Customer Relationship Management in Banking Sector.

1. A Presentation on
"Customer Relationship Management in Banking
Sector"
Submitted by:
Vijay Kunwar
MBA IV SAM
SAP id - 500048591

2.  Customer Relationship Management is the establishment, development,
maintenance and optimization of long-term mutually valuable
relationships between consumers and the organizations.
 Customer relationship management, is a number of strategies and
technologies that are used to build stronger relationships between
companies and their customers.
 Customer relationship management is commonly used by corporations,
and they will focus on maintaining a strong relationship with their clients.

3.  It must guide all of its policies, and it must be an important part of
customer service and marketing.
 It is about creating a sustainable competitive advantage by being the best
at understanding, communicating, and delivering, and developing existing
customer relationships.
 Successful customer relationship management focuses on understanding
the needs and desires of the customers and is achieved by placing these
needs at the heart of the business by integrating them with the
organization's strategy, people, technology and business processes.

4.  Increase in Customer Service
 Increasing Efficiency
 Lowering Operating Costs

5. Retail banking refers to mass-market banking where individual customers
typically use banks for services such as savings and current accounts,
loans, debit cards, credit cards, depository services, fixed deposits, and
investment.
Retail banking sector is characterized by following:
 Multiple products (deposits, credit cards, insurance, investments and
securities)
 Multiple channels of distribution (call center, branch, and Internet )
 Multiple customer groups (consumer, small business, and corporate)

6.  Customer focus
 Leadership
 Process approach
 System approach
 Involvement of people
 Continual improvement

7.  Organization Objectives
 Focus on All Business Aspects
 Define the Business Problem
 Establishing Proper Metrics
 Choose the Right Methodology
 Using Skilled Managers
 Ease of Usage

8.  Develop a corporate ‘CRM culture’, involve key stakeholders.
 Outline a CRM strategy.
 Define CRM objectives and requirements.
 Develop a CRM roadmap.
 Integrate your current systems.
 Communication is critical.
 Learn, be flexible, use the tool and evolve your business.

9.  CRM Banking Focuses on the Customer.
 Overall Profitability.
 Satisfied Customers.
 CRM Banking Boosts Small Banks .
 Increased Operational Efficiencies and Collaboration.
 Marketing Encyclopedia .
 360-degree view of company.
 Lead and Opportunity Management.

10.  Service provisioning throughout the entire life cycle of the corporate
customer, from the initial stages to the establishment of a close, long-term
relationship with profitable clients.
 Optimization of the use of bank resources, such as alternative channels of
distribution (internet and home banking).
 Low maintenance and expansion costs.
 CRM permits businesses to leverage information from their databases to
achieve customer retention and to cross-sell new products and services to
existing customers.
 Companies that implement CRM make better relationships with their
customers, achieve loyal customers and increased revenue and reduced
cost.

11.  Research Design
The method applied in descriptive research is cross sectional studies field
work and survey.
 Type of universe:
The universe is the entire group of items the researcher wishes to study and
about which they plan to generalize. Under this project type of universe
include banks customer in Dehradun.
 Sampling Unit:
Sampling units are the persons, who have bank accounts in Dehradun.

12.  Size of Sample:
Number of people surveyed. Generally, large Samples give more reliable
result than small samples. Our sample Consist of 224 respondents.
 Sampling Procedure:
Sampling procedure refers to technique used in selecting the items for the
sample. Under this project selection of respondents is on the basis of
convenience sampling.
The tools for data collection
 Collection of Data
As there are several research techniques, there are a number of data
collection methods as well.

13.  Secondary Data- A secondary data is concerned with the analysis of
already existing data that is related to the research topic. We have gathered
data from books, journals, articles, through internet.
 Primary Data- Primary data is that data which is collected directly from
respondents using data collection methods like survey interviews,
questionnaires, direct observation, or charts. We have collected primary
data through questionnaires.

14. QUESTIONNAIRE
We are approaching you with this questionnaire to know your Perception towards the “Customer Relationship
Management in Banking Sector ” The information provided by you would be kept confidential and will be used
for academic purpose only. Kindly tick your choice against each statement.
Name : ___________________________________________________________
Gender : __________________________________________________________
Age : ____________________________________________________________
Qualification : _______________________0______________________________
Income Status : ____________________________________________________
S.
NO.
Statements Strongly
Agree
(5)
(%)
Agree
(4)
(%)
Not Sure
(3)
(%)
Disagree
(2)
(%)
Strongly
Disagree
(1)
(%)
1. The existing CRM services provided by
my bank is excellent.
3.6 8.5 48.7 34.8 4.5
2. The system followed by banks to deliver
CRM facilities is satisfactory ?
4.9 11.6 48.7 31.3 3.6
3. My banks service quality depends on
whether if understand its clients need ?
3.1 14.7 44.6 35.3 2.2
4. The CRM service provided by the banks
is beneficial to me ?
4.0 15.2 42.4 35.3 3.1
5. My bank regularly inform me of new or
important information through various
media
2.2 17.0 31.3 44.6 4.9

15. S.
NO.
Statements Strongly
Agree
(5)
(%)
Agree
(4)
(%)
Not Sure
(3)
(%)
Disagree
(2)
(%)
Strongly
Disagree
(1)
(%)
6. If my bank provides technologically
advanced services, I will have a better
relationship with my bank ?
1.8 11.6 42.0 38.8 5.8
7. Are you satisfied the number of times you
are provided your bank account
information through media ?
6.3 8.5 50.9 27.7 6.7
8. Do you feel that CRM through SMS / E-
Mail are disturbance into your personal
life ?
4.9 9.8 42.4 39.7 3.1
9. Do you feel that creating different clients
sector (based on their status) is beneficial
?
5.8 11.6 37.1 37.1 8.5

16.  Majority of the peoples have account with SBI bank. It shows peoples
still have their trust on the government.
 Respondents were showing neutral behavior towards the bank employee’s
answering their queries.
 Respondents seem careless and unaware towards the CRM facility
provided by the bank.
 It is found that the people are interested in banks service quality about
their basic needs from banks like depositing or withdrawing money etc.

17.  Majority of people are of the view that if their bank will provide new or
important information through various media, they will be able to build a
better relationship with the bank.
 Majority of the respondents are reluctant towards advanced technological
services and still have more trust on doing bank work manually, e.g.
people still want their passbook to be updated manually.
 Most of the people prefer that bank should create different client sectors as
it will serve their needs and objectives of investments in more reliable and
efficient manner.

18.  In present scenario people have trust on public sector banks, but for the
banks, they need to put more efforts and introduce new CRM practices so
that they can handle the competition given by private, as well as foreign
banks.
 It is suggested that bank employees should adopt pro-active approach
towards handling their client’s queries so as to build better relationships
with their clients.
 Ensure high level training and development for staff to cope with new
financial products and an intensive use of information technology for
better service and flexibility.
 It is suggested to public sector banks that they need to do campaigns,
awareness programmes, advertisements, demo classes for their clients
about CRM benefits and how to avail them.

19.  Banks should provide important information regarding facilities to
existing and potential customers through various media such as sms, e-
mail etc.
 The public banks should try to change the mindset of the people so that
they might not fear availing banking services via advanced information
technology.

20.  Today, many businesses such as banks, insurance companies, and other
service providers realize the importance of Customer Relationship
Management (CRM) and its potential to help them acquire new customers
retain existing ones and maximize their lifetime value.
 Close relationship with customers will require a strong coordination
between IT and marketing departments.
 The paper deals with the role of CRM in banking sector and need for
CRM to increase customer value by using some analytical methods in
CRM applications.

21.  CRM offers the most holistic route for banks to enhance customer
relationships.
 Banks can enhance customer retention, profitability and loyalty and get
an increased share of banks from their customers.
 Banks need to embrace CRM as a principle and adopt a strategy for
managing customer relationships in three key areas : Customers, Processes
and Technology.
 Finally banks should take actions such as recognition and delegation of
work, freedom to handle customer’s grievances and management’s
approval to take decision according to the situations.