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The steps that banks follow in implementing Customer Relationship Management (CRM) are:

V › entifying CRM initiatives with reference to the objectives to be attaine (such as

increase number of customers, enhance per-customer profitability, etc.),
V |etting measurable targets for each initiative in terms of growth in profits, number of
customers, etc. an
V valuating an choosing the appropriate Customer Relationship Management (CRM)
package that will help the company achieve its CRM goals (a comparison of pay-offs
against investments coul be carrie out uring the evaluation exercise).

Customer Relationship Management (CRM) has been eploye in retail banking. The
challenges in managing customer relations in retail banking are ue to the multiple pro ucts
being offere an the iverse channels being use for the istribution of the pro ucts. Customer
expectation from banks can be summe up as:

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6ggressive marketing an promotions on the part of the banks have resulte in most customers
happily switching loyalties to enjoy better privileges, thereby making the task of retaining them
more ifficult for the banks.

The use of Customer Relationship Management (CRM) in banking has been essentially one for
the following purposes:

V   : ›t is necessary for banks to i entify potential customers for
approaching them with suitable offers. The transactional ata that is generate through
customer interactions an also by taking into account the profile of the customer (such as
the lifecycle stage, economic backgroun , family commitments, etc.) nee s to be collate
into one atabase to facilitate its proper analysis. For example, a customer interacts with
the banks for savings accounts, cre it car s, home loans, car loans, emat accounts, etc.
the ata generate through all these services nee s to be integrate to enable effective
targeting. 6fter the integration is one, a profitability analysis of the customer nee s to
be un ertaken to acquire an un erstan ing of the profit-worthiness of the customer before
targeting him with new offers.
V   : 6 consoli ate information atabase on all pro ucts, pricing,
competitor information, sales presentations, proposal templates an marketing collateral
shoul be accessible to all the people concerne . These prove to be very helpful in |ales
Force 6utomation (|F6) wherein the salesperson gets instantaneous access to all relevant
material as an when it is require (especially when he/she is in a meeting with a client.)
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    : The communication to customers from various
epartments like sales, finance, customer support, etc. shoul be consistent an not
contra ictory. Therefore, all epartments shoul be privy to a unifie view of the
customer to enable a consistent approach. Removal of inconsistencies is necessary to
ensure that customers are not harasse an frustrate owing to poor internal co-
or ination. This is boun to enhance customer satisfaction. The contact centres use to
interface with customers shoul ensure consistency in customer interaction, irrespective
of the me ium use for the interaction such as telephone, ›nternet, e-mail, fax, etc.

Banks can use the ata on customers to effectively segment the customers before targeting them.
Proper analysis of all available ata will enable banks to un erstan the nee s of various
customer segments an the issues that etermine ³value´ for that segment. 6ccor ingly, suitable
campaigns can be esigne to a ress the issues relevant for that segment an to ensure higher
loyalty from these customers. When ata analysis is one in the right manner, it helps in
generating opportunities for cross-selling an up-selling



 
 

›C›C› Bank has to manage more than 13 million customers. The bank has over 550 branches, a
network of 2025 6TMs, multiple call centres, ›nternet banking an mobile banking. ›ts
customers often use multiple channels, an they are increasingly turning to electronic banking
options. Business from the ›nternet. 6TMs an other electronic channels now comprises more
than 50 per cent of all transactions.

›n the process of making its business grow to this level, ›C›C› Bank has istinguishe itself from
other banks through its relationship with customers.

The Tera ata solution focuses on a Customer Relationship Management (CRM) platform.
›nformation from various legacy an transaction systems is fe into a single enterprise calle
wi e ata warehouse. This allows the bank to generate a single view of its customers. The
warehouse has the capability to integrate ata from multiple sources comprising Oracle an flat
files. The Behaviour xplorer enables profiling of customers an querying on various
parameters. These enable the bank staff create suitable campaigns for targeting in ivi ual
customers on the basis of their requirements.

The logistics in the system have also le to other benefits like interactive reports, unearthing
cross-selling opportunities as well as fin ing out about the channel usage un ertaken by a
segment. The ata access was facilitate through the use of Cognos Power Cubes.
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   : ›C›C›
s CRM ata warehouse integrates ata from multiple
sources an enables users to fin out about the customer
s various transactions pertaining
to savings accounts, cre it car s, fixe eposits, etc. The warehouse also gives
in ications regar ing the customer
s channel usage.
V §   : 6nalysis at ›C›C› gui e pro uct evelopment an marketing
campaigns through Behaviour xplorer, whereby customer profiling can be un ertaken
by using ‘
 queries. The pro ucts thus create take into account the customer
s
nee s an esires, enabling the bank to satisfy customers through better personalization
an customization of services.
V
   : The initial implementation of CRM allowe ›C›C› to
analyse its customer atabase, which inclu es information from eight separate operations
systems inclu ing retail banking, bon s, fixe eposits, retail consumer loans, cre it
car s, custo ial services, online share tra ing an 6TM.

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 6: Customers of ›C›C› Bank can access their bank accounts through mobile
6TMs. These 6TMs are kept in vans an parke at locations that have a high traffic of bank
customers such as the commercial areas in a city or up market resi ential areas ›C›C› Bank now
provi es stan ar 6TM facilities through 6TM vans. This facility has been trie at Mumbai,
Chan igarh an various places in Kerala uring specifie timings.

 : The ›C›C› Bank
s Bulk Deposit 6TMs enable customers to eposit large
amounts at one time. Unlike conventional 6TMs, which are able to accept only 30 notes at a
time, these 6TMs allow the eposit of huge amounts. The Bulk Deposit 6TM is available in
Mumbai
s Vashi sector branch office of ›C›C›. The bulk eposit facility can be availe of by
select customers who nee to eposit huge amounts of cash. ›C›C› Bank issues a special car
calle the `Deposit Only Car
to facilitate this service. This car allows for eposit transactions
only. The service is further facilitate by the provision of special bags at 6TMs in which a
customer can put his money. 6fter the eposit slip is fille , the bag can be inserte in the 6TM.
The transaction slip is then generate by the 6TM as an acknowle gement of the eposit. ›C›C›
Bank also has cash pick-up service for business customers un er the business banking segment.

6    : ›C›C› Bank has launche 6TMs with special voice-gui e
systems, which gui e a visually challenge person to access 6TMs without any help. The jack
on the terminal enables hea phones to be connecte to it an voice comman s enable the
customer to transact business. Customers may choose a suitable language to get voice
comman s. 6fter the language selection is one, the customer is gui e to ensure that the 6TM
car is inserte in the right slot an thereafter, gui ance is provi e for entering the P› by using
the keypa . 6 raise button is provi e on number 5 to enable users to i entify the numbers
easily through touch. The slot for cash collection has such raise `pips
that enable easy
i entification through touch.
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   6: 6part from the usual transactions involving the bank, some
other services can also be availe of by ›C›C› Bank customers. These inclu e:

V Prepai mobile recharge

V Buying an renewing ›nternet packs (such as those of T6T6 ›n icom ›nternet service
provi er an |ify).
V Making onations for Tirupati Tirumala Devasthanams, ath wara temple an |hri Mata
Vaishno evi shrine.
V Mutual fun transactions, an
V Bill payments

    ! ": The mobile phone has been transforme into a virtual wallet
± a new innovation in mobile commerce. On |eptember 19, 2005, 6irtel, ›C›C› Bank an V›|6
announce the launch of mChq ± a revolutionary new service ± which is a cre it car using the
mobile phone. This is the first mobile-to-mobile payment option which enables 6irtel customers
an ›C›C› Bank Visa car hol ers to pay for their purchases with their 6irtel Mobile phones.
The service has eliminate the nee for carrying physical cash for making a purchase an also
the problems associate with the point of sale (PO|) terminal since the mobile phone services as
a secure PO| an a payment mechanism.

 #: ›C›C› Bank organize the largest omestic invitational amateur golf event for
H1 (high-net-worth in ivi uals) customers. This nation-wi e golf tournament ha over one
lakh high-net-worth clients of ›C›C› Bank
s private banking ivision participating in the event.

  : Mobile banking enables the customer to avail of many facilities by
just sen ing an |M|. These facilities, which are currently offere free of cost, are as follows:

V Docating 6TM
V Docating branch
V Docating rop box
V 6lert facilities like salary cre it, account ebit/cre it, cheque bounce, etc., an
V [ueries on banking, car s an emat account

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1. xplain the initiatives take by ›C›C› Bank to promote Customer Relationship

Management (CRM).
2. Discuss the benefits of the initiatives taken by ›C›C› Bank to promote Customer
Relationship Management (CRM).
3. What shoul be the core elements of CRM that ›C›C› bank in your opinion shoul
follow, besi es what they are alrea y following to make themselves a istinct bank from
their competitors
4. Outsourcing CRM is one activity that most organizations follow. ›s it a viable option.
Give your views keeping in min the cost involve in implementing CRM an enhancing
business also.