2013

CRM Practices at ICICI Bank

Submitted to- Professor Nalin Jain

Contact Details Name- Loveleen Singh Designation- Relationship Manager Telephone No-9873916375

Group-9
Akanksha Mittal- 12PGDM004 Kartikey Maheshwari-12PGDM023 Megha Jain-12PGDM027

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Introduction
About the Organization
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank. The Bank has a network of 3,382 branches and 10,943 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

Products
ICICI Bank offers a host of products and services to its clients. These include Fixed Deposits, Personal Loans, Cards, Insurance, De-materialized Accounts, NRI Services and Online Services etc. Based on the kind of services offered, there are 2 kinds of accounts: Individual Account: These are accounts opened by an individual for his personal use, including Salary Account, Savings Bank Account, Current Account etc. they are offered Life Insurance in a cross-selling bid. Individual accounts are divided into the following categories: a) Normal: These accounts do not receive any special treatment. People having monthly salary less than Rs. 50,000 are included under this category.

b) Privileged Banker: These clients are assigned a Banker who approaches them when they deal with the bank. People with monthly salary lying between Rs. 50,000 and Rs.2 Lakh fall under this category.

c) Wealth Customers: These are customers with monthly salary of more than Rs. 2 Lakh. They are assigned Wealth Managers to manage their investments and portfolio. They advise customers for investments in stocks and other assets so that their wealth is maximized.

The information required for opening this kind of an account is: a) Name b) Address c) Mobile Number d) E-mail ID When the account opening form is filled, the customer is asked to indicate his preference for receiving SMS or e-mail alerts regarding his transactions. This is a free service. The customer can get daily, weekly or monthly bank statements on his e-mail ID or mobile phone, depending on his preferences Company Account: These are accounts opened by the Firms for keeping track of their subsidiaries revenues and giving salaries to their employees etc. The products offered to these clients include cash transaction services. The information required for opening this kind of an account is: a) Address b) Identity: COI (Conflict of Interest) No. In case a normal account becomes dormant, e-mails are sent to the clients giving them new offers and products. It is by way of a reminder that these mails are sent to the dormant clients. In case the normal account was previously held by a privileged banker but has now become dormant, this information is sent to him so that he can try to revive the account. Similarly, in case of any of the other kinds of savings account becoming dormant, the respective Privileged Banker or Wealth Manager is contacted so as to revive the accounts.

Channels
ICICI bank connects with its customers through the following channels: Bank Branch ATM Phone Banking Internet Banking Insta Banking Mobile Banking Call Centre/Customer Support IVR (Instant Voice Response) Banking

The longer a relationship continues; the better a bank can understand the customer and his/her needs & preferences, and so greater the opportunity to tailor products and services and cross-sell the product/service range. Customers in long-term relationships are more comfortable with the service, the organization, methods and procedures and are more likely to become a referral source. This helps reduce operating cost and costs arising out of customer error. To achieve all this, implementing CRM aligned with the company strategy is highly critical. CRM, according to ICICI consists of the following approaches: 1. Getting personalized information on customers. 2. What is the value of the relationship? 3. Customized offerings to the customers. 4. Converting a prospective customer into a true customer.

OBJECTIVES OF CRM AT ICICI:

Customer Relationship Management (CRM) entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to: Understand and differentiate the customer ICICI need to understand their customers in order to have a relationship with them. Also, in order to serve them better, the ICICI must understand their differences. Some of the steps to do the same are: a) Profiling to understand demographics, purchase patterns and channel preference. b) Primary research to capture needs and attitude. c) Customer valuation to understand profitability, as well as lifetime value or long-term potential. Interact and Deliver To foster relationships, ICICI needs to insure that: a) All areas of the organization have easy access to relevant, actionable customer information.

b) All areas are trained how to use customer information to tailor interactions based on both customer needs and potential customer value. Develop and Customize Once the ICICI understands the needs and aspirations of the customers, product and channel development has to follow the customers lead. Organizations are increasingly developing products and services, and even new channels based on customer needs and service expectations.

Retain customers through better customer experience and subsequently attract new customers The more an organization learns about its customers, the easier it is to give them better deals that not only satisfy but delight them. ICICI aimed to do the same. This would result in better referrals and loyalty leading to higher acquisition of new customers.

Increase profitably It is not as if CRM is a socialist tool used by the companies to understand their customers better, with no profit motive for themselves. On the contrary, CRM is very helpful in decreasing the acquisition and management costs of clients and also increasing the maximum value that can be realized from the existing customers; thereby increasing the overall profitability of the firm. Hence, ICICI intended to increase its profitability by employing CRM techniques.

Given the large number of benefits of CRM, this project is undertaken with a view to understand the Customer Relationship Management procedures and practices at ICICI Bank and how this helps in maintaining long term customer loyalty for the bank. In addition to this, how CRM would help ICICI maintain profitable relationships with their customers along with acquisition of new customers helping to increase its market share.

Strategic CRM
Data Collection Process
Bank collects all the information about the customers through its four service offerings via Loan Account, Saving Account, Current account and Fixed Deposits and this information is captured through the software Finacle provided by Infosys. Moreover, the bank has many customers in each category. So, they collect thedata on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form.

Fill the information in the customer application form

Data entry by the front end desk into the software (Finnacle)

Data gets stored in the centralized database at the back end

There are 2 back-end teams for analysing this data: Mumbai (Central Team) Hyderabad

When the account opening form is filled, the customer is asked to indicate his preference for receiving SMS or e-mail alerts regarding his transactions. This is a free service. The customer can get daily, weekly or monthly bank statements on his e-mail ID or mobile phone, depending on his preferences. In addition to designing new offers according to customers needs, ICICI also gathers data for prospective clients for existing products. The back-end team generates reports for the managers to take appropriate action. The reports generated are as follows: Leads generation: This report gives data regarding prospective client for a product. The managers then need to pitch in the client for that service.

Dormancy Data: This report gives the data for accounts that have been inactive for more than a month. The managers need to find out the reasons for the dormancy and try to get the account active again.

Practices in organisation
Cross Selling:Refers to offering another product from the service offeringof the bank to the customer which he has not gone for. Example If customer has a saving account with the bank then ICICI offers him loan, insurance and other investments

Customized Product: At ICICI, depending on the LTV of the customer, the products are customized.

Additional Benefits: Customers are provided with maximum value for the product they locate for themselves along with additional benefits to have customer delight. Examples: On buying a Coral ICICI Credit card, a Satya Paul voucher worth Rs3000 is awarded to the customers.

Strategic initiatives
The Finacle software tracks all transactions taking place in various accounts. This data is used to get information about the kind of services that can be targeted at the customers. For instance, take the case of a company account. There would be large amounts of cash transactions happening on a daily basis in this account. However, its not possible to know who deposited the cash in the companys account. But, sometimes it may be critical for a company to know which of its various subsidiaries that amount of cash on a daily basis. It is for such clients that ICICI started its cash management service. Under this service, all subsidiaries were given unique codes so that when they deposited cash in the main branchs account, the main branch came to know which of its subsidiaries had done so. This helped them to get a clear picture of each branchs day-to-day business, thereby helping them to understand the relative

performance of subsidiaries. So, the companies could design incentives for the low performing subsidiaries to perform better.

How is CRM practised

Three areas are taken care while practising CRM at ICICI Bank: Business Focus: a) Components of CRM i. ii. iii. iv. Customer Information Sales Marketing Trends Marketing Efficacy

b) Implemented solution from Seibel (Company engaged in the design, development, marketing, and support of customer relationship

management applications) for automation of customer handling c) Track all customer requests and complaints d) Identify new opportunities for existing customers as well as new customers

Organizational Structure: a) Dynamic, constantly evolving and responsive to change b) Flexible and consistency in standards across business groups c) Five principle groups: i. ii. iii. iv. v. Retail Banking Wholesale Banking Project Finance and Special Assets Management International Business Corporate Centre

All the five groups are compatible with CRM

Technology Focus: a) ICT (Information and Communication Technology) Strategic Tools for competitive advantage b) Multichannel Banking c) Technology Strategy 24*7 availability d) Technology Management Group Group wide technology e) Sybase IQ based database f) Implemented Informatica Power Center (2003) g) Extraction, transformation and loading

Overall CRM Implementation

Collection of personalized information on every customer

Evaluates the value of the relationship with each and every customers

Understands the needs and wants of each customer

ICICI offers the customer a customized product

Decides on how to approach each customer on the basis of his needs and wants

Processes for Delivering CRM: Customer Application Forms:

Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants.

Centralized Software where the Whole Data is Collected:

The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross selling.

Wide Range of Offerings:

After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then it offers a more customized service.

Cross Selling:

It refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example: If customer has savings account with the bank thenthey offer him an insurance, fixed deposits etc. This depends on the value of the customer tothe bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives, the more are his chances of being special services offered.

Feedback Forms:

The bank distributes feedback forms at all its branches. The customers feedbacks on the service, technology used, employee behaviour and promptness in solving customers problems, are taken and they are analyzed. CRM helps to know the needs and wants of the customer.So, on the basis of this company can decide which product to offer to which customer. It has been observed that cross selling is the best weapon. It enhances the relationship value with thecustomer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the bank. This helps in retaining the market share. Now,the satisfied customers helpin getting positivereferrals for the bank, which eventually increases its market share.

Operational CRM
Operational CRM allows ICICI to engage in one-to-one marketing by tracking complete customer life-cycle history. It automates process-flow tracking in the product sales process, and be able to generate customized reports and promote cross selling.It will also enable efficient campaign management by providing a software interface for definition, tracking, execution and analysis of campaigns.

Service Force Automation: ICICI gets connected to its customers through a number of platforms Website Personal calls Email Snail Mail Physical Internet banking Mobile banking

All the required information is stored on Finacle software. It includes the details of the calls made and e-mails sent. It also provides reminders for contacting clients. Marketing Automation: Marketing automation is basically focused on automating marketing processes. In marketing, campaign management involves marketers to use customer specific information to determine, evaluate and develop

communications that are targeted to customers in individual as well as multilevel or multichannel environment. Campaigns developed to

communicate customers individually are easy and involves unique and direct communications. For multichannel environment as in the case of ICICI Bank the implementation of marketing strategies and campaign management is quite difficult and challenging. Here integration and implementation of communication strategy is difficult and evaluation of performance and quality of campaigns needs to be automated and should be technologically sound across each of the channels. For handling this, a CRM marketing strategy called event-based marketing is inherited by ICICI. Using event based marketing communication and offers are presented to customers as and when they are required. For example, credit card customer calls the call centre for inquiring the current interest rates, this indicates that customer is specific about the interest rates and is trying to compare the interest rates and may switch to different competitor to find specific deals which suits him. Without wasting time the automated CRM system pops up an event of offer which is best suited for that customer and helps to retain him back.

Sales-force Automation-

A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system. This process can be distributed into many stages which includes generation of lead and then qualifying those leads as prospects. The Sales and Field representatives then try getting business out of these customers by sophistically following up with them and converting them into a winning deal. Automation of selling process is efficiently handled by Sales-force automation which automates all the methodologies or sales cycle and above described process

sophisticatedly. ICICI is using following sales force automation methods: Account management Lead Management Contact management Quotation and proposal generation

Collaborative CRM
Interact to customers Various departments at ICICI like marketing, sales etc interact to customers via mail, personal calls and share this information. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly.

Customer feedback gathered from a technical support session could inform marketing staff about products and services that might be of interest to the customer.

It aims to improve the quality of customer service and as a result increase the customer satisfaction and loyalty.

Analytical CRM:
Warehousing ICICI Bank is the pioneer in implementing a data warehousing (DW) solution for banking in India. The enterprise-wide data warehouse at ICICI bank is powered by Sybase IQ, a highly optimized business intelligence, analytics and data warehousing solution for delivering dramatically faster results at a low cost. Business Advantage ICICI bank has achieved tremendous improvement in system uptime and significant improvement in query performance over its previous Teradata implementation, in addition to the host of other benefits of the Sybase IQ data warehouse migration. These are back end softwares. The software used by front end desk is Finacle. Key Benefits
a) b) c) d) e) f) g) h) i)

Compresses data by over 60% Leverages scalability owing to its open system architecture Achieves trickle-feed loading Allows for simultaneous loading and querying Supports more than 150 users concurrently Reduces downtime by providing 24x7 availability Significantly improves query performance and response time Lowers cost of maintenance and TCO Supports heterogeneous environment as it is hardware and platform independent

Technology
a) b)

Sybase IQ PowerDesigner

Immediate data analysed through

a) b)

Recency, RFM LTV

Data Mining a) Is it just stored or used b) Any statistical tools of Data Mining used (propensity, customer tools)

The Benefits of CRM:

Customers usage pattern: ICICIs CRM data warehouse integrates data from multiple sources and enables users to find out about the customers various transactions pertaining to savings accounts, credit cards, fixed deposits, etc. The warehouse also gives indications regarding the customers channel usage.

New product development: Analysis at ICICI guides product development and marketing campaigns through Behaviour Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customers needs and desires, enabling the bank to satisfy customers through better personalization and customization of services.

Central data management: The initial implementation of CRM allowed ICICI to analyse its customer database, which includes information from eight separate operations systems including retail banking, bonds, fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM.

Some Noteworthy CRM Initiatives of ICICI Bank: Mobile ATMs: Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings.

Bulk Deposits: The ICICI Banks Bulk Deposit ATMs enable customers to deposit large amounts at one time. Unlike conventional ATMs, which are able to accept only 30 notes at a time, these ATMs allow the deposit of huge amounts. The Bulk Deposit ATM is available in Mumbais Vashi sector branch office of ICICI. The bulk deposit facility can be availed of by select customers who need to deposit huge amounts of cash. ICICI Bank issues a special card called the `Deposit Only Card to facilitate this service. This card allows for deposit transactions only. The service is further facilitated by the provision of special bags at ATMs in which a customer can put his money. After the deposit slip is filled, the bag can be inserted in the ATM. The transaction slip is then generated by the ATM as an acknowledgement of the deposit. ICICI Bank also has cash pick-up service for business customers under the business banking segment. ATMs for the visually challenged: ICICI Bank has launched ATMs with special voice-guided systems, which guide a visually challenged person to access ATMs without any help. The jack on the terminal enables headphones to be connected to it and voice commands enable the customer to transact business. Customers may choose a suitable language to get voice commands. After the language selection is done, the customer is guided to ensure that the ATM card is inserted in the right slot and thereafter, guidance is provided for entering the PIN by using the keypad. A raised button is provided on number 5 to enable users to identify the numbers easily through touch. The slot for cash collection has such raised `pips that enable easy identification through touch. Other Services through ATMs: Apart from the usual transactions involving the bank, some other services can also be availed of by ICICI Bank customers. These include:

Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Internet service provider and Sify).

Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine.

Mutual fund transactions, and Bill payments

Mobile phone as a Virtual Wallet: The mobile phone has been transformed into a virtual wallet a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq a revolutionary new service which is a credit card using the mobile phone. This is the first mobile-tomobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase and also the problems associated with the point of sale (POS) terminal since the mobile phone services as a secure POS and a payment mechanism. Social Events: ICICI Bank organized the largest domestic invitational amateur golf event for HN1 (high-net-worth individuals) customers. This nation-wide golf tournament had over one lakh high-net-worth clients of ICICI Banks private banking division participating in the event. Mobile Banking Benefits: Mobile banking enables the customer to avail of many facilities by just sending an SMS. These facilities, which are currently offered free of cost, are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account

CONCLUSION:
Thus, we see that a focused and customer centric approach helped ICICI Bank become # 2 bank in India (till recently, as PNB has taken over it as the No 2 bank in India now). ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new generation private banks. It has invested a lot in ICT and spared no pains in giving best to the customers. Its multi-pronged approach towards managing customer

relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India.

This study strongly supports the fact that CRM is need of an hour and no business may be it is banking business; retailing or something else can ever survive without proper introduction of CRM. This study strongly supports the connection that consumer were more satisfied with professional service provider who engaged in both courteous expressions and personal connections forms of sociality. Moreover, finding revealed that regardless of services context customers expect service provider to be courteous usually ,most conversation begin or end with a courtesy expression and includes some form of personal connection content. The important point is that sociality communication can play a pivotal role in moving the provider and consumer for mere encounters to higher degree of relational development.