5 Dominant CRM Business Models (Relationship Optimizers) Needed a single, integrated view of the entire business; Wanted to present “one face” to customers. 23 .. Insurance Industry; Banking Industry; Cessna; TidalWire Distributors. Relationship Management in banking sector and the need for Customer . analysts can then comb through the data to obtain a holistic view of each customer. ). The bank would need a complete view of its customers across the various systems that A greater focus on CRM is the only way the banking industry.
The paper attempts to investigate these issues and suggests a framework for reaping the benefits of this investment in CRM by various banks. CRM — Conceptual framework CRM is the strategy for building, managing and strengthening loyal and long-lasting customer relationships. CRM is a customer centric approach based on customer insight.
It can also be described as a business strategy comprised of process, organisational and technical change to better manage business around customer behaviours.
Operation CRM — In this, CRM software packages are used to track and efficiently organise inbound and outbound interactions with customers including the management of marketing campaigns and call centres.
Operational CRM supports frontline processes in sales, marketing and customer service, automating communications and interactions with the customers.
The major benefits of operational CRM to banks are: It involves the use of data analysis to extract knowledge for optimising customer relationships. The major benefits of Analytical CRM to banks are: Collaborative CRM — These involve systems facilitating customers to perform services on their own through a variety of communication and interactive channels.
It brings people process and data together and enables channelling of data and information appropriately to bank staff for proactive decision making and enhanced informed customer service and support activities. It provides a means of information sharing to all concerned in timely manner and includes customer as a creator of service. Global scenario Worldwide banks have explored and realised the benefits of CRM in a variety of ways.
Different banks have implemented the philosophy in their own different way. A few illustrations will give a glimpse of the global scenario with respect to CRM in Banking. Royal Bank of Canada utilised CRM to develop models of assessment of customer profitability and life time value. These were then included in determining customer decisions like — Customised Marketing campaign, establishing service levels, segmentation, targeting, product design and pricing.
Wells Fargo Bank renowned for leadership in service and convenience to varied customer segments focused on customer service through CRM. Application of CRM enabled better integration of customer information and service applications to assist representatives of customer sales and services to easily provide a one-stop-shop for any banking service or transaction.
Using CRM, Wells Fargo takes full advantage of available customer information to offer customer the choice, convenience and price benefits so that they give the Bank, all their business.
Indian scenario Although significance of Relationship Marketing practices and optimising and maintaining customer relationships across diverse customer segments has been realised and practiced by all banks in India, the technology enabled CRM is still at a developing stage.
Different Banks are at different levels of CRM adoption and implementation and majority of them can be considered to be at preliminary stages. Also SMS alerts at various significant customer service events are proliferating. Analytical CRM is being utilised but not by all banks. These enable sharing of relevant customer information to all concerned staff members to design new products, provide proactive service, and informed customer handling leading better service.
It enables collaboration among staff and customers to create higher customer value through use of CRM software. The payoffs are in terms of increased customer base, cross- selling, sales force optimisation, efficient lead management and higher productivity. Core areas of transformation were business focus, organisation structure, business matrix, marketing focus and technology.
This brings the bank one step ahead in providing convenience and service through CRM. The system generates reports daily for top management and each of the branches have access to reports generated particularly for them.
Customer Relationship Management in Banking Sector
Bank of Maharashtra has developed in-house software which generates and updates a variety of reports on detailed customer information and sends to branches.
These reports are utilised for better customer understanding, better customer support and service by access to relevant customer information with all stakeholders to enable decision making and Business Development as well as retention activities. Issues and challenges CRM is a strategic initiative which has organisation wide implication.Axis Bank CRM Transformation Journey with CRMNEXT
Many banks are still struggling to make proper use of this very useful mechanism. However, the adoption and utilisation is dependent on a number of factors and impediments. Broadly the issues are pertaining to: People, Processes, Data and Technology. Also a major drawback is the general perception of CRM being a Technology imperative.
There is a great need to understand that technology is only the enabler to CRM. In the real sense it is an organisation wide strategy.
Most officers perceive technology as a limited to record of information and transaction. The use of technology in further sophisticated information processing and dissemination is not done. There are multiple channels and multiple technologies in use simultaneously in customer interface, service and sales.
Empowerment to frontline staff: Which communication channel do they prefer? What would be the risk of leaving the bank to go to the competition?
What is the probability the customer will buy a service or product? Customer Data Who are our customer? What type of relationship we want with our customer? CRM in Global Bank Global Banks CRM Strategy Goal Bank of America Provide service representatives with degree view of customer relationship for corporate and retail banking Improve customer experience, retention FleetBoston Segment customer base into six different groups based on demographics and banking behavior Attain cross-sell revenues, maximum lifetime value BNP Paribas Deploy CRM system across branch network, integrating with central office, link multiple customer databases Improve customer experience, cross-sell Scotia Bank Integrate call center, branch, and central office; link 80 banking applications to support unified view of customers Improve customer experience, support consistent message CRM in Indian Bank: CRM would also make Indian bankers realize that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover, create, and satisfy customer needs.
Organization initiatives for Implementation of CRM practices The ability of the organization to adapt changes in the business environment is to be increased.
Customer Relationship Management in Banking Sector |authorSTREAM
The mindset of the employees has got to be changed in the development of right attitude, skills, expectations, perceptions and behavior. Suggestions There is need of constant innovation in retail banking.
Indian banking industry should aim to formulate strategies incorporating people, processes and technology issues.