crm - icici bank

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1. OVERVIEW OF ICICI BANK: The bank, headquartered in Mumbai, has a network of about 1,400 branches and 4,530 ATMs in India and a presence in 18 countries. It offers a wide range of banking products and financial services to corporate and retail customers through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai. 2. CHANNELS: ( jus name)

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Page 1: Crm - Icici Bank

1. OVERVIEW OF ICICI BANK:

The bank, headquartered in Mumbai, has a network of about 1,400 branches and 4,530 ATMs in India and a presence in 18 countries. It offers a wide range of banking products and financial services to corporate and retail customers through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai.

2. CHANNELS: ( jus name)

ICICI Bank has the following channels through which it offers its products and services to its customers.

Branches ATMs Internet Banking

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Mobile Banking Phone Banking

Products and Services:

ICICI Bank offers a host of products and services to its clients, which include Deposits, Loans, Cards, Investments, Insurance, De-mat, NRI Services and Online Services etc.

Deposits:

Following deposits are offered:

Savings Account Advantage Deposit Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits

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Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank @ Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account

Loans:

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ICICI Bank offers following loan facilities:

Home Loans Loan Against Property Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Loan Against Gold Ornaments Pre-approved Loans

Cards:

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ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The various cards offered by ICICI bank are as below:

Consumer Cards Credit Cards Travel Cards Debit Cards Commercial Cards Corporate Cards Prepaid Cards Purchase Cards

Investments:

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ICICI Bank facilitates a range of investment products including:

ICICI Bank Tax Saving Bonds

Mutual Funds

Government of India Bonds

Initial Public Offers (IPO) by Corporates

Foreign Exchange Services

ICICI Bank Pure Gold

Senior Citizens Savings Scheme, 2004

CRM IN ICICI BANK

3. The HISTORY of CRM:

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Customer relationship management is a concept that became very popular during the 1990s. It offered long term changes and benefits to businesses that chose to use it. The reason for this is because it allowed companies to interact with their customers on a whole new level. While CRM is excellent in the long term, those who are looking for short term results may not see much progress.

One of the reasons for this is because it was difficult to effectively track customers and their purchases. It is also important to realize that large companies were responsible for processing tremendous amounts of data. This data needed to be updated on a consistent basis.

In the last few years, a number of changes have been made to Customer relationship management that has allowed it to advance. These capabilities have allowed CRM to become the system that was once envisioned by those who created it. However, the biggest problem with these newer systems is the price. A number of personalized Internet tools have been introduced to the market, and this have driven down the cost of competition. While this may be a bane for vendors who are selling expensive

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systems, it is a bonanza for small companies that would otherwise not be able to afford CRM programs. The foundation for CRM was laid during the 1980s.

During this time, it was referred to as being database marketing. The term "database marketing" was used to refer to the procedure of creating customer focus groups that could be used to speak to some of the customers of the company. The clients who were extremely valued were pivotal in communicating with the firm, but the process became quite repetitive, and the information that was collected via surveys did not give the company a great of information. Even though the company could collect data through surveys, they did not have efficient methods of processing and analyzing the information. As time went on, companies begin to realize that all they really needed was basic information. They needed to know what their customer purchased, how much they spent, and what did with the products they purchased.

The 1990s saw the introduction of a number of advances in this system. It was during this time that term Customer relationship management was introduced. Unlike previous customer relationship systems, CRM was a dual system. Instead of merely gathering information for the purpose of using for their own benefit, companies started

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giving back to the customers they served. Many companies would begin giving their customers gifts in the form of discounts, perks, or even money. The companies believed that doing this would allow them to build a sense of loyalty in those who brought their products.

4. CRM INITIATIVES OF ICICI BANK

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a. 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.

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Table – Mumbai Mobile Van

Timings Locations

9.00 am to 10.00 am Junction of Nehru Road

and M.O. Road, near

Ram temple, Vile Parle

(E)

11.00 am to 12.00 noon Opp.J.W. Marriott

Hotel, Juhu

1.00 pm to 2.00 pm Lokhandwala Circle,

Andheri (W)

3.30 pm to 5.00 pm Outside Vasanth Sagar,

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120 ft. Road, Hakur

Village, Khandivali (E)

b.Bulk Deposits

The ICICI Bank’s 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 Mumbai’s Vashi sector branch office of ICICI.

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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.

c. ATMs for the visually challenged

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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.

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d.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

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e. 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-to-mobile 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.

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f. 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 Bank’s private banking

division participating in the event.

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g. 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

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5. CRM BUSINESS CYCLE IN ICICI

1. Understand and Differentiate.

2. Develop and customize

3. Interact and Deliver

4. Acquire and retain.

Understand and differentiate: Understanding customers is important in order to

develop a sound relationship with them. Customer profiling is done in order to

understand demographics, purchase pattern and channel preference. CRM also

helped ICICI in valuation of its customers to understand customer profitability

and Customer Life Time Value (CLV).

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Develop and customize: - In a customer centric business environment, the

products and processes have to be according to customers’ needs and preferences.

ICICI has always focused on developing channels of service delivery according to

customers’ need and service expectation.

Interact and Deliver: To foster a strong customer relationship ICICI ensured that

all areas of the bank have easy access to relevant, actionable customer information

and employees should be trained on how to use customer information to tailor

interactions based on both customer needs and potential customer value.

Acquire and Retain: CRM helped ICICI to figure out valuable customers and

made it easy to formulate retention strategies for them. It also helped it cope up

with the change in customer’s life cycle and offer services accordingly.

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The basic model of implementing CRM is what followed by ICICI also. The post of

Relationship officer proved that the ICICI has felt that the bank needs a person interacting with

the customer and to the organization. ICICI started understanding the customer needs from the

relationship officers in every bank and started listening to the basic benefits that the customers

are expecting from the bank. Understanding the basic benefits ICICI way was extended to

provide extra ordinary services like Express counters, 24 hrs account enquiry, Express bank

statements, faster loans etc.

Customization of these specifications is really tougher in case of banking sector since India is

the country where more than 1Billion people live and more diversified regions and languages.

Appointing local executives in respective regions was one of the smart thinking for ICICI so that

those local executives as Relationship Managers carry out respective region customers’

problems more easily.

Customer retention is for what all these CRM companies are fighting for. This bank has a

wide customer networking system where the every account holder would pull on in any other

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scheme of the same ICICI bank. For eg ICICI account holder would have both Current and

Savings account or Loan borrower or in any growth plans of the bank, this would stick the

customer with the bank at high rate. Thus ICICI has a strong customer feeling with their

organization and with their every scheme.

6.The Benefits of CRM

Customers’ usage pattern

ICICI’s CRM data warehouse integrates data from multiple sources and enables

users to find out about the customer’s various transactions pertaining to savings

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accounts, credit cards, fixed deposits, etc. The warehouse also gives indications

regarding the customer’s channel usage.

New product development

Analysis at ICICI guide 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 customer’s needs and

desires, enabling the bank to satisfy customers through better personalization and

customization of services.

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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.

6.CRM INCLUDES MANY ASPECTS WHICH RELATE DIRECTLY TO

ONE ANOTHER

Front office operations : Direct interaction with customers,

(e.g. face to face meetings, phone calls, e-mail, online services etc.)

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Back office operations: Operations that ultimately affect the activities of

the front office. (e.g. billing, maintenance,

planning, marketing, advertising, finance, manufacturing, etc.)

Business relationships: Interaction with other companies and partners,

such as suppliers/vendors and retail outlets/distributors, industry networks

(lobbying groups, trade associations). This external network supports front

and back office activities.

Analysis: Key CRM data can be analyzed in order to plan target-

marketing campaigns, conceive business strategies, and judge the success of

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CRM activities (e.g., market share, number and types of

customers, revenue, profitability).

7.BENCHMARKS AND RESULTS:

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In the first table, we can see that the benchmarks set by ICICI are definitely of world

class and clearly values customer’s precious time. Similarly, in the second table it’s

evident that ICICI Bank and HDFC Bank have done very well compared to other

banks in terms of CRM best practices. Moreover, the standard deviation is also very

less compared to most of the other banks. Clearly this has helped ICICI bank acquire a

large customer base (about 30 million) in a shortspan of time.

8.AIM OF CUSTOMER RELATIONSHIP MANAGEMENT IS TO

PRODUCE CUSTOMER EQUITY in Banking Sector. The following are the

three major drivers of customer equity that are considered for our analysis:

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1. Value Equity.

2. Brand Equity.

3. Relationship Equity.

The competitive competency of any bank would be achieving all the above three

benefits so as to be a successful and most desirable bank in the future of its prospects.

1. Value Equity: This measures the customer perception about benefits relative to its

cost. The sub drivers of value equity are quality, price and convenience.

2. Brand Equity: Customer's subjective and intangible assessment of the brand

beyond the objectively perceived value. The sub drivers are customer brand

awareness, customer attitude towards the brand, customer perception of brand ethics

3. Relationship Equity: Customers tendency to stick to the brand above and beyond

the objective and subjective assessment of its worth .Sub drivers of relationship equity

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includes loyalty programs, community building programs and knowledge building

program.

The ICICI Bank is the first bank to appoint the post of Relationship Officer in its every

branch around India so as to enable an effective gapless customer interaction between

the bank and the customer. This designation carries the customer complaints and

critiques faced by the customers towards their transactions with the Bank like deposits,

loans, account maintenance, withdrawals, cheque books etc. This enabled a fearless

and non-hesitative relationship between both ends.

ICICI bank has more brand equity with its customers in India

holding awards shown above and also its more number of

Branches equaling SBI, the largest network branches in India.

ICICI Bank

(www.icicibank.com)

has won the DM

Review World Class

Solution Award 2003

in the Business

Intelligence category

for its Teradata

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This more proximity has made ICICI more established in the minds of the customers

that this bank has more reliable values and services.

"Winning this award is an incredible achievement for ICICI Bank and Teradata," says

Teradata business manager (India) Amrish Rau. "The solution was the first large-scale

CRM implementation in the Indian banking sector. Teradata commends ICICI Bank

for its vision and willingness to take on such a monumental project. This shows how

an Indian company embracing enterprise data warehousing solutions can very quickly

rise to stand alongside the very best businesses in the world. ICICI Bank has set a

precedent that others can follow."

9. CRM- THE ICICI EXPERIENCE

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CRM at ICICI involves increased communication between the virtual universal bank

and its customers and the prospects as well as within the group itself. The underlying

idea is to enhance every instance of contact with the customer. ICICI believes that a

true customer relationship can only be accomplished by considering the unique

prospective of every single customers.

The CRM strategy of ICICI proves to be One to One marketing so that every

prospect is taken care of in their own way this flexibility is the main reason for the

company’s overall success in Relationship marketing. The reliability the main key

factor in Banking sector as ot deals with the money of the customer the bank should

show 100% reliability with the customers and in that way ICICI knew that better

Relationship marketing would bring in more closer and reliable relationship with the

public as which it would attract more account holders with the bank.

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The award-winning Teradata enterprise data warehouse (EDW) solution has

enabled ICICI Bank to establish business intelligence market leadership in the fast-

growing Indian financial market. The bank uses its Teradata platform to develop

tailored marketing campaigns that have boosted customer acquisition rates

significantly. It has serviced over 11 million unique customers around the country. In

addition, ICICI Bank's credit cards and retail loans business units attribute 25 and 20

per cent respectively of their new/incremental business in the past year to cross-selling

activities facilitated by the data warehouse.

The CRM software applications facilitate multiple business functions with the

customers of this bank. As known ICICI systems are well designed so as to equal

quality with its one to one marketing strategy and that is it was awarded in DM review

world class solutions.

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These Success milestones talk more about the concentric and concrete functions

of ICICI in CRM strategies. The chronic strategies of ICICI right from its inception

and till now have shown the company’s importance towards its customer centric

strategies and organizations. The customer life cycle tracking system in ICICI is the

only kind of software used in the Banking sector in India. This unique software used

by the ICICI helps them to provide faster solution to the customers whenever they

needed like Dormant accounts, expired accounts, unlimited banking statements etc.

10. INTERVIEW WITH AN EMPLOYEE

Vicky: Good evening Ms. Priyanka Devedas.

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Ms. Priyanka: Good evening Vicky.

Vicky: Is it the right time to talk? We need your help regarding CRM Processes at ICICI.

Ms. Priyanka: Sure Vicky, Tell me how can I help you?

Vicky: Can you just brief us regarding CRM process of ICICI bank?

Ms. Priyanka: CRM at ICICI is an extensive process which involves communication with existing customers and prospective customers. There are multiple channels through which we communicate with customers to carry out customer management process. We use different softwares to carry out these process.

Vicky: We have also heard that ICICI Bank is the number one bank in India in customer relationship management. What is ICICI doing different than other banks?

Ms. Priyanka: We use latest software to understand our customers, their demographics and needs. We try to provide them customized products as per their requirements. You must be aware of different credit card schemes provided by us to customers.

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Vicky: CRM is the activity done at various levels of the organization, how does ICICI implement it?

Ms. Priyanka: Implementation part is done by Top management and I am not aware of the whole process. I can just tell you that “GAP analysis” is done before we embark on CRM implementation.

Vicky: Thank you very much Ms Devedas.

Ms. Priyanka: You’re welcome Vicky. Feel free to contact if you need further assistance. Have a nice day.

Reference:

Ms. Priyanka Devedas (Wealth Manager-Delhi)

[email protected]

ICICI Bank Limited

Booth No. 104-105

Faridabad – 121007

Mobile-09953001002

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The ease with which we could approach to this employee itself speaks volumes about the ICICI culture and its customer centric approach.

11. LIVE EXAMPLE

In 2008 economy slowdown many companies revenue fell down double the rate.

Among that economy has also eaten up the image of ICICI Bank. That time ICICI

faced three major problems:

1. 12% Account withdrawals from total holdings.

2. 24% decline in half yearly profit Jan-June.

3. HDFC’s CEO Deepak Parekh.

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K.L. Kamath the CEO of ICICI Bank that time addressed to the press about the

current situation saying that ICICI has a strong customer network that assures zero

account withdrawals in coming future. The statement also proved to happen, Kamath

made it happen with the strong customer base that ICICI had before. The bank sent a

prospective letter to every active customer about the reduced risk for their money in

the bank and also every branch of the Bank in India promoted risk minimization

campaign ads inside the branches and on some roads of the respective cities and

towns. No matter whether ICICI knew or do not knew that strong customer base would

save their food but that customer marketing really worked to retain the whole market

share of the ICICI Bank.

Thus ICICI has a strong customer feeling with their organization and with their every

scheme proving it that the ICICI have a successful CRM Implementation and high

Maintenance at high success rate.

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12. QUESTIONAIRE

( After questionnaire)

Findings

1. About half of the respondents are using the services provided by ICICI Bank.

2. To maintain the min. balance is the main problem for the customers.

3. All the services are not completely known to the customers.

4. Mobile banking is very less in use.

5. Most of the respondents are satisfied with the services provided by ICICI Bank.

6. About 50% of the customers are using the internet banking.

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On the basis of data collected from customers and its analysis and interpretation

following CONCLUSION can be drawn:

Most of the customers are partly aware of all the services and schemes of ICICI.

More than half of the customers are not satisfied with the balance which is to be

maintained quarterly in saving accounts and bank@ campus.

Customers are not aware of the mobile banking and most of them don't use it.

The reasons behind dissatisfaction of the customers are some times:

Query handling

Balance to be maintained .

Suggestions:

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ICICI bank offers the customer excellent & value added benefits. It offers deposits or

fixed deposits that offer an attractive customer opportunity for money. Marketing

efforts put by ICICI are laudable. Following points may be term into consideration to

generate customer’s mare interest in sales of various products of ICICI hence:

1. for saving accounts:

In saving accounts the minimum balance to be maintained quarterly is Rs. 5,000

which should be decreased somewhat for the convenience of customer.

2. For Bank@campus

In the bank@campus minimum balance to be maintained quarterly is Rs. 500 which

should be decreased some what for the convenience of students.

3. Salary accounts

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In the salary account the salary of the employees should be deposited on 1st and 2nd

of the month instead of in the mid of month.

4. Awareness Programmes :

To make customers fully aware about all the services of bank awareness

programmes should be started so that they may utilize them fully.

More and more people should be induced mobile banking and internet banking.

13. CRM IN BANKING : A CASE STUDY OF ICICI BANK

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Globally, regulation and technological improvements are responsible for the vast

majority of innovations in banking over the past quarter century. The introduction of

personal computers and the proliferation of ATMs in the 1970s captured the bank

management’s attention. The regulatory changes in the 1980s fuelled much of the

industry’s growth, which was followed by downsizing as bankers focused on creating

a market presence which resulted in significant merger activity. Recent technological

improvements are at the root of the bankers’ focus as well as a target for their

significant investment today. In fact, according to recent projections, bankers and

their financial service company brethren will spend almost $ 7 billion this year on

CRM and increase that by 14 per cent each year for the next several years.

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14. 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.

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"A customer is the most important visitor on our premises. He is not an

interruption on our work, he is the purpose of it. We are not doing him a

favour by serving him. He is doing us a favour by giving us an opportunity to

do so”

-- Mahatma Gandhi