CRM Best Practices: A Case Study of Bank of Baroda

Bank of Baroda : Facts

Founded

by Maharaja Sayajirao Gaekwad III Established in Vadodara in the year 1908 and is headquartered in Mumbai Nationalized in the year 1969 Network of around 2,897 branches. Employs over 38,000 personnel across 25 countries

Summary
Presentation studies the deployment of CRM Best Practices and how effectively they have been deployed in the Bank of Baroda
Methodology Observations:

Evaluation Lessons: What was learned

Methodology
Case Study Research Design

Methodology
Researcher

developed 140 statements, each representing a CRM practice A panel of five experts classified these as relevant CRM practice and CRM best practice Practices with complete consensus amongst the judges selected 29 strategies studied as standard CRM practice

CRM
What is organization approach?

Organizational Approach

Mission and Vision statement strives to achieve customer delight through integration of products, technology and quality service of global standards. Business Process Reengineering (BPR) exercise aimed at transformation into a sales-and service organization CMD and top management send communiqus via meetings, letters, internal circulars, in-house magazine and e-mails

Investing Time
An Evaluation of Banks initiatives

Develop high return customer

Provide

wealth management services to cater to high net worth individual (HNI) customers Manned by dedicated Financial Advisors, who act as single contact point for HNI customers Customers given various special privileges

Customer segmentation
Bank Of Baroda approach

Extend umbrella to all

No

formal method of customer segmentation being implemented in the bank Only designated branches offer HNI services Branches that provide wealth management services target savings account customers who maintain Rs. 0.1 million as average quarterly balance

Distribution channels
Bank Of Baroda approach

Customer reach
Retail

Loan Factories for centralized loan processing and related customer service in 11cities Strong branch network New initiatives like phone banking and mobile banking services

Customer data
Bank Of Baroda approach

Innovation in line with customer aspirations

New products designed in line with data e.g. education loans in response to the increasing demand Identified needs that are currently not satisfied by other banks Innovative products, namely, loans for pensioners, women, financing foreign tours, marriages, CNG kits Providing 12- hour banking across all Core Banking Solution branches

Customer Feedback
Bank Of Baroda approach

Feedback
Each

complaint replied within 15 days Employees told to resolve complaints within 48 hours of registration Customer gives written letter of satisfaction with the resolution Customer Cell in each city supervised by a executive of the rank of assistant general manager

Customer Recovery Strategies

Bank Of Baroda approach

Conflict resolution
Bank

is a member of Banking Codes and Standards Board of India (BCSBI) Compensation policy in place to compensate customers for financial losses incurred due to service failures

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Bonding with the Customer

Bank Of Baroda approach

Customer Association

Bank maintains an updated records of their Customers who have had a long association with the Bank and they are sent greetings on Festive Occasions like Diwali , they are also gifted with Merchandise such as Bags, Diaries and Desk Calendars. However unlike most of their competitors they do not have a system of tracking Birthdays and sending cards to key customers , which can be an area of improvement.

Increasing the Customer Share

Bank Of Baroda approach

Cross Selling Products / Services

The Managers & Officers are required to actively cross sell products like Loans, Mutual Funds and Credit Cards to existing Branch Customers, besides bringing new Customers. The Marketing Executive at each retail loan factory target the branch customers of a local area with an AQB of Rs.0.1 million or more in their Savings Account.

Customer Centric Information Systems

Bank Of Baroda approach

Relevant MIS at the Bank

The Banks IS is designed to provide the balance status of its products tagged to a Single Customer Id , it also provides details like Name, Age, Gender, Marital Status, Residential and Office Address etc. By using same the End-User can log in to a Web Interface and do most of the day to day banking operations.

Use of Information Systems

The Bank has implemented the Financial CBS across the Organization to put all of their business channels on a common network. This reduces rework and save more time than ever before. This enables the Financial Analyst to single unified view of the Customer, covering all deposits and loan products across all CBS Branches.

Use of Information Systems(contd.)

The Bank is still to implement a relatively new Technology Data Mining for Lead Tracking that helps banks to reach out to existing / engage new customers based on the analysis done by the Tool itself.

Monitoring Performance
Bank Of Baroda approach

Assessment
The Performance standards are assessed on the basis of Asset and Service Quality.

The important parameters to Judge Service Quality : No. of Complaints Received Time Taken to Resolve it. Steps to Prevent the Re-occurrence. Monitor the TAT for processing big ticket loans.

Assessment
The Performance standards are assessed on the basis of Asset and Service Quality. The important parameters to judge Service Quality :

No. of Complaints Received Time Taken to Resolve it. Steps to Prevent the Re-occurrence. Monitor the TAT for processing big ticket loans.

Assessment (contd.)
The Performance standards are assessed on the basis of Asset and Service Quality.

The important parameters to Judge Asset Quality : Senior Managers pay a surprise visit to banches one on 6 months to check the Services and Facilities at the Branch for the Customers. Regular checks if the current Infrastructure like ATMs, Kiosks, for Loan Information , Serial Token vending machine and the May I help You Desks are working as per the specified Norms.