Crm edelweiss


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Crm edelweiss

  1. 1. Executive SummaryThe projects main objective is to study the Customer Relationship Management. The otherobjective is to study relation of satisfaction with various other parameters. The project consists ofthe Broking industry profile, which gives you deep insight of the industry. There is a brief studyof Edelweiss Broking Limited and what are the products they offer.The research was done with existing clients. The questionnaire was conducted via telephonicinterview. The analysis is done based on the answers given. Graphical report of each and everyquestion is generated with the valid interpretation given by the RMs of Edelweiss BrokingLimited, Dadar Branch. The analysis focuses mainly on how to manage relationship withcustomer and what really affects the satisfaction of the customer. The findings are based on theanalysis done and the results generated. The findings came out with various limitations. Propersuggestions based on the limitations are provided related to relationship building with thecustomers.This research would be beneficial for the company to improve their relations with the customerand help them to overcome various limitations. The focus on the satisfaction in the project withrelation to various parameters will help the company to know the area of improvement. 1
  2. 2. 1. IntroductionCustomer Relationship Management (CRM) is a business approach which recognizes theimportance of customers as the driving force behind the success of failure of any business. Itenables the business organization to maintain, analyze and act upon the information which thebusiness identifies as relevant to improve its relationships with the customer, and thus enhanceits chances of success.Customer Relationship Management (CRM) helps companies improve the profitability of theirinteractions with customers while at the same time making the interactions appear friendlythrough individualization and personalization of services. This management includes DataMining with the help of which Customer Life Cycle can be managed well in Acquiring newcustomers, increasing value of the customers, retaining good customers.The basic steps of Data Mining for effective CRM are:1. Define Business Problem2. Build Marketing Database3. Explore Data4. Prepare data for modeling5. Build Model6. Deploy model and results 2
  3. 3. The company can then use the information to learn about the behavior of its customers andimprove the way it does a business. It can look at recurring complaints from multiple customersto solve a problem which would otherwise go unchecked with a normal formats and managementsystem of the company.The main objective of my project is to find effective solution for the Customer RelationshipManagement and accordingly increase the credibility and profitability of the company. Thisstudy is more related to consumer behavior and perception about the facilities and convenienceprovided by the company, Customer Satisfaction is emphasized in this management. Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners. 3
  4. 4. 2. OBJECTIVES OF THE PROJECTA. Title of the project:Customer Relationship Management (CRM) with Edelweiss Broking Limited.B. Objective of the Study:The objective of the project was to analyze Effective Customer Relationship Management‟ forEdelweiss Broking Ltd, for that we have to understand current CRM System and Servicesprovided from the company and its effect on Customer Needs, Satisfaction Level, their responseand emotions. The objective of this study to analyze existing customer satisfaction as thosecustomers are the key sources to new customers with respect to the performance, sales effortsand sales service. The other objective was to study the correlation of satisfaction with variousparameters.As the company stands in the top five, it‟s clear that it has very strong Customer RelationshipManagement System and perfect people to handle it properly for the benefit of customers andcompany as well. Actual and personal meeting with existing customers and employees hasbrought me to the reality of the effectiveness of the system and their success. For analyzing thesame factor I worked as a Jr. HNI in the company during my internship period, acquired a clienton subscription and serviced him, to do a deep study on CRM. I also interviewed all theRelationship Manager to get a clear insight of the Edelweiss CRM system.Questionnaire is based on the existing services and the satisfaction level of the existingcustomers which includes questions like Name, Age, Gender, Income, Investment Frequency,feedback about services which they are provided like conformation, calls, suggestions, solutionson stuck money like dead investment and all. On an average all the customers are happy with thecompany and look forward to the growth of it. 4
  5. 5. C. Scope of the study:Scope of this study is it will assist Edelweiss Broking Ltd. to get its own Customer RelationshipManagement system mirror well and it will get all the important things before eyes to apply allthe possible ways to provide a superb service to the customers and accordingly make them loyaland retain them long lasting and also to get new customers to be served. Scopes can be stated infew points as follows. Maintain current / existing customers. Achieve new potential customers. Retain all the customers. Profitability Increment Reputation and credibility Increment, etc.The heart of CRM is not being customer centric but rather to use customer profitability as adriver for decision making and action. Before exploring this assertion, it is useful to review theprocess of resource allocation as it is practiced in most organizations. The budget process largelyconsists of an extrapolation of the past. Resource constraints pit function against function withback room deals that are based on internal politics versus the marketplace. This decision processhas little insight as to what is working and what is not working (as it applies to the marketplace)or for that matter why? Without insight relative to cause and effect, the organization has nochoice but to follow intuition and anecdote. It is analogous to the story about the marketing VPwho admitted that half the advertising budget was wasted; the problem was he did not knowwhich half. 5
  6. 6. 3. Company ProfileEdelweiss, a rare flower found in Switzerland. You will discover in our identity: A graphicflower that represents ideas. Around it, the protective arms of the letter „e‟: We believe ideascreate wealth, but values protect it.It is the practice of this core thought that has led to Edelweiss becoming one of the leadingfinancial services company in India. Its current businesses include investment banking, securitiesbroking, and investment management. We provide a wide range of services to corporations,institutional investors and high net-worth individuals.The core inspiring thought of ‘ideas creating wealth and values protect it’ is translated into anapproach that is led by intrapreneurship and creativity and protected by intellectualrigor, research and analysis.ApproachClient FocusEdelweiss is driven by the emphasis we place on building long-term relationships with ourclients. We work closely with our clients to equip them with the ability to address large, fastgrowing market opportunities. Our emphasis on long-term relationships also means that we havea significant ongoing involvement with almost all of the clients that we work with. 6
  7. 7. Execution OrientationWe focus obsessively on delivering high quality execution through our experienced team ofprofessionals. Each team is led by senior personnel and is highly research and ideas driven. Weplace strong emphasis on confidentiality and integrity in a sensitive business environment.CultureEdelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizesteamwork and intellectual rigor. Our team is encouraged to display higher levels of initiative,drive, and hunger for learning and taking on additional responsibility.Professional IntegrityWe place a strong emphasis on confidentiality, honesty and integrity in our business dealings.We expect our people to maintain high ethical standards, both in their professional and personallives. We strive to be fair in all our dealings. We respect our competitors.Research DrivenAll our businesses are built on a research and analytics foundation. Our understanding ofunderlying market trends and strong analytical expertise has resulted in a demonstrated ability toidentify emerging trends and themes early. We seek to provide the highest quality research andinvestment opinions to our clients 7
  8. 8. Board of director„Ideas create, values protect‟ is how we define what Edelweiss believes in. But when we say„values protect‟ what do we mean? Here‟s a handy guide to the values and principles we will liveby and live up to.We will be a Thinking Organization. We will constantly bring „thought‟ to everything we do.Our clients‟ and our own success depends on our ability to use greater ideation and moreimagination in our approach. 8
  9. 9. We will be Fair to our clients, our employees and all stake holders. We want our clients and ouremployees to be „richer‟ for their relationship with us.We will take care of our People seriously. Our policies – in spirit and in letter – will ensuretransparency and equal opportunity for all. We will go beyond the normal goals of attracting,recruiting, retaining and rewarding fine talent: We will ensure that every individual in Edelweisshas an opportunity to achieve their fullest potential.We will operate as a Partnership, internally and externally. Though individuals are very oftenbrilliant, we believe teamwork and collaboration will always ensure a better and more balancedorganization. We will also treat our clients as partners and show them the same respect andconsideration that we would toward our internal team members.We will focus on the Long Term. Though the world will change a lot in the coming years andour assumptions for the future may not hold up, we will reflect on the long-term implications ofour actions. Even when making short-term decisions we will be aware of the long-termimplications.We will focus on Growth for our clients, employees and shareholders.Our Reputation and image is more important than any financial reward. Reputation is hard tobuild and even harder to rebuild. Reputation will be impacted by our ability to think for our 9
  10. 10. clients, maintain confidentiality and by our adherence to our value system.We will Obey and Comply with the rules of the land. We will maintain the highest standard ofintegrity and honesty. When we are unclear we will seek clarifications.We will respect Risk. Our business is going to be a constant challenge of balancing risk andreward. Our ability to constantly keep one eye on risk will guide us through this fine balance.Our Financial Capital is a critical resource for growth. We will endeavor to grow, protect, anduse our financial capital wisely.The following is the product profile of the company. Equity Broking - BSE and NSE Derivatives Futures and Options Internet Broking- Online Trading Commodities Trading - NCDEX & MCX Institutional Broking Depository Services - NSDL & CDSL Portfolio Management Services NRI Investments Initial Public Offerings (IPO) Mutual Fund Investment 10
  11. 11. Investment BankingOverviewOur Investment Banking business is dedicated to providing corporations, entrepreneurs andinvestors, the highest quality independent financial advice and transaction execution. Ourprofessionals offer a full range of services and transaction expertise, including privateplacements of equity, capital raising services in public markets, mezzanine and convertible debt,mergers and acquisition and restructuring advisory services. We have a track record ofsuccessfully closing more than 100 transactions to date.Our focused effort and research-driven approach enable our professionals to be among the mostknowledgeable and best in the business. Our business has been built on strong relationships,innovation, and uncompromising ethical standards. We aim to create significant value forentrepreneurs and mature companies by helping them execute the right capitalization strategyPrivate Equity AdvisoryA pioneer in Private Equity advisory since its inception 11 years ago with an establishedleadership position in todays context. We have been a leading Private Equity advisor for over adecade and have developed a strong expertise across industries which enable us to recognizeemerging industry themes and position transactions within the context. Our strength in PrivateEquity advisory stems from:Long standing relationships with marquee PE funds - Access to key decision makers at PE fundsgives us an unparalleled edge in optimal structuring and efficient closure of transactions. Highquality execution - An experienced team of professionals ensures complete confidentiality,strong focus on implementation and quick turnaround time. Focus on long term relationships - Inaddition to handholding the client across the entire transaction process, we provide continuedsupport post-transaction and have the capability to cater to investment banking needs of theclient throughout his business lifecycle. Having achieved a leadership position in the PrivateEquity advisory market, we believe that we are ideally placed to advise promoters andcompanies on the key considerations in a PE fund raising exercise. 11
  12. 12. Structured Finance AdvisoryOver the years, we have built up significant expertise in structuring appropriate financingsolutions for client specific situations and identifying and placing the transaction withinstitutional investors. Our portfolio of solutions comprise the following- Promoters Funding Acquisition FinancingPromoter FundingPromoter financing is mostly done to enable promoters to raise their stake in the company. Thefinancing is usually against collateral of shares or other securities held by the promoter in any ofthe group company. The transaction helps in unlocking the value of promoter shareholding byraising additional funds. It can also be structured to refinance a loan raised against the sameshares by the client earlier.Acquisition FinancingThere has been a significant increase in the number of acquisitions by Indian companies, bothdomestic as well as overseas. Acquisition financing plays a critical role in the success ofinorganic growth planned by the acquirer. Based on each client‟s unique requirements, we haveadvised on acquisition financing through appropriate stacked financing structures whichcomprise foreign currency senior secured debt with recourse to parent companies, rupee seniorsecured debt with recourse to parent companies, equity investment by the promoters, non-recourse debt, guaranteed mezzanine debt with equity upside.Mergers and Acquisitions AdvisoryEdelweiss‟ M&A team provides insights into how companies can grow and enhance their value.The M&A team is engaged in turnkey transaction management and advises a diverse range ofclients in medium to large transactions. Our key strengths include independent advice, deep 12
  13. 13. sector knowledge backed by professionals with a range of training and experience that spansacross multiple cross-border deals and our relationships with large corporate.Edelweiss advises companies in the entire transaction process – this range from targetidentification to deal closure. We provides both buy-side and sell-side advisory services as partof our M&A advisory offering. Our services include identification and short listing of targetuniverse, strategic planning of an acquisition and arranging finance for the transaction, ifrequired.Real Estate AdvisoryEver since the easing up of FDI into real estate development in India, Edelweiss has a dedicatedteam offering Real Estate Advisory Solutions to property developers and investors seeking toinvest into the Indian Real Estate markets. Our advisory solutions are primarily focused oncapital rising and cover the optimal financing mix, project valuation, investment structuring andaccomplishing capital raising at either the enterprise level or the asset level.We manage Real Estate IPOs, QIPs, advise enterprise level private equity financings, andenterprise level mezzanine financing and structured debt. We have completed over $ 700 millionin capital rising in the last 18 months across multiple formats.Edelweiss‟ key value proposition to our clients include an excellent understanding and access toboth public and private capital markets combined with structuring capabilities and a strongknowledge of underlying real estate markets in India through our in-house research.Equity Capital MarketsWe are in the vanguard of equity capital markets having brought to the market a large number ofsuccessful and path breaking transactions. We advise leading Indian companies, banks,institutions and businesses which are seeking to mobilize capital from investors in India andoverseas.Edelweiss has a record of several marquee foreign and domestic issuances over the last 2 years. 13
  14. 14. Within the practice, we provide opportunities for clients to raise funds through the following – Initial Public Offering (IPOs) Follow-on Public Offerings( FPOs) Qualified Institutional Placements(QIP) Rights Issues Preferential Allotments Foreign Currency Convertible Bonds(FCCBs) Global Depository Receipts(GDRs)Besides, our Equity Capital Markets practice also caters to the entire spectrum of capital marketneeds through other services such as managing takeovers, delisting and buyback.We assistinnovative and exciting companies in accessing the equity capital market. We believe that ourstrength lies in identifying present and future market leaders, working with them closely inunderstanding and fine tuning their business model, and showcasing the investment opportunityto the right set of investors. Our equity capital markets team has successfully managed/aremanaging transactions for clients across numerous industry sectors including: Aviation Chemicals FMCG Hospitality Infrastructure Media and entertainment Metals Real estate Technology Telecom Textiles 14
  15. 15. We bring to the table our various strengths including industry insights and experience, expertisein transaction structuring, grasp of the regulatory environment, understanding of marketdynamics, networking with domestic and foreign institutional investors and wide retaildistribution network. We work closely with our clients to develop and maintain the rapport anddialogue with investors and thereby receive investor support in the primary as well as thesecondary markets.We lay emphasis on developing a long-term relationship with our clients and escorting them intheir future endeavors. Keeping in mind this philosophy, Edelweiss Capital Limited offers clientsa bouquet of products encompassing primary offerings, secondary equity offerings, buybacks,open offers and delisting, with the objective of continuously creating and maximizing value forall stakeholders including companies and investors. We have the merchant banking andunderwriting licenses from the Indian securities market regulator, the Securities and ExchangeBoard of India.Infrastructure AdvisoryA critical ingredient for sustainable development in India is the pressing need for Infrastructurecreation on a commercially viable basis. This signifies immense opportunities and challenges forthe sector. Recognizing this, Edelweiss‟ new Infrastructure practice has been formed to provideinnovative solutions tailored to the unique financing and advisory requirements of Indianinfrastructure projects and developers.Our team has a dedicated focus on the infrastructure sector, with considerable experience, a deepunderstanding and a vast network of key relationships. We provide Infrastructure projectcompanies and developers the full range of capital and advisory services.Our offerings include –Capital Raising 15
  16. 16. Private Equity Project Equity Structured Finance Project and ECB DebtAdvisory ServicesMergers & Acquisitions – both Sell side and Buy side Divestitures, Corporate Restructuring andSpin offsDebt Restructuring AdvisoryBusinesses can get affected by more than just normal industry cycles. With expansion inoperations, businesses face increasing challenges that are more complex in nature than a simpledomestic demand slowdown or operational bottlenecks, particularly in the globalisedenvironment. A combination of adverse global and local factors can push profitable businessesinto a spiraling debt trap very rapidly. While several companies are able to steer through theseadverse economic conditions, some companies get caught in a financial quagmire leading tosevere liquidity constraints. An expert team with in-depth understanding of the debt restructuringprocesses is required to help a company steer through the strain.A successful restructuring process involves the following essential elements Assessment of sustainable debt in the given circumstances Dealing with unsustainable debts innovatively Approaching lenders and other stakeholders with definitive strategies Devising strategies and instruments for raising additional funds for operations as well as for refinancing existing debtAt Edelweiss we have a very competent team offering comprehensive debt restructuringsolutions, both under the formal Corporate Debt Restructuring (CDR) mechanism as well asnegotiations with lender/consortium of lenders. Our team of senior ex-bankers and restructuring 16
  17. 17. specialists have unparalleled experience of restructuring debts worth over Rs. 75,000 crores, andan ability to provide complete solutions and support to the Corporates.Institutional equitiesOverviewEdelweiss Securities Ltd., a subsidiary of Edelweiss Capital Ltd., is the equities arm of theEdelweiss Group. The company is a corporate member of both The Bombay Stock Exchange andThe National Stock Exchange of India Limited, providing equity broking and research services,as well as marketing of equity related products, including IPOs/FCCBs, to domestic and foreigninstitutional investors.Institutional Equities – Insightful Research. Winning StrategiesIn our approach lies our difference. In a short span of six years, Edelweiss Capital‟s InstitutionalEquities Business (IE) has become one of the top five domestic brokerage houses and top threederivatives desks. We are the only brokerage on the Street with a quant desk that provides a wideproduct range, servicing all investor categories. Our innovative mindset, unparalleled research,agile sales teams, and intensive execution systems have enabled us to relentlessly service ourclients in newer and different ways.We cater to a wide clientele comprising leading domestic and international institutionalinvestors, including Pension Funds, Hedge Funds, Mutual Funds, insurance companies, andbanks.Asset ManagementOverviewEdelweiss Asset Management offers a range of investment products and advisory services acrossthe risk return spectrum to individual and institutional investors. Our close focus on clientrequirements is our inspiration in designing products which offer the best opportunity for asset 17
  18. 18. growth with a constant focus on risk and preservation of capital.Over the past 7 years we have significantly strengthened our equity product offerings to coverthe entire gamut of products. We have developed significant expertise in providing advisoryservices in the alternative investments space through a deep knowledge of non traditional assetclasses such as derivatives.Our products are designed to provide our clients with superior performance through marketcycles by virtue of our deep understanding of the equities markets and our analytical approach torisks and return.Wealth ManagementOverviewAt Edelweiss, Wealth Management is a Practice; it is a specialized profession where ourexperts combine their efforts to meet the wealth planning, investment, and financial managementneeds of individuals, families, family offices, or corporate.More than just Financial Services, Edelweiss Wealth Management takes one step closer toyou, by providing an "all-in-one approach”.Customized Financial Solutions, Advice on asset allocation and thereby creating customizedfinancial solutions for HNWIs, NRIs, Trusts and Corporate.Wide range of Innovative Advisory services, We offer advisory services on StructuredProducts, Portfolio Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity,IPOs, Real Estate Funds and Art Funds. 18
  19. 19. Private Client BrokerageOverviewThe Private Client Services Group at Edelweiss is focused on providing products, strategies andservices to High Net worth Individuals and Corporate Clients. We have geographic reachthrough our Branches, Channel Partners & Investment Consultants in over 19 locations in India.The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESLEquity Advisor proactively helps you take informed investment decisions and build a healthyportfolio. We draw on our strong presence and industry leadership to develop a portfolio ofofferings designed to serve the spectrum of financial needs.Our main objective is to provide clients with all the tools and services they need to reduce theadministrative burdens of managing money and focus on what you do best - maximizing yourtrading performance, building your business, and attracting new sources of capital.Our investment philosophy is rooted in the following :Capital preservation is key - Capital gains follow from a well-thought out investment strategy.Invest in stocks with a long term view. Use a combination of top-down and bottom-up approachto arrive at a basket of investment worthy stock. Invest on the basis of fundamental analysis ofcompanies taking into account market sentiments. Maintain discipline in booking profits and useindex futures to manage short term volatility.FinancingOverviewEdelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated underthe aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies.EHFL has an array of loan solutions which can be tailored to your requirements. If you‟re 19
  20. 20. looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.Client advisory servicesOverviewAt Edelweiss Client Advisory Services, our team is driven not just by the quality of our ideas,but also professional ethics and integrity. We take pride in our philosophy of offering advicewhich is in the best interest of our clients. Our emphasis on building long term relationshipensures that we work closely with our clients empowering them to gain from marketopportunities through our online portal is a product that offers a uniqueonline investment experience that is intuitive, information rich and a hassle-free way to tradeonline. It defines the next level in online trading technology. It enables intelligent investing withmarket strategies custom suited to the client‟s investment profile and current portfolio.Our Contribution to the CompanyPost Assigned: Jr. HNITask Assigned: Client Acquisition Portfolio Designing Client ServicingFirst of all we attended one week training sessions on products offered by Edelweiss and we alsolearnt how to do pitching with the client. We had to do tele-calling and speak to customers formeetings. In the meetings we discuss various subscription plans offered by the company. Weexplain them about the fundamental and technical research done by analyst. We also explainthem the online and offline mode of training. I as a Jr. HNI did meetings with four clients out ofwhich two converted. There is discussion done with clients over their current portfolio and howto modify it. We not only went to our own meetings but also Then the client servicing is done by 20
  21. 21. the RMs assigned to them. We were also assigned task of meeting various corporate parks tobring quotations for stall setup for Edelweiss marketing. A proper analysis of area was donewhich would be getting highest exposure and would be profitable for the company. Then whenthe company launched Commodity plans we also started pitching the existing client overcommodity. 21
  22. 22. 4. Industry ProfileWhile regulation and reforms have made major improvements in the quality of the equitymarkets in India, its rapid growth and development are largely due to strong and efficient marketintermediation. The robustness of the Indian markets today is attributable to a healthy blend ofthe quality of market Structure and efficient intermediation. Even as several countries areinstituting procedures to commence. Equity derivative markets, India ranks amongst the top fivecountries globally in this segment, in less than five years of its introduction. This is an exampleof the proactive and progressive nature of the Indian brokerage industry.In the last decade, the Indian brokerage industry has undergone a dramatic transformation. Frombeing made of close groups, the broking industry today is one of the most transparent andcompliance oriented businesses. Long settlement cycles and large scale bad deliveries are a thingof the past with the advent of T+2 (Trading day + 2 days) settlement cycle and dematerialization.Large and fixed commissions have been replaced by wafer thin margins, with competitiondriving down the brokerage fee, in some cases, to a few basis points.There have also been major changes in the way business is conducted. Technology has emergedas the key driver of business and investment advice has become research based. At the sametime, adherence to regulation and compliance has vastly increased. The scope of services haveenhanced from being equity products to a wide range of financial services. Investor protectionhas assumed significance, and so has providing them with education and awareness. Greaterneed for capitalization has induced several firms to access the capital market; foreign firms areshowing increasing interest in taking equity stakes in domestic broking firms.Major developments in equity brokerage industry in India:1. Corporate membershipsThere is a growing surge of corporate memberships (92% in NSE and 75% in BSE), and thescope of functioning of the brokerage firms has transformed from that of being a family runbusiness to that of professional organized function that lays greater emphasis on observance ofmarket principles and best practices. With proliferation of new markets and products, corporate 22
  23. 23. nature of the memberships is enabling broking firms to expand the realm of their operations intoother exchanges as also other product offerings. Memberships range from cash market toderivatives to commodities and a few broking firms are making forays into obtainingmemberships in exchanges outside the country subject to their availability and eligibility.2. Wider product offeringsThe product offerings of brokerage firms today go much beyond the traditional trading ofequities. A typical brokerage firm today offers trading in equities and derivatives, most probablycommodities futures, exchange traded funds, distributes mutual funds and insurance and alsooffers personal loans for housing, consumptions and other related loans, offers portfoliomanagement services, and some even go to the extent of creating niche services such as abrokerage firm offering art advisory services. In the background of growing opportunities forinvestors to invest in India as also abroad, the range of products and services will widen further.In the offing will be interesting opportunities that might arise in the exchange enabled corporatebond trading, soon after its commencement and futures trading that might be introduced in thenear future in the areas of interest rates and Indian currency.3. Greater reliance on researchClient advising in India has graduated from personal insights, market tips to becomingextensively research oriented and governed by fundamentals and technical factors. Vast progresshas been made in developing company research and refining methods in technical andfundamental analysis. The research and advice are made online giving ready and real time accessto market research for investors and clients, thus making research important brand equity for thebrokerage firms.4. Accessing equity capital marketsAccess to reliable financial resources has been one of the major constraints faced by the equitybrokerage industry in India since long. Since the banking system is not fully integrated with thesecurities markets, brokerage firms face limitations in raising financial resources for businessand expansion. With buoyancy of the stock markets and the rising prospects of several wellorganized broking firms, important opportunity to access capital markets for resource 23
  24. 24. mobilization has become available. The recent past witnessed several leading brokerage firmsaccessing capital markets for financial resources with success.5. Foreign collaborations and joint venturesThe way the brokerage industry is run and the manner in which several of them pursued growthand development attracted foreign financial institutions and investment banks to buy stakes indomestic brokerage firms, paving the way for stronger brokerage entities and possible scope forconsolidation in the future. Foreign firms picked up stake in some of the leading brokerage firms,which might lead to creating of greater interest in investing in brokerage firms by entities inIndia and abroad.6. Specialized services/niche brokingWhile supermarkets approach are adopted in general by broking firms, there are some which arecreating niche services that attract a particular client group such as day traders, arbitrage trading,investing in small cap stocks etc, and providing complete range of research and other support toback up this function.7. Online brokingSeveral brokers are extending benefits of online trading through creation of separate windows.Some others have dedicated online broking portals. Emergence of online broking enabledreduction in transaction costs and costs of trading. Keen competition has emerged in onlinebroking services, with some of these offering trading services at the cost of a few basis points orcosts which are fixed in nature irrespective of the volume of trading conducted. A wide range ofincentives are being created and offered by online brokerage firms to attract larger number ofclients.8. Compliance oriented 24
  25. 25. With stringent regulatory norms in operation, broking industry is giving greater emphasis onregulatory compliance and observance of market principles and codes of conduct. Manybrokerage firms are investing time, money and resources to create efficient and effectivecompliance and reporting systems that will help them in avoiding costly mistakes and possiblemarket abuses. Brokerage firms now have a compliance officer who is responsible for allcompliance related aspects and for interacting with clients and other stake holders on aspects ofregulation and compliance.9. Focus on training and skill setsBrokerage firms are giving importance and significance to aspects such as training on skill setsthat could prove to be beneficial in the long run. With the nature of markets and productsbecoming more complex, it becomes imperative for the broking firms to keep their staffcontinuously updated with latest development in practices and procedures. Moreover, it ismandated for certain types of dealers/brokers to seek specific certification and examinations thatwill make them eligible to carry business or trade. Greater emphasis on aspects such as researchand analysis is giving scope for in-depth training and skills sets on topics such as tradingprograms, valuations, economic and financial forecasting and company research.10. From owners to tradersA fundamental change that has taken place in the equity brokerage industry, which is a globaltrend as well, is the transformation of broking from owners of the stock exchange to traders ofthe stock market. Demutualization and corporatization of stock exchanges bifurcated theownership and trading rights with brokers vested only with the later and ownership being widelydistributed.Demutualization is providing balanced welfare gains to both the stock exchanges and themembers with the former being able to run as corporations and the latter being able to avoidconflict of interests that sometimes came as a major deterrent for the long term growth of theindustry.Emerging challenges and outlook for the brokerage industry .Brokerage firms in India mademuch progress in pursuing growth and building professionalism in operations. Given the nature 25
  26. 26. of the brokerage industry being very dynamic, changes could be rapid and so as the challengesthat emerge from time to time. A brief description on some of the prospects and challenges of thebrokerage firms are discussed below.11. FragmentationIndian brokerage industry is highly fragmented. Numerous small firms operate in this space.Given the growing importance of technology in operations and increasing emphasis onregulatory compliance, smaller firms might find it constrained to make right type of investmentsthat will help in business growth and promotion of investor interests.12. Capital AdequacyCapital adequacy has emerged as an important determinant that governs the scope of business inthe financial sector. Current requirements stipulation capital adequacy in regard to tradingexposure, but in future more tighter norms of capital adequacy might come into force as a part ofthe prudential norms in the financial sector. In this background, it becomes imperative for thebrokerage firms to focus on raising capital resources that will enable to give continuous thrustand focus on business growth.13. Global OpportunitiesBroking in the future will increasingly become international in character with the stock marketsbeing open for domestic and international investors including institutions and individuals, as alsoopportunities for investing abroad. Keeping abreast with developments in international marketsas also familiarization with global standards in broking operations and assimilating majorpractices and procedures will become relevant for the domestic brokerage firms.14. Opportunities from regional financeRegional economic integration such as that under the European Union and the ASEAN havegreatly benefited businesses in the individual countries with cross border opportunities thathelped to expand the scope and significance of the business. Initial measures to promote SouthAsian economic integration is being made by governments in the region first at the political level 26
  27. 27. to be followed up in regard to financial markets. South Asian economic integration will providegreater opportunities for broking firms in India to pursue cross border business. In view ofseveral of common features prevailing in the markets, it would be easier to make progress in thisregard.15. Product DynamicsAs domestic finance matures and greater flow of cross border flows continue, new marketsegments will come into force, which could benefit the domestic brokerage firms, if they are wellprepared. For instance, in the last three to four years, brokerage firms had newer opportunities inthe form of commodities futures, distribution of insurance products, wealth management, mutualfunds etc, and as the market momentum continues, broking firms will have an opportunity tointroduce a wider number of products.16. Competition from foreign firmsSurging markets and growing opportunities will attract a number of international firms that willincrease the pace of competition. Global firms with higher levels of capital, expertise and marketexperience will bring dramatic changes in the brokerage industry space which the local firmsshould be able to absorb and compete. Domestic broking firms should always give due focus toemerging trends in competition and prepare accordingly.17. Investor ProtectionIssues of investor interest and protection will assume centre stage. Firms found not havingsuitable infrastructure and processes to ensure investor safety and protection will encounterconstraints from regulation as also class action suits that investors might bring against erringfirms. The nature of penalties and punitive damages would become more severe. It is importantfor brokerage firms to establish strong and streamlined systems and procedures for ensuringinvestor safety and protection.EquitiesWhat is equity? 27
  28. 28. Funds brought into a business by its shareholders are called equity. It is a measure of a stake of aperson or group of persons starting a business.What does investing in equity mean?When you buy a companys equity, you are in effect financing it, and being compensated with astake in the business. You become part-owner of the company, entitled to dividends and otherbenefits that the company may announce, but without any guarantee of a return on yourinvestments.DematerializationWhat is Demat?Demat is a commonly used abbreviation of Dematerialization, which is a process wherebysecurities like shares, debentures are converted from the "material" (paper documents) intoelectronic data and stored in the computers of an electronic Depository.You surrender material securities registered in your name to a Depository Participant (DP).These are then sent to the respective companies who cancel them after dematerialization andcredit your Depository Account with the DP. The securities on dematerialization appear asbalances in the Depository Account. These balances are transferable like physical shares. If at alater date you wish to have these "Demat" securities converted back into paper certificates, theDepository can help to revive the paper shares.What is the procedure for the dematerialization of securities?Check with a DP as to whether the securities you hold can be dematerialized. Then open anaccount with a DP and surrender the share certificates.What is a Depository?A Depository is a securities "bank," where dematerialized physical securities are held in custody,and from where they can be traded. This facilitates faster, risk-free and low cost settlement. ADepository is akin to a bank and performs activities similar in nature. At present, there are twoDepositories in India, National Securities Depository Limited (NSDL) and Central DepositoryServices (CDS). NSDL was the first Indian Depository. It was inaugurated in November 1996.NSDL was set up with an initial capital of Rs 124 crores, promoted by Industrial Development 28
  29. 29. Bank of India (IDBI), Unit Trust of India (UTI), National Stock Exchange of India Ltd. (NSEIL)and the State Bank of India (SBI).Who is a Depository Participant (DP)?NSDL carries out its activities through business partners - Depository Participants (DPs), IssuingCorporate and their Registrars and Transfer Agents, Clearing Corporations/Clearing Houses.NSDL is electronically linked to each of these business partners via a satellite link through VerySmall Aperture Terminals (VSATS). The entire integrated system (including the VSAT linkupsand the software at NSDL and at each business partners end) has been named the "NEST"(National Electronic Settlement & Transfer) system. The investor interacts with the Depositorythrough a Depository Participant of NSDL. A DP can be a bank, financial institution, a custodianor a broker. 5. Literature Review 29
  30. 30. Historical Background:Customer relationship management (CRM), a concept that has been around since the mid 90s,has its roots in the technology of sales automation and call center operations. At that time, it wasthought that merging the customer data from the field (sales) with the call center interactionswould result in more informed interactions with the customer. The concept resonated with userorganizations and soon mergers and acquisitions created a host of software vendors all claimingto have an integrated set of capabilities that became known as CRM.On a parallel track, Internet-based tools such as e-commerce, Internet marketing, personalization,and self-help were evolving. These products competed outside of the CRM sphere due to thenewness of the technology, and they were referred to as e-business. When the concepts of CRMand e-business melded together there was a short period of e-madness where vendors talkedabout eCRM and e-everything. There are still vestiges of this transition in the industry such asessentially using e-business to add value to vendors and referring to it as partner relationshipmanagement (PRM) or providing tools for employees and referring to it as employee relationshipmanagement (ERM).Similarly, enterprise resource planning (ERP) vendors realized that the 360-degree view of thecustomer has to include transaction data, so they have likewise developed an integrated packagewith CRM capabilities. Thus from a technology perspective CRM consists of a set ofapplications that address the needs of customer-facing functions that in turn feed a commondatabase that is supported by business analytics. Each vendor has variations on this theme.On the other hands, CRM can be defined as a process or methodology used to learn more aboutcustomers‟ needs and behaviors in order to manage and develop stronger relationships in anorganized way with them. 30
  31. 31. Components of CRM:1. Contact an Account Management:Relevant data for customer profile is captured with the help of the software. Necessaryinformation is captured from prospective customers. CRM system stores data in commoncustomer database. The database integrates customer account information and presents it indesirable format to the company. The data is used for sales, marketing, services and otherapplications.2. Sales:Sales process management follows a customized sales methodology with specific sales policiesand procedures. Sales activities include – Product information, Product configuration, salesprospectus and sales quote generation. CRM also provide the history of customer account so thatthe sales call can be scheduled accordingly.3. Marketing and fulfillment:CRM helps the professionals in product marketing, target marketing, relationship marketing andcampaign management. By analyzing customer and business value of direct marketing can beestimated. CRM also helps in customer retention, behavior prediction, channel optimization, 31
  32. 32. personalization. Customer response and requests can be quickly scheduled and hence salescontacts.4. Customer Service and support:CRM system provides service representatives with adequate access to customer database. It alsohelps to create, assign and manage the service requests by customers. Calling format is designedto route customer calls to respective attendants as per the skills and authority to handle specialcases. Help desk system is developed to help customer service representative to help customerswho face problems with product or service to resolve it. Web-based Self Service means helpcustomer to access personalized information at company website.5. Retention and loyalty programs:The primary objective of CRM is to enhance and optimize customer retention and loyalty. CRMsystems are also useful in determining most loyal and profitable customers and reward.The essential link between Marketing, Sales and Customer Service: Too often, the three keyfunctions that directly affect customers -Marketing, Sales and Customer Service – operateindependently of one another. This can create confusion and inconsistency in how youcommunicate and service your customers. For examples, marketing staff may come up with aprice promotion. However, if that is not communicated to the sales team, the result could be 32
  33. 33. incorrect billing, which may take time or resources from the customer to rectify and could createill will and mistrust, making it seem like your company does not adhere to its word.Similarly, if a salesperson makes a sale and gives certain guarantees to a customer but those arenot communicated to the customer service team or even to the other sales team members, thenthe customer may fees as if the company is not standing behind its assurance. This can beparticularly problematic if there is employee turnover and poor communication between or evendepartments. This silo effect – where information is between vertically in departments that mayor may not communicate with each other- could actually damage your business.With comprehensive CRM system, however, customer communication is captured and housed inan accessible database, making the most current information available to anyone who needs itand has access to the system. By breaking through barriers between various business functionsand making communication transparent, your company can act in a more consistent and unifiedfashion with its customers, instilling a greater level of trust and strengthening customerrelationships. 33
  34. 34. 6. Research MethodologyResearch Design:Research design means adopting that type technique of research which is most suited for theresearch and study of the problem. For the study and the research of the problem proper materialhas to be selected and collected for the investigation. “A research design is the arrangement ofconditions for collection and analysis of data in a manner that aims to combine relevance to theresearch purpose with economy in procedure.”In order to know about effectiveness of Customer Relationship Management in EdelweissBroking Ltd., it was necessary to interact with the customer. The sample taken comprised ofrespondents from Mumbai city. A questionnaire had to be designed to collect valuableinformation from the different customer groups. The questionnaire was designed suitably to meetthe objective of research work.Nature of Research:In this project report I have undertaken quantitative type of study.Type of the questions:The questions in the questionnaire asked to the customers of Edelweiss Broking Ltd, Dadar, areStraight Forward and Limited Probing.Type of the Questionnaire:The questionnaire in this project report is straight forward and formalized.Type of Analysis:The analysis done in this particular project report is statistical. 34
  35. 35. Sources of Data:a. Primary Data:The Primary data are those data which are collected fresh and for the first time and thus happento be original in character. The primary data that was collected through interview conducted inRegional Branch with daily visiting customers. The primary data sources include copies ofquestionnaire and data of their respective responses.b. Secondary Data:The secondary data are those which have already been collected by someone else and whichhave been passed through the statistical process. Secondary data was collected through companywebsites Data CollectionResearch Technique:As the researcher, I adopted survey method as a research technique for this particular projectreport.Contact Method:I as a researcher interviewed the respondents by interview on telephone. Approximately 200people were called out of which 30 responded. The questionnaire is designed with lesser optionsso that customers can answer quicklySampling Plan:a) Population:The population covered in this project report refers to the existing customers of Regional Office,who have their trading and Demat A/c with Edelweiss Broking Limited.b) Sample SizeThe sample size undertaken by me for this particular project report is 100 respondents. 35
  36. 36. c) Sample ElementThe respondents contacted and interviewed in this project report are all from different domainsome of them were Businessmen, High Net-worth Investors, Proprietors, even Students alsoinvest in Share Market.d) Sample ExtentAs a researcher, I conducted this survey only for the customers in Edelweiss Broking Ltd, DadarBranch, who have opened their Demat account on various subscriptions.e) Sample DurationThe survey was undertaken from the 13th June, 2011 to 25th June, 2011 i.e. for two weeks.f) Research InstrumentQuestionnaires containing both open ended and close ended questions were used as a researchinstrument in this particular project report. 36
  37. 37. Questionnaire1. Name:__________________________________________2. Contact Number:_________________________________3. Occupation:______________________________________4. Income Group (Annual): 10000- 1Lakh 1Lakh- 5Lakh 5Lakh- 10Lakh 10Lakh and above5. How do you find Company Interaction via Email and Telephone calls? Poor Fair Good Very Good6. Do you find company‟s research on the markets useful and beneficial? Yes No Can‟t Say7. Where do you rate Edelweiss Broking Limited on the scale of 10 in terms of Services? 4 6 8 108. Where do you invest/ trade mostly? Equity Commodity F&O Currency9. Where do you trade mostly? Intraday Trading Delivery Trading 37
  38. 38. 10. Do you trade in any other broking firm? Yes No If Yes, name of the broking firm__________________________________11. Are you satisfied with the services provided by Edelweiss Broking Ltd.? Yes No12. Will you be taking the subscription plan again? Yes No13. Since last how many years you are in field of trading? Less than 1 Year More Than 1 Year More than 5 Year14. What improvement do you want be done in company‟s services? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________15. Which service do you like most in Edelweiss Broking Ltd.? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 38
  39. 39. 7. Data Analysis & Interpretation All the data analysis and interpretation was done using Microsoft Excel, based on the answers given by the customers via questionnaire. Respondents Respondents Business HNIs Individuals Proprietors No of Individuals 9 3 15 3 Business HNIs Individuals Proprietors 10% 30% 50% 10%Interpretation:Above pie chart represents that research contains 30 respondents which are Businessmen, HNIs,Proprietors and Individuals and they are 9, 2, 15 and 3 respectively in numbers and percentages. 39
  40. 40. Income Group (Annual) Income Group 10000-1Lakh 1Lakh5Lakh 5Lakh-10Lakh 10Lakh & above No of Individuals 14 10 3 3 10000-1Lakh 1Lakh-5Lakh 5Lakh-10Lakh 10Lakh & above 10% 10% 47% 33%Interpretation:Above pie chart represents that the research contained 30 investors and customers of EdelweissBroking Ltd. All the people were from different Income group which are in numbers shownabove. We can clearly see sample includes more customers from first income group i.e. INR10,000 – 1 Lakh and second income group i.e. 1 Lakh – 5 Lakh. The indication is simple peoplewith lesser income are more interested in investment and wealth creation rather than the highincome group. So basically there is requirement to concentrate on high income group, there isneed to educate them to invest for wealth expansion. 40
  41. 41. 1. Company Interaction via Email and Telephone Calls: Interaction Poor Fair Good Very Good Respondents 3 14 7 6 Poor Fair Good Very Good 20% 10% 23% 47%Interpretation:From the above result of Company Interaction via Email and Telephone calls, we can imaginethe satisfaction level of customers and accordingly Customer Relationship is managed throughelectronic media to maximize the wealth of customers. In Edelweiss mostly dealers and RMs arein touch of regular traders and customers also get loyal to the company through this practice.Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too.The over all result is fairly good. But the following answer can also be based on the interactionof the retail employees, where language barrier is an issue. They find it difficult to interact withcustomers sometimes because of lack of knowledge of the language spoken on the customer side. 41
  42. 42. 2. Do you find company’s research on the markets useful and beneficial? Research Yes No Cant say Respondents 25 4 1 Yes No Cant say 3% 14% 83%Interpretation:When it was asked sudden and on the time answer was the same of maximum people, it meansthe credibility and trustworthiness of the company is on the height. It‟s nothing but the result ofRelationship Management. It is said that Share Market means “Well of Loss”, neverthelessEdelweiss‟s Customer don‟t have any tension in investing because they believe in Company‟sResearchers and Analysts and their research on the market too. Edelweiss has research done oneach company based on technical and fundamental aspects. They provide various research andstrategy based on the research done by the analysts of the company. These are the same researchwhich is done for various Foreign Institutional Investors (FII) clients, who have their investmentsin crores. 42
  43. 43. 3. Where do you rate Edelweiss Broking Limited on the scale of 10 in terms of Services? Rating 4/10 6/10 8/10 10/10 Respondents 2 11 13 4 Implication Bad Satisfactory Good Excellent Rate4 Rate6 Rate8 Rate10 13% 7% 37% 43%Interpretation:These scores are given out of 10 by the customers. From the above answers CustomerRelationship can be very well highlighted because out of 30, every customer has his own valueand consideration about Edelweiss because they invest their Hard Earned money and take risk toearn more cause of Edelweiss‟s Services and Attachment and it is all the output of CustomerRelationship Management. Many people have rated Edelweiss 8, which means they are happywith the overall performance of the company. One of the person who gave rating 4 said that thecompanies performance is poor. He was the one whose form processing took 1 month and intrading went into loss. One of the person who gave rating 10, got his account opened in very lesstime and also made high returns on his investments. Here the luck factor also comes into picture. 43
  44. 44. 4. Where do you invest/ trade mostly? Investment Equity Commodity F&O Currency Respondents 20 3 4 3 Equity Commodity F&O Currency 10% 13% 10% 67%Interpretation:One general question was asked in questionnaire to know the investment flow of customerstowards Edelweiss Services. When it was asked why they invest in specific area mostly then itwas answered by many people that liquidity market is easy to make money out of investment andtake money out whenever we feel not to put. And other reason many customers don‟t want toinvest for long time. And about currency some people were not interested. There are less peoplein commodity because Edelweiss launched it last month i.e. June 2011. 44
  45. 45. 5. Where do you trade mostly? Trading Options Intraday Delivery Respondent 4 26 Intraday Delivery 13% 87%InterpretationFrom the above view of graph we come to know that minimum people, 13% customerstrade in Intraday Trading. On this customers say they like to trade in Intraday because ofShort term investment and high level of excitement and sometimes they feel their moneyseems to sink. It‟s like One Day Cricket play for many customers. The intraday researchis done on technical research which is not that strong and there is a fear of losing money.In Delivery, people say here is „No / Low Risk, More Money‟. The Delivery Trading isdone on Fundamental research of the company which is strong with proven reports. Thatis why people invest more in Delivery.Hence we find people hesitate to invest in Intraday and confident to trade in Deliverytrading. Eventually Edelweiss is the Broking firm which doesn‟t lose its attention frommaking money for its customers and lose its attention from Customer RelationshipManagement. 45
  46. 46. 6. Do you trade in any other broking firm? Do you trade in other broking firm? Yes No Respondent 6 24 Yes No 20% 80%Interpretation:Above pie chart represents the minimum people have their Demat account and Trading accountsomewhere else also nevertheless they say they trade from Edelweiss only and few of their otheraccount are put Non-Operating by them.Here we get a fact that Edelweiss‟ Customer Relationship Management really has somethingvery attractive and attachable to emotions cause of services.Few of them were hesitating while answering this question, feeling that their relations may spoilwith Edelweiss and RM would not give good performance. 46
  47. 47. 7. Are you satisfied with the services provided by Edelweiss Broking Ltd.? Satisfied? Yes No Respondents 24 6 Yes No 20% 80%InterpretationAbove chart represents us the output of Customer Relationship Management with the help of theservices and customers satisfaction can show a mirror of the efforts of the company towardsmaking their customers loyal to them.Here 73% customers have selected and stated that they are fully satisfied with the services thatthey are getting from Edelweiss Broking Ltd. 47
  48. 48. 8. Will you be taking the subscription plan again? Buy Again Yes No Respondents 22 8 Yes No 27% 73%InterpretationThe company sells subscription on yearly basis and makes business. If the company is able toprovide good service to the customers they are bound to come back after their subscriptionexpires. The company won‟t find any difficulty in getting the business.Here we can see 27% won‟t buy subscription next time. The reason could be dissatisfaction.Sometimes the RM leaves the company and leaves the clients under him in mess. That‟s whycompany should go into the reason of the dissatisfaction of the clients, to retain them. 48
  49. 49. 9. Since last how many years you are in field of trading? More Than 1 More than 5 No. of Years Less than1 year Year Year Respondents 7 18 5 Less than1 year More Than 1 Year More than 5 Year 17% 23% 60%Interpretation:This question was asked intentionally to know the loyalty of customers with Edelweiss BrokingLtd., since how many years they have been investing. These figures show all things are the proudof Edelweiss and its customers are also very proud to be in Edelweiss. Edelweiss is newer thanmost of the broking firm hence there are very less clients in the „More than 5 year‟ pie. And the„More than 1 year shows that most of them are satisfied with Edelweiss and have brought thesubscription once again after expiry. 49
  50. 50. 7. CorrelationIn statistics, dependence refers to any statistical relationship between two random variables ortwo sets of data. Correlation refers to any of a broad class of statistical relationships involvingdependence.Familiar examples of dependent phenomena include the correlation between thephysical statures of parents and their offspring, and the correlation between the demand for aproduct and its price. Correlations are useful because they can indicate a predictive relationshipthat can be exploited in practice.Analysis of CorrelationIn simple words, Correlation is a statistical measurement of the relationship between twovariables. Possible correlations range from +1 to –1. A zero correlation indicates that there is norelationship between the variables. A correlation of –1 indicates a perfect negative correlation,meaning that as one variable goes up, the other goes down. A correlation of +1 indicates aperfect positive correlation, meaning that both variables move in the same direction together.Customer Relationship ManagementIn CRM the most important parameter is satisfaction. Hence we need to check the correlation ofsatisfaction with various parameters. Here the analysis will be done using Microsoft Excel, basedon the answers given by the customers via questionnaire. Satisfaction & Interaction with customer: The satisfaction and interaction both show positive correlation; this proves that the telephones and the emails which customers receive are very much beneficial to them. The branch itself works on the tele-marketing strategy. Satisfaction & Companies research: The analysis gives the result that satisfaction and the research provided by the company are correlated because the customers totally rely 50
  51. 51. on the research done by the analysts of Edelweiss Broking Limited. The Research helpsthe customers to take investment decisions and the positivity of the investment done onresearch leads to customer satisfaction.Satisfaction & Trading in another broking firm: The analysis gives the result that they(satisfaction and trading in another broking firm) are negatively correlated this shows thatif customers are dissatisfied with the services then there is possibility that they willapproach other broking firm for their investments.Satisfaction & Re-buying Subscription: Here a positive correlation is observedbetween satisfaction and re-buying subscription. If the customers are satisfied with theproduct it contributes to customer retention. As a new branch if Edelweiss looks intoproviding proper services then the customers will buy the subscription again when itexpires. 51
  52. 52. 9. FindingsCustomer Relationship Management Business Drivers and Benefits It empowers management with a real-time pipelines and forecasting so they can build and focus on high profit, sustainable relationships. It empowers staff with customer intelligence and best practices to increase their likelihood of successful transactions. It increases customer‟s acquisition, retention, loyalty, and profitability by integrating information across the enterprise. It enables executive and management to gain customer insight.Customer Relationship Management Risks Effective internal controls must be in place to prevent customer information from becoming scattered across databases and servers. CRM can be associated with significant revenue cycle. CRM should be kept and handled and carefully kept inside the company only otherwise Customers Database can be misused by rivals.Customer Common Findings while contacting: Generally people whom I have contacted they were from different domains like Business, Proprietors, High Net worth Income Group (HNIs) and students. Their responses may not be proper because of lack of time dedication. 52
  53. 53. This data is called Primary Data, which is considered very genuine but in this case it misrepresents the Reality and Credibility. Some people, its felt that they gave fake response, with impression that this questionnaire is from Edelweiss Broking Ltd. internal. Some people did not take it serious because this was not important to them as they are busy for trading at dealing Room. Every data interpretation and statistics cannot be trustworthy from their results because this study is for only two months altogether.Company’s Limitations: The language problem in the retails, which led to interaction problem. The time involved to re-inward the form after rejection. No service given to lower plan subscribers. Too many rules leading to form rejection. More concentration on client acquisition rather than client servicing. More number of customers assigned to one RM. 53
  54. 54. 10. Limitations1. Many consultants, vendors, and analysts today define CRM in terms of being a customer-centric business strategy that is enabled by a set of applications that support customer-facingfunctions and management decision making. That may capture the essence of what CRM is, butwhile it does not concentrate on the extra expenses occurring on Company‟s A/c due toincrement in expenses in serving customers all the ways and Return on investment meansconsideration may not be more than expected. Customer may not give that much businesstransactions which is estimated or expected.2. It may need specific staffs to handle all the tasks of Customer Relationship Managementbecause the data that is feed in system cannot be handled merely by Relationship Managers whohas to make new customers and take care of their dealings and also to accomplish their additionalresponsibilities. 54
  55. 55. 10. Suggestions1. Short Duration: Project research duration was only for two weeks; in this tenure neither study nor observation can be done properly. For example, we saw sample plan – in that only 30 customers could be contacted and now the problem is- from this samples we cannot think of Macro Level Perception of customers. Many people may be from same point of view and many may not and those 30 people may not contain these types of people. So duration of Research Project should be more than two weeks.2. Overcoming Limitations: Language Barrier: The employees in Edelweiss at least need to know three basic languages i.e. Hindi, English and Marathi, its very essential because at times the language barrier of the customer leads to the call drop which is not at all desirable. So company needs to hire employees having good communication skill and command over basic languages. Form Rejection: The forms which gets rejected needs to be worked on fast to avoid delay because it always adds to dissatisfaction among the customers. Also the rules for form rejection should be minimized to some extent, because it delays the account opening. Lower plan service: The customers who have lower plans should be given basic training for how to invest, since they don‟t have an RM. Client servicing: there is requirement to do client servicing for retaining the customers rather than client acquisition. The RM should be assigned a limited amount of customers to service and he should not be given the assignment of client acquisition. Its better to keep the department separate. Consumer Complaints: There is a need of consumer complaint department, where consumers can directly complaint, so that the problem can be worked out instantly. 55
  56. 56. 3. Customer Category: To find effective Customer Relationship Management, Broking firm can do one more thing which will be very beneficial to them in finding Asset Customers from the bottom level management to top level management. Edelweiss should adopt system of allotting Customer Categories according to their transactions, due payments, exposure, loyalty, frequency of trading and all. In this system at all the level where CRM is handled and watched by Top class officials of the company, they also get to know the list names and details of the loyal customers and CEO or Board of Directors also get to know total customers and at last their turnover of the total transaction.4. Affiliated Awareness Programs: Edelweiss should arrange affiliated programs within its own groups to come to the sense of new people and accordingly to prospecting and acquiring new customers. With the help of it companies CRM will help it to get height of success and dominate the world of Services. Because CRM affects Marketing, Sales and profitability and these all can be achieved by CRM. For E.g., Edelweiss Broking Ltd. can play few awareness documentaries and Advertisement, this will result in getting more and more customers to serve and accordingly Edelweiss can become the first ranker in turnover very soon. 56
  57. 57. ReferencesBy: Mithas, Sunil; Krishnan, M. S.; Fornell, Claes. Journal of Marketing,Oct2005, “Why Do Customer Relationship Management Applications AffectCustomer Satisfaction?” Vol. 69 Issue 4, p201-209. Ryals, Lynette. Journal of Marketing, Oct2005, “Making CustomerRelationship Management Work: The Measurement and ProfitableManagement of Customer Relationships”, Vol. 69 Issue 4, p252-261.Edelweiss Broking Limited, 2009, accessed 3rd July 2011,<>.Edelweiss Capital Limited, 2008, accessed 3rd July 2011,<>.Hair, Bush, Ortinau, 2008, “Marketing Research within changingInformation Environment”, Tata McGraw Hill, Third Edition.David, V.Kumar, George S. Day, 2009, “Marketing Research”, Wiley IndiaEdition, Ninth Edition.. 57