Chapter 1

INTRODUCTION

INTRODUCTION TO CRM IN
BANKING

Every business unit emphasizes on spurting a long term relationship with its customer to nurture
stability in todays blooming market. Customer s expectations are now not only limited to get
best products and services, they also need a face to face business in which they want to receive
exactly what they demand indirectly. A CRM and in a quick time

Customer relationship

management is an upright concept or strategy to solidify relations with customer and at the same
time reducing cost and enhancing productivity and profitability in business. An ideal CRM system is
a centralized collection all data sources under an organization and provides an atomistic real time
vision of customer information. A CRM system is vast and significant ,but it be can implemented
for small business, as well as large enterprises also as the main goal is to assist the customer
efficiently.

Usually an organizations consists of various

departments which predominantly have access to customer information either directly or system
piles up this information

centrally, examines it and then makes it addressable within all the

departments. Lets take an example of an international all center which uses a CRM tool called
xyz and is integrated with a phone and a computer system or laptop.
Now this system automatically perceives which customer is calling. Before the executive attends
the phone the CRM system brings forth the customer details on the computer or laptop screen
and also indicates what the opportunity of deals is with that particular customer , what the
customer had already purchased or ordered in past and what is the probability of buying in future.
Not only this , it can also highlight what all products best suit this customer . For finance
departments it may show the information

regarding the current balance and for accounting

NEED OF CRM IN BANKING

Building

relationship with customers in current market trends is the most important aspects that an organization should focus
on. Distinction and eminence are now most sustainable and affirm for which developing good relationship with
customers is must. Some of the substantial outcomes of building a quality relationship is explained below by which
need of relationship with customer are insight:

1. Better

Customer Perceptiveness: As the customer lengthens to deal with a supplier , the supplier tends to explicate a better
insight of customers needs and expectations . By this a high level of relationship can be developed between them.
This will result in selling more products and retain the business with r=the customers which finally will lead to
profitable business.

2. Lead To Customer Satisfaction : Customer satisfaction is the measure of

how the needs and responses are collaborated and delivered to excel customer expectations. It can only be attained
if the customer has an overall good relationship with the supplier is an important performance exponent and basic
differentiator of business strategies . Hence , the more is customer satisfaction ; more is the business and the
bonding with customer.

3.Lead To Customer Loyalty: Customer loyalty is

the tendency of the customer to remain in business with particular supplier and buy the products regularly . This is
usually seen when a customer is very much satisfied by the supplier and re-visits the organization for business
deals, or when he is tended towards re-buying a particular product or brand over times by that supplier. To continue
the customer loyalty the most important aspects an organization should focus in is customer satisfaction, hence it
can be said that customer loyalty is also an outcome of good relationship .
4.Lead To Customer Retention : Customer retention is a strategic process to keep or retain the existing
customers and not letting them to diverge or defect to other suppliers or organizations for business and this only
possible when there is a quality relationship between customer and supplier . Usually a loyal customer is tended
towards sticking to a particular brand or product as far as his basic needs continue to be properly fulfilled. He does

OBJECTIVE OF CRM IN BANKING: To know about the customer corporation to develop the relationship with the bank.
To know about the customer behavior to ask by the service provided by the bank.
To find out how the bank maintain the relation with customer.

SIGNIFICANCE OF STUDY:To understand how to provide customer service to account holder.

To know how agent want to maintain their relationship with the customer.
The present study is important to know how customer locker ID and there password .

SCOPE OF STUDY:CRM or customer relationship management is concern with the development and maintenance of mutually
beneficial relationship with strategically significant partner.
Its focus is the creation of long-term value and not just short-term profit the company and all its work.
There is need to study the awareness of the people regarding CRM to every customer.
There is a need to study the reason for not giving services properly.

LIMITATIONS OF STUDY:-

The moderate variables like reputation of the firm.

Refined market strategies unaffected profit margin sale or output, increased customer satisfaction is achieved .
Establishment of service centers, prompt service and well defined market strategies are impact of CRM on
customer.
In this context, the following research papers presents about impact of CRM.

1.Customer relationship management isIMPORTANCE

the strongest OF
and CRM
the most efficient approach in maintaining and creating
relationships with customer
2.Customer relationship management is not only pure business but also ideate strong personal bonding within
people.
3.Development of this type of bonding drives the business to new levels of success.
4.Once this personal and emotional linkage is built, it is very easy for any organizations to identify the actual needs
of customer and help them to serve them in a better way.
5.It is a belief that more the sophisticated strategies involved in implementing the customer relationship
management, the more strong and fruitful is the business.
6.Most of the organizations have dedicated world class tools for maintaining CRM systems into their workplace.
7.Some of the efficient tools used in most of renowned organizations are batch book , sales force, buzz stream ,
sugar CRM etc.

BENEFITS OF
CRM
1.Centralization and sharing of data
With customer relationship management (CRM) Systems , data is stored in one centralized location ,
making it readily accessible to all members of an business or organizations .
2.Better Customer Service
Customer Relationship Management (CRM) systems are capable of storing detailed information about each
customer, such as their history of orders, correspondence, survey responses, and marketing emails.
3.Higher Customer Satisfaction
CRM Systems make customers feel more like they are part of a team than merely a sales statistic. This
sense of partnership often makes for a happier customer who is more likely to do repeat business and refer a

TYPES OF CRM
Business must build top-line growth strategies upon the foundation of their CRM programs by ensuring
that strategic intent and cost management measures are institutionalized . CRM is a fundamental shift in the way a
company does business with its customers , rather than just a one-time e-business initiative , it requires continuous
leadership support over multiple years. There are various types of CRM applicable as per sector needs .
1.

Operational CRM : Operational CRM provides support to front office business processes. Interactions with
customers are generally stored in customers contact histories , and staff can retrieve customer information as
necessary.

2.

Analytical CRM : Analytical CRM analyses customer data for a variety of purposes. It is applicable on marketing
level and aims to propose an in-debt market analysis.

3.

Analytical CRM in Insurance : Analytical CRM can be deployed to understand processing of claims in insurance
sector . Deregulation of insurance industry in the global has resulted in increased number of players in the
market hence competition.

4.

Sales Intelligence CRM : sales intelligence CRM is similar to analytical CRM , but is intended as a more direct
sales tool.

5.

Campaign Management : Campaign Management combines elements of operational and analytical CRM.

6.

Collaborative CRM : collaborative CRM covers aspects of a company dealings with customers that are handled
by various departments within a company , such as sales , technical support and marketing.

7.

Geographic CRM : Geographic CRM combines geographic information system and traditional CRM.

FEATURES
CRM

OF

There is a continuum of CRM from the most simple ( a spreadsheet or database containing
information about the customer- referred to as a contact management systems ) to the most complex (online
applications automatically linked with back-end systems.) An integrated CRM systems can include the following
features.

A Central database that is accessible by all employees to view and update customer data.

Analysis of customer data including customer segmentation and segmentation of potential customers.

Customers self-service where the customers can self-order and help themselves using web-based, password
access.

Identify and tracking potential customers.

Reports generated with up-to-date information, including revenue forecasting and trend analysis.

An organization can never assume what actually a customer needs.

Customer response is the reaction by the organizations to the queries and activities of the customer.

Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel
customer expectations.

Customer retention is a strategic process to keep or retain the existing customers and not letting them to
diverge or defect to other suppliers or organizations for business .

Customer loyalty is the tendency of the customers to remain in business with a particular supplier and buy the
products regularly.

Always there exists a challenge for suppliers to deal with complaints raised by customers. Normally raising a
complaint indicates the act of dissatisfaction of the customer.

In an organization customer service is the process of delivering information and services regarding all the
products and brands.

Customer satisfaction depends on quality of service provided to him by the supplier.

Abstract
Customer are the focal point in the development of successful marketing strategy both influence and are influenced
by customer s affect and cognition ,behavior and environment . In the banking field a unique Relationship exists
between the customers and the bank. But because of various reasons and apprehensions like financial burdens , risk
of failure , inertia etc. many banks are still following the traditional ways of marketing and only few banks are
making attempts to adapt CRM. It is with this background , the researcher has made a modest attempt towards the
idea that CRM can be adapted uniformly in the banking industry for betterment of banking services. The lack of
understanding on customers Relationship Management (CRM) is always a concern among the service provide for
special banks. Banks have their own way of managing their relationships with the customers.
Key Words : Customer Relationship Management In Banking Sector.

Chapter 2

REVIEW OF LITERATURE
REVIEW OF LITERATURE
Body and Lamaism ( 2004) explored that CRM in terms of partnerships,
empowerment with customers and personalization, have a positive and direct impact on customer loyalty. Effective
CRM will lead to greater customer loyalty(Evans & Larkin , 1994). Organization can use website characteristics to
build tight relationships with their customers who become loyal to them, rather than to select customers on a
transaction-by- transaction basis from a large pool of non-loyal customers ( Reenacts & Kumar, 2002). As pointed out
by Boiling ( 2006), top managements support is essential for the success of CRM implementation. They also
identified that CRM success was more strongly associated with CRM ownership being at the corporate level.

Chapter 3

RESEARCH
METHODOLOGY
In order to achieve the objectives of the study and to analyze the
different factors considered, an appropriate methodology has been adopted. The present study is exploratory as well
as descriptive. The survey was conducted in the month of June,2012. The present study is based on primary data.
The primary data has been collected from a sample of 200 customers of
SBI branches in Karmic nagger district of Andhra Pradesh. The data has been collected with a well structured and pre
tested questionnaire which was based on Liker five point scale
The perception of SBI customers on CRM was judged on the following 12
variables : visual appeal of physical facilities; guidance signs at service counters; timely services by bank
employees; problem solving interest of bank employees; security measures taken; service performing information;
prompt services by employees; safety of transactions; convenient of operating hours; parking facilities at bank;
sending of transaction information through sums, and installation of new ATMs. Apart from the questionnaire being
used for data collection, personal discussions were also conducted with the respondent customers to get further
information. The data so collected has been analyzed with one way or two way tables. The statistical techniques like
percentages, averages and charts were also used.

anagement.Customer
(CRM) is a multiface
CONCEPT OF CRM

Customer Relationship Management is a strategic orientation that identifies the most

important long-term customers and develops and understanding of how these customers can be
retained.CRM can be defined as the strategies, processes, people and technologies used by
companies to successfully attract and retain customers for maximum corporate growth and
profit.
Sheath (2000) defined CRM as a comprehensive strategy and process of acquiring
and partnering with selective customers to create superior value for the company and the
customer.

mationtechnologies
wayexchanges with
ave an intimate