crm project group-9
TRANSCRIPT
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2013
CRM Practices at ICICI Bank
Submitted to- Professor Nalin Jain
Group-9
Akanksha Mittal- 12PGDM004
Kartikey Maheshwari-12PGDM023
Megha Jain-12PGDM027
Contact Details
Name- Loveleen Singh
Designation- RelationshipManager
Telephone No-9873916375
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Introduction
About the Organization
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's
largest private sector bank. The Bank has a network of 3,382 branches and 10,943
ATMs in India, and has a presence in 19 countries, including India.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
ProductsICICI Bank offers a host of products and services to its clients. These include FixedDeposits, Personal Loans, Cards, Insurance, De-materialized Accounts, NRIServices and Online Services etc.
Based on the kind of services offered, there are 2 kinds of accounts:
Individual Account: These are accounts opened by an individual for his
personal use, including Salary Account, Savings Bank Account, Current
Account etc. they are offered Life Insurance in a cross-selling bid.
Individual accounts are divided into the following categories:
a) Normal:These accounts do not receive any special treatment. People
having monthly salary less than Rs. 50,000 are included under this
category.
b) Privileged Banker: These clients are assigned a Banker who
approaches them when they deal with the bank. People with monthly
salary lying between Rs. 50,000 and Rs.2 Lakh fall under this category.
c) Wealth Customers:These are customers with monthly salary of more
than Rs. 2 Lakh. They are assigned Wealth Managers to manage their
investments and portfolio. They advise customers for investments in
stocks and other assets so that their wealth is maximized.
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The information required for opening this kind of an account is:
a) Name
b) Address
c) Mobile Number
d) E-mail ID
When the account opening form is filled, the customer is asked to indicate his
preference for receiving SMS or e-mail alerts regarding his transactions. This
is a free service. The customer can get daily, weekly or monthly bank
statements on his e-mail ID or mobile phone, depending on his preferences
Company Account: These are accounts opened by the Firms for keeping
track of their subsidiaries revenues and giving salaries to their employees etc.The products offered to these clients include cash transaction services.
The information required for opening this kind of an account is:
a) Address
b) Identity: COI (Conflict of Interest) No.
In case a normal account becomes dormant, e-mails are sent to the clients giving
them new offers and products. It is by way of a reminder that these mails are sent to
the dormant clients. In case the normal account was previously held by a privileged
banker but has now become dormant, this information is sent to him so that he can
try to revive the account.
Similarly, in case of any of the other kinds of savings account becoming dormant, the
respective Privileged Banker or Wealth Manager is contacted so as to revive the
accounts.
Channels
ICICI bank connects with its customers through the following channels:
Bank Branch
ATM
Phone Banking
Internet Banking
Insta Banking
Mobile Banking
Call Centre/Customer Support
IVR (Instant Voice Response) Banking
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The longer a relationship continues; the better a bank can understand the customer
and his/her needs & preferences, and so greater the opportunity to tailor products
and services and cross-sell the product/service range. Customers in long-term
relationships are more comfortable with the service, the organization, methods and
procedures and are more likely to become a referral source.
This helps reduce operating cost and costs arising out of customer error. To achieve
all this, implementing CRM aligned with the company strategy is highly critical.
CRM, according to ICICI consists of the following approaches:
1. Getting personalized information on customers.
2. What is the value of the relationship?
3. Customized offerings to the customers.
4. Converting a prospective customer into a true customer.
OBJECTIVES OF CRM AT ICICI:
Customer Relationship Management (CRM) entails all aspects of interaction that a
company has with its customer, whether it is sales or service-related. CRM is often
thought of as a business strategy that enables businesses to:
Understand and differentiate the customer
ICICI need to understand their customers in order to have a relationship with
them. Also, in order to serve them better, the ICICI must understand their
differences. Some of the steps to do the same are:
a) Profiling to understand demographics, purchase patterns and channel
preference.
b) Primary research to capture needs and attitude.
c) Customer valuation to understand profitability, as well as lifetime value
or long-term potential.
Interact and Deliver
To foster relationships, ICICI needs to insure that:
a) All areas of the organization have easy access to relevant, actionable
customer information.
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b) All areas are trained how to use customer information to tailor
interactions based on both customer needs and potential customer
value.
Develop and Customize
Once the ICICI understands the needs and aspirations of the customers,
product and channel development has to follow the customers lead.
Organizations are increasingly developing products and services, and even
new channels based on customer needs and service expectations.
Retain customers through better customer experience and subsequently
attract new customers
The more an organization learns about its customers, the easier it is to give
them better deals that not only satisfy but delight them. ICICI aimed to do the
same. This would result in better referrals and loyalty leading to higher
acquisition of new customers.
Increase profitably
It is not as if CRM is a socialist tool used by the companies to understand
their customers better, with no profit motive for themselves. On the contrary,
CRM is very helpful in decreasing the acquisition and management costs of
clients and also increasing the maximum value that can be realized from the
existing customers; thereby increasing the overall profitability of the firm.
Hence, ICICI intended to increase its profitability by employing CRM
techniques.
Given the large number of benefits of CRM, this project is undertaken with a view to
understand the Customer Relationship Management procedures and practices at
ICICI Bank and how this helps in maintaining long term customer loyalty for the
bank. In addition to this, how CRM would help ICICI maintain profitable relationships
with their customers along with acquisition of new customers helping to increase its
market share.
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Strategic CRM
Data Collection Process
Bank collects all the information about the customers through its four service
offerings via Loan Account, Saving Account, Current account and Fixed Deposits
and this information is captured through the software Finacle provided by Infosys.
Moreover, the bank has many customers in each category. So, they collect thedata
on one server and thus the company gets the personalized information on each
customer by asking them to fill the information in customer application form.
There are 2 back-end teams for analysing this data:
Mumbai (Central Team)
Hyderabad
When the account opening form is filled, the customer is asked to indicate his
preference for receiving SMS or e-mail alerts regarding his transactions. This is a
free service. The customer can get daily, weekly or monthly bank statements on his
e-mail ID or mobile phone, depending on his preferences.
In addition to designing new offers according to customers needs, ICICI also gathers
data for prospective clients for existing products. The back-end team generates
reports for the managers to take appropriate action. The reports generated are as
follows:
Leads generation: This report gives data regarding prospective client for a
product. The managers then need to pitch in the client for that service.
Fill the information in
the customer
application form
Data entry by the front
end desk into the
software (Finnacle)
Data gets stored in the
centralized database at
the back end
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Dormancy Data: This report gives the data for accounts that have been
inactive for more than a month. The managers need to find out the reasons
for the dormancy and try to get the account active again.
Practices in organisation
Cross Selling:Refers to offering another product from the service offeringof
the bank to the customer which he has not gone for. Example If customer has
a saving account with the bank then ICICI offers him loan, insurance and
other investments
Customized Product:At ICICI, depending on the LTV of the customer, the
products are customized.
Additional Benefits: Customers are provided with maximum value for the
product they locate for themselves along with additional benefits to have
customer delight.
Examples: On buying a Coral ICICI Credit card, a Satya Paul voucher worthRs3000 is awarded to the customers.
Strategic initiatives
The Finacle software tracks all transactions taking place in various accounts. This
data is used to get information about the kind of services that can be targeted at the
customers. For instance, take the case of a company account. There would be large
amounts of cash transactions happening on a daily basis in this account. However,
its not possible to know who deposited the cash in the companys account. But,sometimes it may be critical for a company to know which of its various subsidiaries
that amount of cash on a daily basis. It is for such clients that ICICI started its cash
management service.
Under this service, all subsidiaries were given unique codes so that when they
deposited cash in the main branchs account, the main branch came to know which
of its subsidiaries had done so. This helped them to get a clear picture of each
branchs day-to-day business, thereby helping them to understand the relative
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performance of subsidiaries. So, the companies could design incentives for the low
performing subsidiaries to perform better.
How is CRM practised
Three areas are taken care while practising CRM at ICICI Bank:
Business Focus:
a) Components of CRM
i. Customer Information
ii. Sales
iii. Marketing Trends
iv. Marketing Efficacy
b) Implemented solution from Seibel (Company engaged in the design,
development, marketing, and support of customer relationship
management applications) for automation of customer handling
c) Track all customer requests and complaints
d) Identify new opportunities for existing customers as well as new customers
Organizational Structure:
a) Dynamic, constantly evolving and responsive to change
b) Flexible and consistency in standards across business groups
c) Five principle groups:
i. Retail Banking
ii. Wholesale Banking
iii. Project Finance and Special Assets Management
iv. International Business
v. Corporate Centre
All the five groups are compatible with CRM
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Technology Focus:
a) ICT (Information and Communication Technology) Strategic Tools for
competitive advantage
b) Multichannel Banking
c) Technology Strategy24*7 availability
d) Technology Management GroupGroup wide technology
e) Sybase IQ based database
f) Implemented Informatica Power Center (2003)
g) Extraction, transformation and loading
Overall CRM Implementation
Processes for Delivering CRM:
Customer Application Forms:
Bank collects all the data from customer application form and gets the
personalized information to know which product to offer to which customer. This
process helps in collecting the data and knowing what the customer wants.
Centralized Software where the Whole Data is Collected:
The data collected through customer application forms is available at one server
and can be accessed anytime, anywhere. So, this helps in the further process of
customized offerings and crossselling.
Collection of
personalizedinformation on every
customer
Evaluates the value of
the relationship witheach and every
customers
Understands the
needs and wants of
each customer
Decides on how to
approach eachcustomer on the basisof his needs and wants
ICICI offers thecustomer a
customized product
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Wide Range of Offerings:
After collecting the data from the customer, team decides what product to offer to
which customer. In case the bank recognizes you as a valuable customer then it
offers a more customized service.
Cross Selling:
It refers to offering another product from the service offering of the bank to the
customer which he has not gone for.
Example: If customer has savings account with the bank thenthey offer him an
insurance, fixed deposits etc. This depends on the value of the customer tothe
bank. Cross selling is not offered to every customer. It depends on how loyal the
customer is to the bank. The more business he gives, the more are his chances
of being special services offered.
Feedback Forms:
The bank distributes feedback forms at all its branches. The customers
feedbacks on the service, technology used, employee behaviour and promptness
in solving customers problems, are taken and they are analyzed.
CRM helps to know the needs and wants of the customer.So, on the basis of this
company can decide which product to offer to which customer. It has been
observed that cross selling is the best weapon. It enhances the relationship
value with thecustomer. This satisfies the customer and that is the reason why
the customer keeps on coming again and again to the bank. This helps in
retaining the market share. Now,the satisfied customers helpin getting
positivereferrals for the bank, which eventually increases its market share.
Operational CRM
Operational CRM allows ICICI to engage in one-to-one marketing by tracking
complete customer life-cycle history. It automates process-flow tracking in the
product sales process, and be able to generate customized reports and promote
cross selling.It will also enable efficient campaign management by providing a
software interface for definition, tracking, execution and analysis of campaigns.
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Service Force Automation:
ICICIgets connected to its customers through a number of platforms
Website
Personal calls
Email
Snail Mail
Physical
Internet banking
Mobile banking
All the required information is stored on Finacle software. It includes the
details of the calls made and e-mails sent. It also provides reminders forcontacting clients.
Marketing Automation:
Marketing automation is basically focused on automating marketing
processes. In marketing, campaign management involves marketers to use
customer specific information to determine, evaluate and develop
communications that are targeted to customers in individual as well as
multilevel or multichannel environment. Campaigns developed to
communicate customers individually are easy and involves unique and direct
communications. For multichannel environment as in the case of ICICI Bank
the implementation of marketing strategies and campaign management is
quite difficult and challenging. Here integration and implementation of
communication strategy is difficult and evaluation of performance and quality
of campaigns needs to be automated and should be technologically sound
across each of the channels. For handling this, a CRM marketing strategy
called event-based marketing is inherited by ICICI. Using event based
marketing communication and offers are presented to customers as and when
they are required. For example, credit card customer calls the call centre for
inquiring the current interest rates, this indicates that customer is specific
about the interest rates and is trying to compare the interest rates and may
switch to different competitor to find specific deals which suits him. Without
wasting time the automated CRM system pops up an event of offer which is
best suited for that customer and helps to retain him back.
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Sales-force Automation-
A CRM system is not only used to deal with the existing customers but is also
useful in acquiring new customers. The process first starts with identifying a
customer and maintaining all the corresponding details into the CRM system.
This process can be distributed into many stages which includes generation of
lead and then qualifying those leads as prospects. The Sales and Field
representatives then try getting business out of these customers by sophistically
following up with them and converting them into a winning deal. Automation of
selling process is efficiently handled by Sales-force automation which automates
all the methodologies or sales cycle and above described process
sophisticatedly. ICICI is using following sales force automation methods:
Account management
Lead Management
Contact management
Quotation and proposal generation
Collaborative CRM
Interact to customersVarious departments at ICICI like marketing, sales etc
interact to customers via mail, personal calls and share this information. Right
from the moment the inquiry comes, they follow- up the customer and then
make him to come to the bank occasionally and then regularly.
Customer feedback gathered from a technical support session could inform
marketing staff about products and services that might be of interest to the
customer.
It aims to improve the quality of customer service and as a result increase the
customer satisfaction and loyalty.
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Analytical CRM:
Warehousing
ICICI Bank is the pioneer in implementing a data warehousing (DW) solution
for banking in India. The enterprise-wide data warehouse at ICICI bank is
powered by Sybase IQ, a highly optimized business intelligence, analytics and
data warehousing solution for delivering dramatically faster results at a low
cost.
Business Advantage
ICICI bank has achieved tremendous improvement in system uptime and
significant improvement in query performance over its previous Teradata
implementation, in addition to the host of other benefits of the Sybase IQdata
warehouse migration. These are back end softwares. The software used by
front end desk is Finacle.
Key Benefits
a) Compresses data by over 60%
b) Leverages scalability owing to its open system architecture
c) Achieves trickle-feed loading
d) Allows for simultaneous loading and querying
e) Supports more than 150 users concurrently
f) Reduces downtime by providing 24x7 availability
g) Significantly improves query performance and response time
h) Lowers cost of maintenance and TCO
i) Supports heterogeneous environment as it is hardware and platform
independent
Technology
a) Sybase IQ
b) PowerDesigner
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Immediate data analysed through
a) Recency, RFM
b) LTV
Data Mining
a) Is it just stored or used
b) Any statistical tools of Data Mining used (propensity, customer tools)
The Benefits of CRM:
Customers usage pattern: ICICIs CRM data warehouse integrates data from
multiple sources and enables users to find out about the customers various
transactions pertaining to savings accounts, credit cards, fixed deposits, etc. The
warehouse also gives indications regarding the customers channel usage.
New product development: Analysis at ICICI guides product development and
marketing campaigns through Behaviour Explorer, whereby customer profiling can
be undertaken by using ad hocqueries. The products thus created take into account
the customers needs and desires, enabling the bank to satisfy customers throughbetter personalization and customization of services.
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.
Some Noteworthy CRM Initiatives of ICICI Bank:
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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Bulk Deposits: The ICICI Banks 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 Mumbais Vashi sector branch office of ICICI. 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.
ATMs for the visually challenged: 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.
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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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
servicewhich 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.
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 Banks private banking
division participating in the event.
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
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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This study strongly supports the fact that CRM is need of an hour and no business
may be it is banking business; retailing or something else can ever survive without
proper introduction of CRM. This study strongly supports the connection that
consumer were more satisfied with professional service provider who engaged in both
courteous expressions and personal connections forms of sociality. Moreover, finding
revealed that regardless of services context customers expect service provider to be
courteous usually ,most conversation begin or end with a courtesy expression and
includes some form of personal connection content. The important point is that
sociality communication can play a pivotal role in moving the provider and consumer
for mere encounters to higher degree of relational development.