The document discusses customer relationship management (CRM) at SBI and the reasons why customers quit, highlighting that 68% leave due to indifference. It emphasizes the importance of resolving complaints effectively, as 70% of customers will return if their complaints are addressed. Additionally, it outlines SBI's strategies for managing customer relationships, including segmentation and providing alternative channels for better service.

1. Shubhrat Sharma

2. AGENDA
• GENERAL STATISTICS
• CRM BY SBI PRISM
• CRM AT SBI

3. Why customers quit ?
• 1% DIE
• 3% MOVE AWAY
• 5% DEVELOP OTHER FRIENDSHIPS
• 9% LEAVE FOR COMPETITIVE REASONS
• 14% ARE DISSATISFIED
• 68% QUIT BECAUSE OF AN ATTITUDE OF INDIFFERENCE

4. General Statistics
The average business never hears from 96% of its unhappy customers
91% never come back
Getting a repeat customer from this group is 1 in 11
Dissatisfied customers may tell 9-10 people about their experience
For every positive they tell 4-5 people

5. General Statistics…
Of the customers who register
a complaint, as many as 70%
will do business again with
your organization if the
complaint is resolved
effectively,
This figure goes up to
95% if the complaint
has been resolved
quickly,
40% of complaints are the
result from customer
mistakes or incorrect
expectations,
A complaint that is handled
efficiently is actually better
than no complaint at all,
Customers who
complain and get
satisfactory results
are 8% more loyal than
if no complaint at all,

6. SBI PRISM
WHY CRM:
• INCREASING AWARENESS
• INCREASING AFFLUENCE IN THE EMERGING ECONOMIES
• CUSTOMER DIVERSITY
• TECHNOLOGICAL ADVANCES
• PROCESS
• ALTERNATE DELIVERY CHANNELS
• COMMUNICATION
• INCREASED NUMBER OF PRODUCTS IN THE LONG RUN
• HELPS IN UNDERSTANDING NEEDS OF CUSTOMERS

7. CRM Objectives
Lifetime Value (LTV)
• Refers to the net present value of the potential revenue stream for any particular customer over a # of years
• Starts with current purchase activity then extrapolates to include potential additions from cross-selling,
upgrades,total ownership, etc.
Customer Ownership
• Attempts to “own” the lion share of customer spending and/or “share of mind” in a particular product category
• Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is
critical
• 5% points increase in customer retention=20-125% increase in profit

8. CUSTOMER RELATIONSHIP MANAGEMENT
Duration of Customer RelationshipValue

9. BUILDING CRM
Increase longevity of customer relationship
Manage expectationsbetter
Specialised Services
Personal Touch
Customise productsas per their needs
Increase trust
Understand need of the customers
Differentiate customers in terms of value to the Bank (leverage database available)
Identify prospectsand customers

10. BUILDING CRM
Gain more control in interaction with
customers
Manage expectations better (90-10
rule)
Understand what
customers really want
Provide products
that better serve
customers
Competitive
advantage

11. Targeting Acquisition Retention Expansion
Customer Relationship Management can be simply defined as everything involved with
managing the customer relationship.
• Who do we target
• What segments are
most profitable
• What segments
match our Value
Proposition
• What is the best
segmentation
strategy for us / our
industry
•What is the best
channel for each
segment
•What is the
acquisition cost
for a channel /
segment
•Do certain
channels deliver
certain types of
customers
•Cost effective
acquisition
•How can we retain
•What is our
average CRM
length
•How can we hold
customer for as
long as possible
•What is the most
cost effective
method of
retention
•How many
products does our
average customer
buy
•How can we
induce our current
base to buy more
products
•Who are the prime
targets for
expansion
•What is the cost of
expansion
Customer Relationship Management

12. CRM AT SBI
SBI divide its customers into following categories
• P-segment (personnel banking)
• Agriculture segment
• Corporate/govt segment
• Sme
For different segments sbi provide different products
Separate meeting for the different segment are called and their needs are asked for.

13. Providing the alternate channels
• A T M CUM DEBIT CARD / SME DEBIT CARD
• MOBILE BANKING
• INTERNET BANKING
• GREEN REMIT CARDS / INSTA DEPOSIT CARDS
• CASH DEPOSIT MACHINE
• GREEN CHANNEL COUNTER
• SELF SERVICE KIOSK
• CONTACT CENTRE

14. • AVAILABILITY OF 24X7 SERVICE
• TO CATER TO THE NEEDS OF YOUNGER GENERATION.
• QUICKER AND CONVENIENT TRANSACTIONS.
• PAPERLESS / ENVIRONMENT FRIENDLY TO A GREAT EXTENT.
• TXNS AT TIME AND PLACE OF CUSTOMERS' CHOICE
• DECONGESTION OF BRANCHES
• CHEAPER TRANSACTION COSTS.
Providing the alternate channels

15. 90-10 rule
• 10% OF LIFE IS MADE UP OF WHAT HAPPENS TO YOU.
• 90% OF LIFE IS DECIDED BY HOW YOU REACT.
• EMPLOYEES OF SBI USE THIS RULE TO REACT THEIR CUSTOMERS DEMANDS AND QUERIES BETTER .

16. Customer Portfolio Management
Problem
Value
I
II III
IV
Exit
Ring
fence
Protect &
leverage
Problem
identification
Nurture
Low High
High

17. “
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