What Is Customer Relationship Management?

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS
INTRODUCTION CHAPTER : 1 WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?

Before we begin to examine conceptual foundations of C.R.M. It will be useful to define what CRM is. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale in made. In today hyper competitive scenario, more than three quarters of the money and time spent by companies go towards acquiring and retaining customers. Customer-centricity has become the buzzword and the ones with clear and relentless focus on customers, enjoy a better competitive position. This is proved time again. Yet, companies go through meticulous processes to gradually and consistently mature into an ORGANIZATION FOR THE CUSTOMERS But, how would you mature into a customer focused or customer-centric organization? The answer is ; By reading and understanding your customers. Yes, this is all need to do! And this you need to do not just once, but regularly and consistently over the lifetime of your customer and beyond. Reading the customer demographics and understanding their needs (both explicit and implicit) is what customer insight is all about. Customer insight is the basic point or the foundation for building a customer centric organization. Everything in the value chain revolves around this. This is the raw material . This is more a conversion process rather, since the end product is customer loyalty! Over decades, many organizations had successfully completed the conversion process and tasted higher returns, most organizations miserabely failed in their efforts CRM relies on customer data to create customer loyalty. The concept of CRM was again the result of an evolution born out of necessity . When companies understood the need to obtain and maintain customer data, Which was exhaustive and scattered in nature and were desperately looking for a tool that could compile, preserve use the data in a way they want, technology came to the rescue with exclusive methods called data mining , data warehousing and thus data base management techniques were born. Technology is mechanistic and did not know what is required and what is not. A managerial tool was needed to perform the directors role in order to decide the path and processes. Thus CRM was engineered as a tool to manage customer data using IT-enabled techniques
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS CRM gives framework for the activities. It decides on what to do the objectives, what is required to do it the resources, who should do it the people, how to do it the processes, how long to do it the time frame. CRM could be ready made, tailor made or hand made depending on the specific objectives it is set to achieve. CRM is unique in the respect that it follows a set of pre-determined processes to accumulate and manage customer data, which was hitherto unpracticed Hence, CRM is defined as : Customer relationship management (CRM) is a business strategy to acquire and manage the most valuable customer relationships. CRM requires a customer- centric business philosophy and culture to support effective marketing , sales and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy and culture As is implicit in the above definition, the purpose of CRM is to improve marketing productivity. In CRM, marketing efficiency is achieved because cooperative and collaborative processes help in reducing transaction cost and overall development costs for the company. Two important processes for CRM include proactive customer business development and building partnering relationship with most important customers. These lead to superior value creation. The basic concept is that the customer is not someone outside the organization, he is a part of the organization
Purpose of CRM
CRM in its broadest sense, means managing all interactions and business with customers. This includes, but is not limited to, improving customer service. A good CRM program will allow a business to acquire customers. Service the customer, increase the value of the customer to the company, retain good customers, and determine which customers can be retained or given higher level of service. A good CRM program can improve customer service by facilitating communication in several ways: Provide product information, product use information, and technical assistance on web sites that are accessible 24 hours a day, 7 days a week. Identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations. Provide a fast mechanism for managing and scheduling follow-up sales calls to assess post purchase cognitive dissonance, repurchase probabilities, repurchase times, repurchase frequencies. Provide a mechanism to track all points of contact between a customer and the company, and do it in an integrated way so that all sources and types of contact are included, and all user of the system see the same view of the customer (reduces confusion).
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS Help to identify potential problems quickly, before they occur. Provide a user-friendly mechanism for registering customer complaints. Provide fast mechanism for handling problems and complaints. Provide a fast mechanism for correcting service deficiencies. Use internet cookies to track customer interests and personalize product offerings accordingly. Use the Internet to engage in collaborative customization or real-time customization Provide a fast mechanism for managing and scheduling maintenance, repair, and ongoing support (improve efficiency and effectiveness) The CRM program can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it.
KEY CRM PRINCIPLE

Differentiate Customers
All customers are not equal; recognize and reward best customers disproportionately. Understanding each customer becomes particularly important. And the same customers reaction to a cellular company operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. What CRM needs to understand while differentiating customer is: 1. 2. 3. 4. Sensitivities, Tastes, Preferences and Personalities Lifestyle and age Culture Background and education Physical and psychological characteristics
1. 2. 3. 4.
Differentiating Offerings
Low value customer requiring high value customer offerings. Low value customer with potential to become high value in near future. High value customer requiring high value service. High value customer requiring low value service.
Keeping Existing Customers
Grading customers from very satisfied to very disappointed should help the organization in improving its customer satisfactions levels and scores. As the satisfaction level for each customer improves, so shall the customer retention with the organization.
Maximizing Life time value
Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. Increase Loyalty
Loyal customers are more profitable . Any company will like its mindshare status to improve from being an advocate. Company has to invest in terms of its product and service offerings to its customers . It has to innovate and meet the very needs of its clients/customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales. Summarizing CRM activities
The CRM cycle can be briefly described as follows:

1. 2. 3. 4. 5. 6. Learning from customers and prospects, (having in depth knowledge of customer) Creating value for customer and prospects Creating loyalty Acquiring new customers Creating profits Acquiring new customers
WHY CRM IS NECESSARY?
Several companies are turning to customer-relationship management systems and strategies to gain a better understanding of their customers want and needs. Used in association with data warehousing, data mining, call centers and other intelligence-based applications, CRM allows companies to gather and access information about customers buying histories, preferences, complaints, and other data so they can better anticipate what customer will want. The goal is to instill greater customer loyalty. Other benefits includes: Faster response to customer inquiries. Increased efficiency through automation. Deeper understanding of customers. Increased marketing and selling opportunities. Identifying the most profitable customers. Receiving customer feedback that leads to new and improved products or services.
BENEFITS OF CRM
Implementing a customer relationship management (CRM) solution might involve considerable time and expanses. However, there are many potential benefits. A major benefit can be the development of better relations with your existing customers, which can lead to: Increased sales through better timing due to anticipating needs based on historic trends Identifying needs more effectively by understanding specific customer requirements Cross-selling of other products by highlighting and suggesting alternatives or enhancements Effective targeted marketing communications aimed specifically at customer needs A more personal approach and the development of new or improved products and services in order to win more business in the future Enhanced customer satisfaction and retention, ensuring that your good reputation in the marketplace continues to grow
CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS Increased value from your existing customers and reduced costs associated with supporting and servicing them, increasing your overall efficiency and reducing total cost of sales
HISTORY OF CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990 with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions have hit the marketplace ; competition has driven the prices down so that even relatively small businesses are reaping the benefit of some custom CRM programs.
IN THE BEGINNING.
The 1980 saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company customers. In the case of larger, key clients it was a valuable tool for keeping the lines of communications open and tailoring service to the client needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttered database and did not provide much insight. vAs companies began tracking database information, they realized that the bare bones were all tht was needed in most cases: what they buy regularly, what they spend, what they do.
ADVANCES IN THE 1990`S

In the 1990 companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use. They began giving to back their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty.
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS This was the beginning of the familiar frequent flyer programs, bonus points on credit cards and host of other resources that are based on CRM tracking of customer activity and spending patterns. CRM was now being used a say to increase sales passively as well as through active improvement of customer service.
TRUE CRM COMES OF AGE

Real Customer Relationship Management as its thought of today really began in earnest in the early years of the century. As software companies began releasing newer, more advanced solutions that were customizable across industries, it became feasible to really use the information in a dynamic way. Instead of feeding information into a static database for future reference, CRM became a way to continuously update understanding of customer needs and behavior. Branching of information, sub-folders, and custom tailored features enabled companies to break down information into smaller subsets so that they could evaluate not only concrete statistics, but information on the motivation and reactions of customers. The Internet provided a huge boon to the development of these huge databases enabling offsite information storage, where before companies had difficulty supporting the enormous amounts of information . The Internet provided new possibilities and CRM took off as providers began moving toward Internet solutions. With the increased fluidity of these programs came a less rigid relationship between sales, customer service and marketing. CRM enabled the development of new strategies for more cooperative work between these different divisions through shared information and understanding, leading to increased customer satisfaction from order to end product. Today , CRM is a still utilized most frequently by companies That rely heavily on two distinct features : customer service or technology . The three sectors of business that rely most heavily on CRM and use it to great advantage are financial services , a variety of high tech corporations and the telecommunications industry .
The financial services industry in particular tracks the level of client satisfaction and what customers are looking for in terms of changes and personalized features . They also track changes in investment habits and spending patterns as the economy shifts . Software specific to the industry can give financial service providers truly impressive feedback in these areas.
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In recent years however , several factors have contributed to the rapid development and evolution of CRM . These include:1. The growing de intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end customers . For 2. Example ,in many industries such as airlines , banks insurances , software or household appliances and even consumables , the de-intermediation process is the nature of marketing and consequently making relationship marketing more popular . databases and direct marketing tools give them the means to individualize their marketing efforts . 3. Advances in information technology , networking and manufacturing technology have helped companies to quickly match competition . As a result product quality and cost are no longer significant competitive advantages. 4. The growth in service economy . Since services are typically produced and delivered at the same institution ,it minimizes the role of the middlemen . 5. Another force driving the adoption of CRM has been the total quality movement . When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain . This needed close working relationships with the customers .Thus several companies such as Motorola , IBM , General Motors , Xerox , Ford, Toyota etc formed partnering relations with suppliers and customers with practice TQM . other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers . 6. Customers expectations are changing almost on a daily basis . Newly Empowered customers who choose how to communicate with the companies across various available channels. Also nowadays consumers expect a high degree of personalization . 7. Emerging real time , interactive channels including e-mail , ATMs and call centre that must be synchronized with customers non-electronic activities . The speed of business change , requiring flexibility and rapid adoption to technologies . 8. In the current era of hyper competition , marketers are forced to be more concerned with customer retention and customer loyalty . 9. As several researches have found out retaining customers is less expensive and more sustainable competitive advantage than acquiring new ones . 10. On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors 11. The globalization of world marketplace makes it necessary to have global account management for the customers .
CHAPTER 2 : CRM PROGRAMS & ACTIVITIES

One - to-one Marketing Meeting and satisfying each customers need uniquely and individually . In the mass markets individualized information on customers is now possible at low cost due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products . By using online information and database on individual customer interactions , marketers aim to fulfill the unique need of each mass market customer. Information on individual customers is utilized to develop frequency marketing , interactive marketing and after marketing programs in order to develop relationship with high yielding customers . In the context of business to-business markets , individual marketing has been in place of quite sometime . Known as Key Account Management Program, here marketers appoint customer teams to husband the company resources according to individual customer needs .
CONTINUITY MARKETING PROGRAMS

Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. The basic premise of continuity marketing programs is to retain customers and increase loyalty through longterm special services that has a potential to increase mutual value through long-term special services that has a potential to increase mutual value through learning about each other .
Partnering programs
The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs . In the mass markets , two types of partnering programs are most common : co-branding and affinity partnering . Traditionally customer relationship management ( CRM ) revolves around the three functions of selling , marketing and support . various process models have been built around how these functions are integrated and operated in a customer oriented enterprise. There is however a fourth critical function that is lacking in most CRM models . The fourth function that often is the source of a competitive edge is that of innovation . companies must continually reinvent themselves to deliver an improved and often a totally new value offering to their customer base . CRM must provide the customer intelligence
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS that feeds information back in to the enterprises knowledge management process where it can trigger new innovation process . When CRM is integrated into the innovation process , significant value can be derived from faster time to market cycle times and with new process and services . Marketing automation must ensure that the innovation processes are actually market driven. A market driven innovation process must include both strategies that are focused on satisfying customer requirements as well as strategies focused at redefining customer requirements. Sales automation should be integrated with the innovation process by ensuring that all sales channels are prepared and ready to take new processes and services to market before competitive forces can react. Customer service automation must be designed to empower the customer with the option of assisting with the design of the value offering. Redefining CRM around innovation, sales, marketing and service can identify new competitive opportunities for an enterprise. There are three parts of application architecture of CRM: Operational - Automation to the basic business processes (marketing, sales, service) Analytical support to analyze customer behavior, implements business intelligence alike technology Collaborative ensures the contact with customers (phone, email, fax, web, sms, post, in person)
Operational CRM Operational CRM means supporting the front office business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to resources responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference. Operational CRM provides the following benefits: Delivers personalized and efficient marketing, sales, and service through multichannel collaboration. Enables a 360-degree view of your customer while you are interacting with them. Sales people and service engineers can access complete history of all customer interaction with your company, regardless of the touch point.
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The operational part of CRM typically involves three general areas of business: Sales Force Automation (SFA)
SFA involves of the companys critical sales and sales force management functions, for example, lead/account management, contact management, quote management, forecasting, sales administration, keeping track of customer preferences, buying habits and demographics, as well as performance management. SFA tools are designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration.
Customer Service and Support (CSS)
CSS automates some service requests, complaints, product returns, and information requests. Traditional internal help desk and traditional internal inbound callcenter support for customer inquiries are now evolved into the customer interaction center (CIC), using multiple channels ( Web, phone/fax, face-to-face, kiosk, etc.). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability.
Enterprise Marketing Automation (EMA)

EMA provides information about the business environment, including competitors, industry trends, and macro-environmental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable segmentation, and predictive modeling occurs on the analytical (Business Intelligence) side. Integrated CRM software is often also known as front office solutions This is because they deal directly with the customer. Many call centers use CRM software to store all of their customers details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information of a customer in one place, a company aims to make cost savings, and also encourage new customers. CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving your time.
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Analytical CRM
In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically can lead to targeted campaigns to increase share of customers wallet. Examples of campaigns directed towards customer are: Acquisition: Cross-sell, up-sell Retention: Retaining customers who leave due to maturity or attrition. Information: Providing timely and regular information to customers. Modification: Altering details of the transactional nature of the customers relationship. Analysis typically covers but is not limited to: Decision support: Dashboards, reporting, metrics, performance etc. Predictive modeling of customer attributes Strategy and research. following analysis :
Analysis of customer data may relate to one or more of the Contact cannel optimization Contact Optimization Customer Acquisition/Reactivation/Retention Customer Segmentation Customer Satisfaction Measurement / Increase Sales Coverage Optimization Fraud Detection and analysis Financial Forecasts Pricing Optimization Product Development Program Evaluation Risk Assessment and Management
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Collaborative CRM
Collaborative CRM facilitates interactions with customer through all channels (personal, letter, fax, phone, web, e-mail) and supports coordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers. The data/ activities can be structured , unstructured, conversational and/ or transactional in nature. Collaborative CRM provides the following benefits: Enables efficient productive customer interactions across all communications channels. Enables web collaboration to reduce customer service costs. Integrates call centers enabling multi-channel personal customer interaction. Integrates view of the customer while interaction at the transaction level.
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CHAPTER 3: TOOLS FOR CRM

CUSTOMER DATABASE
A good customer information system should consist of a regular flow of information, systematic collection of information that is properly evaluated and compared against different points in time, and it has sufficient depth to understand the customer and accurately anticipate their behavioral patterns in future. The customer databases helps the company to plan, implement, and monitor customer contact. Customer relationships are increasingly sustained by information systems. Companies are increasingly adding data from a variety of resources to their databases. Customer data strategy should focus on processes to manage customer acquisitions, retention, and development.
Call Centre
A call centre is a centralized office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from customers. Outgoing calls for telemarketing, clientele, and debt collection are also made. In addition to a call centre, collective handling of letters, faxes, and e-mails at one location is known as a contact centre. A call centre is often operated through an extensive open workspace, with work stations that include a computer, a telephone set/ headset connected to a telecom switch, and one or more supervisor stations. It can be independently operated or networked with additional centers, often linked to a corporate computer network, including mainframes, microcomputers and LANs. Increasingly, the voice and data pathways into the centre are linked through a set of new technologies called computer technology integration (CTI)
Most major businesses use call centers to interact with their customers. Examples include utility companies, mail order catalogue firms, and customer supports for computer hardware and software. Some businesses even service internal functions through call centers. Examples of this include help desk and sales supports.
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Systems Integration
While CRM solutions are front office automation solutions, ERP is back office automation solution. An ERP helps in automating business functions of production, finance, inventory, order fulfillment and human resource giving an integrated view of business, where as CRM automates the relationship with customer covering contact and opportunity management, marketing and product knowledge, sales force management, sales forecasting, customer order processing and fulfillment, delivery, installation, pre-sale and post-sale services and complaint handling by providing an integrated view of the customer It is necessary that the two systems integrate with each other and complement information as well as business workflow. Therefore, CRM and ERP are complementary. This integration of CRM with ERP helps companies to provide faster customer service through an enabled network, which can direct all customer queries and issues through appropriate channels to the right place for speedy resolution. This will help the company in tracking and correcting the product problems reported by customers by feeding this information into the R&D operations via ERP.
Data Mining for CRM: Some Relevant Issues

Data Mining is an important enable for CRM. Advances in data storage and processing technologies have made it possible today to store very large amounts of data in what are called data warehouses and then use data mining tools to extract relevant information. Data mining helps in the process of understanding a customer by providing the necessary information and facilitates informed decision-making.
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CHAPTER 4 : IMPLEMENTATION OF CRM

HOW TO IMPLEMENT CRM?
The implementation of a customer relationship management (CRM) solution is the best treated as a six-stage process, moving from collecting information about your customers and processing it to using that information to improve your marketing and the customer experience.
Stage one collecting information
The priority should be capture the information you need to identify your customers and categorise their behavior. Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy.
Stage two Storing information
The most effective way to store and manage your customer information is in a relational database a centralized customer database that will allow you to run all your systems from the same source, ensuring that everyone uses up-to-date information.
Stage three Accessing information
With information collected And stored centrally, the next stage is to make this information available to staff in the most useful format.
Stage four Analysing Customer Behaviour
Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile develop sales strategies.customers and
Stage five Marketing more effectively
Many businesses find that a small percentage of their customers generate a high percentage of their profits. Using CRM to gain a better understanding of your customers needs, desires and self-perception, you can reward and target your most valuable customers. Stage six Enhancing the customer experience
Just as a small group of customers often take up disproportionate amount of staff time. If their problems can be identified and resolved quickly, your staff will have more time for other customers.
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TYPES FOR IMPLEMENTING CRM
Purchasing or Licensing Software
Owning the Software and running it on your own servers is ideal if you have highly customized enterprise resource planning, or ERP, or order management system, or OMS, software. If you have third-party software for your back-office processes (accounting, ERP, OMS, etc.) and your front-end systems (content management, merchandising, checkout, personalization engine), then you should be able to find CRM software that works with at least some of your systems without extensive customization. Its unavoidable that you will have to do some customization, but by working with vendors that have partnerships and interfaces with your existing vendors and their software or with vendors that have partnerships with the ASPs that host your existing solutions you can keep customization to a minimum. Customization is not only expensive when you first install third-party software. But its also expensive every time you try to apply a patch or van upgrade. The advantages of purchasing or licensing the software and implementing it on your own servers are that you have complete control over the software and over the data. There arent any of the privacy issues that might arise from having your data residing with a third party. If you already have a customer service department with trained associates, and you dont expect rapid growth or you believe you are equipped to handle rapid growth then theres no point in paying to train CSRs elsewhere
CRM via ASP

Only recently have CRM services become available via an ASP There are two kinds of ASPs providing CRM solutions. With one type, of which shop Tok is one example, the ASP hosts its own CRM software. The other5 type hosts a best of bread third party solution. The disadvantage of third type is that when something isnt working with the software, you dont always the whether the problem rests with the ASP or with the software ,and you cant necessarily get it fixed. with ASPs that5 hosts their own software, the vender hears you requirements for new features and your complaints about existing functionality. When you work with an ASP, the first thing you will want to know the degree to which you can customize the software so that your other business software will take to your CRM software . after all ,your CSRs need to know what a customer has purchased to handle
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS inquiries from that customer, requiring between the order-management system and the CRM system. If the customer database doesnt talk to the CRM system, then your marketing department cant segment customers based on purchases and the use the analytical tools frequently built into CRM software to make intelligent decisions on what kind of promotions to make to attract the highest-value customers.
Outsourcing Customer Service
While you can outsource customer service, which is one component of CRM, you cant outsource business intelligence , which is the component of CRM. If the strategic component of CRM. If you dont need to integrate with existing system, or you only need limited integration, then the fastest route to take is to outsource your customer service to a full-service provider who will give you Web access to the business-intelligence tools. Most full-service customer-service providers will work with best-of-breed CRM vendors and offers you a choice of CRM systems with which to manage your customers. Some are also willing to purchases and install the CRM software of your choice on their servers, but be aware that this will eliminate the advantage of a quick
implementation, lower entry costs and CRSs who already know the software. The cost associated with outsourcing CRM is usually a significant startup cost for developing your materials, their training materials and your knowledge base, then a monthly fee based either on the number of hours of CRS you want available or on the number of calls/messages they receive for your site. The pay-as-you-go model can be very attractive to smaller members. The ability to grow quickly can be an advantage for any size Web merchant.
CRITICAL SUCCESS FACTORS FOR IMPLEMENTATION OF CRM SYSTEMS

Critical success factors have been defined as the elements that make a project a success, and as the events and conditions in a few key areas which absolutely must go right for the business to succeed These include trust, effective communication, and top management support. For this to occur, proper measurement tools and metrics must be utilized to effectively control the project. The Key CSF for CRM projects are: Key stakeholder support
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS Support from all stakeholders in the organization, including top management and all management levels, employees, government, suppliers, strategic partners and investors. Includes the timely reporting of the project status with accurate information. Sufficient Resources Resources of money, equipment and expertise available with appropriate support structures in place. Includes time and budget allocations for training.
Clearly Defined Objective
A clearly defined mission with a set of defined goals and objectives communicated to all stakeholders through clearly defined communication channels, with alignment of project and corporate goals. This is managed through a detailed project plan.
Managing Change
Project changes are implemented through formally defined process, with appropriate approvals sought. Any scope changes are mutually agreed and documented, with appropriate analysis of resource requirements.
Challenges of CRM Implementation

Organizations face a number of key challenges in implementing CRM systems. These include:
Methodology driven by end users
IT personal do not have knowledge or authority to influence corporate decisions makers
Lack of customer centric culture
CRM projects are mostly driven by a functional head, such as a VP or sales/marketing, and rarely produce an enterprise view of customers.
Lack of customer centric culture
An acceptable return on investment will no be achieved if the organization does not have a strong customer centric culture
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CHAPTER5: CRM RELATED CONCEPTS

Knowledge Management
Knowledge Management (KM) refers to a range of practices used by organizations to identify, create, represent, and distribute knowledge for reuse and learning across the
organization.
Knowledge Management programs are typically tied to organizational objectives and are intended to lead to the achievement of specific business outcomes such as improved performance, competitive advantage, or higher levels of innovation. While Knowledge Management programs are closely related to Organizational Learning by its Organizational Learning initiatives. Knowledge Management may be distinguished from Organizational Learning by its greater focus von the management of specific knowledge assets and development and cultivation of the channels through which knowledge flows. In recent years, Personal Knowledge Management (PKM) practice has arisen in which individuals apply KM practice to themselves, their role in the organization and their carrier development. Knowledge Management is a continually evolving discipline, with a wide range of contributions and a wide range of views on what represents good practice in knowledge Management.
KNOWLEDGE MANAGEMENT PLAYS A KEY ROLE IN CRM SUCCESS CRM and KM were once considered entirely different disciplines, with the two sharing little but perhaps the same data warehouse hardware and a vague understanding that both efforts were meant to improve business efficiency and customer satisfaction. It has become clear, however, that the two disciplines were really working toward the same goal, and that to deliver continuous improvement to business clients, they would have to start speaking the same language. KM focuses largely on finding the right solution to a problem that requires detailed insight, be it locating the right experts, at the right time, or ensuring that the solution to a complex problem can be written once but reused many times.
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Regain Management
The cost of acquiring a new customer is 9 to 12 times that of holding on to an existing customer. Philip Kotler Goal of customer regain management is to reinitiate valuable customer relationships, which have been already terminated. Regain management has to detect such lost customers, select valuable relationships and attempt to regain them in an efficient way, for which a systematic process is necessary. Addition to this process structure, there is an information base needed , which enable the exchange of collected information along the customer regain process. - An incentive strategy tempts to regain business relation by offering customers some form of incentive like for example ticket for events, gifts & discounts. - A compensation strategy aims to compensate some disservices, which as the motive for termination. For example the company could offer some form of vouchers. - A dialogue strategy tries to regain trust through a dialog. - A convincing strategy aims to persuade customers by means of use argumentations & Explanation of some product advantages.
CRM in Supply Chain Management (SCM)
Supply Chain management (SCM) is a business system of enterprise strategies, business processes & information technologies for improving the planning, execution & collaboration of material flows, information flows, financial flows & workforce flows in the supply chain. SCM is supported by modular software applications that integrate activities across organizations, from demand forecasting, product planning, parts purchasing, inventory control, manufacturing and product assembly to product distribution. In the context of SCM, where alliances & partnership are keys to success, CSM plays an important role in building long-term relationships. The success of relationship depends upon sharing of saving from the supply chain, which may be reinvested to further enhance its efficiency & sustain the competitive advantage.
GOALS OF SCM
- To reduce inventory cost, - To increase sales, - To improve the coordination & the collaboration with suppliers, manufacturer & distributers.
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CRM-ERP Information
ERPs foundation, it is based on creating internally stable business functions & predictable prices control. The concept of ERP was the integration of all back-office functions so that the basic problems responsible for interception & breaks in the process where smooth out & the incompatibilities of the best-of-breed applications were eliminated or reduced. This doesnt work with CRM which is external. How can you be in command of processed when they are based on your customers behavior? Conceptually, one important reason for CRM is real time response to the constantly liquid-shifting of customer demands, which is not controlled internally at all. It also means the psychology of the front-office is quite different from the psychology of the back-office. The simplest option is to hire a systems integrator to come in & integrate the systems. However, the obvious hazard here is that they are not only dealing with ERP & CRM applications they may not know much about, they are also dealing with your legacy system, which they know nothing about. But integrating all of that is what you could hire the ERP vendors CRM solution . The third solution is what many companies are increasingly turning to Enterprise Application Integration (EAI)
3. CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues.It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. Solid CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. In CRM projects, following data should be collected to run process engine: 1) Responses to campaigns, 2) Shipping and fulfillment dates, 3)Sales and purchase data, 4) Account information, 5) Web registration data, 6) Service and support records, 7) Demographic data, 8) Web sales data.
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NEEDS OF A BANK
The banks now need to find out what to sell, whom to sell, when to sell, how to sell and how to be different to increase profitability. Banks need to differentiate themselves by adding value-added service, offerings and building long-term relationships with their customers through more customized products, enhanced value offerings, personalized services and increased accessibility. Banks also need to identify customers and products that would be most profitable and target customers with products that are most appropriate to their needs and serve the customers with greater cost efficiency. Banks also need to find out the avenues for increased customer satisfaction, which leads to increased customer loyalty. This may be explained better from two initiatives bank took in the past:
Earlier what drove many bankers to invest in ATMs was the promise of reduced branch cost, since customers would use them instead of a branch to transact business. But what was discovered is that the financial impact of ATMs is a marginal increase in fee income substantially offset by the cost of significant increases in the number of customer transactions. The value proposition, however, was a significant increase in that intangible called customer satisfaction. The increase in customer satisfaction has translated to loyalty that resulted in higher customer retention and growing franchise value. Bankers invested in Internet banking, believing that the Internet was a lower-cost delivery channel and a way to increase sales. Studies have now shown, however, that the primary value of offering Internet banking services lies in the increased retention of highly valued customer segments. Again customer satisfaction drives the value proposition. Thus, banks need to retain existing customers with enhanced personalized services and products, which best suits their needs and satisfies them the most.
WHAT IS E-CRM?
In a simple term, it provides to companies a means to product interactive, personalized & relevant communication with customers across both electronic & traditional channels. It utilizes a complete view of the customer to make the decision about the messaging, offers & channel delivery. It synchronies communications across disjointed costumer facing system. It focuses on understanding of customer activities, personalized relationships affect the business. Advocate of E-CRM recognized that a comprehensive understanding of customer activities, personalization, relevance, permission, time lines & metrics is a means to an end optimize the value of your most important asset: your customer.
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS For fortune 500 companies, evolving to E-CRM requires process & organizational changes, a suite of integrated applications & a non-trivial technical architecture to support both the E-CRM process & the enterprise applications that automate the process. Mid-size companys benefits from less sophisticated & easier-it-implement, hosted solutions offered through Application Service Provider. But regardless of the size of the firm, you have no choice but to evolve to E-CRM quickly. E-CRM v/s CRM: The Differences Being able to take care of your customer via internet or customer being able to take care of themselves online: Thats the difference between CRM & E-CRM. It implies a myriad of issues, questions, approaches, technologies & architecture that are different from client/server-based CRM. Many of them are issue general to the internet. Others are issues related to the creation of applications for the internet. The third group is related directly to E-CRM & its actual value to business.
Companies agree that E-CRM is critical to their business, but unfortunately very few understands exactly what it is or how to evolve from their existing database marketing practices to an E-CRM solution.
Basic Requirements of E-CRM or Six E of E-CRM
Electronic Channels
New electronic channels such as the Web and personalized e-Messaging have become the medium for fast, interactive and economic customer communications, challenging companies to keep pace with this increased velocity.
Enterprise
Through E-CRM, a company gains the means to touch and shape a customers experience across the entire organization, reaching beyond just the bounds of marketing to sales, services and corner offices whose occupants need to understand and assess customer behavior. An E-CRM strategy relies heavily on the construction and maintenance of a data warehouse that provides a consolidated, detailed view of individual customer behavior and communication history.
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Empowerment
In this new age, E-CRM strategies must be structured to accommodate customers who now have the power to decide when and how to communicate with the company and through which channel, which ability to opt for or out of. Consumers decide which firms earn the privilege to talk with them.
Economics
Too many companies execute communication strategies with little effort or ability to understand the economics of customer relationships and channel delivery choices. Yet customer economics drives smart asset allocation decisions, directing resources and effort at individuals likely to provide the greatest return on customer communication initiatives.
Evaluation
Understanding customer economics relies on a companys ability to attribute customer behavior to marketing programs. A company should evaluate customer interactions along with various customer touch point channels and compare anticipated ROI against returns, through customer analytic reporting. Evaluation of results allows companies to continuously refine and improve efforts to optimize relationships between companies and their customers.
External Information
The use of Customer-sanctioned external information can be employed to further understand customer needs. This information can be gained from resources such as thirdparty information networks and webpage profiler applications, under the condition that companies adhere to strict consumer opt-in rules and privacy concerns.
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CHAPTER 6:
PROBLEMS AND DRAWBACKS
There are several reasons why a customer relationship management (CRM) solution might not have the desired results. There could be a lack of commitment from people within the company to the implementation of a CRM solution. Adapting to a customer-focused approach may require a culture change. There is a danger that relationships with a customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operations from the customers perspective. The result is customer dissatisfaction and eventual loss of revenue. Poor communication can prevent buy-in. In order to make CRM work, all the relevant people in your business must know what information you need and how to use it. Weak leadership could cause problems for any CRM implementation plan. The onus is on management to lead by example and push for a customer focus on every project. If a proposed plan isnt right for your customers, dont do it. Send your teams back to the drawing board to come up with a solution that will work. Trying to implement CRM as a complete solution in one goes is attempting but risky strategy. It is better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Consider starting with a pilot project that incorporates all the necessary departments and group but is small and flexible enough to allow adjustments along the way. Dont underestimate how much data you will require, and make sure that you can expand your systems if necessary. You need to carefully consider what data is collected and stored to ensure that only useful data is kept. You must also ensure you comply with the eight principles of the Data Protection Act that govern the processing of information on living, identifiable individuals. For more information, see their guide on how to comply with data protection legislation. Avoid adopting rigid rules which cannot be changed to be more flexible to the needs of individual customers.
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REASONS FOR CRM IMPLEMENTATION FAILURE

An understanding of the challenges and critical success factors is paramount to project success. In this way, the organization is aware of those factors by which success can be measured, and will ensure the CRM system is implemented in a manner to satisfy all stakeholders. The main reasons for CRM failures include:
Customer focus
Organizational culture is not customer focused, with limited involvement of customer facing personnel in the design and implementation phase.
Organizational Management
Lack of support and understanding from senior management, lack of CRM understanding, lack of communications and changing business needs.
Project Management
Misalignment between project and business requirements, with unrealistic goals, timelines, coupled with a lack of planning and insufficient reporting and control.
Team Members
Lack of support, incentives and lack of technical knowledge
Data & warehouse requirements
Poor quality data, inconsistent data between different systems
Technical Factors
Short term solution focus not aligned to long term architectural infrastructure growth, no prototyping or testing, misunderstanding technical requirements.
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1 . THE CRM FRAMEWORK

Schmitts book Customer Experience Management offers the following five steps framework that should help managers understand and manage the customer experience
Step 1: Analyzing the experiential world of the customer

Analyze socio-cultural of the customer (needs/wants/lifestyle) Analyze business concept (requirements/solutions)
Step 2: Building the Experiential platform

Connection between strategy and implementation Specifies the value that the customer can expect from the product.
Whereas steps 1 (Analysis) and 2 (Strategy) form the basis for CEM, steps 3, 4, 5 are focusing on implementation.
Step 3: Designing the Brand experience

Experiential features, product aesthetics, look and feel e.g. logos
Step 4: Structuring the customer interface

All sorts of dynamic exchanges and contract points with customers Intangible elements (i.e. value, attitude, behavior
Step 5: Engaging in continuous experiential innovation

Anything that improves and customers personal lives and business customers working lives
And finally, to bring all pieces together, a holistic approach is required that provides a linkage the different steps and connects them with the organization.
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HOW DOES CEM TECHNOLOGY WORK?

CEM Technology captures customer experience information across all customer touch points and feeds it back to the organization so that action can be taken to improve profitability. At the beginning or end (or both) of an interaction, and within context, the customer is invited (automatically or manually) to provide their perspective via four or five short questions. Done properly, this process will result in better than 80% customer participation and have a measurably positive effect on customers. Whether phone, email or Web channels, the experience information is collected within context of the interaction. The question that are delivered to the customer are specific to that interaction type; the people, products and processes that were part of the interaction; and the customer. The questions are also conditional in nature and facilitate both quantitative as well as qualitative experience information. CEM Technology accesses existing CRM data, productivity metrics, and incorporates key information related to customer behavior and profitability. Information such as retention rates, average purchase amounts, store sales, complaint and resolution rates, customer segments, etc. are all combined with
customer experience information and analyzed/reported in real-time. The strength of a CEM system is in its ability to continually align company performance with customer needs and behaviors, enabling companies to make effective, correct, and critical day-to-day adjustments in resource allocation and execution- as well as enterprise-wide shifts in strategy. Customer Experiences can be categorized into three unique states. The state of the customer experience has implications on the type of information to communicate with and collect from customers. The three states of customer Experience are: Normal Experience, critical Experience, and Unique Experience.
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MANAGING CUSTOMER INTERACTION

Experience Types Normal Key words 1. Education 2. Competenc e 3. Consistenc y Stage 1.Early 2.Middl e Objectives 1. Establish Positive Perceptions 2. Validate Expectations 3.Establish Trust ,loyalty, satisfaction 4.EngageCustom ers 1.Service Recovery 2. Positive Memorable Experiences 1. Up Sell Products, Services 2. Cross Sell Products ,Services Profit Implications 1.Reduce early phase customer turnover 2. Reduce service and support costs 3.Reduce research expense
Critical
Unique
1. Opportunit y 2. Flexibility 3. Problem resolution 1. Appropriat e timing 2. Appropriat e context
1.Early 2.Middl e 3.Matur e 1.Middl e 2.Matur e
1. Reduce turnover 2. Promote Positive word-of-mouth endorsements 1. Increase average purchase levels 2.Increase proportion of high margin sales
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CHAPTER 7 : CRM IN INDIA

Software is to India what oil was to gulf. It is therefore no surprise that the Indian companies are jumping into the CRM bandwagon to seize a chunk of the global market, both products as well as services. With a vast talent pool; India is a fast becoming an important development base of CRM major companies. This trend is likely to increase in the future. Call centers, Catering primarily to the American and European markets are coming up in and around the metros. With the easing of infrastructure constraints, India is likely to emerge as a significant player in the segment. Companies in India are realizing the need for CRM and some of the forward thinking ones have been strategically investing in CRM initiatives and relate activities. Even though, some industries like steel, aluminum and cement could get by without any active customer management, they realize that is now all history and that they have to do something to create and build relationships. So the awareness of CRM there. The first steps have been taken by many. The question is whether you want to compare CRM programs of Indian companies with the standards and best practices of players like Ikea and Marriot who have been torchbearers in this field. India has a long away to go. Indian companies would do well to realize that CRM cannot be delegated to the marketing department. It has to be whole revolution within the entire organization. The entire organization from the chairman to the doorman has to be a galvanized to become a customer-oriented organization. Its about training, learning, rescaling and the ability to adapt that will distinguish the laggards from the winners. It needs a CEO who walks the talk, in other words CRM is an absolute necessity now for the smallest kirana store to a large player like Ambuja Cement. One has 200 customers. But both cant afford to loose even a single of their customers, because the cost of creating a new customer is 5 to 10 times more than the cost of retaining an old, good customer. CRM is now an integral part of organizational strategy and overall business objectives. Has CRM in India been reduced to an empty buzzword thats tossed around so that a company appears to be keeping up with the industry? Not entirely, because organizations like Standard Chartered Bank, ICICI Lombard, BPL Telecom and Air-India have successfully used these tools-and benifited. The difference lies in the way CRM has been deployed at these organizations. It is a combination of technology and process change that has worked.
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS Adoption of CRM by Indian companies is at an infancy stage. The CRM enabled companies include Modi Xerox, Tata Telecom, TVS Electronics, HP India, Tata Info Tech, Carrier Refrigeration, Tata Teleservices, Satyam Info way, Planet M, Epicenter Technologies among many others. India even has a CRM Foundation in New Delhi, founded with the purpose of assessing and improving CRM practices. Founding members include Tata Telecom, Escotel, Modi Xerox, Global Groupware, AC Nielsen, Carrier Aircon, and Motorala India, among others. Outsourcing CRM back offices. India is growing to be the back office of the world, and many Indian companies are managing CRM operations for Fortune 500 and medium-sized companies in USA and Europe. Now that the outsourcing market is mature, Indian companies may also begin to outsource for cost reduction.
BPOS IN INDIA
The business process outsourcing industry in India hasa grown by leaps and bounds and as its size increases so does its competitive advantage. Compared with 1996 when this Industry had started inroads into the United States with Outbound Telemarketing campaigns, today the vehicle for these calls-the internet has become cheaper and more reliable for the average Indian business.The business has boomed to the extent that many people are now running BPOS out of their cyber cafes and houses in New Delhi. The sector witnessed considerable activity during 2004-05, including a ramping up of operations by major Indian and MNC players and stepped up hiring. The domestic BPO market, castalyzed by demand from the telecommunications and BFSI segments, matched the growth of BPO exports. The market experienced maturity and consolidation, a result of numerous mergers and acquisitions taking place within the sector. There were over 400 companies operating within the Indian BPO space, including captive units (of both MNCs and Indian companies) and third-party services providers. The Indian BPO industry remains on a growth path, emerging as one of the key investment markets in the country.BPO is one of the greatest global forces for improvement today. CRM outsourcing providers alone have a $30 billion market opportunity and businesses that capitalize on the potential cannot only reduce cost, but also increase productivity and raise revenue significantly.BPO began as a way to significantly reduce labor costs for lowvalue or transactions activities (e.g., help desk calls, bill payments), but now, its emerging as a way to deal with higher complexity, value-added activities. However, few companies have realized the full range of benefits that BPO offers. To capture these benefits organizations need to do two things: outsource to improve productivity (not just costs) and cost-effectively identify emerging revenue opportunities.
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CHAPTER :- 8 CASE STUDIES ON CRM
1.BHARATI TELE-VENTURES- TELECOM SECTOR

Bharti Tele-ventures is one of the Indias leading private sector telecom operators. Its cellular business, AIRTEL, is a leading mobile telephony brand. Like any Telco, Bharti considers information technology a key business enabler. For telecom IT is like bread and butter. Bharti believes it plays two significant roles-it works as a support system, and it can also be a business driver. Thus IT is very important to Bharti. It had a WAN in place with a mix of leased lines and E1 and E3 lines. The company also has an extranet in place through which it extends different applications to its dealers and partners. Bharti have an extremely large infrastructure based on products from multiple vendors. This includes a range of high-end servers from Sun and HP. In the telecom business volumes are very large. They have millions of records and process them everyday, so far them storage is in terabytes. Bharti also has a storage area network (SAN) in place. The main data centre is located in Gurgaon, Haryana. As far as software is concerned, some of the applications that are running on its network are billing, fraud management, revenue assurance and data warehousing. They also have some internal facing applications like Oracle Financial and Oracle HRMS.
THE CASE FOR CRM

Initially, when Bharati started operations, the whole system was run manually. At that point of time only 40 percent of their customer issues were getting resolved-this has now gone up to about 90 percent. It is vital for them to manage the expectation of their customers and provide them with innovative products and services in a manner which make them loyal. To achieve this, Bharti needed the right tools. It is this need that made them opt for a CRM (customer relationship management)
CHERRYPICKING A SOLUTION
Today Bharti is using the Oracle CRM platform. As part of their vision, they intend to provide Airtel services anywhere and at any time. A customer should get the same quality
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS of service no matter which of their call centres he contacts. This has been their vision, and because of that they have gone in for a centralized application like CRM. Before choosing its CRM tool, Bharti evaluated many options. It considered factors like proper workflow automation, facilitation of knowledge sharing, and integration with the billing system. After a through evaluation exercise, it decided to go ahead with the Oracle CRM platform.
ROLL IT
After starting its services in Delhi, Bharti acquired many circles and sought new licences in other circles; whenever they got a new licence, they implemented the CRM tool immediately. But they had to put in a migration strategy in those acquired circles which had an existing subscriber base. The migration had to be done in such a manner that the existing customer base did not suffer. The goal was that all circles would go live by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in place. Once this was done they faced the challenge of imparting training. They went in for such a large-scale implementation they faced problems. They also had certain technical difficulties during implementation, but they were able to overcome them. The CRM strategy at Airtel revolves around two aspects: operational CRM and analytical CRM. The first is about helping their call centres in the workflow part, helping them in their day-to-day activities. The second provides staff with the required information on customers; this is used for business development activities. Together they help Bharti provide better service to its customers.
TAILOR-MADE SCHEMES
One of the primary things that Bharti has done with CRM is segmentation of customers, which has helped in providing customers more value for their money. It
was important to understand and segregate customer needs depending on the product and services is buying. One of the primary things that Bharti have done in this solution is the segmentation of customers. With this, Airtel is now able to give its customers more value for money. With the help of CRM, they are able to provide customers different schemes and services depending on airtime usage. If the customer is a heavy user then they have some specific schemes; for normal users they have other schemes. Apart from this, they have also managed to segregate their workflow with the help of the CRM tool.
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2.WOCKHARDT- HOSPITAL AND HEALTH CARE SECTOR

When you aim to build a world class hospital, you need world-class processes in place. Keeping this goal in mind and to give patients better value for their money. WHHI was looking for a solution that would allow the hospital to manage its patient and staff details database efficiently. It also needed to connect specialists to the hospital network such that the doctors could monitor the patient remotely. The WHHI team, which consists of four people, found that the most suitable solution was to put in place two inter-linked systems. The foursome considered a CRM solution custommade to the hospitals needs and a network linking that they term E-ICU. This system connected the patients monitors to an RAS accessible over the internet. The CRM system WHHI put into place not only helps identify the right doctor for the right occasion, it now also generates reports. Plus it can sort categories of patients such that the hospital has now been able to start clubs of people with similar experiences.
THE BEGINNING To develop and maintain a special relationship with doctors, patients, and corporate, WHHI required an easily manageable system that would catalog all the required details. Moreover, with the narrowing difference in service level at hotels and hospitals internationally, Vishal Bali, Vice President Operations, WHHI, believed that such implementations are required to create an ambiance of efficiency. The implementation was also required to track feedback to generate a patient satisfaction index.
THE SOLUTION To meet the requirements, the hospital approached an outfit called Think Ahead, which conceived, developed and implemented a CRM application to specifically meet the demands of WHHI. The implementation generates feedback reports, occupancy reports, average length of stay, waiting and discharge reports. While all these reports were being filed even earlier, the solution has helped maintain and update all the reports on daily basis, obviating any chance of delay. The accuracy rate of the reports has seen a new high as a result. More importantly the CRM solution has automated relationship management. It has resulted in the creation of the Happy Hearts Club, a group of people who have undergone similar heart surgeries at WHHI. At the forum, patients share their experience and sometimes also learn from each other.
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS The CRM solution also automatically forwards newsletters and relevant information to keep in touch with doctors and patients. Vishal Bali, Vice President Operations explained the importance of this routine task: Hospitalization should not be seen as an episode but as a patient hospital relation, it is not a one time transaction. And the CRM solution has helped with just that.
E-HOSPITAL
Besides the CRM system, WHHI has developed an e-ICU. The e-ICU consists of ICU monitors on the side of the bed. These are connected to a Windows 2000 Servers that is linked to Remote Access Servers (RASs). The RASs can be accessed over the internet via a 2 MBPS line. The E-ICU allows doctors to consult specialists in life and death situations. A resident doctor can consult a senior consultant while at the operation table and the CRM solution helps retrieve the most suited consultant for a given case. This way all decisions can be collaborative. Furthermore, in case of a smaller problem the doctor is not required to rush to the hospital. The remote system also means that every patient has 24 *7 coverage from his/her doctor.
E-VISIT
WHHIS association with think Ahead led to other creative initiatives. The first is the Virtual Family Visit. Relatives and friends can visit any patient online in a virtual patient room. The system is capable of transferring audio, video, text, and images. Similarly, WHHI was also able to initiate a tele-medicine program. These are video links established at medical colleges in the relatively less developed parts of India. The doctors at WHHI use this link to address classes in these colleges as well as to make routine follow-ups on chronic patients.
SECURITY ISSUES
With so much data available over the internet it is natural that information security would be a concern. To secure its network, the WHHI IT team has set up a hardware and software firewall. The hardware blocks unauthorized access and the software firewall acts as an active state packet filtering firewall. The Total Internet Security Suite scans inbound and outbound network traffic.
COST FACTOR
Overall, the implementation cost WHHI close to Rs2 million, according to Bali. Perhaps, the level of automation and improved efficiency due to this system could be used to establish the systems ROI. However, Bali does not look at it from a profit perspective, but rather as a Staying in Business investment. According to him, as the standards for hospitals improve the world over, Wockhardt must set a standard in India.
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3.HDFC-BANKING AND FINANCIAL SECTOR

Owing a a Home still remains to be the single most cherished dream for many Indian households and one need to be treated with great care while assisting people realize their dreams. At HDFC, the element of care not only reflects in the very vision that prompted its inception, but also in the manner in which the company relates to its customers. To HDFC, providing finance for housing is not merely about earning profits, but way to provide an essential and valuable service to the society. It all began with a thought that took shape in the mind of HDFCS founder, Late Shri H.T. Parekh, who built the organization on the core values of integrity, transparency and trust. Though HDFC enjoyed a monopoly when it started out, the companys firm focus has always been on customer care and satisfaction. It believed that the best strategies are established with long-term commitment and relationships with the customers. Since the company has always been dealing directly with its customer, this has helped it keep in touch with the changing trends and customer expectations. Its experience and indepth knowledge of the sector is a boon for its customers. HDFC understands that buying a house is an event which happens once in a lifetime for most and is the single largest investment; hence buying the property with the fullest knowledge is vital. While buying a property, where except in few cases the developers have established a brand, most builders are local and relatively unknown, there are a number of issues and concerns a customer has when he deals with any developer. With over 28 years of experience in the real estate industry and business relations with the developers, it has a through understanding of the market and this is passed on to the customers. It provides counseling through its property services on how and where to buy a house in India, the real estate prices and trends in the real estate market and any assistance that may be required at various stages of property dealings. HDFC aims to bring creditability and trust to the property deals. It has from time to time tied up with developers to bring special packages to its customers and reach out to them. It conveys the properties to the customers by visiting companies to put up special counters displaying new projects of builders, so they dont have to move out to locate a home and make presentations to address their financial concerns. This approach is also used in colonies with a large number of families. The company also arranges property fairs where customers can visit, select the property and seal the deal immediately. At HDFC, product innovations are based on customer feedback and are aimed at customer convenience. It was the first company to offer floating rate scenario turned conducive for customers and introduce part fixed part floating product enabling customers to hedge their risks in an uncertain interest environment. It was also the first to launch repayment option that supported housing loans on the basis of age and customer needs. As the first company
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS to computerize the home loan process, technology has always been a focus area for the company in its endeavour to simplify transaction for customers. All in all HDFC is a brand, which not only offers Housing Finance but Total Housing Solutions. Given the diverse portfolio of customers that HDFC caters to, the counselors at HDFC are trained to understand customer requirements and structure the loan to match individual concern. Departing from the usual norm of providing just loans, it offers customers a personalized counseling service to help customers encash on the vast pool of knowledge that comes with its experience. It follows a single window concept where customers get legal and technical approvals by its experienced in-house counselors. This usually saves a lot of time and efforts for customers of obtaining these clearances from other authorities and save money as the processing and administrative charges cover all these expenses. Customer service at HDFC goes beyond process handling, with counselors taking out time to understand the applicants needs, the demands of their growing families, the necessity to ensure savings for emergencies and then arriving at the right amount for them to borrow. HDFCS philosophy of care also engulfs its interaction with customers who have defaulted in repaying the loan. From beginning it followed a different model and setup a follow-up department to deal with delinquent borrowers instead of a recoveries section, believing that individuals were basically honest and would pay back in time. Its debt collection policy emphasizes on forecasting borrower confidence by understanding their crisis; discussing their repayment capacity- considering their income, number f dependents , he nature of their expenses etc ; and after ascertaining the facts and the reasons for default work out of solution , even reschedule the loan if required . though the policy deals with a negative situation , it has a strong value based premise that ensures that the implementation will not be unduly coercive . Infact ,the policy is built on courtesy , fair treatment and persuation . The Home Loan Protection Plan ( a product of HDFC standard Life ) that HDFC offers to it home loan borrowers provides the customer the comfort of knowing that in case of the unfortunate death of the borrowers , a sum of money depending on the insurance cover will be made available towards repaying the housing loan . for HDFC , its strength emanates from its intrinsic value of customer orientation and care . they are the basis for all growth and development .ask at hand is to bridge the gaps and to provide the common man access to resources to fulfill his basic dream . In its 28 years of orientations it has assisted 27 lakh families own a home through loan approvals of over Rs.1,00,000 crores . As it moves along taking small steps in this direction what makes the effort truly worthwhile is when it ultimately benefits individuals and the effort truly worthwhile is when it ultimately benefits individuals and the society at large .
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3 . AXIS BANK
AXIS bank was the first of the new private banks to have a begun operation in 1994 after the government of India allowed a new private banks to be established. The bank was promoted jointly by administrator of the specified undertaking of the Unit Trust Of India (UTI) Life Insurance Corporation Of India (LIC) and other four PSU companies i.e. National Insurance Company Ltd., The New India Assurance Company. The Oriental Insurance Corporation and United Insurance Company Ltd. The bank today is capitalized to the extent of Rs. 355.74 Crore with the public holding (other than promoters) at 57.26% The banks registered office is at Ahmedabad and its central office is located in Mumbai presently the bank has a very wide network of more than 572 branch offices and Extension counters. The bank had network of over 2468 ATMs providing 24 hrs day banking convenience to its customers. This is one of the largest ATM networking the country the bank has strength in both retail and
corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
MISSION AND VALUES

Our Mission Customer services and products innovation tuned to drive needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and Effectiveness built on ethical practices.
Core Values 1. 2. 3. Customer satisfaction through Providing quality service effectively and efficiently. Smile, it enhances your face value is a service quality stressed on. Periodic Customer Service Audits. Maximisation of Stakeholders value. Success through teamwork , Integrity and people.
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CHAPTER 9 : CONCLUSION
CRM is basically the collection and distribution of all data to all areas of business . The data can then help market the company , help up sell to existing customer , understand customers better so that customers can be given better service and allows them to interact with the company by whatever means they wish . Customer Relationships are achieved by the whole company working together to give customers what they really want . CRM is business strategy to create and sustain long term , profitable customer relationships. Successful CRM initiatives start with a business philosophy that aligns company activities around customer needs . Only then can CRM technology be used as as a critical enabling tool of the processes required to turn strategy into business results. CRM is now n integral part of the business vision / strategic roadmap of companies in virtually every industry domain and feeder- linked sectors . It is the various stages that lead to better understanding of all aspects of customer behavior ; interface points , transactional issues and intangible benefits proffered that helps a company differentiate itself from others in terms of leadership and market dominance in a particular space. The We Care principle has to be embedded in the very vitals of the organization for long term benefits to accrue and for delighted customers to keep coming back . Clearly , it is a matter of being in synch with customers changing needs that shapes business success stories . Companies that continuously align and realign their brands , products and services have a better chance of understanding their present as well as future consumers . Total customer orientation centered on customer understanding is bound to provide long term customer value and by inference superior company and shareholders value in terms of sustainable growth and profits . CRM applications will increasingly mimic the way away social environment works in the years ahead . Finally , concluding about CRM in the following points : A strategy defined around producing value to fulfill business needs . A collaborative value chain of all institutions and processes needed to fulfill business needs . A set of measurements that reflects how successful ( or unsuccessful ) the collaborative value chain has been in fulfilling customers needs and the ability t adjust the processes to improve the rate of success. A system that provides insight in to customers so that improvements can be made . Access to all the services customer need for news , information , purchases , business , delivery , and on to infinity , from wherever customer are in whatever circumstances .
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BIBLOGRAPHY/WEBILOGRAPHY
BOOK REFFERED
Customer Relationship Management- Himalayan publication
WEBSITES
www.google.com
www.Scribd.com
www.winkipidea.com
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CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

INTRODUCTION CHAPTER : 1 WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?

KEY CRM PRINCIPLE

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

Keeping Existing Customers

Maximizing Life time value

The CRM cycle can be briefly described as follows:

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

WHY CRM IS NECESSARY?

ADVANCES IN THE 1990`S

TRUE CRM COMES OF AGE

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CHAPTER 2 : CRM PROGRAMS & ACTIVITIES

CONTINUITY MARKETING PROGRAMS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

Customer Service and Support (CSS)

Enterprise Marketing Automation (EMA)

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CHAPTER 3: TOOLS FOR CRM

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

Data Mining for CRM: Some Relevant Issues

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CHAPTER 4 : IMPLEMENTATION OF CRM

Stage one collecting information

Stage two Storing information

Stage three Accessing information

Stage four Analysing Customer Behaviour

Stage five Marketing more effectively

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

TYPES FOR IMPLEMENTING CRM

Purchasing or Licensing Software

CRM via ASP

Outsourcing Customer Service

CRITICAL SUCCESS FACTORS FOR IMPLEMENTATION OF CRM SYSTEMS

Clearly Defined Objective

Challenges of CRM Implementation

Methodology driven by end users

IT personal do not have knowledge or authority to influence corporate decisions makers

Lack of customer centric culture

Lack of customer centric culture

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CHAPTER5: CRM RELATED CONCEPTS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CRM in Supply Chain Management (SCM)

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

3. CRM Objectives in Banking Sector

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

Basic Requirements of E-CRM or Six E of E-CRM

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

PROBLEMS AND DRAWBACKS

CUSTOMER RELETIONSHIP MANAGEMENT IN BANKS

REASONS FOR CRM IMPLEMENTATION FAILURE

Lack of support, incentives and lack of technical knowledge

Data & warehouse requirements

Poor quality data, inconsistent data between different systems