AAXAX

7/30/2019 AAXAX

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Emphasizing on the importance of CRM one of the CORPORATE employees

said,

“With the overall improvement in the ETL1 process made possible by

PowerCenter, we benefi ted from greater data immediacy for business users

and more rel iable information, which r esul ted in quicker analysis and

timely reporting .” — Gurnam Saini, Assistant General Manager,

CORPORATE Bank

CRM at CORPORATE Bank involves increased communication between the

bank and its present and prospective customers. Its philosophy focuses on each and every

customer’s satisfaction. CRM facilitated coordination of multiple business functions &

multiple channel of communication with the customers to carry out customer

management more efficiently. It also automated the process flow tracking in the product

sales process and helped generate customized reports and promote cross-selling. The

typical components of a CRM strategy at CORPORATE are as follows:

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

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CORPORATE in valuation of its customers to understand customer profitability and

Customer Life Time Value (CLV). Develop and customize: - In a customer centric

business environment, the products and processes have to be according to customers’

needs and preferences. CORPORATE 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 CORPORATE 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

CORPORATE 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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IMPLEMENTING CRM AT CORPORATE BANK

The key to implementing CRM was in understanding organization and customers in a better way. There are five interrelated areas that were taken care of before implementing

CRM: Business Focus Organizational Structure Business Metrics Marketing Focus and

Technology

Business Focus: There are various components of CRM like customer information, sales,

marketing trends and marketing efficacy that acted in tandem to improve relationship

between CORPORATE and its consumers. CORPORATE captured customer data and

analyzed them while dealing with customers at these very touch points. A CRM solution

from Siebel was implemented for the automation of customer handling in all key retail

products of the Group. The solution allows customer service agents to track all customer

complaints and requests. It also allows target setting and centralized tracking of

turnaround times for request fulfillment. The solution went live in phases during fiscal

2002. The Bank has also undertaken a retail data warehouse initiative to achieve

customer integration at the back-office. This central view of the total customer

relationship is being used extensively for identifying opportunities to cross-sell new

products and services to the existing customer base. Technology Focus: CORPORATE

Bank continues to leverage ICT2 as a strategic tool for its business operations to gain

competitive advantage. Its technology strategy emphasizes enhanced level of

customer services through 24x7 availability, multi-channel banking and straight through

processing, and cost efficiency through optimal use of electronic channels, wider and

focused market reach and opportunities for cross-selling. The Technology Management

Group (TMG) is the focal point for the CORPORATE Group’s technology strategy and

Group-wide technology initiatives. This group reports directly to the Managing Director

& CEO. A key to CORPORATE’s success has been its ability to harness business

information to CRM initiatives that have fueled growth and helped attract more than 30

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million customers. The foundation for CORPORATE Bank’s wide-ranging CRM

programs is a Sybase IQ-based data warehouse. Developers had used a combination of

PL/SQL and BTEQ scripting, a proprietary technology specific to the data warehouse, for

data extraction, transformation, and loading (ETL). With its growing customer base, ITadministrators recognized that the bank needed a more powerful, sophisticated data

integration system to help ensure the warehouse lived up to its potential as an analytic

CRM engine that delivered tangible bottom-line results. To step up to the next level of

data integration, CORPORATE Bank officials agreed with a recommendation from

Teradata’s professional services division, which provided systems integration support for

the data warehouse, to implement the Informatica PowerCenter enterprise data

integration platform. (The Bank initially used Teradata as its data warehouse platform

and migrated to Sybase IQ a year ago.) CORPORATE Bank deployed PowerCenter in

2003 as it embarked on the next phase of its warehouse, which would add data from five

new sources, in addition to the initial three sources of retail banking, credit cards, and

securities information. The next step in the CRM implementation process was gap

analysis which essentially is assessing different loopholes in: Marketing, sales and

service practices Collection, capture, processing and deployment of customer information

Distribution and operations effectiveness at customer touch points

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INTERVIEW WITH AN EMPLOYEE

Suvobrata: Good evening Ms Priyanka Devedas.

Ms Priyanka: Good evening Suvobrata.

Suvobrata: Is it the right time to talk?

We need your help regarding CRM Processes at CORPORATE.

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

Suvobrata: Can you just brief us regarding CRM process of CORPORATE bank?

Ms Priyanka: CRM at CORPORATE 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.

Suvobrata: We have also heard that CORPORATE Bank is the number one bank in India

in customer relationship management. What is CORPORATE 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.

Suvobrata: CRM is the activity done at various levels of the organization, how does

CORPORATE 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.

Suvobrata: Thank you very much Ms Devadas.

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Ms Priyanka: You’re welcome

Suvobrata. Feel free to contact if you need further assistance. Have a nice day.

The ease with which we could approach to this employee itself speaks volumes about the

CORPORATE culture and its customer centric approach.

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

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

it’s evident that CORPORATE 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 CORPORATE bank

acquire a large customer base (about 30 million) in a short span of time.

CONCLUSIONS

Thus, we see that a focused and customer centric approach helped CORPORATE Bank

become # 2 bank in India (till recently, as PNB has taken over it as the No 2 bank in India

now). CORPORATE 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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