Icici Bank Case Crm

8/11/2019 Icici Bank Case Crm

1/28

P R E S E N T E D B Y

K A R A N V E E R S I N G H

-M O H I T B A J A J

CRM in Banking A case study

of ICICI Bank


2/28

About ICICI

India's largest private sectorbankand secondlargest overall in terms of assets.

Total assets of Rs. 3,562.28 billion (US$ 77 billion)

Profit after tax Rs. 30.19 billion (US$ 648.8million)2009

ICICI reported a 1.15% rise in net profit to Rs.1,014.21 crore on a 1.29% increase in total income to

Rs. 9,712.31 crore
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/India


3/28

ICICI Bank offers a wide range of banking productsand financial services to corporate and retailcustomers.

Successful due to their CRM Strategies and differentCRM initiatives.

Their CRM activities helped them making customersloyal.


4/28

ICICI- RETAIL STRATEGY

ICICIs retail strategy was centered aroundintensive deployment of technology to help reducecost of service, increase customer retention, help incross selling and up-selling while improving

process efficiencies. The bank looked towards allowing the customers

use multiple electronic channels including internet,ATMs, call centers, contact centers, desktops,

kiosks, mobiles and other hand held devices forconducting financial transactions.


5/28

Why CRM The Changing Environment

1. Increased Competition

2. Growth of Product

3. Diminishing Margins


6/28

CRM- THE ICICI EXPERIENCE

CRM at ICICI involves increased communicationbetween the virtual universal bank and itscustomers and prospects as well as within thegroup itself.

The underlying idea is to enhance every instance ofcontact with the customer.

ICICI believes that a true customer-centricrelationship can only be accomplished by

considering the unique perspectives of every singlecustomer of the organization.


7/28

CRM ROAD MAP OF ICICI

CRM is viewed as a discipline as well as a set of discretesoftware technologies, which will focus on automatingand improving the business processes associated withmanaging customer relationships in the areas of sales,

marketing, customer service and support. The organizations aims to achieve the end goal of one-to-

one marketing.

The CRM Software applications will facilitate the

coordination of multiple business functions. Coordinate multiple channels of communication with the

customer to carry out customer management moreefficiently.


8/28

It should allow ICICI to engage in one-to-onemarketing by tracking complete customer life-cycle history.

To begin with, it will automate process-flowtracking in the product sales process, and be ableto generate customized reports and promotecross selling.

It will also enable efficient campaignmanagement by providing a software interfacefor definition, tracking, execution and analysis ofcampaigns.


9/28

THE CRM BUSINESS CYCLE


10/28

COMPONENTS OF CRM CYCLE

Understand and Differentiate.

Develop and Customise.

Interact and Deliver.Acquire and Retain.


11/28

Understand and Differentiate

Organizations need to understand theircustomers in order to have a relationship withthem.

Profiling to understand demographics, purchase

patterns and channel preference. Primary research to capture needs and attitude. Customer valuation to understand profitability,

as well as lifetime value or long-term potential.

The ICICI Groups customers need to see that thefirm is differentiating service andcommunications, based on their learningindependently and on the customer expectationand the expected values expected.


12/28

Develop and Customise

In a customer-focused world, product andchannel development has to follow thecustomers lead, identify customers wants,determine the value and desire of the customer,etc.

Organizations are increasingly developingproducts and services, and even new channelsbased on customer needs and serviceexpectations.

ICICI believes that the extent of customizationshould be based on the potential value deliveredby the customer segment.


13/28

Interact and Deliver

To foster relationships, organizations need to insure that:All areas of the organization have easy access to

relevant, actionable customer information.

All areas are trained how to use customer information

to tailor interactions based on both customer needspotential customer value.

ICICI is strongly of the opinion that value is not just

based on the price of the product or the discounts offeredbut are based on a number of factors including the qualityof products and services, convenience, speed, ease of use,responsiveness, and service excellence.


14/28

Acquire and Retain

The more ICICI learns about customers, theeasier it is to pinpoint those that are producingthe greatest value for the organization.

They aim to continue to learn more about each

customer segment and use it for successfulcustomer retention.As ICICI moves step further in CRM they hopes

to gain insight and understanding that enhancethe subsequent efforts. The organization shall

become increasingly sophisticated in theimplementation of CRM processes, and over aperiod of time shall become increasinglyprofitable by doing so.


15/28

Successful customer retention is based on theorganization's ability to constantly deliver, basedon three principles: Maintain interaction; never stop listening.

Continue to deliver on the customers definition of value.

Customers change as they move through differing stages oftheir lives, which implies that the firm needs to be alert forchanges and to modify its services and value propositions as

they change.


16/28

IMPLEMENTING CRM

There are five interrelated areas: Business Focus.

Organizational Structure.

Business Metrics.

Marketing Focus.

Technology.

The key to building the CRM action plan was inunderstanding with the organization that stood relativeto each of the five aspects of change.

Interviews with key individuals throughout theorganization helped identify different initiatives thathave been launched, all focused on CRM.


17/28

The next step in the process was a Gap Analysis,this analysis helped identify the CRMorganizational holes: Marketing, sales and service practices.

Collection, capture, processing and deployment of customerinformation.

Distribution and operations effectiveness at customer touchpoints.


18/28

CRM Strategies

Key drivers of customer loyalty:-

1. Positive staff attitude

2. Honesty integrity and reliability

3. Proactive Advice4. Consistent delivery of superiority quality service

5. After sale service

6. A effective complaints resolution policy


19/28

ICICI use three steps to build customerrelationship

Determine mutually satisfying goals betweenorganization and customers.

Establish and maintain customer relationship.

Produce positive feelings in the organization and thecustomers.


20/28

Steps minimizing the work regarding adoption ofCRM strategy-:

Identification of proper CRM initiatives

Implementing adequate technologies in order to assistCRM initiative

Setting standards (targets) for each initiative and eachperson involved in that circle

Evaluating actual performance with the standard orbenchmark

Taking corrective actions to improve deviations


21/28

Steps followed in implementing CRM

1. Identify CRM initiatives with reference to theattained (such as increased no. of customers.)

2. Setting measurable targets for each initiative in

terms of growth in profits , no. of customers3. Evaluating and choosing the appropriate CRM

package that will help the company achieve itsCRM goal ( A comparison of pay-offs against

investment could be carried out during theevaluation exercise.)


22/28

Benefits of effective CRM

Reduced costs, because the right things are being done(ie., effective and efficient operation)

Increased customer satisfaction, because they are gettingexactly what they want

Ensuring that the focus of the organization is external Growth in numbers of customers Maximisation of opportunities (eg., increased services,

referrals, etc.) Increased access to a source of market and competitor

information long term profitability and sustainability


23/28

ICICI Banks CRM initiative

1. Mobile ATMs

2. Bulk Deposits

3. ATMs for the visually challenged

4. Other services through ATMs- Prepaid mobile recharge

- Buying and renewing internet packs

- Mutual Fund transaction- Bill Payments

5. Mobile phone as virtual Wallet


24/28

Customer touch points.

Customer feedback and actions on these feedbacks.

Telephonic awareness regarding new services.

Latest ads. Warm wishes to customers on different festivals.


25/28

Use of CRM in ICICI Banking

1. Targeting Customers

2. Sales reference Material

3. Consistent interface with customers


26/28

Benefits of CRM

1. Customers usage pattern

2. New product development

3. Central data management


27/28

Conclusion

Customer Relationship Management is concernedwith attracting, maintaining and enhancingcustomer relationship. CRM enables the marketer toestimate the customers sentiments and buyingintentions so that the customer can be provided withproducts and services before they starts demanding.Customers are the backbone of any kind of businessactivities, maintaining relationship with them yield

better result.


28/28

THANK YOU

Icici Bank Case Crm

Documents

Transcript of Icici Bank Case Crm