CUSTOMER RELATIONSHIP MANAGEMENT

One of the important marketing tools in the developed countries is Relationship

Marketing. The CRM is a comprehensive approach for creating, maintaining and
expanding relationship with the customers. It has emerged as one of the most
widely prescribed solutions for diminishing market share and sluggish growth of
many industries in general and banking and financial sector in particular. CRM is a
simple philosophy, which places the customer at the heart of the business
processes, activities and cultures for improving customer satisfaction and
maximizing profits. In one of the encompassing definitions, CRM is described as
the establishment, development, maintenance, and optimization of long term,
mutually-valuable relationship between the customers and the organizations. It is a
comprehensive approach for creating, maintaining and expanding relationship with
the customers. The concept of CRM is very important to the business sector. The
essence of the business has been described by Mr. Peter Drucker, the Management
Guru as, the purpose of the business is to attract and retain a good customer.
Good Customer Service is the best brand ambassador for any bank. The entire
business process consists of highly integrated efforts to discover, create, arouse and
satisfy customers needs. The modern business has realized it and is making all out
efforts to become customer-centric across the globe.
Hence, CRM is not a once-for-all affair but a continuous process. It is the way of
carrying out business covering all the aspects of the modern business. It is
an integral approach of dealing with customers by deploying the
advanced information technology.CRM is the Information Technology face of the
business process that aims to establish enduring and mutually-beneficial
relationships with customers in order to drive customer retention, value and
profitability. It is meant for a common and equal good of the two stakeholdersbusinesses and their customers. It calls for capturing pertinent data about
the prospective and current customers in respect of their buying pattern, shopping
behavior and usage habits. It represents the current philosophy that the businesses
should be customer oriented.

CRM is a tool for delivering a variety of marketing dreams such as:

To target and serve customers on an individual basis. It permits one to one
marketing as opposed to mass marketing.
It helps in establishing durable relationship with customers.
It is to dis-intermediarize channels of the wasteful barriers and distortions.
It helps in reducing marketing cost progressively.

REQUIREMENTS OF AN EFFECTIVE CRM STRUCTURE

An effective CRM system consists of the following:
(i) Personal Customer Needs

Personal contact
A knowledgeable and reliable banker.
Relevant Information.
Customized and timely solutions
Value for money.

(ii). Business Customer Needs

A professional partnership approach.

High levels of information.
Customized and highly responsive service.
Quality Customer Information.

Benefits of CRM
Benefits of CRM can be categorized into three groups namely: Benefits for
customers, benefits for employees and benefits for banks.
(i) Benefits for Customers
There is a more coordinated and professional approach to customer contact.
With up-to-date customer information, Banks can offer more personalized
services.

 Customers feel empowered if they have greater access to products and

services. For example: 24- Hours banking.
Targeted product and service offerings can be timed to coincide with
customer events and requirements e.g., Education Loans and Tourism Loans.
(ii) Benefits for Employees
Employees are empowered with the information to deliver high quality
service and meet customer expectations.
Employees have more time to serve customers.
Employees have higher satisfaction ratings.
(iii) Benefits for Banks

Managers are empowered with information that can help them manage
Customer relationships and make better decisions.
Optimum use of resources.
Customer satisfaction and increased loyalty.
Improved customer acquisition and cross-selling.
It helps in capitalizing on short windows of opportunities in the market.

Introduction of Innovative Services through CRM

Banks have made several innovations for sustenance by using the CRM
System such as:

The introduction of ATMs.

Biometric ATMs.
Single Window Service.
Teller System.
Internet Banking
Introduction of Plastic Money: Credit Card, Debit Card, Smart Card.
Mobile and E-Mail Alerts
Electronic Cash
Introduction of two in one Accounts
Introduction of new loan schemes as per the customers needs viz.
Education Loans,

 Marriage Loans, Housing Loans, Personal Loans, Vehicle Loans, Furniture

Loans,
Renovation Loans and Tourism Loans.

AXIS BANK
VISION & VALUES:
VISION 2015
: To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology
CORE VALUES

Customer Centricity
Ethics
Transparency
Teamwork
Ownership

SERVICES PROVIDED BY AXIS BANK LIMITED TO ITS CUSTOMERS

Current accounts, savings account, term deposits, recurring deposit, PPF
accounts and all other deposit accounts
Payment services such as pension, payment orders, remittances by way of
Demand Drafts and wire transfers
Banking services related to Government transactions,
DeMat accounts, equity, government bonds
Indian currency notes exchange facility
Collection of Cheques, safe custody services, safe deposit locker facility
Loans and overdrafts
Foreign exchange services including money changing
Third party insurance and investment products sold through branches.
Card products including credit cards, debits cards, ATM cards and services
AXIS BANK LIMITED COMMITMENT TO ITS CUSTOMERS

To act fairly and reasonably in all dealings with the customers by

Providing minimum banking facilities of receipt and payment of cash/
cheques at the bank's counter
Meeting the commitments and standards in this Code, for the products and
services it offer, and in the procedures and practices its staff follow.
Making sure its products and services meet relevant laws and regulations in
letter and spirit
Ensuring that its dealings with customers rest on ethical principles of
integrity and transparency
Operating secure and reliable banking and payment systems
To help you to understand how financial products and services work by
Giving customer information about them in any one or more of the
following languages: Hindi, English or the appropriate local language
Ensuring that its advertising and promotional literature is clear and not
misleading
Ensuring that customers are given clear information about its products and
services, terms and conditions and the interest rates/service charges, which
apply to them
Giving customers the information on what are the benefits to them, how they
can avail of the benefits, what are their financial implications, and whom
they can contact for addressing their queries.

BANK OF BARODA
Technology-based CRM
Technology plays the role of enabler in CRM deployment and allows Bank of
Baroda to achieve greater customization and better service at lower cost that helps
in better customer identification and fast and convenience services to its customers.
Customer Loyalty Programs

Bank of Baroda has an aim to be a customer centric organization and build a

favorable and long term relationships with its customers. Loyalty has both an
attitudinal and behavioral dimensions to adjudge the customers based on their
value and attachment with the bank. Behavioral loyalty will include examples like
maintaining long term relationship with bank, word of mouth, etc while attitudinal
loyalty will comprise examples like trust or emotional attachment. Further,
behavioral loyalty does not necessarily reflect attitudinal loyalty, thus, Bank of
Baroda focuses on attitudinal loyalty through its various loyalty programs,
marketing communications to emotional touch the target customers because loyalty
leads to more business and increase in bottom line of the bank. It has four loyalty
cards based on value of the customers such as Platinum, Gold, Silver and Bronze.
It helps in identifying the most valuable customers and plans the different offers,
schemes and services as per their needs and preferences.
Data Warehouse and Data Mining
The Data warehouse is the core of any decision support system and hence of the
CRM. In implementing its Data Warehouse Bank of Baroda has selected an
incremental approach, where the development of information systems is integrated
with the business strategy. Instead of developing a complete design of a corporate
Data Warehouse before implementing it, the bank has decided to develop a portion
of the Data Warehouse to be used for customer relationship management and for
the production of accurate and consistent management reports. Here the bank is not
concerned with the latter goal, but are concentrating on the former.
The Data Warehouse has been designed according to the IBM BDW (Banking Data
Warehouse) model that has been developed as a consequence of the collaboration
between IBM and many banking customers. The model is currently being used by
400 banks worldwide. Bank of Baroda Data Warehouse is regularly populated both
from operational systems and from intermediate sources obtained by partial preprocessing of the same raw data.

CONCLUSION

To survive in the competitive world, Indian bank sector is realizing the importance of customers
relationship and is adopting CRM i.e. customer relationship management. So, with each and
every interaction with customer can give opportunity to build a lifelong relationship. In this
paper, we have discussed the role of CRM in Indian Bank Sector.