CRM IN ICICI BANK Ravi Jagannath Sharma Retail Management 3rd Sem University of Lucknow
ICICI BANK ICICI was set up as a development bank to provide products and services for the corporate segment. It diversified into the retail segment of the financial markets in the early 1990s while transforming itself into a technology intensive financial service group. In the mid-nineties, ICICI raised debt from the retail market.
Since then it has been trying to increase its reach to this segment by mobilizing resources and offering quality investor service through ICICI Infotech Services, a subsidiary of ICICI. In 1994, it established ICICI Bank as a commercial bank that is flexible, innovative and prompt in meeting customer requirements. It also offers other retail initiatives such as personal services, capital services, Web trade, life insurance and other services.
ICICI- RETAIL STRATEGY ICICI’s retail strategy was centred around intensive deployment of technology to help reduce cost of service, increase customer retention, help in cross selling and up-selling while improving process efficiencies. The bank looked towards allowing the customers use multiple electronic channels including internet, ATMs, call centers, contact centers, desktops, kiosks, mobiles and other hand held devices for conducting financial transactions.
CRM- THE ICICI EXPERIENCE CRM at ICICI involves increased communication between the virtual universal bank and its customers and prospects as well as within the group itself. The underlying idea is to enhance every instance of contact with the customer. ICICI believes that a true customer-centric relationship can only be accomplished by considering the unique perspectives of every single customer of the organization.
CRM ROAD MAP OF ICICI CRM is viewed as a discipline as well as a set of discrete software technologies, which will focus on automating and improving the business processes associated with managing customer relationships in the areas of sales, marketing, customer service and support. The organizations aims to achieve the end goal of one-to-one marketing. The CRM Software applications will facilitate the coordination of multiple business functions. Coordinate multiple channels of communication with the customer to carry out customer management more efficiently.
It should allow ICICI to engage in one-to-one marketing by tracking complete customer life-cycle history. To begin with, it will automate process-flow tracking in the product sales process, and be able to generate customized reports and promote cross selling. It will also enable efficient campaign management by providing a software interface for definition, tracking, execution and analysis of campaigns.
COMPONENTS OF CRM CYCLE Understand and Differentiate. Develop and Customise. Interact and Deliver. Acquire and Retain.
Understand and Differentiate Organisations need to understand their customers in order to have a relationship with them. Profiling to understand demographics, purchase patterns and channel preference. Primary research to capture needs and attitude. Customer valuation to understand profitability, as well as lifetime value or long-term potential. The ICICI Group’s customers need to see that the firm is differentiating service and communications, based on their learning independently and on the customer expectation and the expected values expected.
Develop and Customise In a customer-focused world, product and channel development has to follow the customer’s lead, identify customer’s wants, determine the value and desire of the customer, etc. Organizations are increasingly developing products and services, and even new channels based on customer needs and service expectations. ICICI believes that the extent of customization should be based on the potential value delivered by the customer segment.
Interact and Deliver To foster relationships, organizations need to insure that: All areas of the organization have easy access to relevant, actionable customer information. All areas are trained how to use customer information to tailor interactions based on both customer needs potential customer value. ICICI is strongly of the opinion that value is not just based on the price of the product or the discounts offered but are based on a number of factors including the quality of products and services, convenience, speed, ease of use, responsiveness, and service excellence.
Acquire and Retain The more ICICI learns about customers, the easier it is to pinpoint those that are producing the greatest value for the organization. They aim to continue to learn more about each customer segment and use it for successful customer retention. As ICICI moves step further in CRM they hopes to gain insight and understanding that enhance the subsequent efforts. The organization shall become increasingly sophisticated in the implementation of CRM processes, and over a period of time shall become increasingly profitable by doing so.
Successful customer retention is based on the organizations ability to constantly deliver, based on three principles: Maintain interaction; never stop listening. Continue to deliver on the customer’s definition of value. Customers change as they move through differing stages of their lives, which implies that the firm needs to be alert for changes and to modify its services and value propositions as they change.
IMPLEMENTING CRM There are five interrelated areas: Business Focus. Organizational Structure. Business Metrics. Marketing Focus. Technology. The key to building the CRM action plan was in understanding with the organization that stood relative to each of the five aspects of change. Interviews with key individuals throughout the organization helped identify different initiatives that have been launched, all focused on CRM.
The next step in the process was a ‘Gap Analysis’, this analysis helped identify the CRM organizational holes: Marketing, sales and service practices. Collection, capture, processing and deployment of customer information. Distribution and operations effectiveness at customer touch points.