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Submitted To: Miss Savita Dhingra

Submitted By: Amandeep Kaur

Rgd No: 10901588

Roll No: A22(1902)

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


ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,528 branches and 6,000 ATMs in India, and
has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized subsidiaries in the
areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New
York Stock Exchange (NYSE).
CRM Strategies
• 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

• 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.


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

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 touc

Time-Norms for Various Banking Transactions


1 Cash payment Up to 15 minutes
2 Receipt of cash Up to 15 minutes
3 For issuance of demand draft Up to 10 minutes
4 Payment of demand drafts Up to 15 minutes
5 Payment of fixed deposit receipts 20 to 25 minutes
6 Opening of an account 25 to 30 minutes
7 Statement of accounts (request for duplicate) Within 3 working days
8 Collection of cheques Normally within 4 days
Local Normally within 21 days

Deployment of CRM Best Practices- Private Banks

Sr.No Name of Bank Type Mean Mean Std. Dev

1 ICICI Bank NPB 4.45 0.78
2 HDFC Bank NPB 4.41 0.63
3 Kotak Mahindra Bank NPB 4.1 0.86
4 UTI Bank NPB 4.07 0.88
5 IndusInd Bank NPB 3.79 1.11
6 ING Vyasa Bank OPB 3.76 0.64
7 Centurian Bank of Punjab NPB 3.48 1.02
8 Federal Bank OPB 3.24 1.06

CRM at ICICI involves increased communication between the virtual universal bank and its
customers and the prospects as well as within the group itself. The underlying idea is to enhance
every instance of contact with the customer. ICICI believes that a true customer relationship can
only be accomplished by considering the unique prospective of every single customers.

The CRM strategy of ICICI proves to be One to One marketing so that every prospect is
taken care of in their own way this flexibility is the main reason for the company’s overall
success in Relationship marketing. The reliability the main key factor in Banking sector as ot
deals with the money of the customer the bank should show 100% reliability with the customers
and in that way ICICI knew that better Relationship marketing would bring in more closer and
reliable relationship with the public as which it would attract more account holders with the

The award-winning Teradata enterprise data warehouse (EDW) solution has enabled
ICICI Bank to establish business intelligence market leadership in the fast-growing Indian
financial market. The bank uses its Teradata platform to develop tailored marketing campaigns
that have boosted customer acquisition rates significantly. It has serviced over 11 million unique
customers around the country. In addition, ICICI Bank's credit cards and retail loans business
units attribute 25 and 20 per cent respectively of their new/incremental business in the past year
to cross-selling activities facilitated by the data warehouse.

The CRM software applications facilitate multiple business functions with the customers
of this bank. As known ICICI systems are well designed so as to equal quality with its one to one
marketing strategy and that is it was awarded in DM review world class solutions.

These Success milestones talk more about the concentric and concrete functions of ICICI
in CRM strategies. The chronic strategies of ICICI right from its inception and till now have
shown the company’s importance towards its customer centric strategies and organizations. The
customer life cycle tracking system in ICICI is the only kind of software used in the Banking
sector in India. This unique software used by the ICICI helps them to provide faster solution to
the customers whenever they needed like Dormant accounts, expired accounts, unlimited
banking statements etc.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up
capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The
HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the
ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of
the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory approval
process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC
Bank for every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net advances
of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs.
1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased
branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in
the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank.


HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online connectivity, which enables the
bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines

The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients always get the finest
services we offer. The Bank has prioritized its engagement in technology and the internet as one
of its key goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

Technology used by HDFC

In the era of globalization each and every sector faced the stiff competition from their
rivals. And world also converted into the flat from the globe. After the policy of liberalization
and RBI initiatives to take the step for the private sector banks, more and more changes are
taking the part into it. And there are create competition between the private sector banks and
public sector bank.

Private sector banks are today used the latest technology for the different transaction of day
to day banking life. As we know that Information Technology plays the vital role in the each
and every industries and gives the optimum return from the limited resources.

Banks are service industries and today IT gives the innovative Technology application to
Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC
BANK together combined they reached the sky. New technology changed the mind of the
customers and changed the queue concept from the history banking transaction. Today there
are different channels are available for the banking transactions.
We can see that the how technology gives the best results in the below diagram. There are
drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008
( 25%). These type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through Processing Reduced Transaction Cost

Data Warehousing , CRM Improve cost efficiency, Cross sell

Innovative Technology Application Provide new or superior products

HDFC BANK is the very consistent player in the New private sector banks. New private sector
banks to withstand the competition from public sector banks came up with innovative products and
superior service. HDFC BANK mission is to be "a World Class Indian Bank", benchmarking
themselves against international standards and best practices in terms of product offerings,
technology, service levels, risk management and audit & compliance. The objective is to build
sound customer franchises across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring
the highest levels of ethical standards, professional integrity, corporate governance and regulatory
compliance. Continue to develop new product and technology is the main business strategy of the
bank. Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following :

• Increase market share in India’s expanding banking and financial services industry
by following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.

• Leverage our technology platform and open scaleable systems to deliver more products
to more customers and to control operating costs.

• Maintain current high standards for asset quality through disciplined credit risk

• Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector.

• Continue to develop products and services that reduce bank’s cost of funds.

• Focus on high earnings growth with low volatility.

• They use some technique and methodology for smooth running of business. HDFC
BANK also aquired the Japanese technique for smooth running of work and effective
work place organization.

Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and systematic
work place and eliminating unnecessary things from the work place.


• It can be started immediately.

• Every one has to participate.
• Five “ S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage are made visible.

FIVE ‘S’ Means :-



(1) SORT :-

It focus on eliminating unnecessary items from the work place. It is excellent way to free
up valuable floor space. It segregate items as per “require and wanted”.

Frequently Less
Required Frequently

Remove Required
but not
2) SYSTEMATIZE :- Systematize is focus on efficient and effective Storage method.That
means it identify, organize and arrange retrieval. It largely focus on good labeling and
identification practices.

Objective :- “A place for everything and everything in its place”.

(3) SPIC- n - SPAN :-

Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership.


It focus on simplification and standardization. It involve standard rules and policies. It establish
checklist to facilitates autonomous maintenance of workplace. It assign responsibility for doing
various jobs and decide on Five S frequency.


It focuses on defining a new status and standard of organized work place. Sustain means regular
training to maintain standards developed under S-4. It brings in self- discipline and commitment
towards workplace organization.



• Right strategy for the right • Some gaps in range for certain
products. sectors.

• Superior customer service vs. • Customer service staff need

competitors. training.

• Great Brand Image • Processes and systems, etc

• Products have required • Management cover insufficient.

accreditations. • Sectoral growth is
constrained by low
• High degree of customer unemployment levels and
satisfaction. competition for staff
• Good place to work

• Lower response time with

efficient and effective service.

• Dedicated workforce aiming at

making a long-term career in
the field.

Opportunities Threats

• Profit margins will be good. • Legislation could impact.

• Could extend to overseas broadly. • Great risk involved

• New specialist applications. • Very high competition prevailing in

• Could seek better customer deals. the industry.

• Fast-track career development • Vulnerable to reactive

opportunities on an industry-wide attack by major competitors

basis. • Lack of infrastructure in rural areas

• An applied research centre to create could constrain investment.

opportunities for developing
• High volume/low cost market is
techniques to provide added-value
intensely competitive.
1. Understand and Differentiate.
2. Develop and customize
3. Interact and Deliver
4. Acquire and retain.
The basic model of implementing CRM is what followed by HDFC also. The post of
Relationship officer proved that the HDFC has felt that the bank needs a person interacting with
the customer and to the organization. HDFC started understanding the customer needs from the
relationship officers in every bank and started listening to the basic benefits that the customers
are expecting from the bank. Understanding the basic benefits HDFC way was extended to
provide extra ordinary services like Express counters, 24 hrs account enquiry, Express bank
statements, Faster loans etc.
Customization of these specifications is really tougher in case of banking sector since India is
the country where more than 1Billion people live and more diversified regions and languages.
Appointing local executives in respective regions was one of the smart thinking for HDFC so
that those local executives as Relationship Managers carry out respective region customers’
problems more easily.

Customer retention is for what all these CRM companies are fighting for. This bank has a
wide customer networking system where the every account holder would pull on in any other
scheme of the same HDFC bank. For eg HDFC account holder would have both Current and
Savings account or Loan borrower or in any growth plans of the bank, this would stick the
customer with the bank at high rate. Thus HDFC has a strong customer feeling with their
organization and with their every scheme.

Thus, we see that a focused and customer centric approach helped ICICI Bank become No 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.