Crm in Icici Essay

CONTENTS Acknowledgement ………………………………………………………………………………………………………………….. 3 CRM in new generation private banks: a case of ICICI Bank …………………………………………………………. 4 CRM at ICICI Bank ……………………………………………………………………………………………………………….. 5 Implementing CRM at ICICI Bank ……………………………………………………………………………………………. Interview with an employee ……………………………………………………………………………………………………… 8 Benchmarks/Results ……………………………………………………………………………………………………………….. 9 Conclusions …………………………………………………………………………………………………………………………. 0 References…………………………………………………………………………………………………………………………… 11 Websites/papers ………………………………………………………………………………………………………………… 11 Database………………………………………………………………………………………………………………………….. 11 | CRM Practices in new generation Private Banks: A Case of ICICI Bank ACKNOWLEDGEMENT

This report is submitted in partial fulfillment of MBA Program of ICFAI Business School. We would like to express our sincerest gratitude to Prof Suresh Chandra Bihari for his continued guidance, encouragement and valued insights that have made this exercise exciting and an extremely useful learning experience. | CRM Practices in new generation Private Banks: A Case of ICICI Bank CRM IN NEW GENERATION PRIVATE BANKS: A CASE OF ICICI BANK Introduction CRM is an acronym for ‘Customer Relationship Management’.

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It’s a set of strategies, processes, metrics, organizational culture and technology solutions that enhance an organization’s ability to see the differences in its present & prospective customers, track new opportunities to better serve customers and act, instantly and profitably, on those differences and opportunities. Recently CRM has taken a center stage in the business world with businesses concentrating on saving money and increasing profits by redefining internal processes and procedures. It costs a company dramatically less to retain and grow an existing client, than it does to court new ones.

The aim of CRM is to optimize the use of technology and human resources. CRM services consist of the ( Implementation services ( Consulting services (following major segments: CRM (Outsourcing services Training services | CRM Practices in new generation Private Banks: A Case of ICICI Bank CRM AT ICICI BANK Emphasizing on the importance of CRM one of the ICICI employees said, “With the overall improvement in the ETL1 process made possible by PowerCenter, we benefited from greater data immediacy for business users and more reliable information, which resulted in quicker analysis and timely reporting. —Gurnam Saini, Assistant General Manager, ICICI Bank CRM at ICICI 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 ICICI 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 Extraction, Transformation & Loading 5 | CRM Practices in new generation Private Banks: A Case of ICICI Bank ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV). Develop and customize: – In a customer entric business environment, the products and processes have to be according to customers’ needs and preferences. ICICI 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 ICICI 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 ICICI 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. IMPLEMENTING CRM AT ICICI 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 ICICI and its consumers. ICICI 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: ICICI Bank continues to leverage ICT2 as a strategic tool for its business operations to gain competitive advantage. Its technology strategy emphasizes enhanced level of 2 Information and Communication Technology | CRM Practices in new generation Private Banks: A Case of ICICI Bank customer services through 24×7 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 ICICI Group’s technology strategy and Group-wide technology initiatives. This group reports directly to the Managing Director & CEO. A key to ICICI’s success has been its ability to harness business information to CRM initiatives that have fueled growth and helped attract more than 30 million customers. The foundation for ICICI 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, IT administrators 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, ICICI 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. ) ICICI 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 | CRM Practices in new generation Private Banks: A Case of ICICI Bank 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 ICICI.

Ms Priyanka: Sure Suvobrata, Tell me how can I help you? Suvobrata: Can you just brief us regarding CRM process of ICICI bank? Ms Priyanka: CRM at ICICI 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 ICICI Bank is the number one bank in India in customer relationship management. What is ICICI 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 ICICI 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.

Ms Priyanka: You’re welcome Suvobrata. Feel free to contact if you need further assistance. Have a nice day. Reference: Ms Priyanka Devedas (Wealth Manager-Delhi) Priyanka. [email protected] com ICICI Bank Limited Booth No. 104-105 Faridabad – 121007 Mobile-09953001002 The ease with which we could approach to this employee itself speaks volumes about the ICICI culture and its customer centric approach. | CRM Practices in new generation Private Banks: A Case of ICICI Bank BENCHMARKS/RESULTS Time-Norms for Various Banking Transactions S. No. 2 3 4 5 6 7 8 Particulars Cash payment Receipt of cash For issuance of demand draft Payment of demand drafts Payment of fixed deposit receipts Opening of an account% Statement of accounts (request for duplicate) Collection of cheques – Local – Outstation Time Taken Up to 15 minutes Up to 15 minutes Up to 10 minutes Up to15 minutes 20 to 25 minutes 25 to 30 minutes Within 3 working days Normally within 4 days Normally within 21 days Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Deployment of CRM Best Practices- Private Banks Name of Bank Type Mean ICICI Bank NPB 4. 5 HDFC Bank NPB 4. 41 Kotak Mahindra Bank NPB 4. 1 UTI Bank NPB 4. 07 IndusInd Bank NPB 3. 79 ING Vyasa Bank OPB 3. 76 Centurian Bank of Punjab NPB 3. 48 Karur Vyasa Bank OPB 3. 28 Federal Bank OPB 3. 24 Tamil Nadu Mercentile Bank OPB 3. 1 Jammu Bank OPB 3. 07 Karnataka Bank OPB 2. 97 Development Credit Bank NPB 2. 97 South Indian Bank OPB 2. 93 Bank of Rajsthan OPB 2. 93 Lakshmi Vilas Bank OPB 2. 86 City Union Bank OPB 2. 79 Dhana Laxmi Bank OPB 2. 79 Catholic Syrian Bank OPB 2. 55 Overall Mean 3. 34 Std. Dev 0. 78 0. 3 0. 86 0. 88 1. 11 0. 64 1. 02 1. 14 1. 06 1. 01 1 0. 96 0. 98 0. 92 0. 89 0. 98 0. 98 0. 86 0. 78 0. 92 European Journal of Social Sciences – Volume 11, Number 1 (2009) | CRM Practices in new generation Private Banks: A Case of ICICI Bank In the first table, we can see that the benchmarks set by ICICI are definitely of world class and clearly values customer’s precious time. Similarly, in the second table it’s evident that ICICI 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 ICICI 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 ICICI Bank become # 2 bank in India (till recently, as PNB has taken over it as the No 2 bank in India now). ICICI 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. 10 | CRM Practices in new generation Private Banks: A Case of ICICI Bank REFERENCES Websites/papers 1. ICICI Bank Improves IT Productivity and Systems Performance for Award- Winning 2. 3. 4. 5. Data Warehouse with Informatica Data Integration PlatformCRM Practices at ICICI Bank- http://www. scribd. com/doc/14649491/ICICI-Bank ICICI Bank an Overviewhttp: //www. cicibank. com/pfsuser/aboutus/investorelations/annualreport/pdf/20012002/a_r2k2%2845-68%29. pdf Customer Relationship Management (CRM) Best Practices and Customer Loyalty A Study of Indian Retail Banking Sector- http://www. eurojournals. com/ejss_11_1_06. pdf Boosting Datacenter Availability for Largest Private Bank in India with the Help of Symantec – http://eval. symantec. com/downloads/sus/ICICI_Bank. pdf Database 1. Industry Analysis Service – Client Version 2. 0 2. Prowess. 3. EBSCO 11 This report is submitted in partial fulfillment of MBA Program of ICFAI Business School.

We would like to express our sincerest gratitude to Prof Suresh Chandra Bihari for his continued guidance, encouragement and valued insights that have made this exercise exciting and an extremely useful learning experience. This report is submitted in partial fulfillment of MBA Program of ICFAI Business School. We would like to express our sincerest gratitude to Prof Suresh Chandra Bihari for his continued guidance, encouragement and valued insights that have made this exercise exciting and an extremely useful learning experience. Introduction CRM is an acronym for ‘Customer Relationship Management’.

It’s a set of strategies, processes, metrics, organizational culture and technology solutions that enhance an organization’s ability to see the differences in its present & prospective customers, track new opportunities to better serve customers and act, instantly and profitably, on those differences and opportunities. Recently CRM has taken a center stage in the business world with businesses concentrating on saving money and increasing profits by redefining internal processes and procedures. It costs a company dramatically less to retain and grow an existing client, than it does to court new ones

The aim of CRM is to optimize the use of technology and human resources. CRM services consist of the following major segments: ? Consulting services ?Implementation services ? CRM Outsourcing services ? Training services CRM AT ICICI BANKcrghvdsjvhvCRM AT ICICI BANKgvasdjv vCRM AT ICICI BANK Emphasizing on the importance of CRM one of the ICICI employees said, “With the overall improvement in the ETL1 process made possible by PowerCenter, we benefited from greater data immediacy for business users and more reliable information, which resulted in quicker analysis and timely reporting. —Gurnam Saini, Assistant General Manager, ICICI Bank CRM at ICICI 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 ICICI 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 ICICI 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.

ICICI 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 ICICI 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 ICICI 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. Emphasizing on the importance of CRM one of the ICICI employees said, “With the overall improvement in the ETL1 process made possible by PowerCenter, we benefited from greater data immediacy for business users and more reliable information, which resulted in quicker analysis and timely reporting. ” —Gurnam Saini, Assistant General Manager, ICICI Bank CRM at ICICI 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 ICICI 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 1 Extraction, Transformation & Loading [pic][pic] 6 | CRM Practices in new generation Private Banks: A Case of ICICI Bank ICICI 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. ICICI 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 ICICI ensured that all reas 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 ICICI 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. IMPLEMENTING CRM AT ICICI 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 ICICI and its consumers. ICICI 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: ICICI Bank continues to leverage ICT2 as a strategic tool for its business operations to gain competitive advantage. Its technology strategy emphasizes enhanced level of 2 Information and Communication Technology [pic][pic] 7 | CRM Practices in new generation Private Banks: A Case of ICICI Bank customer services through 24×7 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 ICICI Group’s technology strategy and Group-wide technology initiatives. This group reports directly to the Managing Director & CEO. A key to ICICI’s success has been its ability to harness business information to CRM initiatives that have fueled growth and helped attract more than 30 million customers. The foundation for ICICI 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, IT administrators 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, ICICI Bank officials agreed with a recommendation fromTe rad at a’ 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. ) ICICI 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 [pic]

CRM IN ICICI BANK . ICICI BANK ICICI was set up as a development bank to provide products and services for the corporate segment. ?It diversified into the retail segment of the Ifinancial markets in the early 1990s while fitransforming itself into a technology intensive financial service group. . ? In the mid-nineties, ICICI raised debt from Ithe retail market. Since then it has been trying to Since then it has increase its reach to this segment by mobilizing resources and offering quality investor service through ICICI Infotech Services, a subsidiary of ICICI.

In 1994,it established ICICI bank as a commercial bank that is flexible, innovative and prompt in meeting customer requirements. ?It also offers other retail initiatives such as personal services, capital services ,life insurance. ICICI- RETAIL STRATEGY ?ICICI’s retail strategy was centred around intensive deployment of technology to help reduce cost of service, increase customer retention, help in cross selling and up-selling while improving process efficiencies. while improviThe bank looked towards The bank looked towards allowing the customers use multiple electronic channels including internet, ATMs, all centers, contact centers, desktops, kiosks, mobiles and other hand held devices for conducting financial transaction. financial transa CRM- THE ICICI EXPERIENCE EXPERIENCE ?CRM at ICICI involves increased communication between the virtual universal bank and its customers and prospects as well as within the group itself. i? The underlying idea is to enhance every instance of contact with the customer. ICICI belives that a true customerICICI centric relationship can only be accomplished by considering the unique perspective of every single customer. CRM ROAD MAP OF ICICI CRM is viewed as a discipline as well as a set of discrete software technologies, which will focus on automating and improving the business processes associated with managing customer relationships in the areas of sales, marketing, customer service and support. customer service and support. ?The organizations aims to achieve the end goal of one-to-one marketing. The CRM Software applications will facilitate the 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 more efficiently.

It should allow ICICI to engage in one marketing by tracking complete customer life-cycle history. ?To begin with, it will automate process flow tracking in the product sales process, and be able to generate customized reports and promote cross selling. ?It will also enable efficient campaign management by providing a software interface for defination, tracking ,execution and analysis of campaigns. COMPONENTS OF CRM CYCLE CYCLE ?Understand and Differentiate. Understand and Differentiate. ?Develop and Customise. Develop and Customise. ?Interact and Deliver. Interact and Deliver. Acquire and Retain. Acquire and aUnderstand and Differentiate Differentiate ?Organisations need to understand their customers in order to have a relationship with them. with them. ?Profiling to understand demographics, Ppurchase patterns and channel preference. Primary research to capture needs and Primary research to capture needs and attitude. attitude. ?Customer valuation to understand profitability, as well as lifetime value or long-term potential. ?The ICICI Group’s customers need to see Tthat the firm is differentiating service and tcommunications, based on their learning ndependently and on the customer Develop and Customise ?In a customer-focused world, product and Ichannel development has to follow the ccustomer’s lead, identify customer’s cwants, determine the value and desire of wthe customer, etc. t ?Organizations are increasingly developing Oproducts and services, and even new pchannels based on customer needs and service expectations. ervice expectations. ?ICICI believes that the extent of customization should be based on the potential value delivered by the customer segment. Interact and Deliver ?To foster relationships, organizations need to nsure that: insure that: ? All areas of the organization have easy access All areas of tto relevant, actionable customer information. to relevant, ? All areas are trained how to use customer All areas are information to tailor interactions based on both customer needs potential customer value. ICICI is strongly of the opinion that value is not just based on the price of the product or the discounts offered but are based on a number of factors including the quality of products and services, convenience, speed, ease of use, responsiveness, and service excellence.

Acquire and Retain ?The more ICICI learns about customers, the easier it is to pinpoint those that are producing the greatest value for the organization. ?They aim to continue to learn more about each customer segment and use it for successful customer retention. As ICICI moves step further in CRM they hopes to gain insight and understanding that enhance the subsequent efforts. The organization shall become increasingly sophisticated in the implementation of CRM processes, and over a period of time shall become increasingly profitable by doing so. Successful customer retention is based on

Successful customer retention is based on the the organization’s ability to constantly deliver, based on three principles: delive? Maintain interaction; never stop listening. listeni? Continue to deliver on the customer’s Contindefinition of value. ?Customers change as they move through differing stages of their lives, which implies that the firm needs to be alert for changes and to modify its services and value propositions as they change. IMPLEMENTING CRM ? There are five interrelated areas: ? Business Focus. ? Organizational Structure. ? Business Metrics. ? Marketing Focus. ? Technology. Technology

The key to building the CRM action plan was in The key to building CRM action plan was in understanding with the organization that stood relative to each of the five aspects of change. relative to each of the five aspects of change. ? Interviews with key individuals throughout the organization helped identify different initiatives that have been launched, all focused on CRM. The next step in the process was a The next ‘Gap Analysis’, this analysis helped identify the CRM organizational holes: ?Marketing, sales and service practices. ?Collection, capture, processing and deployment of customer information.

Distribution and operationsDistribution and effectiveness at customer touch points. effectiveness at customer touch points deployment of customer information that have been launched, all focused on CRM doing so successful customer retention responsiveness, and service excellence segment channels based on customer needs and independently and on the customer preference. management by providing a softwar management more efficiently one-to-one marketing. accomplished by considering the every instance of contact with the ons ng process efficiencies such as personal services, capital ICICI the retail market

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