efficiency & sustain the competitive
advantage.

GOALS OF SCM

- To reduce inventory cost,
- To increase sales,
- To improve the coordination & the collaboration with suppliers, manufacturer &
distributers.

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? CRM-ERP Information
ERP?s foundation, it is based on creating internally stable business functions & predictable
prices control. The concept of ERP was the integration of all back-office functions so that
the basic problems responsible for interception & breaks in the process where smooth out
& the incompatibilities of the best-of-breed applications were eliminated or reduced. This
doesn?t work with CRM which is external. How can you be in command of processed
when they are based on your customers behavior? Conceptually, one important reason for
CRM is real time response to the constantly liquid-shifting of customer demands, which is
not controlled internally at all. It also means the psychology of the front-office is quite
different from the psychology of the back-office.
The simplest option is to hire a systems integrator to come in & integrate the systems.
However, the obvious hazard here is that they are not only dealing with ERP & CRM
applications they may not know much about, they are also dealing with your legacy
system, which they know nothing about. But integrating all of that is what you could hire
the ERP vendor?s CRM solution . The third solution is what many companies are
increasingly turning to Enterprise Application Integration (EAI)

3. CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain
insight into the behavior of customers and the value of those customers. If it works as
hoped, a business can: provide better customer service, make call centers more
efficient, cross sell products more effectively, help sales staff close deals faster,
simplify marketing and sales processes, discover new customers, and increase
customer revenues.It doesn't happen by simply buying software and installing it. For
CRM to be truly effective, an organization must first decide what kind 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 of customers' life
stages in order to market appropriate banking products like mortgages or IRAs to
them at the right time to fit their needs. Next, the organization must look into all of
the different ways information about customers comes into a business, where and how
this data is stored and how it is currently used. One company, for instance, may
interact with customers in a myriad of different ways including mail campaigns, Web
sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and
advertising efforts. Solid CRM systems link up each of these points. This collected
data flows between operational systems (like sales and inventory systems) and
analytical systems that can help sort through these records for patterns. Company
analysts can then comb through the data to obtain a holistic view of each customer
and pinpoint areas where better services are needed. In CRM projects, following data
should be collected to run process engine: 1) Responses to campaigns, 2) Shipping
and fulfillment dates, 3)Sales and purchase data, 4) Account information, 5) Web
registration data, 6) Service and support records, 7) Demographic data, 8) Web sales
data.
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NEEDS OF A BANK
The banks now need to find out what to sell, whom to sell, when to sell, how to sell and
how to be different to increase profitability. Banks need to differentiate themselves by
adding value-added service, offerings and building long-term relationships with their
customers through more customized products, enhanced value offerings, personalized
services and increased accessibility. Banks also need to identify customers and products
that would be most profitable and target customers with products that are most appropriate
to their needs and serve the customers with greater cost efficiency.
Banks also need to find out the avenues for increased customer satisfaction, which leads to
increased customer loyalty. This may be explained better from two initiatives bank took in
the past:
? Earlier what drove many bankers to invest in ATMs was the promise of reduced
branch cost, since customers would use them instead of a branch to transact business. But
what was discovered is that the financial impact of ATMs is a marginal increase in fee
income substantially offset by the cost of significant increases in the number of customer
transactions. The value proposition, however, was a significant increase in that intangible
called customer satisfaction. The increase in customer satisfaction has translated to loyalty
that resulted in higher customer retention and growing franchise value.
? Bankers invested in Internet banking, believing that the Internet was a lower-cost
delivery channel and a way to increase sales. Studies have now shown, however, that the
primary value of offering Internet banking services lies in the increased retention of highly
valued customer segments. Again customer satisfaction drives the value proposition.
Thus, banks need to retain existing customers with enhanced personalized services and
products, which best suits their needs and satisfies them the most.

WHAT IS E-CRM?

In a simple term, it provides to companies a means to product interactive, personalized &
relevant communication with customers across both electronic & traditional channels. It
utilizes a complete view of the customer to make the decision about the messaging, offers
& channel delivery. It synchronies communications across disjointed costumer facing
system. It focuses on understanding of customer activities, personalized relationships
affect the business. Advocate of E-CRM recognized that a comprehensive understanding of
customer activities, personalization, relevance, permission, time lines & metrics is a means
to an end optimize the value of your most important asset: your customer.
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For fortune 500 companies, evolving to E-CRM requires process & organizational
changes, a suite of integrated applications & a non-trivial technical architecture to support
both the E-CRM process & the enterprise applications that automate the process. Mid-size
company?s benefits from less sophisticated & easier-it-implement, hosted solutions offered
through Application Service Provider. But regardless of the size of the firm, you have no
choice but to evolve to E-CRM quickly.
E-CRM v/s CRM: The Differences
Being able to take care of your customer via internet or customer being able to take care of
themselves online: That?s the difference between CRM & E-CRM. It implies a myriad of
issues, questions, approaches, technologies & architecture that are different from
client/server-based CRM. Many of them are issue general to the internet. Others are issues
related to the creation of applications for the internet. The third group is related directly to
E-CRM & its actual value to business.

Companies agree that E-CRM is critical to their business, but unfortunately very few
understands exactly what it is or how to evolve from their existing database marketing
practices to an E-CRM solution.

Basic Requirements of E-CRM or Six “E” of E-CRM

? Electronic Channels
New electronic channels such as the Web and personalized e-Messaging have become the
medium for fast, interactive and economic customer communications, challenging
companies to keep pace with this increased velocity.

? Enterprise
Through E-CRM, a company gains the means to touch and shape a customer?s experience
across the entire organization, reaching beyond just the bounds of marketing to sales,
services and corner offices – whose occupants need to understand and assess customer
behavior. An E-CRM strategy relies heavily on the construction and maintenance of a data
warehouse that provides a consolidated, detailed view of individual customer behavior and
communication history.

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? Empowerment
In this new age, E-CRM strategies must be structured to accommodate customers who now
have the power to decide when and how to communicate with the company and through
which channel, which ability to opt for or out of. Consumers decide which firms earn the
privilege to “talk” with them.

? Economics
Too many companies execute communication strategies with little effort or ability to
understand the economics of customer relationships and channel delivery choices. Yet
customer economics drives smart asset allocation decisions, directing resources and effort
at individuals likely to provide the greatest return on customer communication initiatives.

? Evaluation
Understanding customer economics relies on a company?s ability to attribute customer
behavior to marketing programs. A company should evaluate customer interactions along
with various customer touch point channels and compare anticipated ROI against returns,
through customer analytic reporting. Evaluation of results allows companies to
continuously refine and improve efforts to optimize relationships between companies and
their customers.

? External Information
The use of Customer-sanctioned external information can be employed to further
understand customer needs. This information can be gained from resources such as third-
party information networks and webpage profiler applications, under the condition that
companies adhere to strict consumer opt-in rules and privacy concerns.

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CHAPTER 6:

PROBLEMS AND DRAWBACKS

There are several reasons why a customer relationship management (CRM) solution might
not have the desired results.
There could be a lack of commitment from people within the company to the
implementation of a CRM solution. Adapting to a customer-focused approach may require
a culture change. There is a danger that relationships with a customers will break down
somewhere along the line, unless everyone in the business is committed to viewing their
operations from the customers perspective. The result is customer dissatisfaction and
eventual loss of revenue.
Poor communication can prevent buy-in. In order to make CRM work, all the relevant
people in your business must know what information you need and how to use it.
Weak leadership could cause problems for any CRM implementation plan. The onus is on
management to lead by example and push for a customer focus on every project. If a
proposed plan isn?t right for your customers, don?t do it. Send your teams back to the
drawing board to come up with a solution that will work.
Trying to implement CRM as a complete solution in one goes is attempting but risky
strategy. It is better to break your CRM project down into manageable pieces by setting up
pilot programs and short-term milestones. Consider starting with a pilot project that
incorporates all the necessary departments and group but is small and flexible enough to
allow adjustments along the way. Don?t underestimate how much data you will require,
and make sure that you can expand your systems if necessary. You need to carefully
consider what data is collected and stored to ensure that only useful data is kept.
You must also ensure you comply with the eight principles of the Data Protection Act that
govern the processing of information on living, identifiable individuals. For more
information, see their guide on how to comply with data protection legislation.
Avoid adopting rigid rules which cannot be changed to be more flexible to the needs of
individual customers.

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REASONS FOR CRM IMPLEMENTATION FAILURE
An understanding of the challenges and critical success factors is paramount to project
success. In this way, the organization is aware of those factors by which success can be
measured, and will ensure the CRM system is implemented in a manner to satisfy all
stakeholders. The main reasons for CRM failures include:

? Customer focus
Organizational culture is not customer focused, with limited involvement of customer
facing personnel in the design and implementation phase.
? Organizational Management
Lack of support and understanding from senior management, lack of CRM understanding,
lack of communications and changing business needs.
? Project Management
Misalignment between project and business requirements, with unrealistic goals, timelines,
coupled with a lack of planning and insufficient reporting and control.
? Team Members
Lack of support, incentives and lack of technical knowledge
? Data & warehouse requirements
Poor quality data, inconsistent data between different systems
? Technical Factors
Short term solution focus not aligned to long term architectural infrastructure growth, no
prototyping or testing, misunderstanding technical requirements.

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1 . THE CRM FRAMEWORK
Schmitt?s book “ Customer Experience Management” offers the following five steps
framework that should help managers understand and manage the “customer experience”

Step 1: Analyzing the experiential world of the customer
? Analyze socio-cultural of the customer (needs/wants/lifestyle)
? Analyze business concept (requirements/solutions)

Step 2: Building the Experiential platform
? Connection between strategy and implementation
? Specifies the value that the customer can expect from the product.
Whereas steps 1 (Analysis) and 2 (Strategy) form the basis for CEM, steps 3, 4, 5 are
focusing on implementation.

Step 3: Designing the Brand experience
? Experiential features, product aesthetics, “look and feel” e.g. logos

Step 4: Structuring the customer interface
? All sorts of dynamic exchanges and contract points with customers
? Intangible elements (i.e. value, attitude, behavior

Step 5: Engaging in continuous experiential innovation
? Anything that
improves and customers personal lives and business customers working lives

And finally, to bring all pieces together, a holistic approach is required that provides a
linkage the different steps and connects them with the organization.

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HOW DOES CEM TECHNOLOGY WORK?
CEM Technology captures customer experience information across all customer touch
points and feeds it back to the organization so that action can be taken to improve
profitability. At the beginning or end (or both) of an interaction, and within context, the
customer is invited (automatically or manually) to provide their perspective via four or five
short questions. Done properly, this process will result in better than 80% customer
participation and have a measurably positive effect on customers.
Whether phone, email or Web channels, the experience information is collected within
context of the interaction. The question that are delivered to the customer are specific to
that interaction type; the people, products and processes that were part of the interaction;
and the customer. The questions are also conditional in nature and facilitate both
quantitative as well as qualitative experience information.
CEM Technology accesses existing CRM data, productivity metrics, and incorporates key
information related to customer behavior and profitability. Information such as retention
rates, average purchase amounts, store sales, complaint and resolution rates, customer
segments, etc. are all combined with

customer experience information and analyzed/reported in real-time. The strength of a
CEM system is in its ability to continually align company performance with customer
needs and behaviors, enabling companies to make effective, correct, and critical day-to-day
adjustments in resource allocation and execution- as well as enterprise-wide shifts in
strategy.
Customer Experiences can be categorized into three unique states. The state of the
customer experience has implications on the type of information to communicate with and
collect from customers. The three states of customer Experience are: Normal Experience,
critical Experience, and Unique Experience.

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MANAGING CUSTOMER INTERACTION

Experience
Types
Key words Stage Objectives Profit Implications
Normal 1. Education
2. Competenc
e
3. Consistenc
y

1.Early
2.Middl
e
1. Establish
Positive
Perceptions
2. Validate
Expectations
3.Establish
Trust ,loyalty,
satisfaction
4.EngageCustom
ers
1.Reduce early phase
customer turnover
2. Reduce service and
support costs
3.Reduce research
expense
Critical 1. Opportunit
y
2. Flexibility
3. Problem
resolution
1.Early
2.Middl
e
3.Matur
e
1.Service
Recovery
2. Positive
Memorable
Experiences
1. Reduce turnover
2. Promote Positive
word-of-mouth
endorsements
Unique 1. Appropriat
e timing
2. Appropriat
e context
1.Middl
e
2.Matur
e
1. Up –Sell
Products,
Services
2. Cross –Sell
Products
,Services
1. Increase average
purchase levels
2.Increase proportion
of high margin sales
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CHAPTER 7 :
CRM IN INDIA
Software is to India what oil was to gulf. It is therefore no surprise that the Indian
companies are jumping into the CRM bandwagon to seize a chunk of the global market,
both products as well as services.
With a vast talent pool; India is a fast becoming an important development base of CRM
major companies. This trend is likely to increase in the future. Call centers, Catering
primarily to the American and European markets are coming up in and around the metros.
With the easing of infrastructure constraints, India is likely to emerge as a significant
player in the segment.
Companies in India are realizing the need for CRM and some of the forward thinking ones
have been strategically investing in CRM initiatives and relate activities. Even though,
some industries like steel, aluminum and cement could get by without any active customer
management, they realize that is now all history and that they have to do something to
create and build relationships.
So the awareness of CRM there. The first steps have been taken by many. The question is
whether you want to compare CRM programs of Indian companies with the standards and
best practices of players like Ikea and Marriot who have been torchbearers in this field.
India has a long away to go. Indian companies would do well to realize that CRM cannot
be delegated to the marketing department.
It has to be whole revolution within the entire organization. The entire organization from
the chairman to the doorman has to be a galvanized to become a customer-oriented
organization. It?s about training, learning, rescaling and the ability to adapt that will
distinguish the laggards from the winners. It needs a CEO who walks the talk, in other
words CRM is an absolute necessity now for the smallest kirana store to a large player like
Ambuja Cement. One has 200 customers. But both can?t afford to loose even a single of
their customers, because the cost of creating a new customer is 5 to 10 times more than the
cost of retaining an old, good customer. CRM is now an integral part of organizational
strategy and overall business objectives.
Has CRM in India been reduced to an empty buzzword that?s tossed around so that a
company appears to be keeping up with the industry? Not entirely, because organizations
like Standard Chartered Bank, ICICI Lombard, BPL Telecom and Air-India have
successfully used these tools-and benifited. The difference lies in the way CRM has been
deployed at these organizations. It is a combination of technology and process change that
has worked.
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Adoption of CRM by Indian companies is at an infancy stage. The CRM enabled
companies include Modi Xerox, Tata Telecom, TVS Electronics, HP India, Tata Info Tech,
Carrier Refrigeration, Tata Teleservices, Satyam Info way, Planet M, Epicenter
Technologies among many others.
India even has a CRM Foundation in New Delhi, founded with the purpose of assessing
and improving CRM practices. Founding members include Tata Telecom, Escotel, Modi
Xerox, Global Groupware, AC Nielsen, Carrier Aircon, and Motorala India, among
others.
Outsourcing CRM back offices. India is growing to be the back office of the world, and
many Indian companies are managing CRM operations for Fortune 500 and medium-sized
companies in USA and Europe. Now that the outsourcing market is mature, Indian
companies may also begin to outsource for cost reduction.

BPO’S IN INDIA
The business process outsourcing industry in India hasa grown by leaps and bounds and as
its size increases so does its competitive advantage. Compared with 1996 when this
Industry had started inroads into the United States with Outbound Telemarketing
campaigns, today the vehicle for these calls-the internet has become cheaper and more
reliable for the average Indian business.The business has boomed to the extent that many
people are now running BPO?S out of their cyber cafes and houses in New Delhi.
The sector witnessed considerable activity during 2004-05, including a ramping up of
operations by major Indian and MNC players and stepped up hiring. The domestic BPO
market, castalyzed by demand from the telecommunications and BFSI segments, matched
the growth of BPO exports. The market experienced maturity and consolidation, a result of
numerous mergers and acquisitions taking place within the sector. There were over 400
companies operating within the Indian BPO space, including captive units (of both MNCs
and Indian companies) and third-party services providers.
The Indian BPO industry remains on a growth path, emerging as one of the key investment
markets in the country.BPO is one of the greatest global forces for improvement today.
CRM outsourcing providers alone have a $30 billion market opportunity and businesses
that capitalize on the potential cannot only reduce cost, but also increase productivity and
raise revenue significantly.BPO began as a way to significantly reduce labor costs for low-
value or transactions activities (e.g., help desk calls, bill payments), but now, it?s emerging
as a way to deal with higher complexity, value-added activities. However, few companies
have realized the full range of benefits that BPO offers. To capture these benefits
organizations need to do two things: outsource to improve productivity (not just costs) and
cost-effectively identify emerging revenue opportunities.
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CHAPTER :- 8
CASE STUDIES ON CRM

1.BHARATI TELE-VENTURES- TELECOM SECTOR
Bharti Tele-ventures is one of the India?s leading private sector telecom operators. Its
cellular business, AIRTEL, is a leading mobile telephony brand. Like any Telco, Bharti
considers information technology a key business enabler. For telecom IT is like bread and
butter. Bharti believes it plays two significant roles-it works as a support system, and it can
also be a business driver. Thus IT is very important to Bharti. It had a WAN in place with a
mix of leased lines and E1 and E3 lines. The company also has an extranet in place
through which it extends different applications to its dealers and partners. Bharti have an
extremely large infrastructure based on products from multiple vendors. This includes a
range of high-end servers from Sun and HP. In the telecom business volumes are very
large. They have millions of records and process them everyday, so far them storage is in
terabytes.
Bharti also has a storage area network (SAN) in place. The main data centre is located in
Gurgaon, Haryana. As far as software is concerned, some of the applications that are
running on its network are billing, fraud management, revenue assurance and data
warehousing. They also have some internal facing applications like Oracle Financial and
Oracle HRMS.
THE CASE FOR CRM
Initially, when Bharati started operations, the whole system was run manually. At that
point of time only 40 percent of their customer issues were getting resolved-this has now
gone up to about 90 percent.
It is vital for them to manage the expectation of their customers and provide them with
innovative products and services in a manner which make them loyal. To achieve this,
Bharti needed the right tools. It is this need that made them opt for a CRM (customer
relationship management)

CHERRYPICKING A SOLUTION
Today Bharti is using the Oracle CRM platform. As part of their vision, they intend to
provide Airtel services anywhere and at any time. A customer should get the same quality
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of service no matter which of their call centres he contacts. This has been their vision, and
because of that they have gone in for a centralized application like CRM.
Before choosing its CRM tool, Bharti evaluated many options. It considered factors like
proper workflow automation, facilitation of knowledge sharing, and integration with the
billing system. After a through evaluation exercise, it decided to go ahead with the Oracle
CRM platform.
ROLL IT
After starting its services in Delhi, Bharti acquired many circles and sought new licences in
other circles; whenever they got a new licence, they implemented the CRM tool
immediately. But they had to put in a migration strategy in those acquired circles which
had an existing subscriber base. The migration had to be done in such a manner that the
existing customer base did not suffer. The goal was that all circles would go live by the
first quarter of 2004.
The biggest challenge for Bharti was to have a unified process in place. Once this was
done they faced the challenge of imparting training. They went in for such a large-scale
implementation they faced problems. They also had certain technical difficulties during
implementation, but they were able to overcome them.
The CRM strategy at Airtel revolves around two aspects: operational CRM and analytical
CRM. The first is about helping their call centres in the workflow part, helping them in
their day-to-day activities. The second provides staff with the required information on
customers; this is used for business development activities. Together they help Bharti
provide better service to its customers.

TAILOR-MADE SCHEMES
One of the primary things that Bharti has done with CRM is segmentation of customers,
which has helped in providing customers more value for their money. It

was important to understand and segregate customer needs depending on the product and
services is buying. One of the primary things that Bharti have done in this solution is the
segmentation of customers. With this, Airtel is now able to give its customers more value
for money. With the help of CRM, they are able to provide customers different schemes
and services depending on airtime usage. If the customer is a heavy user then they have
some specific schemes; for normal users they have other schemes. Apart from this, they
have also managed to segregate their workflow with the help of the CRM tool.
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2.WOCKHARDT- HOSPITAL AND HEALTH CARE SECTOR
When you aim to build a world class hospital, you need world-class processes in place.
Keeping this goal in mind and to give patients better value for their money. WHHI was
looking for a solution that would allow the hospital to manage its patient and staff details
database efficiently. It also needed to connect specialists to the hospital network such that
the doctors could monitor the patient remotely.
The WHHI team, which consists of four people, found that the most suitable solution was
to put in place two inter-linked systems. The foursome considered a CRM solution custom-
made to the hospital?s needs and a network linking that they term E-ICU. This system
connected the patients monitors to an RAS accessible over the internet.
The CRM system WHHI put into place not only helps identify the right doctor for the right
occasion, it now also generates reports. Plus it can sort categories of patients such that the
hospital has now been able to start clubs of people with similar experiences.

THE BEGINNING
To develop and maintain a special relationship with doctors, patients, and corporate,
WHHI required an easily manageable system that would catalog all the required details.
Moreover, with the narrowing difference in service level at hotels and hospitals
internationally, Vishal Bali, Vice President Operations, WHHI, believed that such
implementations are required to create an ambiance of efficiency. The implementation was
also required to track feedback to generate a patient satisfaction index.

THE SOLUTION
To meet the requirements, the hospital approached an outfit called Think Ahead, which
conceived, developed and implemented a CRM application to specifically meet the
demands of WHHI. The implementation generates feedback reports, occupancy reports,
average length of stay, waiting and discharge reports. While all these reports were being
filed even earlier, the solution has helped maintain and update all the reports on daily basis,
obviating any chance of delay. The accuracy rate of the reports has seen a new high as a
result.
More importantly the CRM solution has automated relationship management. It has
resulted in the creation of the Happy Hearts Club, a group of people who have undergone
similar heart surgeries at WHHI. At the forum, patients share their experience and
sometimes also learn from each other.
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The CRM solution also automatically forwards newsletters and relevant information to
keep in touch with doctors and patients. Vishal Bali, Vice President Operations explained
the importance of this routine task: “Hospitalization should not be seen as an episode but
as a patient hospital relation, it is not a one time transaction.” And the CRM solution has
helped with just that.
E-HOSPITAL
Besides the CRM system, WHHI has developed an e-ICU. The e-ICU consists of ICU
monitors on the side of the bed. These are connected to a Windows 2000 Servers that is
linked to Remote Access Servers (RASs). The RASs can be accessed over the internet via
a 2 MBPS line. The E-ICU allows doctors to consult specialists in life and death
situations. A resident doctor can consult a senior consultant while at the operation table
and the CRM solution helps retrieve the most suited consultant for a given case. This way
all decisions can be collaborative. Furthermore, in case of a smaller problem the doctor is
not required to rush to the hospital. The remote system also means that every patient has 24
*7 coverage from his/her doctor.
E-VISIT
WHHI?S association with think Ahead led to other creative initiatives. The first is the
Virtual Family Visit. Relatives and friends can visit any patient online in a virtual patient
room. The system is capable of transferring audio, video, text, and images.
Similarly, WHHI was also able to initiate a tele-medicine program. These are video links
established at medical colleges in the relatively less developed parts of India. The doctors
at WHHI use this link to address classes in these colleges as well as to make routine
follow-ups on chronic patients.
SECURITY ISSUES
With so much data available over the internet it is natural that information security would
be a concern. To secure its network, the WHHI IT team has set up a hardware and software
firewall. The hardware blocks unauthorized access and the software firewall acts as an
active state packet filtering firewall. The Total Internet Security Suite scans inbound and
outbound network traffic.
COST FACTOR
Overall, the implementation cost WHHI close to Rs2 million, according to Bali. Perhaps,
the level of automation and improved efficiency due to this system could be used to
establish the system?s ROI. However, Bali does not look at it from a profit perspective, but
rather as a „Staying in Business? investment. According to him, as the standards for
hospitals improve the world over, Wockhardt must set a standard in India.
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3.HDFC-BANKING AND FINANCIAL SECTOR
Owing a a Home still remains to be the single most cherished dream for many Indian
households and one need to be treated with great care while assisting people realize their
dreams. At HDFC, the element of care not only reflects in the very vision that prompted its
inception, but also in the manner in which the company relates to its customers. To HDFC,
providing finance for housing is not merely about earning profits, but way to provide an
essential and valuable service to the society.
It all began with a thought that took shape in the mind of HDFC?S founder, Late Shri H.T.
Parekh, who built the organization on the core values of integrity, transparency and trust.
Though HDFC enjoyed a monopoly when it started out, the company?s firm focus has
always been on customer care and satisfaction. It believed that the best strategies are
established with long-term commitment and relationships with the customers.
Since the company has always been dealing directly with its customer, this has helped it
keep in touch with the changing trends and customer expectations. Its experience and in-
depth knowledge of the sector is a boon for its customers. HDFC understands that buying a
house is an event which happens once in a lifetime for most and is the single largest
investment; hence buying the property with the fullest knowledge is vital. While buying a
property, where except in few cases the developers have established a brand, most builders
are local and relatively unknown, there are a number of issues and concerns a customer has
when he deals with any developer.
With over 28 years of experience in the real estate industry and business relations with the
developers, it has a through understanding of the market and this is passed on to the
customers. It provides counseling through its property services on how and where to buy a
house in India, the real estate prices and trends in the real estate market and any assistance
that may be required at various stages of property dealings. HDFC aims to bring
creditability and trust to the property deals.
It has from time to time tied up with developers to bring special packages to its customers
and reach out to them. It conveys the properties to the customers by visiting companies to
put up special counters displaying new projects of builders, so they don?t have to move out
to locate a home and make presentations to address their financial concerns. This approach
is also used in colonies with a large number of families. The company also arranges
property fairs where customers can visit, select the property and seal the deal immediately.
At HDFC, product innovations are based on customer feedback and are aimed at customer
convenience. It was the first company to offer floating rate scenario turned conducive for
customers and introduce part fixed part floating product enabling customers to hedge their
risks in an uncertain interest environment. It was also the first to launch repayment option
that supported housing loans on the basis of age and customer needs. As the first company
Customer Relationship Management In Banks
38

to computerize the home loan process, technology has always been a focus area for the
company in its endeavour to simplify transaction for customers.
All in all HDFC is a brand, which not only offers Housing Finance but “Total Housing
Solutions”. Given the diverse portfolio of customers that HDFC caters to, the counselors at
HDFC are trained to understand customer requirements and structure the loan to match
individual concern. Departing from the usual norm of providing just loans, it offers
customers a personalized counseling service to help customers encash on the vast pool of
knowledge that comes with its experience.
It follows a single window concept where customers get legal and technical approvals by
its experienced in-house counselors. This usually saves a lot of time and efforts for
customers of obtaining these clearances from other authorities and save money as the
processing and administrative charges cover all these expenses. Customer service at HDFC
goes beyond process handling, with counselors taking out time to understand the applicants
needs, the demands of their growing families, the necessity to ensure savings for
emergencies and then arriving at the right amount for them to borrow.
HDFC?S philosophy of care also engulfs its interaction with customers who have defaulted
in repaying the loan. From beginning it followed a different model and setup a “follow-up”
department to deal with delinquent borrowers instead of a “recoveries” section, believing
that individuals were basically honest and would pay back in time. Its debt collection
policy emphasizes on forecasting borrower confidence by understanding their crisis;
discussing their repayment capacity- considering their income, number f dependents , he
nature of their expenses etc ; and after ascertaining the facts and the reasons for default
work out of solution , even reschedule the loan if required . though the policy deals with a
negative situation , it has a strong value – based premise that ensures that the
implementation will not be unduly coercive . Infact ,the policy is built on courtesy , fair
treatment and persuation .
The Home Loan Protection Plan ( a product of HDFC standard Life ) that HDFC offers to
it home loan borrowers provides the customer the comfort of knowing that in case of the
unfortunate death of the borrowers , a sum of money depending on the insurance cover will
be made available towards repaying the housing loan . for HDFC , its strength emanates
from its intrinsic value of customer orientation and care . they are the basis for all growth
and development .ask at hand is to bridge the gaps and to provide the common man access
to resources to fulfill his basic dream . In its 28 years of orientations it has assisted 27 lakh
families own a home through loan approvals of over Rs.1,00,000 crores . As it moves
along taking small steps in this direction what makes the effort truly worthwhile is when it
ultimately benefits individuals and the effort truly worthwhile is when it ultimately
benefits individuals and the society at large .

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39

3 . AXIS BANK
AXIS bank was the first of the new private banks to have a begun operation in 1994 after
the government of India allowed a new private banks to be established. The bank was
promoted jointly by administrator of the specified undertaking of the Unit Trust Of India
(UTI) Life Insurance Corporation Of India (LIC) and other four PSU companies i.e.
National Insurance Company Ltd., The New India Assurance Company. The Oriental
Insurance Corporation and United Insurance Company Ltd.
The bank today is capitalized to the extent of Rs. 355.74 Crore with the public holding
(other than promoters) at 57.26%
The banks registered office is at Ahmedabad and its central office is located in Mumbai
presently the bank has a very wide network of more than 572 branch offices and Extension
counters. The bank had network of over 2468 ATMs providing 24 hrs day banking
convenience to its customers. This is one of the largest ATM networking the country the
bank has strength in both retail and

corporate banking and is committed to adopting the best industry practices internationally
in order to achieve excellence.

MISSION AND VALUES
Our Mission
? Customer services and products innovation tuned to drive needs of individual and
corporate clientele.
? Continuous technology upgradation while maintaining human values.
? Progressive globalization and achieving international standards.
? Efficiency and Effectiveness built on ethical practices.

Core Values
? Customer satisfaction through
1. Providing quality service effectively and efficiently.
2. “Smile, it enhances your face value” is a service quality stressed on.
3. Periodic Customer Service Audits.
? Maximisation of Stakeholders value.
? Success through teamwork , Integrity and people.
Customer Relationship Management In Banks
40

CHAPTER 9 :
CONCLUSION
CRM is basically the collection and distribution of “all” data to “all” areas of business .
The data can then help market the company , help up sell to existing customer , understand
customers better so that customers can be given better service and allows them to interact
with the company by whatever means they wish . Customer Relationships are achieved by
the whole company working together to give customers what they really want . CRM is
business strategy to create and sustain long term , profitable customer relationships.
Successful CRM initiatives start with a business philosophy that aligns company activities
around customer needs . Only then can CRM technology be used as – as a critical enabling
tool of the processes required to turn strategy into business results.
CRM is now n integral part of the business vision / strategic roadmap of companies in
virtually every industry domain and feeder- linked sectors . It is the various stages that lead
to better understanding of all aspects of customer behavior ; interface points , transactional
issues and “ intangible” benefits proffered that helps a company differentiate itself from
others in terms of leadership and market dominance in a particular space. The “ We Care “
principle has to be embedded in the very vitals of the organization for long term benefits to
accrue and for “ delighted customers to keep coming back .
Clearly , it is a matter of being in synch with customers „ changing needs that shapes
business success stories . Companies that continuously align and realign their brands ,
products and services have a better chance of understanding their present as well as future
consumers . Total customer orientation centered on customer understanding is bound to
provide long term customer value and by inference superior company and shareholders
value in terms of sustainable growth and profits .
CRM applications will increasingly mimic the way away social environment works in the
years ahead .
Finally , concluding about CRM in the following points :
? A strategy defined around producing value to fulfill business needs .
? A collaborative value chain of all institutions and processes needed to fulfill business
needs .
? A set of measurements that reflects how successful ( or unsuccessful ) the
collaborative value chain has been in fulfilling customer?s needs and the ability t adjust the
processes to improve the rate of success.
? A system that provides insight in to customers so that improvements can be made .
? Access to all the services customer need for news , information , purchases , business ,
delivery , and on to infinity , from wherever customer are in whatever circumstances .
Customer Relationship Management In Banks
41

BIBLOGRAPHY/WEBILOGRAPHY

BOOK REFFERED

? Customer Relationship Management- Himalayan publication

WEBSITES

? www.google.com

? www.Scribd.com

? www.winkipidea.com

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