CRM in Bank (Ready Made)

8/6/2019 CRM in Bank (Ready Made)

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AcknowledgementsAcknowledgementsAcknowledgementsAcknowledgements

All our well-wishers.. All our well-wishers..



Flow of informationFlow of informationFlow of informationFlow of information

Int roduct ion.Int roduct ion.



ObjectivesObjectivesObjectivesObjectives

To describe different feat ures.

Demonst rat e examples where ever possible.

To describe different feat ures.

Demonst rat e examples where ever possible.



introductionintroduction



IntroductionIntroductionIntroductionIntroduction

The concepts of customer relationship management have been

in the air ever since very long, but CRM as a term gained currency

in the mid-1990s.

The most common question asked is«..



IntroductionIntroduction

"What is CRM?""What is CRM?"

Probably because if you ask three CRM experts, you'll get five different

answers.



InroductionInroduction

We put the question to a panel of CRMexpertsthe "gurus"

CRM is business st rat egy t o select & manage t hemost valuable cust omer relat ionships. CRMrequires a cust omer-cent ric business philosophy &cult ure t o support effect ive market ing, sales, andservice processes. CRM applicat ions can enableeffect ive cust omer relat ionship management ,provided t hat an ent erprise has t he right leadership, st rat egy, and cult ure.

We put the question to a panel of CRMexpertsthe "gurus"

CRM is business st rat egy t o select & manage t hemost valuable cust omer relat ionships. CRMrequires a cust omer-cent ric business philosophy &cult ure t o support effect ive market ing, sales, andservice processes. CRM applicat ions can enableeffect ive cust omer relat ionship management ,provided t hat an ent erprise has t he right leadership, st rat egy, and cult ure.



Customer Centric: The Starting PointCustomer Centric: The Starting Point

CRMat least t he successful, useful andprofit able kindalways st art s wit h a

business st rat egy, which t hen driveschanges in t he organizat ion and workprocesses, which are in t urn enabled byinformat ion t echnology. The reversenever works.

CRMat least t he successful, useful andprofit able kindalways st art s wit h a

business st rat egy, which t hen driveschanges in t he organizat ion and workprocesses, which are in t urn enabled byinformat ion t echnology. The reversenever works.




The reverse never works. Project s t hat focuson t echnology first , rat her t han businessobject ives, are dest ined for failure .

Business execut ives have always underst oodt he import ance of focusing on cust omers wit ht he best pot ent ial for sales and profit s and

providing good service so t hey'll come backagain and again.

The reverse never works. Project s t hat focuson t echnology first , rat her t han businessobject ives, are dest ined for failure .

Business execut ives have always underst oodt he import ance of focusing on cust omers wit ht he best pot ent ial for sales and profit s and

providing good service so t hey'll come backagain and again.




Why has CRM bulled its way to abillion-dollar industry?

Bottom line: Power has shif t ed t ocust omers, who st and ast ride t hreepowerful current s:The failure of ent erprise resource (ERP)

planning syst ems t o best ow a last ingcompet it ive advant age for companies.

Cont inued

Why has CRM bulled its way to abillion-dollar industry?

Bottom line: Power has shif t ed t ocust omers, who st and ast ride t hreepowerful current s:The failure of ent erprise resource (ERP)

planning syst ems t o best ow a last ingcompet it ive advant age for companies.

Cont inued




The cycle of innovat ion-t o-product ion-t o-obsolescence has accelerat ed, leading t o

an

abunda

nce of op

t io

ns for cus

t omersand a shrinking market window for

vendors.

Int ernet -surfing cust omers have far

easier t ime collect ing informat ion about compet ing suppliers, and can swit ch t oanot her vendor at t he click of a mouse.

The cycle of innovat ion-t o-product ion-t o-obsolescence has accelerat ed, leading t o

an

abunda

nce of op

t io

ns for cus

t omersand a shrinking market window for

vendors.

Int ernet -surfing cust omers have far

easier t ime collect ing informat ion about compet ing suppliers, and can swit ch t oanot her vendor at t he click of a mouse.



The Customer Relationship LifecycleThe Customer Relationship Lifecycle

Business Processes supported by CRMapplications

Marketing: Target ing prospect s and acquiring new

cust omers t hrough dat a mining, campaign management , and lead dist ribut ion. Remember, t heemphasis here is on long-t erm relat ionship value, not quick hit .

Sales: Closing business wit h effect ive selling

processes using proposal generat ors, configurat ors,knowledge management t ools, cont act managers, andforecast ing aids-all wit hout utt ering The Eight WordsThat Kill A Sale: "Let me get back t o you on t hat ."

Business Processes supported by CRMapplications

Marketing: Target ing prospect s and acquiring new

cust omers t hrough dat a mining, campaign management , and lead dist ribut ion. Remember, t heemphasis here is on long-t erm relat ionship value, not quick hit .

Sales: Closing business wit h effect ive selling

processes using proposal generat ors, configurat ors,knowledge management t ools, cont act managers, andforecast ing aids-all wit hout utt ering The Eight WordsThat Kill A Sale: "Let me get back t o you on t hat ."



The Customer Relationship LifecycleThe Customer Relationship Lifecycle

E-commerce: In t he Int ernet Age-welcome t o it -selling processes shouldt ra

nsfer seamlessly i

nt o purchasi

ngt ransact ions, done quickly, convenient ly,

and at t he lowest cost .

Service: Handling post -sales service

and support issues wit h call cent erapplicat ions or Web-based cust omerself-service opt ions.

E-commerce: In t he Int ernet Age-welcome t o it -selling processes shouldt ra

nsfer seamlessly i

nt o purchasi

ngt ransact ions, done quickly, convenient ly,

and at t he lowest cost .

Service: Handling post -sales service

and support issues wit h call cent erapplicat ions or Web-based cust omerself-service opt ions.



Understanding the Concept of CRMUnderstanding the Concept of CRM

CRM is a philosophy t hat put s t he cust omer at t he design point , it 's gett ing int imat e wit h t hecust omer.

CRM is more as a st rat egy t han a process. It 'sdesigned t o underst and and ant icipat e t heneeds of t he current and pot ent ial cust omerbase a company has. Once you nail t hat ,t here's a plet hora of t echnology out t here t hat

helps capt ure cust omer dat a and ext ernalsources, and consolidat e it in a cent ralwarehouse t o add int elligence t o t he overallCRM st rat egy.

CRM is a philosophy t hat put s t he cust omer at t he design point , it 's gett ing int imat e wit h t hecust omer.

CRM is more as a st rat egy t han a process. It 'sdesigned t o underst and and ant icipat e t heneeds of t he current and pot ent ial cust omerbase a company has. Once you nail t hat ,t here's a plet hora of t echnology out t here t hat

helps capt ure cust omer dat a and ext ernalsources, and consolidat e it in a cent ralwarehouse t o add int elligence t o t he overallCRM st rat egy.




CRM as a cust omer- cent ric business st rat egy,which drives changes in funct ional roles in t hecompany, which demand re-engineering of work processes, which is support ed, not driven, by CRM t echnology.

Translation: First you change your business

approach, t hen you re-engineer t he roles in your company t o support t hat new approach,t hen and only t hen you st art t alking t ovendors.

CRM as a cust omer- cent ric business st rat egy,which drives changes in funct ional roles in t hecompany, which demand re-engineering of work processes, which is support ed, not driven, by CRM t echnology.

Translation: First you change your business

approach, t hen you re-engineer t he roles in your company t o support t hat new approach,t hen and only t hen you st art t alking t ovendors.




CRM is simply a process wit h t he goal of making relat ionships profit able. To reach

t his goal, market ing, sales and servicemust work more as t eam and shareinformat ion. Comput erized CRMapplicat ions make t his possible.

CRM is simply a process wit h t he goal of making relat ionships profit able. To reach

t his goal, market ing, sales and servicemust work more as t eam and shareinformat ion. Comput erized CRMapplicat ions make t his possible.



CRM : An OverviewCRM : An Overview



Why Climbe the CRM Mountain?Why Climbe the CRM Mountain?

Automate inefficient and expensive workprocesses:

Get t he same work for less cos

t , goose

t hebott om line, cut st aff, fatt en up t he financial

st akeholders. Companies value efficiency overcust omer sat isfact ion. Aut omat ing and

hurrying up cust omer service calls andproviding financial incent ives for servicerepresent at ives t o maximize call t urns is asure-fire way t o maximize cust omer t urns.

Automate inefficient and expensive workprocesses:

Get t he same work for less cos

t , goose

t hebott om line, cut st aff, fatt en up t he financial

st akeholders. Companies value efficiency overcust omer sat isfact ion. Aut omat ing and

hurrying up cust omer service calls andproviding financial incent ives for servicerepresent at ives t o maximize call t urns is asure-fire way t o maximize cust omer t urns.




Use the Internet:

Cust omers are dying t o flock t o web, where

companies ca

nshu

nt off all low-margi

n cust omers and low-margin t ransact ions.

Today's buyers use t he Int ernet moreselect ively t han t oday's sellers like. Low-

margin cust omers are of t en high-pot ent ialcust omers and low-margin t ransact ions of t en come from high-margin cust omers.

Use the Internet:

Cust omers are dying t o flock t o web, where

companies ca

nshu

nt off all low-margi

n cust omers and low-margin t ransact ions.

Today's buyers use t he Int ernet moreselect ively t han t oday's sellers like. Low-

margin cust omers are of t en high-pot ent ialcust omers and low-margin t ransact ions of t en come from high-margin cust omers.




Fix' sales and marketing: CRM willkeep t hose lazy sales reps away from

t hose 2:30 t ee t imes. Load GPS in t heirlapt ops. Get t hose market ing primadonnas pounding numbers inst ead of sipping daiquiris while "creat ing" ads.

Fix' sales and marketing: CRM willkeep t hose lazy sales reps away from

t hose 2:30 t ee t imes. Load GPS in t heirlapt ops. Get t hose market ing primadonnas pounding numbers inst ead of sipping daiquiris while "creat ing" ads.



Importance of CRM to anOrganizationImportance of CRM to anOrganization

Benefits of CRM are clear: By st reamliningprocesses and providing sales, market ing, andservice personnel wit h bett er, more complet e

cust omer informat ion, CRM enablesorganizat ions t o est ablish more profit ablecust omer relat ionships and decrease operat ingcost s.

Sales organizat ions can short en t he sales cycleand increase key sales-performance met ricssuch as revenue per sales represent at ive,average order size, and revenue per cust omer.

Benefits of CRM are clear: By st reamliningprocesses and providing sales, market ing, andservice personnel wit h bett er, more complet e

cust omer informat ion, CRM enablesorganizat ions t o est ablish more profit ablecust omer relat ionships and decrease operat ingcost s.

Sales organizat ions can short en t he sales cycleand increase key sales-performance met ricssuch as revenue per sales represent at ive,average order size, and revenue per cust omer.




Market ing organizat ions can increasecampaign response rat es and market ing-driven revenue while simult aneouslydecreasing lead-generat ion and cust omer-acquisit ion cost s.

Cust omer service organizat ions can increase

service-agent product ivit y and cust omerret ent ion while decreasing service cost s,response t imes, and request -resolut ion t imes.

Market ing organizat ions can increasecampaign response rat es and market ing-driven revenue while simult aneouslydecreasing lead-generat ion and cust omer-acquisit ion cost s.

Cust omer service organizat ions can increase

service-agent product ivit y and cust omerret ent ion while decreasing service cost s,response t imes, and request -resolut ion t imes.



Advantages of CRM Advantages of CRM

Provide bett er cust omer service

Increase cust omer revenues

Discover new cust omersCross sell/Up Sell product s moreeffect ively

Help sales st aff close deals fas

t erMake call cent ers more efficient

Simplify market ing and sales processes

Provide bett er cust omer service

Increase cust omer revenues

Discover new cust omersCross sell/Up Sell product s moreeffect ively

Help sales st aff close deals fas

t erMake call cent ers more efficient

Simplify market ing and sales processes



CRM for Banking : An OverviewCRM for Banking : An Overview



CRM for Banking : IntroductionCRM for Banking : Introduction

The word bank is derived from t he It alian banca, which is derived from German andmeans bench. having it s bench physically

broken. Money lenders in Nort hern It alyoriginally did business in open areas, or bigopen rooms, wit h each lender working fromhis own bench or t able.

The evolut ion of banking dat es back t o t heearliest writ ing, and cont inues in t he present where a bank is a financial inst it ut ion t hat provides banking and ot her financial services.

The word bank is derived from t he It alian banca, which is derived from German andmeans bench. having it s bench physically

broken. Money lenders in Nort hern It alyoriginally did business in open areas, or bigopen rooms, wit h each lender working fromhis own bench or t able.

The evolut ion of banking dat es back t o t heearliest writ ing, and cont inues in t he present where a bank is a financial inst it ut ion t hat provides banking and ot her financial services.




Current ly t he t erm bank is generallyunderst ood as an inst it ut ion t hat holds a

banking license.Banking licenses are grant ed byfinancial supervision aut horit ies and

provide right s

t o co

nduc

t t he mos

t fundament al banking services such as

accept ing deposit s and making loans.

Current ly t he t erm bank is generallyunderst ood as an inst it ut ion t hat holds a

banking license.Banking licenses are grant ed byfinancial supervision aut horit ies and

provide right s

t o co

nduc

t t he mos

t fundament al banking services such as

accept ing deposit s and making loans.




There are also financial inst it ut ions t hat provide cert ain banking services wit hout

meet ing t he legal definit ion of a bank, aso called non-bank. Banks are a subset of t he financial services indust ry.

There are also financial inst it ut ions t hat provide cert ain banking services wit hout

meet ing t he legal definit ion of a bank, aso called non-bank. Banks are a subset of t he financial services indust ry.




Banking is changingTechnology is being int roduced in t he sect or.

A great er amount of disint ermediat ion is t aking place

in t he higher segment of t he corporat e sect or andt here is a need for providing bett er qualit y cust omerservice.

The market is becoming more & more buyerdominat ed.

In Banking, t he final result as t o who will act ually beable t o woo cust omers will depend on t heir abilit y t oreact and respond t o t he cust omer requirement .

Cont inued.

Banking is changingTechnology is being int roduced in t he sect or.

A great er amount of disint ermediat ion is t aking place

in t he higher segment of t he corporat e sect or andt here is a need for providing bett er qualit y cust omerservice.

The market is becoming more & more buyerdominat ed.

In Banking, t he final result as t o who will act ually beable t o woo cust omers will depend on t heir abilit y t oreact and respond t o t he cust omer requirement .

Cont inued.




The cust omer is going t o be t he real deciderof fat e of Banks.

The Banks want t o be a major ret ail consumer

globally. The part of ret ail Banking goes not only wit h Credit Card but Debit Cards andSmart Cards as well.

The Cust omer base in banks is increasing

because banks such as Swiss Bank, HDFCBank, ICICI, HSBC, Cit ibank, American Expressare wooing corporat e t o ent er int o new fieldsand giving t hem ext ra facilit ies and services.

The cust omer is going t o be t he real deciderof fat e of Banks.

The Banks want t o be a major ret ail consumer

globally. The part of ret ail Banking goes not only wit h Credit Card but Debit Cards andSmart Cards as well.

The Cust omer base in banks is increasing

because banks such as Swiss Bank, HDFCBank, ICICI, HSBC, Cit ibank, American Expressare wooing corporat e t o ent er int o new fieldsand giving t hem ext ra facilit ies and services.




Facilit ies such as ATM net work, which providesvisibilit y and convenience are set near railwayst at ion, pet rol pump, shopping complexes et c.

Int ernet Banking is available t o t he cust omerat his deskt op, while t he branches may becert ain kilomet ers away.Banks are providing cust omers wit h t hehighest qualit y services wit h special emphasis

on recognizing cust omer needs and crossselling (expanding relat ionship wit h exist ingclient s t o increase range of services deliveredt o t he client s) appropriat e bank services.

Facilit ies such as ATM net work, which providesvisibilit y and convenience are set near railwayst at ion, pet rol pump, shopping complexes et c.

Int ernet Banking is available t o t he cust omerat his deskt op, while t he branches may becert ain kilomet ers away.Banks are providing cust omers wit h t hehighest qualit y services wit h special emphasis

on recognizing cust omer needs and crossselling (expanding relat ionship wit h exist ingclient s t o increase range of services deliveredt o t he client s) appropriat e bank services.




The lat est t rend in banking st rat egy is clicks &bricks in which cust omer can debit or credit account s, check balances and even t rade on it .

Car loan is ot her area in which banks aredeveloping relat ionship wit h t he cust omer. Various loan st ruct ures are designed forvarious sect ors t o soot he t heir personal andbusiness needs which can give approximat ely

3.5 t o 5 percent increase in cust omers as pert he survey t aken in 2004. The ideal model of maint aining relat ionship wit h t he cust omerfocuses on t he cust omer service issues.

The lat est t rend in banking st rat egy is clicks &bricks in which cust omer can debit or credit account s, check balances and even t rade on it .

Car loan is ot her area in which banks aredeveloping relat ionship wit h t he cust omer. Various loan st ruct ures are designed forvarious sect ors t o soot he t heir personal andbusiness needs which can give approximat ely

3.5 t o 5 percent increase in cust omers as pert he survey t aken in 2004. The ideal model of maint aining relat ionship wit h t he cust omerfocuses on t he cust omer service issues.



Understanding Customer Portfoliosusing Analytical CRM

Understanding Customer Portfoliosusing Analytical CRM

Managing t he cust omer port folio is key t osuccessful banking. The composit ion of t hecust omer port folio depends on const ant inflows and out flows t hat cannot be predict ed.

The basic t ask of cust omer port foliomanagement is t o segment and profile

exist ing a

nd prospec

t ive cus

t omers. Cus

t omerport folio management can only be successful

if aggregat ed key figures can be broken down int o figures for individual cust omers.

Managing t he cust omer port folio is key t osuccessful banking. The composit ion of t hecust omer port folio depends on const ant inflows and out flows t hat cannot be predict ed.

The basic t ask of cust omer port foliomanagement is t o segment and profile

exist ing a

nd prospec

t ive cus

t omers. Cus

t omerport folio management can only be successful

if aggregat ed key figures can be broken down int o figures for individual cust omers.



Understanding Customer Portfoliosusing Analytical CRMUnderstanding Customer Portfoliosusing Analytical CRM

The sales organizat ion requires up-t o-dat ecust omer key figures and segment s.Import ant key figures include risk cost s, risk

adjust ed yields, average business volume, andannual income from commission.

A qualit at ive analysis requires acomprehensive, uniform informat ion base.

Sof t fact s invaluable, personal informat ion about cust omers gained t hrough cust omerint eract ions are required in addit ion t ot ransact ion dat a and cont ract dat a.

The sales organizat ion requires up-t o-dat ecust omer key figures and segment s.Import ant key figures include risk cost s, risk

adjust ed yields, average business volume, andannual income from commission.

A qualit at ive analysis requires acomprehensive, uniform informat ion base.

Sof t fact s invaluable, personal informat ion about cust omers gained t hrough cust omerint eract ions are required in addit ion t ot ransact ion dat a and cont ract dat a.



Understanding Customer Portfoliosusing Analytical CRMUnderstanding Customer Portfoliosusing Analytical CRM



Optimizing Sales Processes usingOperational CRM

Optimizing Sales Processes usingOperational CRM

Sales processes must be opt imized t o generat e largerprofit s. This opt imizat ion can consist of improving t heefficiency of lead and opport unit y management andensuring t hat workflow can t rigger appropriat eact ivit ies so t hat deals do not fall t hrough t he cracks.Opt imizat ion of t he sales process increases t heeffect iveness of relat ionship managers.

For example, by reducing t he number of

administ ra

t ive

t asks

t ha

t ba

nk employees have

t operform. This involves eliminat ing redundant dat a

maint enance and int egrat ing act ivit y or businessact ivit y management combined wit h deadlinemonit oring and alert and event management .

Sales processes must be opt imized t o generat e largerprofit s. This opt imizat ion can consist of improving t heefficiency of lead and opport unit y management andensuring t hat workflow can t rigger appropriat eact ivit ies so t hat deals do not fall t hrough t he cracks.Opt imizat ion of t he sales process increases t heeffect iveness of relat ionship managers.

For example, by reducing t he number of

administ ra

t ive

t asks

t ha

t ba

nk employees have

t operform. This involves eliminat ing redundant dat a

maint enance and int egrat ing act ivit y or businessact ivit y management combined wit h deadlinemonit oring and alert and event management .



Improving Customer SatisfactionImproving Customer Satisfaction

With proper branding a bank can enjoy:Increased market share as t he posit ive valueassociat ed wit h your product s and services

and att ract s more cust omers.The abilit y t o charge more for product s andservices because cust omers associat e t rust ,reliabilit y, and ot her posit ive att ribut es wit hcompanies t hat have brand-name recognit ion.

The abilit y t o t est and launch new product sbecause of t he posit ive effect of brandawareness on cust omer accept ance.

With proper branding a bank can enjoy:Increased market share as t he posit ive valueassociat ed wit h your product s and services

and att ract s more cust omers.The abilit y t o charge more for product s andservices because cust omers associat e t rust ,reliabilit y, and ot her posit ive att ribut es wit hcompanies t hat have brand-name recognit ion.

The abilit y t o t est and launch new product sbecause of t he posit ive effect of brandawareness on cust omer accept ance.



Enhancing ProfitablyEnhancing ProfitablyEnhancing ProfitablyEnhancing Profitably

To st ay compet it ive, financial inst it ut ions must improve profit abilit y.

W

it h higher produc

t pe

net ra

t io

nper cus

t omer,it becomes easier t o draw a bigger share of

t he market .

As more product s are sold, profit abilit y rises.

As cust omers develop a deeper relat ionshipwit h t he company, cust omer ret ent ion increases furt her expanding market share.

To st ay compet it ive, financial inst it ut ions must improve profit abilit y.

W

it h higher produc

t pe

net ra

t io

nper cus

t omer,it becomes easier t o draw a bigger share of

t he market .

As more product s are sold, profit abilit y rises.

As cust omers develop a deeper relat ionshipwit h t he company, cust omer ret ent ion increases furt her expanding market share.



Enhancing ProfitablyEnhancing ProfitablyEnhancing ProfitablyEnhancing Profitably

Banks must also overcome a range of t echnological hurdles, including syst ems fordat a collect ion t hat are highly fragment ed andredundant .

Dat a may also be decent ralized due t ochanges in company st ruct ure, a merger, or

an

acquisit io

n.

t he bank faces significant barriers for cross-selling, up-selling, and ot herwise ext endingt he cust omer life cycle.

Banks must also overcome a range of t echnological hurdles, including syst ems fordat a collect ion t hat are highly fragment ed andredundant .

Dat a may also be decent ralized due t ochanges in company st ruct ure, a merger, or

an

acquisit io

n.

t he bank faces significant barriers for cross-selling, up-selling, and ot herwise ext endingt he cust omer life cycle.



UNDERSTANDING CRM FORBANKING


A survey reveals t hat only 36% of t he CEOshave CRM as one of t he t op act ivit ies in t hereagenda.

The use of new t echnologies in t his sect or hasprovided quick and efficient service,personalized int erest and import ance t o t hecust omer t hat is t he name of t he game.

Mult inat ional banks are of t he opinion t hat t oday t here banks believe in providing st at e of t he art value added services t o t heircust omers.

A survey reveals t hat only 36% of t he CEOshave CRM as one of t he t op act ivit ies in t hereagenda.

The use of new t echnologies in t his sect or hasprovided quick and efficient service,personalized int erest and import ance t o t hecust omer t hat is t he name of t he game.

Mult inat ional banks are of t he opinion t hat t oday t here banks believe in providing st at e of t he art value added services t o t heircust omers.





Regulat ion and t echnological improvement sare responsible for t he vast majorit y of innovat ions in banking over t he past quart ercent ury.

Bankers at all point s of t he CRM spect rum arelooking for a way t o quant ify t heir ret urn on

inves

t me

nt ei

t her wha

t it

act ually is or, if just st art ing out , what it should be and over

what period of t ime should t he value berealized.

Regulat ion and t echnological improvement sare responsible for t he vast majorit y of innovat ions in banking over t he past quart ercent ury.

Bankers at all point s of t he CRM spect rum arelooking for a way t o quant ify t heir ret urn on

inves

t me

nt ei

t her wha

t it

act ually is or, if just st art ing out , what it should be and over

what period of t ime should t he value berealized.



BENEFITS OF DEPLOYING A CRMSUITE

BENEFITS OF DEPLOYING A CRMSUITE

The new wave in ret ail banking is an ent erprise-wide, cust omer-cent ric approachwhere branch-banking; call cent ers and e-banking converge t o provide a "best ofbreed" approach t o cust omers.

The object ive is t o seamlessly deliver banking

services on

demand across all cha

nnels

t ocreat e and support a cust omer's posit ive

experience of t he process.

The new wave in ret ail banking is an ent erprise-wide, cust omer-cent ric approachwhere branch-banking; call cent ers and e-banking converge t o provide a "best ofbreed" approach t o cust omers.

The object ive is t o seamlessly deliver banking

services on

demand across all cha

nnels

t ocreat e and support a cust omer's posit ive

experience of t he process.



A CRM Fairy Tale A CRM Fairy Tale

Each and every product on t he banksshowcase i.e. Saving account s, loans, credit cards, debit Cards et c. Each product has it sown part icular pre-defined syst em.

Using CRM, a bank is able t o analyze howeach client 's inherent value t o t he bank is

affect ed by

t he

t ype a

nd freque

ncy of eve

nt s,t heir balances and t heir channel usage.

Each and every product on t he banksshowcase i.e. Saving account s, loans, credit cards, debit Cards et c. Each product has it sown part icular pre-defined syst em.

Using CRM, a bank is able t o analyze howeach client 's inherent value t o t he bank is

affect ed by

t he

t ype a

nd freque

ncy of eve

nt s,t heir balances and t heir channel usage.




Once upon a t imeway-t oo-big bank inst alled CRMsof t ware, rebuilt t heir processes around it and t rainedt heir st aff in CRM.

An

OL

AP query int

o banks da

t a warehouse asks who ca

n be banks best cust omers. It s evident t hat cust omers

wit h MBAs t end t o earn and bankmore t han an average cust omer. So, a campaign is designed t o ent iceMBA st udent s t o open account s.

Campaign

manageme

nt sof

t ware shows

t ha

t e-mailyields t he st rongest response. An e-mail campaign t o a

list of MBA st udent s is rolled out . Of which, JaneGogett er responds t o t heir market ing campaign.

Once upon a t imeway-t oo-big bank inst alled CRMsof t ware, rebuilt t heir processes around it and t rainedt heir st aff in CRM.

An

OL

AP query int

o banks da

t a warehouse asks who ca

n be banks best cust omers. It s evident t hat cust omers

wit h MBAs t end t o earn and bankmore t han an average cust omer. So, a campaign is designed t o ent iceMBA st udent s t o open account s.

Campaign

manageme

nt sof

t ware shows

t ha

t e-mailyields t he st rongest response. An e-mail campaign t o a

list of MBA st udent s is rolled out . Of which, JaneGogett er responds t o t heir market ing campaign.




JANE OPENS AN ACCOUNT:

Jane get s t he e-mail offer for free checking andonline banking, she clicks on t he URL for moreinformat ion. She complet es an online applicat ion,

which asks for her preferences on how must t hebank communicat e t o her, in what language shouldt he ATM speak t o her, which pin number would sheprefer, which of t he bank product s int erest s her t hemost

On complet ing t he preferences Jane submit s t heapplicat ion. As soon as t he form is submitt ed t hedat a flows from t he web int erface t o t he banks front office CRM sof t ware and int o t he operat ionalcust omer informat ion dat abase.

JANE OPENS AN ACCOUNT:

Jane get s t he e-mail offer for free checking andonline banking, she clicks on t he URL for moreinformat ion. She complet es an online applicat ion,

which asks for her preferences on how must t hebank communicat e t o her, in what language shouldt he ATM speak t o her, which pin number would sheprefer, which of t he bank product s int erest s her t hemost

On complet ing t he preferences Jane submit s t heapplicat ion. As soon as t he form is submitt ed t hedat a flows from t he web int erface t o t he banks front office CRM sof t ware and int o t he operat ionalcust omer informat ion dat abase.




JANE GOES TO THE ATM:

Now Jane has received t he ATM card and herpreferences are st ored on her ATM card. When she

visit s a ba

nk machi

ne, she's welcomed by

name i

n English and asked if she'd like her usual $80 wit h

receipt . She deposit s t he paycheck from her part -t ime job; it 's read by t he ATM's scanner. An image of t hecheck print s on her t wo-sided receipt ; herendorsement appears on t he back. Jane is confident t hat t he ATM isn't devouring her checks, and t he bankhas divert ed Jane from expensive t eller visit s.

JANE GOES TO THE ATM:

Now Jane has received t he ATM card and herpreferences are st ored on her ATM card. When she

visit s a ba

nk machi

ne, she's welcomed by

name i

n English and asked if she'd like her usual $80 wit h

receipt . She deposit s t he paycheck from her part -t ime job; it 's read by t he ATM's scanner. An image of t hecheck print s on her t wo-sided receipt ; herendorsement appears on t he back. Jane is confident t hat t he ATM isn't devouring her checks, and t he bankhas divert ed Jane from expensive t eller visit s.




JANE LANDS A JOB: An OL AP inquiry picks up t he sudden increase in Jane's biweekly deposit s and her request foraut omat ic deposit s. Her account is flagged as a good

prospect for a CD, mut ual fund or an IRA. The next t ime she cont act s t he bank, regardless of channel,she'll receive an appropriat e offer. Jane calls t o checkher account balance. A pop-up window on t he agent 'sscreen indicat es t hat she probably has a new job andmay want informat ion on invest ing. He gives Jane heraccount balance and asks whet her congrat ulat ions on a new job are in order. Jane says yes and t he agent offers t o send her a free financial planning kit and e-mails a kit request t o t he fulfillment depart ment .

JANE LANDS A JOB: An OL AP inquiry picks up t he sudden increase in Jane's biweekly deposit s and her request foraut omat ic deposit s. Her account is flagged as a good

prospect for a CD, mut ual fund or an IRA. The next t ime she cont act s t he bank, regardless of channel,she'll receive an appropriat e offer. Jane calls t o checkher account balance. A pop-up window on t he agent 'sscreen indicat es t hat she probably has a new job andmay want informat ion on invest ing. He gives Jane heraccount balance and asks whet her congrat ulat ions on a new job are in order. Jane says yes and t he agent offers t o send her a free financial planning kit and e-mails a kit request t o t he fulfillment depart ment .




BU YING A CAR MADE EASY

6 mont hs lat er Jane's aut omat ic deposit s increase by2% percent t o reflect a raise. Ot her cust omers at

her age have proven

likelyt o spe

nd ex

t ra i

ncome o

n new cars, so a market ing analyst reviewing account

st at us changes sends her a personalized e-mail offerfor a new car loan. Jane, who has been t empt ed byt hought s of a new car, responds by clicking on t hecar loan URL. When she logs on using her password,t he sit e serves up a car-loan applicat ion pre-populat ed wit h her account dat a. Jane finances hercar t hrough t he bank.

BU YING A CAR MADE EASY

6 mont hs lat er Jane's aut omat ic deposit s increase by2% percent t o reflect a raise. Ot her cust omers at

her age have proven

likelyt o spe

nd ex

t ra i

ncome o

n new cars, so a market ing analyst reviewing account

st at us changes sends her a personalized e-mail offerfor a new car loan. Jane, who has been t empt ed byt hought s of a new car, responds by clicking on t hecar loan URL. When she logs on using her password,t he sit e serves up a car-loan applicat ion pre-populat ed wit h her account dat a. Jane finances hercar t hrough t he bank.




JANE GETS A LOAN:

Approval of Janes aut o loan t riggers ret urn e-mailoffering car insurance from t he banks insurance

subsidiary.T

he email lin

kst

ot

he in

suran

cesubsidiaries web sit e. Janes cust omer dat a is linkedt o t he insurance web sit e, so t he applicat ion ispart ially filled in. The process of complet ing t heapplicat ion t akes less t han 10 minut es. Janeinst ant ly receives quot es from t hree companies t hat offer insurance t hat best fit her profile. Jane choosesone company, and her new car is now insured when she picks it up.

JANE GETS A LOAN:

Approval of Janes aut o loan t riggers ret urn e-mailoffering car insurance from t he banks insurance

subsidiary.T

he email lin

kst

ot

he in

suran

cesubsidiaries web sit e. Janes cust omer dat a is linkedt o t he insurance web sit e, so t he applicat ion ispart ially filled in. The process of complet ing t heapplicat ion t akes less t han 10 minut es. Janeinst ant ly receives quot es from t hree companies t hat offer insurance t hat best fit her profile. Jane choosesone company, and her new car is now insured when she picks it up.




GETTING A MORTG AGE:

Jane has found t he house of her dreams and needs t o get approved for a mort gage quickly. This bank has t reat ed herwell, so she doesn't bot her t o shop. As she fills out an online

applicat io

n, she realizes she wa

nt s

t o borrow ex

t ra fu

nds

t ofinance kit chen renovat ions. She clicks on t he "call t he agent "

butt on, and wit hin 30 seconds an agent 's voice booms t hroughher PC speakers. "Hi Jane, t his is Bob. I underst and you have aquest ion about your mort gage. How can I help?. The syst emt ells Bob t hat Jane is a good cust omer, and qualifies for moret ha

n t he mor

t gage amou

nt . He OKs her

t o apply for a

n addit ional 10%. Jane complet es t he online app. and is

promised an answer in 4 hours. Jane receives an e-mail wit hin a half hour t elling her she's approved for t he full amount .

GETTING A MORTG AGE:

Jane has found t he house of her dreams and needs t o get approved for a mort gage quickly. This bank has t reat ed herwell, so she doesn't bot her t o shop. As she fills out an online

applicat io

n, she realizes she wa

nt s

t o borrow ex

t ra fu

nds

t ofinance kit chen renovat ions. She clicks on t he "call t he agent "

butt on, and wit hin 30 seconds an agent 's voice booms t hroughher PC speakers. "Hi Jane, t his is Bob. I underst and you have aquest ion about your mort gage. How can I help?. The syst emt ells Bob t hat Jane is a good cust omer, and qualifies for moret ha

n t he mor

t gage amou

nt . He OKs her

t o apply for a

n addit ional 10%. Jane complet es t he online app. and is

promised an answer in 4 hours. Jane receives an e-mail wit hin a half hour t elling her she's approved for t he full amount .




OOPS JANE GETS DISTRACTED:

Jane forget s, and doesn t pay her credit card bill on t ime for t he first t ime in 5 years. An aut omat ic

busin

ess rule in

t

he front

-office CRM syst

em waivest he finance charge applied by t he back-office credit card syst em. It recognizes t hat is t he first t ime it 'shappened. And, and her lifet ime value project ion isabove a cert ain t hreshold. Jane get s a lett er wit h hernext st at ement saying t hat because she's a valuablecust omer, her grace period for payment has been ext ended by a mont h wit hout a fee. Jane is impressedand becomes a more loyal cust omer.

OOPS JANE GETS DISTRACTED:

Jane forget s, and doesn t pay her credit card bill on t ime for t he first t ime in 5 years. An aut omat ic

busin

ess rule in

t

he front

-office CRM syst

em waivest he finance charge applied by t he back-office credit card syst em. It recognizes t hat is t he first t ime it 'shappened. And, and her lifet ime value project ion isabove a cert ain t hreshold. Jane get s a lett er wit h hernext st at ement saying t hat because she's a valuablecust omer, her grace period for payment has been ext ended by a mont h wit hout a fee. Jane is impressedand becomes a more loyal cust omer.




JANES START-UP GOES PUBLIC:

Jane cashes in some st ock af t er t he IPO lock-upperiod, and deposit s t he proceeds in her account . An OL AP inquiry looking for major account changes, flagsan unusually hef t y deposit t o Jane's account . An analyst looks at t he flagged account in t he front -officesyst em. The analyst sends an invit at ion for a freesession wit h a financial counselor. When Jane calls, an agent goes int o t he front -office syst em and schedulesan appoint ment wit h Sarah, t he financial planner whocovers Jane's area. Jane's credit card is aut omat icallyupgraded t o plat inum st at us.

JANES START-UP GOES PUBLIC:

Jane cashes in some st ock af t er t he IPO lock-upperiod, and deposit s t he proceeds in her account . An OL AP inquiry looking for major account changes, flagsan unusually hef t y deposit t o Jane's account . An analyst looks at t he flagged account in t he front -officesyst em. The analyst sends an invit at ion for a freesession wit h a financial counselor. When Jane calls, an agent goes int o t he front -office syst em and schedulesan appoint ment wit h Sarah, t he financial planner whocovers Jane's area. Jane's credit card is aut omat icallyupgraded t o plat inum st at us.




JANES START-UP GOES PUBLIC:The banks sales force aut omat ion (SFA)sof t ware not ifies Sarah of her appoint ment

wit h Ja

ne. A

t t heir mee

t ing Sarah uses

t hecust om financial counseling opt ion on her SFA

applicat ion t o generat e a range of invest ment scenarios. She shows Jane how modifying herrisk profile will affect her long-t erm invest ment

port folio. Jane decides t o open a st ock mut ualfund wit h mont hly aut omat ic checking account deduct ions. Sarah act ivat es t he mut ual fundaccount from her lapt op.

JANES START-UP GOES PUBLIC:The banks sales force aut omat ion (SFA)sof t ware not ifies Sarah of her appoint ment

wit h Ja

ne. A

t t heir mee

t ing Sarah uses

t hecust om financial counseling opt ion on her SFA

applicat ion t o generat e a range of invest ment scenarios. She shows Jane how modifying herrisk profile will affect her long-t erm invest ment

port folio. Jane decides t o open a st ock mut ualfund wit h mont hly aut omat ic checking account deduct ions. Sarah act ivat es t he mut ual fundaccount from her lapt op.




OTHER MILESTONE TRIGGERS NEWOPPORTUNITIES:

If Jane get s married, t he bank will want t o att ract her joint account and her husband's invest ment s. If shebecomes a parent , t he bank will t ry t o get her t oinvest in an educat ion fund. A savings account for t hebaby t hrough which t he bank hopes t o cult ivat e alifet ime relat ionship wit h t he child. Lat er, t he bank willoffer Jane help wit h ret irement planning and est at eplanning.

All this triggered by the banks CRM system

OTHER MILESTONE TRIGGERS NEWOPPORTUNITIES:

If Jane get s married, t he bank will want t o att ract her joint account and her husband's invest ment s. If shebecomes a parent , t he bank will t ry t o get her t oinvest in an educat ion fund. A savings account for t hebaby t hrough which t he bank hopes t o cult ivat e alifet ime relat ionship wit h t he child. Lat er, t he bank willoffer Jane help wit h ret irement planning and est at eplanning.

All this triggered by the banks CRM system



CRM VendorsCRM Vendors



CRM Vendors SelectionCRM Vendors Selection

Search for applicat ions t hat cont ain t heappropriat e dept h of funct ionalit y for yourcurrent and reasonably foreseeable fut ureneeds. These requirement s, of course, can vary great ly from indust ry t o indust ry andfrom company t o company, so can only reallybe evaluat ed on an individual organizat ion basis.

Consider

t he fu

t ure, bu

t be realis

t ic a

nd do

n't buy a lot more funct ionalit y t han you expect .

There is of t en a price t o pay in t erms of complexit y, inflexibilit y, and maint enance.

Search for applicat ions t hat cont ain t heappropriat e dept h of funct ionalit y for yourcurrent and reasonably foreseeable fut ureneeds. These requirement s, of course, can vary great ly from indust ry t o indust ry andfrom company t o company, so can only reallybe evaluat ed on an individual organizat ion basis.

Consider

t he fu

t ure, bu

t be realis

t ic a

nd do

n't buy a lot more funct ionalit y t han you expect .

There is of t en a price t o pay in t erms of complexit y, inflexibilit y, and maint enance.




Look for applicat ions which can be quicklyconfigured and implement ed. Rapidimplement at ion short ens t he t ime t o value and

t ypically lowers t he implement at ion project cost s and risks.

Look for applicat ions t hat are easy-t o-maint ain. Ease of maint enance has bot h cost implicat ions and IT resource implicat ions.Web-based archit ect ures and indust ry-st andard component s are key.

Look for applicat ions which can be quicklyconfigured and implement ed. Rapidimplement at ion short ens t he t ime t o value and

t ypically lowers t he implement at ion project cost s and risks.

Look for applicat ions t hat are easy-t o-maint ain. Ease of maint enance has bot h cost implicat ions and IT resource implicat ions.Web-based archit ect ures and indust ry-st andard component s are key.




Look for applicat ion vendors who havedemonst rat ed an underst anding of and acommit ment .

Look for applicat ions whose scalemat ches your business. Only considerapplicat ions able t o support t he size of

your workforce and

t he scope of yourbusiness bot h at st art -up and for t he

foreseeable fut ure.

Look for applicat ion vendors who havedemonst rat ed an underst anding of and acommit ment .

Look for applicat ions whose scalemat ches your business. Only considerapplicat ions able t o support t he size of

your workforce and

t he scope of yourbusiness bot h at st art -up and for t he

foreseeable fut ure.



The CRM Application Suite SpectrumThe CRM Application Suite Spectrum

Serving as a front end for cust omer-facingbusiness processes such as order ent ry, ordert racking, billing, and service call generat ion;

Tracking your int eract ions wit h cust omers, on bot h t he sales and service sides;

Present ing t he cust omer knowledge t hat youhave gained from your prior int eract ions t o

salespersons, call cent er agent s, and ot herpersons who deal direct ly wit h your cust omers(and, increasingly, building t his knowledgeint o self-service applicat ions);

Serving as a front end for cust omer-facingbusiness processes such as order ent ry, ordert racking, billing, and service call generat ion;

Tracking your int eract ions wit h cust omers, on bot h t he sales and service sides;

Present ing t he cust omer knowledge t hat youhave gained from your prior int eract ions t o

salespersons, call cent er agent s, and ot herpersons who deal direct ly wit h your cust omers(and, increasingly, building t his knowledgeint o self-service applicat ions);



The CRM Application Suite SpectrumThe CRM Application Suite Spectrum

Analyzing your cust omer dat a t o ident ify valueenhancing opport unit ies

Providing info. needed t o evaluat e t he performance of cust omer service agent s and sales st aff;

Designing market ing campaigns, and implement ingt hose campaigns wit hin your call cent ers and ot hert ouch point s wit h your cust omers and

Formalizing your cust omer-facing businesses

processes by building t hem int o t he comput erapplicat ions t hat your personnel use t o complet et ransact ions.

Analyzing your cust omer dat a t o ident ify valueenhancing opport unit ies

Providing info. needed t o evaluat e t he performance of cust omer service agent s and sales st aff;

Designing market ing campaigns, and implement ingt hose campaigns wit hin your call cent ers and ot hert ouch point s wit h your cust omers and

Formalizing your cust omer-facing businesses

processes by building t hem int o t he comput erapplicat ions t hat your personnel use t o complet et ransact ions.



ERP Vendors Racing towards CRMERP Vendors Racing towards CRM

PEOPLESOFT:

PeopleSof t (Pleasant on, CA) has t aken a different approach, largely driven by t he t hin-client archit ect ureupon which PeopleSof t 's ERP and human resourcesofferings are based. Though PeopleSof t CRM doesoffer out -of-t he box int egrat ion wit h PeopleSof t 'sback-office syst ems, it s offerings are a bit moremodular t han are t he CRM packages from SAP andOracle, which has given t hem more t ract ion in t hest andalone CRM market . People- Sof t also offersint egrat ion wit h it s market -leading HR syst ems, whichmakes it an att ract ive choice for companies wit hlarge-scale employee help desks.

PEOPLESOFT:

PeopleSof t (Pleasant on, CA) has t aken a different approach, largely driven by t he t hin-client archit ect ureupon which PeopleSof t 's ERP and human resourcesofferings are based. Though PeopleSof t CRM doesoffer out -of-t he box int egrat ion wit h PeopleSof t 'sback-office syst ems, it s offerings are a bit moremodular t han are t he CRM packages from SAP andOracle, which has given t hem more t ract ion in t hest andalone CRM market . People- Sof t also offersint egrat ion wit h it s market -leading HR syst ems, whichmakes it an att ract ive choice for companies wit hlarge-scale employee help desks.



ERP Vendors Racing towards CRMERP Vendors Racing towards CRM

AMDOCS:

Amdocs (Bost on, MA), which has a st rongpresence in billing for large

t elecommunicat ions service providers, andEpicor (Irvine, CA), which provides ERP andsupply chain management sof t ware t o smalland mid-size businesses, also fit int o t his

group.Like PeopleSof

t CRM,

t he CRMpackages from t hese t wo vendors are less

back-office orient ed t han are t he Oracle andSAP offerings.

AMDOCS:

Amdocs (Bost on, MA), which has a st rongpresence in billing for large

t elecommunicat ions service providers, andEpicor (Irvine, CA), which provides ERP andsupply chain management sof t ware t o smalland mid-size businesses, also fit int o t his

group.Like PeopleSof

t CRM,

t he CRMpackages from t hese t wo vendors are less

back-office orient ed t han are t he Oracle andSAP offerings.



CRM ImplementationCRM Implementation



Before Implementing: Ready, Set,Stop and Think!Before Implementing: Ready, Set,Stop and Think!

READ Y...Before you implement CRM sof t ware in a bank t hefirst t hing one should t hink about is t hat is t hebanking inst it ut ion really ready t o implement a

cust omer management st rat egy using cust omerrelat ionship management (CRM) t echnology?In banking sect or t he main t hing is t o t rap t hecust omers and t he cust omers will be att ract ed when t hey will be having a host of facilit ies at t heir disposal.

Bankers

t ypically perform

t heir due dilige

nce byevaluat ing what t heir compet it ion is doing, asking

t heir end users what capabilit ies t hey need t o solvet he current business challenges and t alking wit hindust ry expert s.

READ Y...Before you implement CRM sof t ware in a bank t hefirst t hing one should t hink about is t hat is t hebanking inst it ut ion really ready t o implement a

cust omer management st rat egy using cust omerrelat ionship management (CRM) t echnology?In banking sect or t he main t hing is t o t rap t hecust omers and t he cust omers will be att ract ed when t hey will be having a host of facilit ies at t heir disposal.

Bankers

t ypically perform

t heir due dilige

nce byevaluat ing what t heir compet it ion is doing, asking

t heir end users what capabilit ies t hey need t o solvet he current business challenges and t alking wit hindust ry expert s.




A growing number of new players are t odayevaluat ing t he advant ages t hat t heir banks willget wit h a good and effect ive CRM syst em,

and t heir primary mot ivat ion is t he promise of becoming more compet it ive and cust omercent ric in banking sect or. The benefit of t hispromise is compet it ive advant age and

increased profit s.

A growing number of new players are t odayevaluat ing t he advant ages t hat t heir banks willget wit h a good and effect ive CRM syst em,

and t heir primary mot ivat ion is t he promise of becoming more compet it ive and cust omercent ric in banking sect or. The benefit of t hispromise is compet it ive advant age and

increased profit s.




Tip 2: The bank must clearly document t he object ives it has in mind for how it want s it s t eam t o perform af t er t he CRM

implement at ion and t raining t akes place. Anot her "must -do" from t he banks point of view is gaining consensus wit h t hekey st akeholders who will be using t heCRM syst em.

Tip 2: The bank must clearly document t he object ives it has in mind for how it want s it s t eam t o perform af t er t he CRM

implement at ion and t raining t akes place. Anot her "must -do" from t he banks point of view is gaining consensus wit h t hekey st akeholders who will be using t heCRM syst em.




STOP AND THINK. NOW GO!

CRM st art s wit h a business st rat egy.

This e

nables

t he work flow process.

This is in t urn assist ed by IT.

The process cannot be reversed.

Business st rat egies cannot be reversed.

The deployment should follow a bott om t o t opapproach.

STOP AND THINK. NOW GO!

CRM st art s wit h a business st rat egy.

This e

nables

t he work flow process.

This is in t urn assist ed by IT.

The process cannot be reversed.

Business st rat egies cannot be reversed.

The deployment should follow a bott om t o t opapproach.



Implementation RoadmapImplementation Roadmap

Phase 1: Technical Basis Review

Det ermine current t echnical and

funct ional plat form and capabilit ies,including issues of dat a synchronizat ion,links t o ERP syst ems, and pot ent ialsyst em expansion (i.e., t he

Int ernet /Web for E-commerce)

Phase 1: Technical Basis Review

Det ermine current t echnical and

funct ional plat form and capabilit ies,including issues of dat a synchronizat ion,links t o ERP syst ems, and pot ent ialsyst em expansion (i.e., t he

Int ernet /Web for E-commerce)




Phase 3: Business Process Review

Review t he exist ing business process issues aswell as business process requirement s.

Phase 4: Questionnaire Module

Consolidat e t he findings of t he Technical Basis

Review, Organizat ion Meet and BusinessProcess Review session and design aquest ionnaire on t he key findings.

Phase 3: Business Process Review

Review t he exist ing business process issues aswell as business process requirement s.

Phase 4: Questionnaire Module

Consolidat e t he findings of t he Technical Basis

Review, Organizat ion Meet and BusinessProcess Review session and design aquest ionnaire on t he key findings.




Phase 7: Technical Platform Counsel

Take int o considerat ion t he business funct ions and t heout put of t he Technical Basis Review. Based on t hisdecide t he sof t ware, syst ems and t he CRM package t obe deployed also look int o t he cost scenario.

Phase 8: CRM Report

Evaluat e various packages t hat suit t he requirement

and deploy t hem on a t est scenario and appraise t hepackages based on cost , ease of deployment , support modules available and up gradat ion adapt abilit y andint egrat ion wit h ot her syst ems and legacy syst ems.

Phase 7: Technical Platform Counsel

Take int o considerat ion t he business funct ions and t heout put of t he Technical Basis Review. Based on t hisdecide t he sof t ware, syst ems and t he CRM package t obe deployed also look int o t he cost scenario.

Phase 8: CRM Report

Evaluat e various packages t hat suit t he requirement

and deploy t hem on a t est scenario and appraise t hepackages based on cost , ease of deployment , support modules available and up gradat ion adapt abilit y andint egrat ion wit h ot her syst ems and legacy syst ems.




Phase 9: CRM Delivery ReportInvolve all funct ions and depart ment s of yourorganizat ion while present ing your CRM Report so t hat t he ent ire organizat ion is aware of t he process flow

t hat has gone t o suit t he requirement s.sPhase 10: Deploying CRM

Once t he CRM package has been finalized on procuret he CRM package from t he respect ive vendor and got

hrought

het

erms. Deployt

he CRM solut

ion

on

ast aging period (t est ing phase). Once t he st agingperiod is complet e set t he solut ion live for usage andt rain everyone in your organizat ion t o use t he CRMsolut ion effect ively.

Phase 9: CRM Delivery ReportInvolve all funct ions and depart ment s of yourorganizat ion while present ing your CRM Report so t hat t he ent ire organizat ion is aware of t he process flow

t hat has gone t o suit t he requirement s.sPhase 10: Deploying CRM

Once t he CRM package has been finalized on procuret he CRM package from t he respect ive vendor and got

hrought

het

erms. Deployt

he CRM solut

ion

on

ast aging period (t est ing phase). Once t he st agingperiod is complet e set t he solut ion live for usage andt rain everyone in your organizat ion t o use t he CRMsolut ion effect ively.




Phase 11: Maintaining CRM

It is not just enough if you have

deployed t he CRM solut ion, regularchecks on t he syst em should beundert aken t o see if t he purpose isbeing served. Try t o improvise on

exist ing solut ion.

Phase 11: Maintaining CRM

It is not just enough if you have

deployed t he CRM solut ion, regularchecks on t he syst em should beundert aken t o see if t he purpose isbeing served. Try t o improvise on

exist ing solut ion.



Risk ManagementRisk Management



Risk AnalysisRisk Analysis

CRM effort s are frequent ly large, of t en expensive, cross-funct ional, involveconsiderable change, and are generally long-t erm. These fact ors of scope, resources,

organizat ion, change, and t ime all serve t ot hwart effort s at successful CRMimplement at ion and undermine ret urn on invest ment .T

o man

age an

d mit

igat

e risk, we advocat

e ast ruct ured approach t o CRM implement at ion based on a risk management -basedfoundat ion.

CRM effort s are frequent ly large, of t en expensive, cross-funct ional, involveconsiderable change, and are generally long-t erm. These fact ors of scope, resources,

organizat ion, change, and t ime all serve t ot hwart effort s at successful CRMimplement at ion and undermine ret urn on invest ment .T

o man

age an

d mit

igat

e risk, we advocat

e ast ruct ured approach t o CRM implement at ion based on a risk management -basedfoundat ion.



Structured Risk ManagementStructured Risk Management

Structured Risk Management 4 StepProcess

Risk Ident ificat ion

Risk Quant ificat ion

Risk Response Development

Risk Response Cont rol

Structured Risk Management 4 StepProcess

Risk Ident ificat ion

Risk Quant ificat ion

Risk Response Development

Risk Response Cont rol



Structured Risk ManagementStructured Risk Management

Points to RememberPoints to Remember



Risk Quantification : ExampleRisk Quantification : Example

As a result of (cause) not allocatingtraining funds to the project, (risk) theneed for the implementation team to learn as they go may occur, which would

lead t o (effect ) the project taking longerthan originally planned.

As a result of (cause) an aggressivesolution delivery timeline, it is possiblet hat (risk) the implementation team willhave to rush, which may result in (effect )project deliverables of substandardquality. .

As a result of (cause) not allocatingtraining funds to the project, (risk) theneed for the implementation team to learn as they go may occur, which would

lead t o (effect ) the project taking longerthan originally planned.

As a result of (cause) an aggressivesolution delivery timeline, it is possiblet hat (risk) the implementation team willhave to rush, which may result in (effect )project deliverables of substandardquality. .



Risk QuantificationRisk Quantification

Cause (from t he risk st at ement )

Risk (from t he risk st at ement )

Effect (from t he risk st at ement )

Probability (Very Low, Low, Medium, High, Very High)

Impact (Very Low, Low, Medium, High, Very

High)Risk group (project , t echnical, business)

And Campaign Managements t opics

Cause (from t he risk st at ement )

Risk (from t he risk st at ement )

Effect (from t he risk st at ement )

Probability (Very Low, Low, Medium, High, Very High)

Impact (Very Low, Low, Medium, High, Very

High)Risk group (project , t echnical, business)

And Campaign Managements t opics



Establishing a Risk ThresholdEstablishing a Risk Threshold

Shaded area - t hecombinat ion of probabilit y and impact

is considered t o beunaccept able risk.

Non-shaded area -accept able risk.

The boundary line ist he risk t hreshold.

Shaded area - t hecombinat ion of probabilit y and impact

is considered t o beunaccept able risk.

Non-shaded area -accept able risk.

The boundary line ist he risk t hreshold.



Risk Management StrategiesRisk Management Strategies

Avoidance: Seeking t o eliminat e uncert aint y.Examples include: clarifying requirement s,obt aining informat ion, improvingcommunicat ion, acquiring expert ise, changing

t he scope of t he project t o exclude riskyelement s, and using a proven t echnologyTransfer: Seeking t o t ransfer ownershipand/or liabilit y t o a t hird part y. Alt hough t hisappears att ract ive, it s main use is limit ed t ofinancial risk exposure. Not e t hat risk t ransferalso involves a change in ownership in aproject as well as a shif t in liabilit y.

Avoidance: Seeking t o eliminat e uncert aint y.Examples include: clarifying requirement s,obt aining informat ion, improvingcommunicat ion, acquiring expert ise, changing

t he scope of t he project t o exclude riskyelement s, and using a proven t echnologyTransfer: Seeking t o t ransfer ownershipand/or liabilit y t o a t hird part y. Alt hough t hisappears att ract ive, it s main use is limit ed t ofinancial risk exposure. Not e t hat risk t ransferalso involves a change in ownership in aproject as well as a shif t in liabilit y.




Mitigate: Seeking t o reduce t he size of t herisk exposure below an accept able t hreshold.It is clearly import ant t o define t his t hresholdbefore embarking on any mit igat ion, since it

forms t he t arget against which responseeffect iveness can be measured. The size of arisk can be reduced by t ackling eit her it sprobabilit y t o make it less likely, or it s impact t o make it less severe, or bot h. Prevent at ive

responses are bett er t han curat ive ones ast hey are more proact ive, and if successful,lead t o risk avoidance.

Mitigate: Seeking t o reduce t he size of t herisk exposure below an accept able t hreshold.It is clearly import ant t o define t his t hresholdbefore embarking on any mit igat ion, since it

forms t he t arget against which responseeffect iveness can be measured. The size of arisk can be reduced by t ackling eit her it sprobabilit y t o make it less likely, or it s impact t o make it less severe, or bot h. Prevent at ive

responses are bett er t han curat ive ones ast hey are more proact ive, and if successful,lead t o risk avoidance.




Accept: Recognizing residual risks and devisingresponses t o cont rol or monit or t hem. Accept ance isappropriat e for minor risks, where any response is not likely t o be cost -effect ive. The project must recognizeand proact ively accept t hese risks and develop andadopt responses t o t hem. The most frequent riskaccept ance response is cont ingency planning, whereone budget s addit ional t ime, money, and/or resourcest o account for such risks. Alt hough t here is no single best response st rat egy, it is recommended t hat

avoidance s

t ra

t egies be co

nsidered firs

t since i

t isclearly best t o remove t he risk complet ely if possible.

Transfer should be invest igat ed second, alt hough t hescope for t his is of t en limit ed.

Accept: Recognizing residual risks and devisingresponses t o cont rol or monit or t hem. Accept ance isappropriat e for minor risks, where any response is not likely t o be cost -effect ive. The project must recognizeand proact ively accept t hese risks and develop andadopt responses t o t hem. The most frequent riskaccept ance response is cont ingency planning, whereone budget s addit ional t ime, money, and/or resourcest o account for such risks. Alt hough t here is no single best response st rat egy, it is recommended t hat

avoidance s

t ra

t egies be co

nsidered firs

t since i

t isclearly best t o remove t he risk complet ely if possible.

Transfer should be invest igat ed second, alt hough t hescope for t his is of t en limit ed.



Risk Response EffectivenessRisk Response Effectiveness

Appropriate: t he correct level of responsemust be det ermined based on t he size of t herisk. It is import ant t o not spend t oo much

t ime or effort developing inappropriat eresponses t o minor risks, nor t o spending t oolitt le t ime planning a response t o key risks.

Affordable: risk responses should be cost -

effect ive. Each risk response should have an agreed-upon budget .

Appropriate: t he correct level of responsemust be det ermined based on t he size of t herisk. It is import ant t o not spend t oo much

t ime or effort developing inappropriat eresponses t o minor risks, nor t o spending t oolitt le t ime planning a response t o key risks.

Affordable: risk responses should be cost -

effect ive. Each risk response should have an agreed-upon budget .



Risk Response EffectivenessRisk Response Effectiveness

Agreed: t he consensus and commit ment of st akeholders should be obt ained beforeagreeing on appropriat e responses. Allocated and accepted: each responseshould be owned and accept ed t o ensure asingle point of responsibilit y and account abilit yfor implement ing t he response. One wouldexpect t hat a review wit h senior management would focus on each of t hese it ems for eachrisk a summary provided by t he Project Manager or CRM Direct or in t he form of at able or spreadsheet is usually sufficient .

Agreed: t he consensus and commit ment of st akeholders should be obt ained beforeagreeing on appropriat e responses. Allocated and accepted: each responseshould be owned and accept ed t o ensure asingle point of responsibilit y and account abilit yfor implement ing t he response. One wouldexpect t hat a review wit h senior management would focus on each of t hese it ems for eachrisk a summary provided by t he Project Manager or CRM Direct or in t he form of at able or spreadsheet is usually sufficient .



i k ii k i



Risk Management MaturityRisk Management Maturity

LEVEL 1 AD-HOC, Worship the Hero At t his level t here is no awareness of t he need formanagement of uncert aint ies (i.e., risk). Management processes t end t o be repet it ive and react ive wit h no

st ruc

t ured approach

t o deali

ng wi

t h u

ncer

t ai

nt y. Att empt s t o learn from past project s or prepare for

fut ure project s are generally ad-hoc and organizat ionsat t his level have a t endency t o cont inue wit h exist ingprocesses even in t he face of project failures. Att empt s t o apply risk management occur only when

mandat ed (e.g., by corporat e policy.) Because t here isno st ruct ured applicat ion of risk management , t hereare no dedicat ed resources, risk management t ools,nor risk analysis performed.

LEVEL 1 AD-HOC, Worship the Hero At t his level t here is no awareness of t he need formanagement of uncert aint ies (i.e., risk). Management processes t end t o be repet it ive and react ive wit h no

st ruc

t ured approach

t o deali

ng wi

t h u

ncer

t ai

nt y. Att empt s t o learn from past project s or prepare for

fut ure project s are generally ad-hoc and organizat ionsat t his level have a t endency t o cont inue wit h exist ingprocesses even in t he face of project failures. Att empt s t o apply risk management occur only when

mandat ed (e.g., by corporat e policy.) Because t here isno st ruct ured applicat ion of risk management , t hereare no dedicat ed resources, risk management t ools,nor risk analysis performed.



Ri k M t M t itRi k M t M t it



Risk Management MaturityRisk Management Maturity

LEVEL 4 MAN AGED, Measure the Work, Workthe Measures

The organizat ion has a risk-aware cult ure wit h aproact ive approach t o risk management in all aspect s

of t he business. There is an act ive use of riskinformat ion t o improve organizat ional processes andt o gain compet it ive advant age. There is a t op-down commit ment t o risk management , wit h leadership byexample. Upper management uses risk informat ion in

decision-making; proact ive risk management isencouraged and rewarded.

LEVEL 4 MAN AGED, Measure the Work, Workthe Measures

The organizat ion has a risk-aware cult ure wit h aproact ive approach t o risk management in all aspect s

of t he business. There is an act ive use of riskinformat ion t o improve organizat ional processes andt o gain compet it ive advant age. There is a t op-down commit ment t o risk management , wit h leadership byexample. Upper management uses risk informat ion in

decision-making; proact ive risk management isencouraged and rewarded.



A C i M t E lA C i M t E l



A Campaign Management Example A Campaign Management Example

CRM in Bank (Ready Made)

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