Customer Relationship Management (CRM)

Customers are the most prominent stakeholders in a service based industry. In a competitive
industry like banking case of financial services, customer relationship management is crucial because
it affects your business very much. Customers savings are the most important source of funds for
banks. The objectives of any CRM application would be
Providing services and products that are exactly what customers want.
Offering better customer service.
Cross selling products more effectively.
Helping sales staff close deals faster.
Retaining existing customers and discovering new ones.
In short it can be described as acquiring new customers, retaining existing customers and maximising
their lifetime value.
In terms of business processes there will be five process that will be part of implementing CRM
framework:



Recognition: Recognizing the information vital for business and able to process it.
Engagement: creating memorable touch points for the customers.
Organization: Developing new business opportunities.
Service: focusing on improving service and identifying bottlenecks.
Innovation: Developing new products and services based on the information available.
Recognition
Engagement
Organization Service
Innovation
CRM
Implementation

The process of collecting data processing it and presenting it in a logical order is a complex task. As
the size of the customer base grows the process complexity increases. Its implementation requires
Data warehousing for managing the data and Data Mining for extracting the relevant information.
Figure 2 explains the process of data flow in a CRM system.















The data is collected from different sources like credit cards, account operation, loan etc. Then it is
stored at data warehouse. The CRM analytical tools do queries on this Data Warehouse or on the
Analytical Data Mart to get the required data. Data warehouse can be summarized as enterprise
database and Data Marts are clusters of this data on functional basis. Usually data mining is carried
out on Analytical Data Marts. This is used to generate reports and analytics.

Scope of the Solution

CRM solution for any bank will focus on activities involving banks and customers. Broadly classifying
there are four sets of activities which will be covered in the scope of the application
Manage Customer Portfolio:
Entire customer database will be mapped under this application. Customer details and their
activities can be generated. This can be used to guide the business of the bank. It will comprise of
sub classifications like:


Data
Warehouse
Analytical
data mart
Reports Data Mining
Campaign
Manager
Contact
Manager
Call
Centre
Branch
Mail
Data from
various sources
Retail Customers
o Privilege Customers
o Potential high worth Customers
o Loyal Customers
o Need based Customers
o Dormant Customers

Corporate Customers
o Big corporates
o SME Corporates
o Potential Customers
Classification can be drawn based on other factors like Demography, Income, age transection
frequency etc.

Manage Product Portfolio:
Data can be analysed from banks product portfolio as well. This will identify what are the activities
which are driving the business. Non performing activities can be put under scanner. Some of the
classifications can be
Cards
o Credit Cards
o Debit Cards
o Privilege Cards
Accounts
o Savings
o Current
o Special Corporate Accounts
Deposit schemes
o Fixed Deposits
o Pension Scheme
o Recurring deposits
o Mutual funds
This can vary depending on the banks activities. That is why scalability is very important for the
solution.

Manage Requests:
This will track the online forms and requests that are part of the normal banking process. This can be
directly integrated into the system. Some of the activities are bill payments, funds transfers,
customer requests etc. Some of the processes covered in this are:
Registration and Requests
o Application for new services.
o Request for new products like cheque book, cards.
o Statement request

Transections
o Bill Payments
o Card activation or deactivation
o Fund Transfers

Complaint Management:
This will address the complaints filed by customers regarding the services. It will see how the
complaints are managed and addressed. The process can be categorised in steps as follows:
Registration
Distribution
Monitoring
Case Closure
A detailed diagram of complaint monitoring process can be studied by this flow diagram