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1.

1 ) WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT


CRM can be defined as it is a comprehensive strategy and process of acquiring,
retaining and patterning with selective customers to create superior value for the
company and the customer.
The broad framework of CRM process comprises of four sub-processes:
Though the concept of buyerseller relationship is not new, and has been practiced
in on form or the other since tome immemorial, it is only in recent times that Customer
Relationship Management !CRM" has turned into a bu##word. Customer loyalty has
always been valuable, but today it has become more vital for success.
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1. Customer
relationsi!
"ormation
!ro#ess
$. Relational
!er"orman#e
e%aluation
!ro#ess
4. CRM
evolution or
enhancement
process
&. Relationsi!
mana'ement
an( 'o%ernan#e
!ro#ess
CRM can help large traditional businesses deliver that personal touch, one to one
relationship and customi#ed service that it used to pride itself on when the business was
small. %t helps large organi#ations seemingly weighted down by huge customer bases,
infrastructure, processes and inventory appear as fleet footed and customer oriented as
the friendly store or a dotcom startup.
CRM is a well defined business strategy comprising a series of functions, s&ills,
processes and technologies that together allow firms to profitably manage !acquire and
retain" customers as tangible assets to offer personali#ed and well differentiated
e'periences and to build long term relationships with customers.
1.& ) INTRO)UCTION TO CUSTOMER SER*ICE
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)ll businesses must have some dissatisfied customers, if only occasionally. *et a
typical business only hears around +, of those customers that are dissatisfied. -hat
about the other .+, or so/ They 0ust quietly go elsewhere, and may well never come
bac&. )nd a ma0or source of dissatisfaction is either communications alone, or how ma0or
source of dissatisfaction is either communications have failed to correct other problems
or even ma&e them worse.
%t will be no surprise to anyone who deals with customers that they tend to be
demanding in their relationship with suppliers !unreasonably so, too, you may say1
sometimes true but more of this later". 2ome of these demands are inherent, while others
more contrived.
1) CUSTOMER )EMAN)S
%t will be no surprise to anyone who deals with customers that they tend to be
demanding in their relationship with suppliers !unreasonably so, too you may say1
sometimes true but more of this later". 2ome of these demands are inherent, while others
more contrived3
2ome demands are inherent to the very nature of the customersupplier
relationship. 2uch demands include customer4s requirements for courtesy, efficiency,
promptness and a caring, individual service. 2uch a list cannot be regarded as in any way
unreasonable.
&) CUSTOMER E+PECTATIONS
Customers could conceivably want all sort of things1 you to greet their enquiry
with enthusiasm and the insistence that the company RollsRoyce collects them within an
hour to whis& them off to a top restaurant to discuss their needs over lunch. 5ut here the
best description of what a supplier is prepared to entertain is a list of 6reasonable wants4.
)nd although there are a number of factors involved, they all stem from one umbrella
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description that is usually voiced by customers as 6wanting to find people who are good
to do business with4. %n a word, customers might say that they want their suppliers, and
the people who represent them, to be professional.
$) HOW TO MEET CUSTOMER E+PECTATIONS
Customer service !also &nown as Client 2ervice" is the provision of service to
customers before, during and after a purchase.
%ts importance varies by product, industry and customer. )s an e'ample, an e'pert
customer might require less prepurchase service !i.e., advice" than a novice. %n many
cases, customer service is more important if the purchase relates to a service as
opposed to a product8.
Customer service may be provided by a person !e.g., sales and service
representative", or by automated means called selfservice. 9'amples of self service are
%nternet sites.
Customer service is normally an integral part of a company4s customer value
proposition.
The implementation of a particular customer service proposition must consider several
elements of the organi#ation, including
cultures
hiring
training
incentives
processes
support technology
Competitive advantage
:
) company may attempt to differentiate itself from its competition through the
provision of better customer service. The consistent delivery of superior service requires
the careful design and e'ecution of a whole system of activities that includes people,
technology, and processes. )lthough, the rewards will include improved revenue from
customers that are impressed with the service provided.
Role of technology
Technology has made available a wide range of customer service tools. They
range from support websites and the ability to have live chats with technical staff to
databases trac&ing individual customers; preferences, pattern of buying, payment methods
etc., and tailoring products and service responses based on this advanced data. 2pecialist
software that is designed for the trac&ing of service levels and for helping recogni#e areas
for improvement are often integrated into other enterprise operational software tools such
as 9R< software.
Accountability
Customers tend to be more forgiving of organi#ations who ac&nowledge and
apologi#e for their mista&es rather than denying them. Ta&ing responsibility for mista&es
and correcting them is considered an important aspect of good customer service. -hen a
Customer e'periences poor service and is ignored the customer is less li&ely to return to
that company again.
1.$ ) HOW TO COMMUNICATE WITH CUSTOMERS
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=uhi 2rivastava, a relationship manager with >T% 5an&, spent a day at a Mumbai hospital
last month loo&ing after a customer who underwent a cataract surgery. This was
2rivastava4s call of duty as the idea was to meet the beyond ban&ing needs of senior
citi#ens who are customers of its priority ban&ing offerings. ) vast change in scenario
from the times when public sector ban&s !<25s" ruled the roost.
?or instance, <un0ab @ational 5an& !<@5" e'ecutives now chase the customers they once
shunned and offer them services. <@5 now has a separate group of employees who move
out from the cosy confines of their offices to get the business of collecting income ta'
challans.
%n fact, <@5 is &een to earn the fee of Rs :A from collection of ta' challans B which it
earlier spurned, discouraging customers who came in themselves to do the needful.
Marching to a different beat, R%2 2idhu, general manager !western region" at <@5, says
the obvious3 Customers are &ings.
The changed customer profile, with e'posure to multiple choices, has ended up changing
public sector ban&s. 9ach branch has now started mar&eting, urging customers to buy a
home or a new car.
>T% offers special services to senior citi#ens who are customers of its priority
ban&ing offerings.
%C%C% has wor&ed on a new model and today processes : la&h cheques in 0ust few
hours every day
6Mystery shopping4 is used by C25C to trac& its service delivery across all ma0or
customer touchpoints
<@5 has installed closedcircuit cameras at its &ey branches, from where service
to customers is trac&ed at all count
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<@5 is not alone in this race of customer acquisition and retention. Most of the <25s are
setting up e'clusive mar&eting units, hiring e'ecutives directly from the mar&et and
offering them mar&etrelated pay pac&ets.
The arrival of private sector ban&s brought in a seachange in the mindset of public
sector ban&ers. %n the last threefour years, there4s a scientific basis for customer services
initiatives ta&en by ban&s. Customer today is aware and sensitised, and &eenly watches
whether we are really wal&ing the tal&, points out Man0u 2rivatsa, senior vicepresident,
>T% 5an&.
-e need to learn from various industries B adopt practices of the service industry on how
to deal with customers and adapt processes from the manufacturing industry to improve
efficiencies, says Chanda Eochhar, e'ecutive director, %C%C% 5an&.
2ervice e'cellence is a 0ourney and not a destination. -e try and do our best, and if
some things go wrong then we loo& at a complaint as an opportunity, says @icholas F
-insor, headpersonal financial services, C25C.
6Mystery shopping,4 by C25C, trac&s its service delivery across all ma0or customer
touchpoints. This provides management of each branch and call centres with a set of
actionable feedbac& on how they stac& up against the internal goals. @egative feedbac&
at C25C is relatively low, but we cannot be complacent. -e have to &eep striving for
bettering customer e'perience all the time, says -insor.
%n fact, the earlier instance of a >T% ban& officer sitting through the cataract surgery of a
customer, is not an isolated e'ample. 2rivatsa claims that there is another instance of the
ban& ta&ing care of senior citi#en staying in the Go&handwala Comple' in a western
suburb of Mumbai. Hue to an accident, the elderly client could not move out of his house,
but needed to withdraw money from his account at regular intervals.
The ban& did not only chip in to deliver cash at his doorstep, but also provided him with
ban& statements. )nd when the customer wasn4t sure if the statements reflected the true
state of his account, the relationship managers at the branch arranged to bring the senior
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citi#en to the branch on a wheelchair and convinced him of the veracity of statements
provided.
The products offered by competing ban&s are similar. The core differentiators are the
brand and the nature of services provided. Most ban&ers said a lot of effort goes into
ensuring service quality. The challenge is whether they are able to offer customer a fair
and transparent system.
Meanwhile, <@5 has installed closedcircuit cameras at its &ey branches. )s it dwelled
on customer service, it started using the CCTJ as an aid for bettering customer
e'perience. The branch heads monitor the situation at counters and, in the event of
overcrowding, get to act immediately to put additional staff at wor& at the counters to
clear the rush. %ts renovated branches now have cash counters that resemble reception
des&s.
)nd, of course, what4s egging on the race is competition. The public sector ban&s are
faced with declining spreads and a dearth of deposits because of various options offering
higher returns. )lso, there4s fight for lending and also for deposits. -e are now trying to
cater to customers4 financial needs and advise on investments in insurance and mutual
funds. The reason is simple3 %f we don4t do it, someone else will, says 2idhu.
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8 Retain
valuable
customers.
8 Retain
valuable
customers.
! Ac"uire
customers and
prospective
customers
! Ac"uire
customers and
prospective
customers
# $eliver
increased value
to the
customer.
# $eliver
increased value
to the
customer.
% &nteract with
customers and
prospective
customers.
% &nteract with
customers and
prospective
customers.
' Customi(e
by customer
segment
' Customi(e
by customer
segment
) $evelop
product
services
Channels to
meet
customer*s
needs
) $evelop
product
services
Channels to
meet
customer*s
needs
+ $ifferentiate
based on
customer
needs,
characteristics
and behavior.
+ $ifferentiate
based on
customer
needs,
characteristics
and behavior.
- .nderstand
customer*s
needs
- .nderstand
customer*s
needs
CRM
CRM
&.1 ) CRM IN ,AN-ING SECTOR
-e have seen that relationship mar&eting implies attracting, maintaining and enhancing
customer relationship. %t is a strategy to learn more about customer4s needs and behavior
in order to develop stronger relationship with them.
.
Te "or#es o" (ere'ulation. 'lo/ali0ation an( a(%an#in' te#nolo'1 a%e in#rease( te
#om!etiti%e !ressure in te /an2in' in(ustr1.

The %ndian ban&ing industry too is going through turbulent times. 2ince the financial
reforms started, ban&s have been given a great degree of freedom in determining their
rate structure for deposit and advances as well as their product range. The freedom of
choice which ban& customers did not have earlier because of standardi#ed products and
regimented interest rates has now been given to the customers.
5an&s are functioning increasingly under the competitive pressures emanating from
within the ban&ing system, from non ban&ing institutions as well as from the domestic
and international capital mar&ets. Thus, in this era of increased competition, in order to
prosper, it has now become imperative for the ban& to focus on developing longterm
relationships with their customers.
Te "o#us o" /an2s soul( /e to si"t teir orientation "rom transa#tion mar2etin' to
#ulti%ation o" relationsi! mar2etin'.
Ma3or /ene"its o" !ursuin' Relationsi! Mar2etin' is4 Retainin' #ustomer. as
a#5uirin' ne6 #ustomer is more #ostl1 tan retainin' e7istin' ones. Moreo%er te lon'
time #ustomer ten(s to /e less !ri#e sensiti%e an( usuall1 !ro%i(e "ree 6or(8o"8mout
a(%ertisin' an( re"errals.
&.& ) ,ENE9ITS O9 CRM TO ,AN-S
CRM /anking 0ocuses on the Customer
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CRM manages to places the customer at the focal point of the organi#ation in order to
cater to his needs, satisfy him and thus ma'imi#e the profits of the organi#ation. 5an&ing
CRM understands the needs of the customer and integrates it with people, technology,
resources and business rocesses. %t focuses on the e'isting data available in the
organi#ation and uses it to improve its relationship with customers. 5an&ing CRM uses
information and analytical tools to secure customer focus. Thus it is completely essential
that ban&s implement CRM in order to secure this.
1verall 2rofitability
CRM enables ban&s to give employee;s better training that helps them face customers
easily. %t achieves better infrastructure and ultimately contributes to better overall
performance. The byproducts of CRM ban&ing solutions are customer acquisition,
retention and profitability. 5an&s that don;t implement CRM will undoubtedly find
themselves with lesser profitability coupled with a sharp decline in the number of
customers.
3atisfied Customers
%t is important to ma&e a customer feel as if he L she is the only one this will go a long
way in satisfying and retaining them. 5an&ers need a return on investment and it has been
proved that increase in customer satisfaction more than contributes a fair share to RM%.
The main value of CRM ban&ing lies in satisfaction and increased retention of customers.
Centrali(ed &nformation
CRM ban&ing solutions manage to clearly integrate people, processes and technology.
CRM ban&ing provides ban&s with a holistic view of all ban& transactions and customer
information as well and stores it in a single data warehouse where it can be studied later.
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&.$ ) ,ENE9ITS O9 CRM TO CUSTOMERS
Customer relationships are becoming even more important for ban&s as mar&et
conditions get harder. Competition is increasing, margins are eroding, customers are
becoming more demanding and the lifecycles of products and services are shortening
dramatically. )ll these forces ma&e it necessary for ban&s to intensify the relationship
with their customers and offer them the services they need via the channels they prefer.
2ervice provisioning throughout the entire life cycle of the corporate customer, from
the initial stages to the establishment of a close, longterm relationship with profitable
clients,
Mptimi#ation of the use of ban& resources, such as alternative channels of distribution
!internet and home ban&ing",
2ignificant reduction in and limitation of operational costs through system automation
and standardi#ation,
Gow maintenance and e'pansion costs owing to the use of modern administration
tools which allow ban& employees to ma&e a wide range of modifications to the
system
CRM permits businesses to leverage information from their databases to achieve
customer retention and to crosssell new products and services to e'isting customers.
Companies that implement CRM ma&e better relationships with their customers,
achieve loyal customers and a substantial paybac&, increased revenue and reduced
cost.
CRM when successfully deployed can have a dramatic effect on bottomline
performance. ?or e'ample, Gowe4s Come %mprovement -arehouse, in a span of $K
months, achieved a (D+ percent return on investment !RM%" on its N $$m CRM
investment.
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)ccording to a study conducted in the sector of ban&ing, convenience of location,
price, recommendations from others and advertising are not important selection
criteria for ban&s. ?rom customers4 point of view, important criteria are3 account and
transaction accuracy and carefulness, efficiency in correcting mista&es and
friendliness and helpfulness of personnel. Thus, CRM, highquality attributes of the
product L service and differentiation proved to be the most important factors for
customers.
)nother study conducted in a 9uropean ban& shows that with CRM, the ban& was
able to focus on profitable clients through efficient segmentation according to
individual behavior. %nformation about 6who buys what and how much4 enabled the
ban& to have a commercial approach based on the client and not solely on the
product. Thus, the ban& was able to better satisfy and retain its customers.
$ ) CHALLENGES 9ACE) ,: ,AN-S IN SUCCESS9UL
IMPLEMENTATION O9 CRM
Many organi#ations are considering introducing CRM systems or are in the process of
doing so. The main concern of these organi#ations is their ability to ma&e the necessary
changes at the level of organi#ational strategy that the introduction of the CRM system
requires. Mrgani#ations are also concerned about damaging their e'isting customer care
system. Their fears are based on past failures in their own or in other organi#ations.
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-ith most other types of information systems we are concerned mainly with operations
relevant to the organi#ation4s internal resources. 5y contrast, introducing a CRM system
affects the company4s customers, who are e'ternal to the organi#ation and beyond its
control. The company4s reputation and future are greatly dependent on the success of the
CRM implementation. ?ailure in the introduction of the CRM system, especially in
service and sales phone centers, can result in real disaster for the organi#ation. The
present article focuses on issues that must be addressed in order to ensure that a new
CRM system is introduced in the organi#ation in the best possible way, generating
ma'imum return on investment, without affecting current activity, and with minimal ris&.
The implementation of CRM systems varies from one organi#ation to the ne't1 each one
must be treated as a separate application, having different needs and requiring different
solutions.

-e identify seven types of CRM applications3
!$" CRM systems for call centers1
!(" CRM systems for service representatives in the field1
!7" CRM systems for telemar&eting1
!:" CRM systems for sales managers in the field !sales managers who are in direct
contact with the client"1
!+" CRM systems for mar&eting1
!D" analytic CRM systems for the creation of 5% insights and reports based on a database
of client contacts1 and
!I" ORM systems for servicing partners and clients over the %nternet. The last three are
not discussed in this article.
-hat factors can interfere with the successful implementation of a CRM system at the
functional and technological level/ %n our e'perience, three main factors are responsible
for crucial failures. To the e'tent that %T can solve these problems, part of the difficulties
in introducing CRM systems into the organi#ation would disappear. @ote however, that in
some cases %T is not in a position to solve these problems, and the implementers of the
CRM system must cope with these failures.
The first problem occurs when the CRM system is not connected directly to the
operational systems. %n the worst case it is not possible to access the operational and
legacy data about clients and products through the CRM, and users must access
simultaneously other systems, resulting in double entries. %n another problematic case the
connection is not complete and transparent. %n this case it is possible to access the
operational system not only through the CRM but also directly, circumventing the CRM
and rendering its use optional. The second problem has to do with a client database that
contains low quality data or with data that is missing altogether. The third problem is one
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of poor performance, the result of the fact that the CRM system is connected to a large
number of systems and often interacts with various technologies, many of them legacy
systems. %f the transition to CRM does not include the upgrading of the technology of
legacy systems, performance is degraded.
9ven if the CRM system was developed under optimal conditions, several failures and
challenges are built into every CRM system at the organi#ational level. -e must be aware
of these failures and challenges and create solutions for them as part of the training and
deployment process. The introduction of a CRM system requires a period of time for
entering client data into the system. This detailed information is needed later to conduct
an intelligent dialog with the client. 5ut often those who feed the data into the CRM
system are not the ones who benefit from the data, and have therefore no interest in
entering the data in the first place, and certainly not in the best and most reliable way
possible. )nother phenomenon we encountered in the implementation of CRM systems is
that those who could benefit from the data are not using it often enough, which reduces
the business value that the CRM system was supposed to provide to the organi#ation. The
infrequent use is the result of a lac& of awareness of its e'istence or of a lac& of faith in
its quality.
)t call centers, implementation of a CRM system involves several unique issues related
to the fact that these vital, (:LI systems cannot be down even for a few moments. Call
centers e'perience a high turnover of personnel. Ceavy use of students creates additional
problems !for e'ample, it is impossible to introduce a new CRM system during the e'am
period". CRM systems intended for sales managers are sub0ect to conflict with the sales
manager4s personal interest. 2ales managers prefer not to e'pose their leads, contact
persons, and the status of their transactions, and may try to prevent entering the complete
data into the system. @either are sales managers enthusiastic about the level of oversight
made possible by entering data into the CRM system. 2ales managers are generally
powerful players in the organi#ation, who can oppose the introduction of the system.
They also see& the reali#ation of immediate profits, whereas the benefit of the system is
often felt at a later stage.
-hat is needed to succeed in the introduction of a CRM system/ The success of a CRM
pro0ect depends first and foremost on the people who implement it and on the manner in
which they use the system. ) wor&ing CRM system that is not being used is useless. )
smart CRM system requires a smart user. Therefore the successful deployment of a CRM
system depends on upgrading the entire sales and service organi#ation, including the
personnel and the supporting tools.
3ome basic problems :
The difficulty of obtaining a complete view of customers.
The need to move away from dis0ointed, standalone, and inconsistent channels to
provide a cohesive, multichannel offering.
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The burden of disconnected legacy systems and disparate databases that store client
financial data.
The cost and comple'ity of meeting stringent government regulatory and client
security and privacy requirements.
The pressure on margins and growth prospects from increased competition.
The costs associated with retaining customers and developing customer loyalty.
$D
;.1 ) SER*ICES PRO*I)E) ,: STATE ,AN- O9 IN)IA
2tate 5an& of %ndia !25%" is the largest ban& in %ndia. %f one measures by the number of
branch offices and employees, 25% is the largest ban& in the world. 9stablished in $KAD as
5an& of 5engal, it is the oldest commercial ban& in the %ndian 2ubcontinent. 25%
provides various domestic, international and @R% products and services, through its vast
networ& in %ndia and overseas. -ith an asset base of N$(D billion and its reach, it is a
regional ban&ing behemoth. The government nationali#ed the ban& in $.++, with the
Reserve 5an& of %ndia ta&ing a DA, ownership sta&e. %n recent years the ban& has
focused on two priorities, $", reducing its huge staff through Folden handsha&e schemes
&nown as the Joluntary Retirement 2cheme, which saw many of its best and brightest
defect to the private sector, and (", computeri#ing its operations.
These are some services provided by 25%
3A4&563 /A57 ACC1.5T :
i. 2avings 5an& )ccounts !25 )Lcs" are designed to help customers inculcate the habit of
savings. %t helps the customers &eep their surplus funds with the ban& and earn interest
while providing the fle'ibility for withdrawals.
ii. 25 )Lcs can be opened by an eligible individual in single name or 0ointly with others
and by certain organisationsLagencies approved by R5%.
iii. The prospective customer will need to comply with the Enow *our Customer
!E*C" guidelines which are mandatory. The ob0ective of E*C guidelines is to prevent
misuse of the ban&ing system intentionally or unintentionally for criminal purposesL
$I
money laundering and other fraudulent activities. The E*C guidelines also help ban&s to
understand their customers better.
iv. The customer identification will be on the basis of documents provided by the
customer as !a" <roof of identity and !b" <roof of address. The customer has to submit the
prescribed application form along with <hotographs all cases.
!a" <roof of identity !any of the following with authenticated photographs thereon"3
!i" <assport. !ii" Joter %H card !iii" <)@ Card !iv" Fovt.LHefence %H card !v" %H cards of
reputed employers !vi" Hriving Gicence
!b" <roof of current address !any of the following"
!i" Credit Card 2tatement !ii" 2alary slip !iii" %ncomeL-ealth Ta' )ssessment Mrder !iv"
9lectricity 5ill !v" Telephone 5ill !vi" 5an& account statement !vii" Getter from reputed
employer !viii" Getter from any recogni#ed public authority !i'" Ration Card
v. %n case of 0oint accounts, applicants who are not closely related to each other would be
required to establish their identity and address independently.
vi. @o frills )ccount3 5ranches may open accounts for those customers who are in no
position to submit the above mentioned documents provided they intend to maintain
balances not e'ceeding rupees fifty thousand !Rs. +A,AAAL" in all their accounts ta&en
together and the total credit summation in all the accounts ta&en together is not e'pected
to e'ceed rupees one la&h !Rs. $,AA,AAAL" in a year, sub0ect to3
a" introduction from another account holder who has been sub0ected to full E*C
procedure. The introducer4s account with the ban& should be at least si' months old and
should show satisfactory transactions.
MR
b" any other evidence as to the identity and address of the customer to the satisfaction of
the ban&.
$K
vii. The applicant!s" will need to come to the branch, in person, for opening the account
and will sign at the relevant places in the presence of a 5an& Mfficial. The introducer
may be required to come to the 5an& in person if it is so warranted.
viii. %nterest P 7.+, p.a. with half yearly interests is paid on 25 )Lcs on the minimum
balance maintained in the account between the $Ath and the last day of the month.
%nterest is credited on =une 7A and Hecember 7$every year. The interest rate and the
method of application are sub0ect to changes from time to time.
i'.. ) passboo& is issued in all 2avings 5an& )ccounts. <assboo&s are immediately
updated across the counter on request. Cheque boo&s are issued on request. (+ cheque
leaves are issued free in a year.
'. The minimum balance required to be maintained in a 2avings 5an& account
w.e.f.A$.A$.(AA$ is as under 3
Metro >rban 2emiurban Rural
$.-ith cheque facility Rs $AAAL Rs $AAAL Rs $AAAL Rs +AAL
(.-ithout cheque facility Rs +AAL Rs +AAL Rs +AAL Rs (+AL
C.RR85T ACC1.5T
i. Current )ccounts !CL)s" can be opened by individuals, partnership firms, private
and public limited companies, C>?sL specified associations, societies, trusts etc.
ii. ?ormalitiesLprocedures relating to introduction and opening of Current )ccounts
for individuals are same as those mentioned for 2avings 5an& )ccounts. ?or
partnership firms, limited companies C>?s, trusts etc the documentation
formalities will be provided to you on request.
iii. @o interest is payable on credit balances in Current )ccounts.
$.
iv. The customers may receive the statements of account according to the frequency
desired by them.
v. Cheque boo&s are issued to all Current )ccount holders and all withdrawals
should be made only through issue of cheques. ) cheque should not be issued for
an amount of less than Rs. +AL.
vi. ) cheque which is presented more than D months after the date of issue will be
treated as 8stale8 and shall not be paid. 2uch cheques shall be paid only after
revalidation by the drawer.
vii. Cheques should not be drawn without adequate balance or against uncleared
effects, in order not to attract the penal provisions of section $7K of the @egotiable
%nstruments )ct.
viii. The cheque boo& should be &ept safely to prevent any misuse and consequential
loss to the depositor!s". The loss of any cheque or the cheque boo& should be
promptly reported to the 5an&.
i'. <ayment of a cheque can be stopped by the drawer, by giving notice in writing to
the 5an&, mentioning full details of the cheque, before the cheque is presented for
payment. The 5an& will not pay this cheque after recording ;stop payment; in its
boo&s.
'. The minimum balance required to be maintained in a Current )ccount w.e.f.
A$.A$.(AA$ is as under3
Metro >rban 2emiurban Rural
$.%ndividual )ccounts Rs +AAAL Rs +AAAL Rs +AAAL Rs (+AAL
(.Mther )ccounts Rs $AAAAL Rs $AAAAL Rs $AAAAL Rs +AAAL

T8RM $8213&T3 ACC1.5T:
(A
i. Term Heposit )ccounts can be opened by individuals, partnership firms, private
and public limited companies, C>?sLspecified associations, societies, trusts etc.
ii. ?ormalitiesLprocedures relating to identification and introduction for opening of
Term Heposit )ccounts in the name of individuals are same as those mentioned
for 2avings 5an& )ccount. ?or term deposit accounts of limited companies,
partnership firms, societies, trusts etc. the documentation formalities will be made
available on request.
iii. The 5an& is required to obtain <ermanent )ccount @umber !<)@" of the
customer or declaration in ?orm @o. DA or D$ as per the %.T. )ct !vide 2ection
7.)" from the person opening the account.
iv. Term Heposit )ccounts can be opened for a minimum period of I days up to
ma'imum period of $A years. The minimumLma'imum periods are sub0ect to
change.
v. The rates of interest vary depending on the period of deposit. The rates applicable
as on date can be obtained from the branch and is also available at our web site.
%nterest is payable at quarterly intervals or at the time of maturity. %nterest is also
payable monthly at discounted rates.
vi. The 5an& issues receipt !Term Heposit Receipt THR" for amounts &ept in each
fi'ed deposit account. The THR can be &ept in safe custody of the ban& free of
charge and a safe custody receipt will be issued.
vii. <remature closure of Term Heposit is normally allowed. The rate of interest
payable will be the applicable rate !at the time of opening the fi'ed deposit
account" for the period for which the deposit has run less penalty of $,. The
penal provisions for premature closure are sub0ect to change from time to time
and may also vary with deposit schemes.
viii. Goan facility is available up to .A, of the principal amount of Term Heposit.
i'. %n the absence of specific instructions from the customer, a Term Heposit on
maturity is automatically renewed for the same period at the rate of interest
prevailing on the date of maturity.
($
i'. Term Heposit )ccount can be transferred from one branch to another free of cost
but not to a branch of )ssociate 5an& of 25%. The depositor has the option to
submit his application and the THR at the transferor or transferee branch.
328C&A9 T8RM $8213&T ACC1.5T
i. 2pecial Term Heposit !2TH" )ccount can be opened in the same way as the Term
Heposit )ccount. The interest on the 2TH )ccount is compounded at quarterly
intervals and principal and interest are paid on maturity.
ii. Minimum and ma'imum period of deposit may be I days and $(A months
respectively.Minimum and ma'imum periods are sub0ect to change.
iii. Minimum amount of deposit is Rs.$,AAAL and thereafter, in multiple of Rs.$AAL.
iv. Goan up to .A, of principal and accrued interest is available against 2pecial Term
Heposit.
v. Mther terms and conditions are same as in case of Term Heposit )ccount.
vi. The 5an& offers other variants of fi'ed deposits li&e recurring deposit accounts
etc. ?urther details can be had from the branch where you wish to open the
account.
C:8;.8 C1998CT&15 219&C<
%mmediate Credit of outstationLlocal cheques3
%" Mutstation cheques
5ranches will afford immediate credit of outstation cheques up to and inclusive of
Rs.(A,AAAL tendered for collection by the customers for satisfactorily conducted accounts
on the following conditions 3
((
a" The facility will be available to individual deposit account holders without ma&ing a
distinction about their accounts i.e. 2avings 5an&LCurrent )ccount etc. %t will be
available at all branchesLe'tension counters.
b" @ormal collection and out of poc&et charges are to be recovered for outstation
cheques. Cowever, no e'change will be charged.
c" %n case of outstation cheques, the facility will be restricted to one or more cheques for
aggregate amount not e'ceeding Rs. (A,AAAL at a time ensuring interalia that the liability
on account of outstanding of cheques purchased does not e'ceed Rs. (A,AAAL at any time.
%%" Gocal Cheques
a" @egotiation of local chequesLinstruments will not be encouraged. Cowever, 5ranch
Managers may use their discretion in e'ceptional circumstances to permit immediate
credit of local instruments up to Rs. (A,AAAL for deposit accounts on recovery of
collection charges of Rs. $AAL per instrument.
b" @o charges will be levied for local collection of chequesLinstruments which are
collected through clearing e'cept for item !%%" !a" above.
%%%" Cheques returned unpaid
a" %f chequeLinstrument for which immediate credit has been afforded is returned
unpaid, 5an& shall recover interest at clean overdraft rate for the period 5an&
remained out of funds and recover prescribed cheque returned charges sub0ect to the
following3
i" @o interest will be charged to the customer for the period between the date of credit of
the outstation cheque and the date of its dishonour by the paying ban&.
ii" 5an& will charge interest from the date of dishonour of the cheque till the
reimbursement of money to the ban&.
(7
iii" -here the cheque is credited to a 2avings 5an& account, no interest will be payable
on the amount so credited if the cheque is returned.
iv" %f proceeds are credited in an overdraftLloan account, interest would be recovered at
applicable rate on the amount of returned chequeLinstrument.
!)" Time frame for collection of localLoutstation instruments3
25% 5ranches

Mther 5an&
5ranches

a" Collections between
Metropolitan CentresL
Ma0or 6)4 Class Cities !Mumbai,
Chennai, Eol&ata, @ew Helhi,
)hmedabad, 5angalore
Q Cyderabad
D days I days



b" Collections between places at
!a" above and 2tate Capitals
!other than @orth 9astern 2tates
Q 2i&&im" and )rea % Cities
i.e. <une, @agpur, Eanpur, 2urat,
Jisha&apatnam, Jadodara,
Eochi, %ndore,Gudhiana, Coimbatore,
)gra, Madurai and Jaranasi

K days $A days
(:

c" Collections between all
other Centres3
$A days $: ays

2A<M85T 10 2853&153 :
i. 5an& ma&es pension payments on behalf of the Fovernment to the retired employees
of Central and 2tate Fovernments, Hefence, Railways etc. )ll pension payments are
sub0ect to rules and procedures prescribed by the Fovernment!s", R5% and the concerned
departmentsLorganisations from time to time.
ii. ) pensioner can open an account with cheque boo& facility and also give nomination
in his pension account.
iii. Mnce the account is opened, no credit other than pension is permitted in the account.
iv. <ension accounts are allowed +A, concession in minimum balance requirements as
well as in !minimum balance" service charges.
v. Gife Certificate in prescribed format has to be submitted once every year in the month
of @ovember. <ension payments may be withheld if life certificates are not submitted on
time. The life certificates can be issued by R5%L<ublic 2ector 5an& Mfficers and officers
at the pension paying branch.
vi. @onemployment Certificate is obtained once in D months in May and @ovember.
vii. %f the family pensioner is a widow, at the time of first payment of pension, a
certificate to the effect that she has not remarried and an underta&ing to the effect that if
she remarried later she will intimate the fact promptly to the pension paying branch is
required.
(+
viii. %f the family pensioner is a widowerLunmarried daughter, the remarriageLnon
marriage certificate is required to be submitted once in D months in May and @ovember.
i'. )n unstamped letter of underta&ing is to be submitted by the pensioner authorising
recovery of any e'cess payment made in pension in error.
'. %nternet 5an&ing3 Customers can access their ban& accounts and transact online
through 25%4s internet ban&ing website www.onlinesbi.com if their branches are internet
enabled. ) list of internet enabled branches are available at the web site. The customers
will need to sign up for registration by submitting the application form downloadable
from www.onlinesbi.com. Gog in will require user id and password customisable by the
account holder. the facilities available include viewing account balances, generating
account statements, bill payments for registered billers, purchase of train tic&ets online,
ordering chequeboo&s and drafts, funds transfer within the same branch.
(D
<.1 ) INTRO)UCTION TO CASE STU): O9 CUSTOMER
RELATIONSHIP MANAGEMENT
Today, many businesses such as ban&s, insurance companies, and other service providers
reali#e the importance of Customer Relationship Management !CRM" and its potential to
help them acquire new customers, retain e'isting ones and ma'imi#e their lifetime value.
)t this point, close relationship with customers will require a strong coordination
between %T and mar&eting departments to provide a longterm
retention of selected customers. This paper deals with the role of Customer
Relationship Management in ban&ing sector and the need for Customer Relationship
Management to increase customer value by using some analytical methods in CRM
applications.
CRM is a sound business strategy to identify the ban&4s most profitable customers and
prospects, and devotes time and attention to e'panding account relationships with those
customers through individuali#ed mar&eting, reprising, discretionary decision ma&ing,
and customi#ed serviceall delivered through the various sales channels that the ban&
uses.
>nder this case study, a campaign management in a ban& is conducted using data mining
tas&s such as dependency analysis, cluster profile analysis, concept description, deviation
detection, and data visuali#ation. Crucial business decisions with this campaign are made
(I
by e'tracting valid, previously un&nown and ultimately comprehensible and actionable
&nowledge from large databases. The model developed here answers what the different
customer segments are, who more li&ely to respond to a given offer is, which customers
are the ban& li&ely to lose, who most li&ely to default on credit cards is, what the ris&
associated with this loan applicant is.
?inally, a cluster profile analysis is used for revealing the distinct characteristics of each
cluster, and for modeling product propensity, which should be implemented in order to
increase the sales.
+ Customer Relationship Management
%n literature, many definitions were given to describe CRM. The main difference among
these definitions is technological and relationship aspects of CRM. 2ome authors from
mar&eting bac&ground emphasi#e technological side of CRM while the others considers
%T perspective of CRM. ?rom mar&eting aspect, CRM is defined by as .. a combination
of business process and technology that see&s to understand a company4s customers from
the perspective of who they are, what they do, and what they are li&e. Technological
definition of CRM was given as .. the mar&et place of the future is undergoing a
technologydriven metamorphosis
Meanwhile, implementation of CRM in ban&ing sector was considered by RMihelis et al.
(AA$S. They focused on the evaluation of the critical satisfaction dimensions and the
determination of customer groups with distinctive preferences and e'pectations in the
private ban& sector. The methodological approach is based on the principles of multi
criteria modeling and preference disaggregation modeling used for data analysis and
interpretation. 2pecifically the customer relationships of new technologybased firms has
been studied They have also hierarchically segmented data sources into clusters,
automatically labeled the features of the clusters, discovered the characteristics of
normal, defected and possibly defected clusters of customers, and provided clues for
gaining customer
retention.
(K
R<eppers (AAAS has also presented a framewor&, which is based on
incorporating ebusiness activities, channel management, relationship management and
bac&officeLfrontoffice integration within a customer centric strategy. Ce has developed
four concepts, namely 9nterprise, Channel management, Relationships and Management
of the total enterprise, in the conte't of a CRM initiative.
) CRM 1b=ectives in /anking 3ector
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. %f it wor&s
as hoped, a business can3 provide better customer service, ma&e call centers more
efficient, cross sell products more effectively, help sales staff close deals faster, simplify
mar&eting and sales processes, discover new customers, and increase customer
revenues.%t doesn;t happen by simply buying software and installing it. ?or CRM to be
truly effective, an organi#ation must first decide what &ind of customer information it is
loo&ing for and it must decide what it intends to do with that information. ?or e'ample,
many financial institutions &eep trac& of customers; life stages in order to mar&et
appropriate ban&ing products li&e mortgages or %R)s to them at the right time to fit their
needs. @e't, the organi#ation must loo& 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. Mne company, for instance, may interact with customers in a myriad of
different ways including mail campaigns, -ebsites, bric&andmortar stores, call centers,
mobile sales force staff and mar&eting and
advertising efforts. 2olid CRM systems lin& up each of these points. This collected data
flows between operational systems !li&e 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. %n CRM pro0ects, following data should be collected to
run process engine3
(.
$" Responses to campaigns,
(" 2hipping and fulfillment dates,
7"2ales and purchase data,
7" )ccount information,
:" -eb registration data,
+" 2ervice and support records,
D" Hemographic data,
I" -eb sales data.
=.1 ) CONCLUSION
Customer relationship management is a comple' process because it raises the host of
challenging business issues that lie at the interface of both ?inance and Mar&eting.
Mptimal allocation of total mar&eting resources between e'isting customer segment and
new segment is necessary.
)naly#ing the CRM of the ban&s with respect to recurring deposit account3 Mn the basis
of following factors3
Referral propensity
Customer Goyalty
Customer Retention
Hefection Rate of customer
Customer perception about different services
25% en0oys the top ran& position due to its following factor3
%ts nation wide coverage
Minimum amount required opening the account.
Minimum period of renewal of account
7A
Reputation
The ma0or area where 25% has to improve its approach is retaining acquisition
:ow to $eal with Customer Complaints
Cere are I steps for resolving customer complaints which have proven to wor& well. Ho
not let time lapse and ma&e things worse with your avoidance. )pproach the customer as
soon as you learn they are unhappy, and1
- 9isten &ntently:
Gisten to the customer, and do not interrupt them. They need to tell their story and feel
that they have been heard.
+ Thank Them:
Than& the customer for bringing the problem to your attention. *ou can4t resolve
something you aren4t completely aware of, or may be ma&ing faulty assumptions about.
) Apologi(e:
2incerely convey to the customer your apology for the way the situation has made them
feel. This is not the time for preachy reasons, 0ustifications or e'cuses1 you must
apologi#e.
' 3eek the /est 3olution:
Hetermine what the customer is see&ing as a solution. )s& them1 often they4ll surprise
you for as&ing for less than you initially thought you4d have to giveTespecially when
they perceive your apology and intention is genuinely sincere.
% Reach Agreement:
2ee& to agree on the solution that will resolve the situation to their satisfaction. *our best
intentions can miss the mar& completely if you still fail to deliver what the customer
wants.
# Take ;uick Action:
)ct on the solution with a sense of urgency. Customers will often respond more
positively to your focus on helping them immediately versus than on the solution itself.
7$
! 0ollow-up:
?ollowup to ensure the customer is completely satisfied, especially when you have had
to enlist the help of others for the solution delivery. 9verything up to this point will be for
naught if the customer feels that out of sight is out of mind.
<roblems happen. %t4s how you honestly ac&nowledge and handle them which counts
with people. Customers will remember you, and happily give you another chance to
delight them when you choose to correct problems with the very best you can offer,
proving you value them and their business.
,I,LIOGRAPH:
Communicating with Customers <atric& ?orsyth
Helighting *our Customers B 2usan @esh Q Here& @ash
Healing with Customer Complaints B Tom -illiams.
WE,LIOGRAPH:
25% Mnline www.sbi.com
http3LLwww.crmne't.comLsolutionsLban&ing.asp'
http3LLban&ing.org.

7(