Is it something new ?
CRM
Customer
Understanding
=
+
Relationship
Management
October 18, 2016
Why CRM ?
October 18, 2016
Why is Customer Focus Important ?
6
Participate in
Global Village
Today we face the 5th
wave of innovation
5
Reach the
Customer
4
Enhance Executive
Decision Making
3
Enhance Products & Services
2
Leverage Investments
1
Reduce Costs
1960s
1970s
1980s
1990s
2000s
2010s
2020s
October 18, 2016
Why are Customer Initiatives Important ?
6
Participate
in Global
Village
Remain In
Business
Customer
Initiatives
Reach the
Customer
Increase
Revenue
Decision
Support
Initiatives
Enhance Executive
Decision Making
3
Optimize
Resources &
Minimize
Costs
Operational
Initiatives
Enhance Products & Services
2
Leverage Investments
Financial
Initiatives
Reduce Costs
1960s
1970s
1980s
1990s
2000s
2010s
2020s
October 18, 2016
A difference in opinion
Company view
Customer view
90%
70%
32%
2%
Customers are happy We research customer
with our customer
service needs and
service
wants as part of our
customer service
improvement
Customer service Customer service
needs no
today is better
improvement
than ever
October 18, 2016
And action
Company view
Customer view
98%
43%
7%
We want to develop a We want to form and
relationship with
develop a relationship
our customers
with our suppliers
The relationship now is
stronger than 12 months
ago
October 18, 2016
Whos Using CRM ?
CRM and IT Spending as % of Total Company Revenues
Financial Services
Banking
Telecommunications
Insurance
Media
Health Care
Electronics
Pharmaceuticals
IT
% IT
% CRM
Utilities
October 18, 2016
How ?
October 18, 2016
Know Thy Customer
To better understand our customers, remember that
A customer is not a new kid on the block. Instead, the customer is more like an old friend whos been taken for granted
at least until now.
Assess a customer and create a Customer Centric data repository that integrates all customer information from a wide
range of sources.
Study whos staying and whos leaving and Why.
Identify companys most valuable customers i.e. those who are profitable, have a low cost to service metric, and will
provide a high lifetime value.
Focus the right customers i.e. the most valuable customers Value Quotient.
Customer surveys (to understand key customer expectations) and company service metrics (to get early warnings on
potential problem areas) can help determine customer satisfaction levels and problem areas.
A better understanding of the customer base is needed to build a better relationship with the company's customers.
October 18, 2016
Increase Customer Loyalty
The quality of market share (customer loyalty) deserves as much attention as the quantity of market
share (product sold)
Developing a consistent, seamless and personal approach to the customer creates a long lasting
customer relationship, leading to customer loyalty and increasing company profit and success.
Some of the benefits that a company can
attain from a loyal customer base.
Money making
Money saving
Improved customer retention
More cross-selling and upselling
Improved campaign management
Sharper sales targeting
Higher sales productivity
Superior configuring
Better channel sizing
Reduced support cost
October 18, 2016
A Customer Loyalty Program
The first phase of the Program is to
Identify the existing customer base. This must be done before the business can begin to build and retain a relationship
with these customers.
Determine how the company can differentiate itself in the minds of its existing customers.
Clearly define the existing customer service strategy, then identify changes necessary to provide stellar customer
service.
Put into place technology that will give the customer the same access to resources (i.e. there should be complete and
consistent information across the channels) and the same service level regardless of the channel used.
Define the elements of the CRM strategy that embodies the heart of the customer loyalty program.
Communicate the new customer service strategy to all not only within the company but also to outside service
providers. Clearly delineate everyone's responsibilities within this new strategy.
Develop and utilize training programs to support the new customer service strategy.
Hire, develop and retain the right people.
Develop and use quality control strategies to monitor progress and to help "stay the course."
Institute appropriate reward and recognition programs.
Companies can boost revenues by as much as 85% if they can increase the retention rate of their best customers by
only 5%.1
A 5% increase in customer loyalty translates into a 25% to 95% percent increase in profitability. 2
October 18, 2016
New Approach to Marketing
TO: Finding products that are right for each customer
TURN the process
through 90 degrees
Customer 1
Customer 2
Customer 3
Customer
FROM: Finding customers that are right for each product
Products: 1 2 3 ...
To achieve this we need to align around
Organization and Culture
Business processes and skill
Measurement and incentives
Information management
Technology
October 18, 2016
Right Information - Key to Success
As of 25th September, 2007
Total No. of Branches Live : 311
Total No. of Customers
: 4155704
Sr. No.
Critical & Mandatory
fields
Data
Available
First Name
100%
Last Name
100%
DOB
4%
Gender
64.9%
Marital Status
1.76%
Customer Pan No.
0.62%
Contact Address
98.3%
City
Included in Contact
Address
Pin Code
59.9%
Challenges:
Bank to ensure branches to capture the customer
related critical data.
Resolution Techniques:
Critical fields to be captured compulsorily
during new customer registration.
Bank to drive customers to fill the details
through a kiosk in branch or through internet
banking
October 18, 2016
Right Information - Key to Success
Sr. No.
Critical & Mandatory
fields
Data
Available
10
Home Phone
30.1%
11
Business Phone
10.3%
12
Mobile No.
5.9%
13
Email Address
0.0006%
15
Employer Name
0.0006%
16
Occupation
96.9%
17
Income
NA
18
Locker Holder
NA
19
ATM Card Availed
3.7%
20
Net Banking Availed
NA
21
Tele Banking Availed
NA
For migrated data, bank to ensure the
branches capture all the critical fields within
a specified time frame.
Periodic updation of critical data to be
ensured by bank through branches.
Data capturing drive can be ensured through
the banks Call Centre channel.
Bank can also capture the critical data during
campaigns through a Business Reply /
Feedback form and updation in the system
October 18, 2016
What is CRM ?
October 18, 2016
15
CRM Means Different Things To Different
People
However, regardless of the meaning the following key elements of CRM
stand out:
CRM
CRMmust
mustbe
bepart
partof
ofan
anoverall
overallcompany
companyphilosophy.
philosophy.
CRM
CRMsolutions
solutionsmust
mustincludes
includesnot
notjust
justsystems,
systems,but
butalso
alsopeople,
people,process
processand
and
strategy.
strategy.
CRM
CRMmust
mustfocus
focuson
onselecting
selectingand
andmanaging
managingcustomer
customervalue
valueand
andloyalty
loyaltythrough
throughaa
long-term
long-termrelationship.
relationship.
CRM
CRMisisnot
notaasingle
singlesystem
systembut
butaacomprehensive
comprehensiveapplication
applicationarchitecture
architectureconsisting
consisting
of
several
systems.
of several systems.
October 18, 2016
Our Mission
Create a fully Integrated CRM system, as opposed to series of information islands.
Welcome to Bank of Maharshtra - One Family One Bank
October 18, 2016
Facts & Figures
Present and Future
October 18, 2016
18
Rs 24,300 cr
5 times
The estimated yearly
savings if India fully shifts
to an e-payment system.
More transactions now
take place via e-banking
than inside a branch.
Online Banking
BASIC BANKING
Check account balance
Check credit card transactions
Transfer Funds
Get one screen view of your banking relations
with multiple financial providers
MAILBOX
Leave standing instructions
95%
Is the potential reduction
in cost by shifting to nonbranch banking.
16 million
Indians will be banking
online by end 2007, up
from 4.6 million in 2006.
Contact the branch manager for redressal of
grievances
Apply for new services like account opening
VALUE ADDITION
Check book / DD request
Smart money order
TDS enquiry
Demat services
INVESTMENTS
LOAN PRODUCTS
Transaction in mutual funds
Apply for a loan
Buy insurance policies
Manage your existing loans by tracking fluctuations in interest rates and EMIs
Trade in stocks
Compare products to bag the best deal and service
Forex transactions
Buy gold
Banks are emerging as financial superstores offering everything from insurance
to mutual funds. They are no longer mere wealth accumulators or custodians;
they now help in wealth creation and wealth management.
October 18, 2016
When ?
October 18, 2016
20