Shubhrat Sharma

AGENDA

• GENERAL STATISTICS

• CRM BY SBI PRISM

• CRM AT SBI

Why customers quit ?

• 1% DIE

• 3% MOVE AWAY

• 5% DEVELOP OTHER FRIENDSHIPS

• 9% LEAVE FOR COMPETITIVE REASONS

• 14% ARE DISSATISFIED

• 68% QUIT BECAUSE OF AN ATTITUDE OF INDIFFERENCE

General Statistics

The average business never hears from 96% of its unhappy customers

91% never come back

Getting a repeat customer from this group is 1 in 11

Dissatisfied customers may tell 9-10 people about their experience

For every positive they tell 4-5 people

General Statistics…

Of the customers who register a complaint, as many as 70%will do business again with

your organization if the complaint is resolved

effectively,

This figure goes up to 95% if the complaint

has been resolved quickly,

40% of complaints are the result from customer mistakes or incorrect

expectations,

A complaint that is handled efficiently is actually better

than no complaint at all,

Customers who complain and get

satisfactory results are 8% more loyal than

if no complaint at all,

SBI PRISMWHY CRM:

• INCREASING AWARENESS

• INCREASING AFFLUENCE IN THE EMERGING ECONOMIES

• CUSTOMER DIVERSITY

• TECHNOLOGICAL ADVANCES

• PROCESS

• ALTERNATE DELIVERY CHANNELS

• COMMUNICATION

• INCREASED NUMBER OF PRODUCTS IN THE LONG RUN

• HELPS IN UNDERSTANDING NEEDS OF CUSTOMERS

CRM Objectives

Lifetime Value (LTV)

• Refers to the net present value of the potential revenue stream for any particular customer over a # of years

• Starts with current purchase activity then extrapolates to include potential additions from cross-selling, upgrades, total ownership, etc.

Customer Ownership

• Attempts to “own” the lion share of customer spending and/or “share of mind” in a particular product category

• Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is critical

• 5% points increase in customer retention=20-125% increase in profit

CUSTOMER RELATIONSHIP MANAGEMENTDuration of Customer Relationship

Va

lue

BUILDING CRM

Increase longevity of customer relationship

Manage expectations better

Specialised Services

Personal Touch

Customise products as per their needs

Increase trust

Understand need of the customers

Differentiate customers in terms of value to the Bank (leverage database available)

Identify prospects and customers

BUILDING CRM

Gain more control in interaction with customers

Manage expectations better (90-10 rule)

Understand what customers really want

Provide products that better serve

customers

Competitive advantage

Targeting Acquisition Retention Expansion

Customer Relationship Management can be simply defined as everything involved with

managing the customer relationship.

•Who do we target

•What segments are

most profitable

•What segments

match our Value

Proposition

•What is the best

segmentation

strategy for us / our

industry

•What is the best

channel for each

segment

•What is the

acquisition cost

for a channel /

segment

•Do certain

channels deliver

certain types of

customers

•Cost effective

acquisition

•How can we retain

•What is our

average CRM

length

•How can we hold

customer for as

long as possible

•What is the most

cost effective

method of

retention

•How many

products does our

average customer

buy

•How can we

induce our current

base to buy more

products

•Who are the prime

targets for

expansion

•What is the cost of

expansion

Customer Relationship Management

CRM AT SBI

SBI divide its customers into following categories

• P-segment (personnel banking)

• Agriculture segment

• Corporate/govt segment

• Sme

For different segments sbi provide different products

Separate meeting for the different segment are called and their needs are asked for.

Providing the alternate channels • A T M CUM DEBIT CARD / SME DEBIT CARD

• MOBILE BANKING

• INTERNET BANKING

• GREEN REMIT CARDS / INSTA DEPOSIT CARDS

• CASH DEPOSIT MACHINE

• GREEN CHANNEL COUNTER

• SELF SERVICE KIOSK

• CONTACT CENTRE

• AVAILABILITY OF 24X7 SERVICE

• TO CATER TO THE NEEDS OF YOUNGER GENERATION.

• QUICKER AND CONVENIENT TRANSACTIONS.

• PAPERLESS / ENVIRONMENT FRIENDLY TO A GREAT EXTENT.

• TXNS AT TIME AND PLACE OF CUSTOMERS' CHOICE

• DECONGESTION OF BRANCHES

• CHEAPER TRANSACTION COSTS.

Providing the alternate channels

90-10 rule

• 10% OF LIFE IS MADE UP OF WHAT HAPPENS TO YOU.

• 90% OF LIFE IS DECIDED BY HOW YOU REACT.

• EMPLOYEES OF SBI USE THIS RULE TO REACT THEIR CUSTOMERS DEMANDS AND QUERIES BETTER .

Customer Portfolio Management

Problem

Valu

e

I

II III

IV

Exit

Ring

fence

Protect &

leverage

Problem

identification

Nurture

Low High

High

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