customers and their findings are presented in this paper. Keywords: Customer Relationship Management. (CRM), Banking Industry, Qualitative. hello sir, can you send me yr ppt on crm in banking sector. . Objective of CRM in Bank Main objectives to implement CRM in the business. industry for betterment of Banking Services. The lack of understanding on Customer. Relationship Management (CRM) is always a concern among the service.
What would be the risk of leaving the bank to go to the competition?Module B - Functions of Banks - Topic 12
What is the probability the customer will buy a service or product? Customer Data Who are our customer? What type of relationship we want with our customer? CRM in Global Bank Global Banks CRM Strategy Goal Bank of America Provide service representatives with degree view of customer relationship for corporate and retail banking Improve customer experience, retention FleetBoston Segment customer base into six different groups based on demographics and banking behavior Attain cross-sell revenues, maximum lifetime value BNP Paribas Deploy CRM system across branch network, integrating with central office, link multiple customer databases Improve customer experience, cross-sell Scotia Bank Integrate call center, branch, and central office; link 80 banking applications to support unified view of customers Improve customer experience, support consistent message CRM in Indian Bank: CRM would also make Indian bankers realize that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover, create, and satisfy customer needs.
Organization initiatives for Implementation of CRM practices The ability of the organization to adapt changes in the business environment is to be increased. The mindset of the employees has got to be changed in the development of right attitude, skills, expectations, perceptions and behavior.
Suggestions There is need of constant innovation in retail banking. Indian banking industry should aim to formulate strategies incorporating people, processes and technology issues. Technology implementation should be speeded up.
Customer Relationship Management in Banking Sector
The payoffs are in terms of increased customer base, cross- selling, sales force optimisation, efficient lead management and higher productivity. Core areas of transformation were business focus, organisation structure, business matrix, marketing focus and technology. This brings the bank one step ahead in providing convenience and service through CRM. The system generates reports daily for top management and each of the branches have access to reports generated particularly for them.
Bank of Maharashtra has developed in-house software which generates and updates a variety of reports on detailed customer information and sends to branches. These reports are utilised for better customer understanding, better customer support and service by access to relevant customer information with all stakeholders to enable decision making and Business Development as well as retention activities.
Issues and challenges CRM is a strategic initiative which has organisation wide implication. Many banks are still struggling to make proper use of this very useful mechanism. However, the adoption and utilisation is dependent on a number of factors and impediments. Broadly the issues are pertaining to: People, Processes, Data and Technology.
Also a major drawback is the general perception of CRM being a Technology imperative. There is a great need to understand that technology is only the enabler to CRM. In the real sense it is an organisation wide strategy. Most officers perceive technology as a limited to record of information and transaction. The use of technology in further sophisticated information processing and dissemination is not done.
There are multiple channels and multiple technologies in use simultaneously in customer interface, service and sales. Empowerment to frontline staff: Frontline staffs have customer profile and data. Most of them have no motivation to further process these and make full utilisation of these to provide better services and proactive selling effort.
They are neither trained to use customer analytics nor to customise the Banks offering. Historical data collected from legacy systems tend not to have been collected in any standard form.
This process has to be carried out across branches which in addition to their core tasks have this work. Employees expected to organise and systematically manage data may not dot efficiently because of the lack of understanding of the strategic perspective of this activity.
They also lack the necessary infrastructure and skill to complete this task. People issues Lack of knowledge and skills in converting data to customer knowledge Lack of motivation for utilising the potential of CRM solution Inadequate performance management parameters Less or insufficient decision making authority: In order to use CRM concept towards customer centricity, sufficient decision making power is required to provide customised, responsive and proactive services.
Staff lacks training in IT, its applications, the complete use of software and its applications as well as marketing skills, analytical skills, uses of customer information and service skills for implementation CRM.
Process issues As CRM is an organisation wide strategy the entire processes need to be aligned appropriately. Some important process issues are: This encompasses a fundamental change in the organisational practices and employee behaviour.
CRM cannot succeed in Silo structure of departments.
Customer Relationship Management in Banking Sector |authorSTREAM
It demands integration and collaboration of all departments on a continuous basis. So, Breaking of silos prevalent in traditional organisation structure is a challenge. Change in Structure and Systems: CRM success lies in ownership of CRM by all departments with Marketing in the strategic role of combining efforts in all these towards better customer service.
This basic structural change from product centric organisation to customer centric organisation faces impediments in terms of role conflicts, ambiguity, resistance and attitudinal impediments. Demand for more pro-activeness and flexibility: The former strict hierarchical and rigid structure has to be transformed to flexible, responsive and proactive structure. This demands top management support, proper training and efficient follow up systems.
In addition to behavioural issues the full utilisation of CRM benefits cannot be attained unless this is enabled. Banks have made a large investment in technology and benefits thereof are being realised in terms of improved customer empowerment, customer orientation and convenience.
Yet to realise the full potential, a need to emphasise the strategic importance of CRM is felt. The following section suggests a strategic framework to enable successful CRM implementation.