MBA 2019-21 Sem-IV

CUSTOMER RELATIONSHIP
MANAGEMENT

GROUP ASSIGNMENT

By
Mayank Madhav Prabhu 19020341136
Priyamvada Kanoria 19020341144
Rishabh Narang 19020341198
Nitin Khuteta 19020341226
Yash Rampuria 19020341173

Under the Guidance of

Prof. Dr. Ashok Kumar
 MARKETING OF HOME LOAN SERVICE BUSINESS
 
1. Develop a CRM process required to retain and delight the customers and
convert them as a loyal customer for segment assigned to them.

The segment assigned to our group is ‘marketing of home loan service business’.

In today’s fast-paced competitive business environment, customers have lesser switching cost
and this has may have a considerable impact on sustainably and growth of a business. Thus, a
CRM process is essential to create value for customers, develop a relationship with them and
serve, delight them as well as generate loyalty.

A CRM process comprises of a seamless integration of marketing, sales and customer service in
order to acquire and retain customers, build customer trust, create superior value for the
customer and thus delight them and make them loyal customers. For a home loan service
business, the focus of the CRM process would be to ensure that interactions between current
and potential customers are managed in an optimum manner. This is because it is important
that current customers be satisfied with the home loan service, right from enquiring about the
loans to the disbursal of the loan to the repayment, so that the good word-of-mouth can be
generated for the business and this would help in case of repeat availing of loans by the same
customer, or converting potential customers and referral customers.

Customer Relationship Management (CRM) is a technique for creating, maintaining, and

improving long-term customer relationships. It is a customer-centric methodology focused on
customer insights. The ultimate aim is to deliver ‘Personalised' service to consumers by
recognising and understanding their particular desires, interests, and behaviours. CRM
practises are used to achieve a deeper understanding of consumers for product creation,
segmentation, appropriate targeting, campaign management, and long-term profitable
customer relationships.
In today’s world which comprises of increasing competition, technological innovation, and
motivated consumers, Customer Relationship Management has become unavoidable for
growth and profitability especially in firms that deal with home loan services. It blends two of
the most important facets of home loan services sector: technology and relationship
marketing. It has the potential to bring about dynamic changes in the marketing strategies of
these firms in the immediate future with the intention of achieving business growth by treating
customers as commodities, consistently capturing, analysing, and disseminating customer data,
and using that data to obtain, attract, and better serve customers.

Components of CRM for Home Loan Services

There are 4 important components of CRM in home loan service sector: -

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 Interact and Deliver Acquire and Retain

Personalised
digital
Direct
services &
Marketing proper data
management

Priority
VIP
Services and
Customers -
dedicated
loyalty
Develop and Relationship
programs Understand and
Customize Manager Differentiate

Tools for Delivering CRM – Retain Customers and Make them Loyal
In the CRM process of Home Loan service sector, there are 5 important tools that can be
utilised effectively to ensure high customer loyalty and retention. They are: -
 Customer Application Forms
Customer application forms help in collecting customer data and knowing what the
customer wants. This data can be analysed properly to offer personalised services to
the customers.
 Centralized Database
The customer data that is collected through application forms can be kept at one place
and accessed anytime, anywhere without any hassles. The CRM software that is used in
maintaining this centralized database helps in arriving at good data insights and
customized service offerings.
 Wide Range of Service Offerings
A wide range of service offerings are provided in order to increase the customer
confidence. Customization options are also provided for better customer experience.
 Feedback Forms
Feedback forms are very critical in CRM process of home loan service firms. The
customer feedbacks on the service provided, technology used, employee behaviour and
promptness in solving customer queries are analysed properly for continuous
improvements in the service offerings of the firm.
 Cross Selling
Offering another service to the customer on top of the service which he has already
considered is an important tool to sell value to the customers and retain them for
longer periods.

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Ways to retain and delight the customers and convert them as loyal customers
There are 8 ways in which firms that offer home loan services can retain customers and convert
them as loyal customers: -

1. Under Promise and Over Deliver

Keep customers happy by under promising and over delivering. For e.g., If a customer
applies for a home loan that takes some days to approve, the firm can quote a proper
date to these customers as to when the service will start and share updates on a timely
basis. This practice is better than the common practice of exceeding the original
deadline that most customers find annoying and unacceptable.
2. Keep Customers Well Informed
The firms should ensure that the customers are well informed if promises can’t be met.
Compensation should be provided under such circumstances that will delight the
customer. If there is a small cost involved, weigh this against the customer’s lifetime
value.
3. Motivate Staff to be Engaging
The firms in home loan service sector should encourage their staff to perform an act of
kindness towards the customers such as offering water, opening the door for them etc.
This can pay real dividends in the future.
4. Do the Unexpected
Give unexpected gifts or surprises to the customers from time to time. For e.g., sending
a bouquet to the premium customers on their birthdays can have a powerful impact on
building customer loyalty.
5. Acknowledgement Letter
The firms should send an acknowledgement note to the customers as soon as the
service has started. For e.g., sending a hand written Thank You note can strengthen the
bond which a customer is likely to share with the firm.
6. Send out a Newsletter
Firms should send a regular newsletter to their customers to encourage them to visit
their website more often and look for new service offerings.
7. Improve Digital Touchpoints
The firms in home loan sector should improve their digital infrastructure and provide a
number of services through various digital platforms. Firms can also engage regularly
with their customers through social media as well.
8. Timely Calls
Firms should appoint a relationship manager for each and every customer and ensure
that this relationship manager calls them from time to time in order to check whether
the customer is facing any problem and also to share details of a new service offering.

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2. Explain the CRM approach they would suggest for lead conversion,
marketing campaign, aftersales support and feedback.
 
Lead conversion in the Home Loan service business
The lead conversion process in any home loan service business is as follows: -

Determination of a desired prospect: - The first yet one of the most important parts of the
home loan service sales process is to identify the right customer and further generation of the
prospect and IDing the prospect. This can be done by identifying the right segments based on
the following criteria i.e., Demographic segmentation, psychographic segmentation,
behavioural segmentation, geographic segmentation.

Lead Generation: - Once the prospects are identified, leads are generated in a home loan
business through various processes such as cold calling, email marketing, text marketing,
sending webinar invitations, distributing pamphlets and going through various ATL & BTL
processes to gather the attention and generate interest.

Data driven leads through CRM: - We need to understand the leads to sell to them. A data-
driven lead is the lead with information that can be leveraged to convert more effectively.
Leads with basic data like name, contact number and email address will not bring in the
purchase decision. This is where the CRM comes in. With the help of CRM, the sales team has a
controlled and streamlined pipeline that allows for clipping crucial data, such as the company
the lead belongs to, similar solutions he/she is using and web behaviour. This data helps the
sales reps understand the lead better so that they can align their sales pitch accordingly.

Identifying better qualified leads through CRM: - Moving unqualified leads up in the purchase
funnel is a common mistake made by many marketing and sales teams. “Unqualified leads”
translates into “no purchase.” All leads that are moved up in the purchase funnel should be
potential sales leads—with a guaranteed purchase. Determining qualified leads becomes easier
when you have collected leads with accurate data. Within the CRM, teams can qualify leads
based on a scoring technique. Marketing and sales teams can have individual parameters used
to score the leads. Those parameters can be visited on the opened email, clicked on the link,
downloaded content and so on especially for the home loan services. Based on the scores, the
marketing team will qualify leads and send them to sales

Staying in touch with the leads through CRM: - It is important to keep in touch with the leads,
and can be in constant contact by sending timely emails and analysing their web behaviour. A
good CRM should offer scheduled emails that will be sent to the leads at regular intervals. Their
web behaviour will be monitored by CRM and the resulting reports can be analysed. 

Lead Conversion through CRM: - Sales and marketing need to work outside the office as well as
in it. They have to attend seminars, demos and client meetings. Their absence from the office
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doesn’t mean they don’t have tasks to complete and actions to take. Leads are still waiting for
them and their lead conversion is at stake. A CRM can solve this issue by providing mobility.
Being able to work while on-the-go is one of the biggest advantages of a CRM. Mobility allows
instant contact with any lead or team member. Calls, emails, scheduling meetings and even
more are what a mobile CRM offers. This helps the sales team in converting their leads and
take action by letting them accept the services.

Marketing Campaign

Marketing campaigns for a home loan service provider can be made more personalized and
accurately targeted through a CRM system. This CRM supported marketing campaign in a
home loan business will generate more profit by reducing the cost and increasing conversion
rates.

Focused targeting: - One of the most difficult tasks for marketers' is to look through all of the
customer data. In order to get a response from potential customers that are most likely to buy,
marketers need to send out messages that appeal exactly to them. Fortunately, CRM helps
marketers to sift through contacts and target potentially profitable customers. CRM contains
various information on the customer behaviour and preferences, which allows them to take
informed actions that will improve prospect awareness and customer satisfaction.

Personalized content: - Once you have chosen whom you want to target and segmented the
database into meaningful groups, it is time to individualize your marketing messages.
CRM allows us to address our potential and existing customers by their name. Also, we can
generate interest by knowing their preferences. Not to mention that knowing whether you are
addressing a man or a woman, an ordinary salesperson or a top manager would significantly
help us tailor the content of the messages and grab customers’ attention.
Equipped with these details, we can suggest an idea, give information, and even shape the
entire communication in such a way that it suits that particular customer.
And the benefits of doing so are huge, as the more personalized the content is, the more likely
we are to see improved response rates, stronger brand perception and increased revenue. In
this way, CRM solutions enable marketing experts to focus more on the customer, not the
product.

After sales support:

This is a critical part of any sale that has been made by the company. It is said that good after
sales support brings repeat customers, and better customer lifetime value apart from word of
mouth and cross selling. To achieve these goals, CRM software comes in very handy and
especially for home loan services as customers have little to no interest in getting involved in
complex paperwork and formalities after their loan is sanctioned which makes them vulnerable
to uninvited legal charges. Some of the possible approaches for these are:

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General Task Automation: Some formalities which are very common for customers should be
readily available on the website with clearly written instructions and the software reminding
the customers through mailers and messages to complete them.

Chatbot Feature: Some problems like loan transfer or additional benefit redemption might
require a lot of paperwork and unnecessary time to be spent in long queues at the facility of
the company and a chatbot which eventually leads the customer through either an
appointment or a pre scheduled visit becomes a lot convenient.

Feedback: 
This is one of the most important aspects that should never be ignored. It gives us scope of
improvement and makes our customer an indispensable stakeholder as they help in continuous
improvement of our processes and practices. CRM in feedback services can help:

Process Integration: When the CRM is integrated with each and every step that the customer
takes while experiencing our services, we get to take feedback at all the stages through text
messages, in-app or website ratings and even e-mail. 

3. Explain the required CRM process at collaborative level, analytical level and
operational level to acquire and retain the clients.

CRM AT THE CUSTOMER-FACING LEVEL (COLLABORATIVE CRM)

At this level, the CRM process consists of a set of activities that provide a single view of the
customer across all the contact channels and thereby help to develop an omni-channel
approach. This level consists of actual interactions with customers such as contacting them,
sales, direct mail, call centres, data aggregations, etc.

The concept of ‘One voice, one message’ has to be the core of all communications that a
company engages in with its customers across its multiple touchpoints.
Following methods can be used by a home loan service business while interacting with the
customers:

ACQUISTION STAGE
a) In the decision-making process, in the initial stage customers are seeking information
regarding the basics of a home loan, various home loan products, searching for information
about the companies etc. Educational content in the form of blogs and websites needs to
be developed for this.
b) The employees need to be trained well regarding the various home loan products,
procedures, compliance requirements etc. This is an essential component to trust building
as it involve face to face interactions between the customer and the employee.

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c) Setting up chat-bots, expert interaction sessions over video calls and sending customised
mailers to the customers who’ve initially enquired about home loans would help in
converting the leads generated.

RETENTION STAGE
a) Smooth & timely disbursement of loans, having a trained team to provide after-sales
support through customer care or through relationship managers would ensure that the
customers have that particular company in their consideration set when they think of
opting for another financial product.
For example: A customer who has taken a home loan from ICICI bank would think of opting
for an insurance from ICICI if he is satisfied with their service.
b) Maintaining a central database of customers as well as potential leads along with a central
repository of interactions that a customer has had with various people in the company.
Especially in the case of a home loan business, this would help to effectively track and
monitor interactions and ensure consistency in the same.

CRM TO GAIN CUSTOMER INSIGHT LEVEL (ANALYTICAL CRM)

At this level, the CRM process consists of analysing the cohorts to extract customer insights for
all the customer-facing functions. The knowledge that is obtained here about the customers /
organisational buyers and their preferences have vital implications for the entire business.
Analytical CRM for a home loan service business means a CRM process which enables business
performance management.

ACQUISITION STAGE
a) Credit Risk Assessment
The home loan financing institutions need to analyse the credit worthiness of a prospective
customer while processing loan applications. This would enable the banks or lending
institutions to mitigate risks and would also help them in disbursing the right loan amount.

b) New Product Development

Extensive analysis of the existing as well as prospective customer’s data would help home loan
institutions in developing new products which would suit the requirements of the specific
segments of customers.
For example, companies have come up with home improvement loans and home extension
loans to tap the segment of customers who already own a house but they would want to give
their home a makeover and are in need of funds to do so.

RETENTION STAGE
a) Using analytical tools, data such as the customer profile (age, income, profession etc),
amount of loan disbursed to them etc. can be analysed to identify the potential of cross-
selling certain additional products, either paid or bundled along with their home loan. This

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 would act as a satisfier or a delighter to the customers which would help in creating
additional value for the customers.
b) Analysing data to identify the reasons for the customers porting their home loans. This
would help in improving the offerings of the home loan company or make changes in their
offerings etc.
c) Analysing data would enable the home loan business to personalising marketing efforts:
This would help to nurture leads through the sales funnel in case of potential customers
and enhance the relationship in case of existing customers.

CRM AT THE FUNCTIONAL LEVEL (OPERATIONAL CRM)

At this level, the CRM process consists of developing and integrating the back-end and front-
end of various customer processes. Hence the processes of sales, marketing, customer service
etc. along with operations of the business, service automation, etc. are looked into at this level.
Operational CRM for a home loan service business means a CRM process which enables
business operations management.

ACQUISITION STAGE
a) Developing an integrated system to process the leads generated either by the website visits
or through chat-bot queries. These leads would have to be sent to the tele-calling team,
frontline sales team in order to get in touch with the customers. This whole process has to
be seamless and there shouldn’t be any duplication as excessive calling would irritate the
customer leading to the loss of a potential sale.
b) Developing a call script to ensure that the employees maintain a consistency in terms of the
information that they communicate to the customer, the technical wording that they use,
the policy T&C that the customer would enquire about etc.

RETENTION STAGE
Cross-selling: For example, selling of building insurance, personal accident cover, burglary/theft
insurance to customers basis their profile and the kind of home that they would be buying or
planning to build.

CUSTOMER DIMENSION

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 ACQUISITION RETENTION DECLINE
Identifying problem Identifying new Analyse and find the
areas with respect to opportunities such as reasons why
home loans that bundling or cross- customers may
customers may face. selling of loan transfer their loan to
Analytical
products, periodically another bank
CRM
analysing home loan
processing reports to
optimise loan
processing TAT

Integrating home Improving the home Understand reasons

loan service with loan service by if any for lack of
sales and marketing offering an enhanced seamless experience
of such services to customer experience between back-end
enhance lead – such as automated and front-end
Operational conversion payment reminders, processes, e.g., when
CRM 24-hour resolution the same documents
CRM for support tickets are asked at multiple
Driven generated by the touchpoints for
Marketing customer, processing the same
Approach compliance with SLA, loan
etc.
Engaging customers Having a single view Finding out the
(present as well as of the customer incoherency in
potential) through (central database / communication in
multiple touchpoints repository) to ensure any across multiple
of communication end-to-end customer touchpoints of
and working towards engagement, availing the home
a phygital presence – updated view of loan service
Collaborative hence use of digital home loan
CRM platforms, e.g., social transactions,
media, as well as face communicate new
to face customer- product offerings,
centric interactions obtain feedbacks or
suggestions and
improve relationship
with customer

Each group member to explain his/her contribution and role in the assignment.

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Development of CRM process to retain customers Mayank Madhav Prabhu
CRM at collaborative, analytical and operational level Priyamvada Kanoria
CRM approach in lead conversion and marketing campaign Rishabh Narang
CRM approach in after sales support and feedback Nitin Khuteta
Defining CRM & Components of CRM for Home Loan Services Yash Rampuria

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