CRM presentation1-hdu.pdf
- 3. Concept of Customer relationship management (CRM) Concept of customer satisfaction Challenges in CRM Why CRM is important? Implementation process of CRM By Banks Implementation stages of CRM Benefits of CRM implementation in Banking Conclusion Learning Objectives:
- 4. Customer relationship management (CRM) refers to the principles, practices and guidelines that an organization follows when interacting with its customers. From the organization’s point of view, this entire relationship encompasses direct interacting with customer, such as sales and service related processes and forecasting and analysis of customer trends and behaviors. Ultimately CRM services to enhance the customer’s overall experience. Concept of Customer Relationship Management:
- 5. ●Customer satisfaction is the degree of happiness that a customer realize with a product or service and it is the most important driving force for retention of an existing customer which in turn results in growth of bank business. ●Customer satisfaction can’t be limited to one short concept and include different ideas: Customer loyalty, Customer delight and customer retention, to name of few. Satisfaction is a word that summarize the feelings of customer that they hold about their experience with a company. Concept of Customer Satisfaction:
- 6. Q:How can companies know that they are succeeding in satisfying the customer? • If a company knows about customer expectations and attitudes and can meet the requirements, they are more likely to make successful decisions and increase customer satisfaction. Service Quality Knowledge able Employers Competitive pricing Friendly Employers Billing Clarity Customer Satisfaction • There are many factors that affect customer satisfaction. They are:
- 8. The major challenges in CRM are integrating customers, products and services and delivery channels. Under e-CRM, the customers are allowed to have dialogue with the operating staff relating to deposit and loans . The benefit that come out of implementing CRM are: Challenges in CRM: i. Greater empowerment for users. ii. Lower cost of service delivery by shifting certain interactions to self-service and chat. iii. Better visibility across services, delivery channels. iv. Gains in customer communication, accountability and improved organizational efficiency.
- 9. Why CRM is Important?: Why CRM? Establish a need based customer- centric business model Personalize customer relationship at scale Make marketing effects more effective Increase operational efficiencies Increasing competition in Retail Banking Increase customer interaction & customer satisfaction
- 10. Establish a need based customer-centric business model: To put customers at the centre of the business. bank can better anticipate their needs & engage with customers at the right time throughout their financial life journey. Why CRM is Important?: Personalize customer relationship at scale: CRM can track customer data across the bank, including service or loan origination departments. So bankers can get a 360 degree view of each customer. Make marketing effects more effective: CRM makes it easy to create reports highlighting customer data points, engagement channels, product purchasing trends & more.
- 11. Why CRM is Important?: Increase operational efficiencies: Operational efficiencies are basically managing operational costs for bank in general & delivery cost in particular as applicable to retail banking. The classic example in branch banking is shifting the customers to electronic & remote channels like ATM. Increasing competition in Retail Banking: Competition is buzz word in retail banking. As retail banking is a profitable business model for private foreign banks. To retain high net worth individuals, banks should focus strongly on relationship management with customers. Increase customer interaction & customer satisfaction: CRM helps in improving marketing strategies to retain existing customers, improve customer service, attract new customers, improve sales process & reduce customer acquisition costs.
- 12. Implementation process of CRM by Banks: The different key issues in the implementation of CRM by banks are discuss below: Business Process:- The orientation and the description of the business process is a key requirement for the customization of the CRM solution for the particular bank. The evaluation of the current business process is essential to determine the nature of products the bank wants to offer and the way it wants to develop its customer portfolio. Information Process:- It’s involves the analysis of the existing information process which the bank is currently working. The integration of these in the CRM system and the suitable restructuring is essential for implementation of the CRM system in bank. Information systems:- The existing information infrastructure of the bank needs to be analyzed and the implementation of the CRM infrastructure accordingly customized. Internal Organizational Culture:- The integration of the systems is only one dimension for successful implementation and there is another important dimension. The bank’s systems have to get with the organizational change.
- 13. There are four stages through which CRM is implemented. This four stages are discuss below:- Implementation Stages of CRM by Banks: Identification of customers:- The bank need to identify the customers based on their products availed and focus of the bank. This will help the banks to focus the segment they want to target and to use the CRM system to effective target. Classification of Customers:- The nature of interactions bank has to have with the above information depending on the profitability and the size of the account have to be developed and accordingly the CRM database should be updated. Interaction with the most valued customers:- Banks can segment the whole market and then looking at the product and service usage of the customers can develop different kind of marketing strategy and design campaigns to reach customers. Customization of Bank Product and Services:- Selection of media mix and customer interaction points backed by the customers past usage data and intention forecasts, the product managers can design mass customized products for each of the target segments and launch campaigns.
- 14. Customer satisfaction Increase share-of-wallet Operational efficiency Customer focus and retention Improve customer service Understand custom Better relationship marketing Benefits for employees Benefits of CRM implementation in Banking:
- 15. Customer satisfaction: CRM improves customer satisfaction and cross selling potential for the banks. Increase share-of-wallet: CRM helps the bank to derive increased share of wallet from the customer. Operational efficiency: CRM enables financial institutions to give employee’s better training that helps them face customers more easily. Customer focus and retention: CRM uses information and analytical tools to secure the customer focus. Improve customer service: CRM helps to improve customer service through effective interaction of all remote delivery channels. Understand customer value: CRM helps to understand customer life -time value through the structured data based on a dynamic basis. Better relationship marketing: It results in better relationship marketing as customer segments are better target based on the data available in CRM. Benefits for employees: Employees are empowered with all the crucial and accurate information at their fingertips to deliver high quality service and meet customer expectations. Benefits of CRM implementation in Banking:
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