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CRM

Everyday people use different kinds of service offers from the bank to fulfil their needs. In order to create customer satisfaction, providing good services to the customer is important as is managing customer relationships well. When an organization provides customers with a good impression, it will probably keep them and therefore do business with them again.

Advantages of CRM

Better Customer Service Increase Customer Revenues Discover New Customers "Cross Sell" and "Up Sell" Products More Effectively Help Sales Staff Close Deals Faster Simplify Marketing And Sales Processes Make Call Centers More Efficient

Phases of CRM
The three phases in which CRM can help to support the relationship between a business and its customers are, to: Acquire: a CRM can help a business in acquiring new customers through excellent contact management, direct marketing, selling and fulfillment

Enhance: a web-enabled CRM combined with customer service tools offers customers excellent service from a team of trained and skilled sales and service specialists, which offers customers the convenience of one-stop shopping Retain: CRM The three phases in which CRM can help to support the relationship between a business and its customers are, to:

The world's local bank

History
The antecedents of the HSBC Group in India can be traced back to October 1853 when the Mercantile Bank of India, London and China was founded in Bombay (now Mumbai). Starting with an authorised capital of Rs 5 million, the Mercantile Bank soon opened offices in London, Madras(Chennai), Colombo and Kandy, followed by Calcutta(Kolkata), Singapore, Hong Kong, Canton(Guangchow) and Shanghai by 1855. The following hundred years were in many ways propitious for the Mercantile Bank. In 1950 it moved into its new head office building in Mumbai.at Flora Fountain.

The acquisition in 1959 by The Hongkong and Shanghai Banking Corporation Limited of the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group. Founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China, Europe and the United States, HSBC has been an international bank from its earliest days. After the Mercantile Bank was acquired by The Hongkong and Shanghai Banking Corporation, the Flora Fountain building became and remains to this day, the Head Office of the HSBC Group in India.

Through the 1990s, HSBC has vigorously developed its role as one of the leading banking and financial services organisations in the world. Its strategy of 'managing for value' emphasises the Group's unique balance of business and earnings between older, mature economies and fastergrowing emerging markets. HSBC in India is proud to have retained the Group's pioneering streak by being an active partner in the development of the Indian banking industry - even giving India its first ATM way back in 1987. The organisation's adaptability, resilience and commitment to its customers have further enabled it to survive through turbulent times and prosper through good times over the past 150 years.

What makes HSBC Unique and Different ??

Strategies Of HSBC In Personal Banking Related To CRM (Focusing on external customer needs)
Traditional Banking Automatic Machine / Phone Banking e-Banking Customer Centered

Strategies Of HSBC In Personal Banking Related To CRM (Allocating resources in more effective and efficient ways within its internal structure)
Streamlining The Collection Of Data Segmentation And Targeting Of Potential Customers Suggestions For Improvement Technology And Infrastructure Enhancement Instant Communication Service On The Web

Flexibility To Customers Data Mining Service Treat Household Customer As A Whole Company Background

Define the Best Customer


By performing customer segmentation, the company can make resource planning effectively and efficiently. Precise customer segmentation requires a huge amount of customer information and sales figures for analysis. To perform this, the company has to categorize its existing customers into active or inactive accounts. In addition, company should capture both the Prospectives whom the company's sales team has information on and communications with and the Possible customers with whom the company does not have direct communications.

The customer pyramid model is one of the helpful tools for performing customer segmentation. It is the foundation of the 3C method. Below is the typical Customer pyramid which contains customer groups of Top, Big, Medium, Small, Inactives, Prospects and Suspects.

1. Top - this is the customer segment the customers of which are those who have a total relationship balance of over one billion Hong Kong Dollars. They are HSBC's Premier Customers, and are the top 5% of highly valuable customers of HSBC Personal Banking. 2. Big - this is the customer segment of those who have a total relationship balance of over one million Hong Kong Dollars. They are HSBC's Premier Customers as well and are in the next 15% of highly valuable customers

3. Medium - this is the customer segment of those who have a total relationship balance of over twenty thousand Hong Kong Dollars. They are the PowerVantage Customers of HSBC. They are the largest group amongst the customer segments, and make up 60% of HSBC's Personal Banking customers. 4. Small - this is the customer segment of those who have a total relationship balance below twenty thousand Hong Kong Dollars. They are the normal customers of HSBC Personal Banking. 20% of HSBC Personal Banking customers fall into this segment.

5. Inactives - those customers whose account status is "Dormant" or "Closed". Accounts with a dormant status are those accounts that have not been in operation for a long period of time, say 2 years. Accounts with a closed status are those that have been formally closed by the customers. 6. Prospects - those customers who are using HSBC products other than Personal Banking, such as Corporate Banking. The bank has some data about them, and has already established communications with him/her through their use of that product. 7. Suspects - the customers of other banks. HSBC has collected some data about them, but has not yet established communications with them. As is the case in this fast changing and dynamic financial world, changes will occur due both to local and global factors, and the above figure of "Total Relationship Balance" in defining the customer segments should be changed accordingly. Therefore, it is suggested that the above segmentations should be done on a regular basis.

. High profitability, multi-product packages usage - There are many personal banking products at HSBC. Investment and insurance are classified as high profitability so that HSBC will try its best to cross sell and up sell for its customers to buy more. On the other hand, money deposits are one of the low profit products. . Transaction amount per transaction - Transaction amount per transaction is the amount of money involved in every single transaction. If a customer always has a high transaction amount per transaction, the relative operational cost for serving that particular customer will be small, which means he or she is more profitable.

. Transaction amount per transaction - Transaction amount per transaction is the amount of money involved in every single transaction. If a customer always has a high transaction amount per transaction, the relative operational cost for serving that particular customer will be small, which means he or she is more profitable. . Relationship over time - Relationship over time can show the levels of customer loyalty. The longer a customer stays with HSBC, the higher the level of customer loyalty that can be attributed to them. . Referral record - Referral record is concerned with the number of customers that are brought in by an existing customer. It also pertains to the willingness of the customer to refer HSBC products to his/her friends.

Now, we can derive the customer profitability grouping as follow:


1. High profitability customers - they are the customers in the Top and Big categories. They use the high profitability, multi-product packages. They have a high transaction amount per transaction. They have a long relationship over time with HSBC. They have plenty of referral records. 2. Sustainable profitability customers - they are the customers in the Medium category. They use the medium profitability, multi-product packages. They have the medium transaction amount per transaction. They have a relationship over time with HSBC but not for very long. They have some referral records. 3. Negative profitability customers - they are the customers in the Small category. They seldom use the high profitability, multi-product packages. They have a small transaction amount per transaction. They have a short relationship over time with HSBC. They seldom have referral records.

Main Purpose of Implementing CRM


One of the main purposes of implementing a CRM program is to retain the profitable customers. Customers are only retainable when they are loyal to the products and services provided, and are satisfied with the features of the products, and the prices of the products and services offered. Below, by using Customer Experience Management, HSBC is going to retain its Personal Banking customers, especially the high profitability customers, by finding out and fulfilling their critical needs.

Define the Best Experience


A loyal customer is a good customer. There are two Customer Relationship Management principles about customer loyalty, customer satisfaction and customer experience: . Only very satisfied customers will be very loyal to a company. . Customer Satisfaction equals Customer Experience minus Customer Expectations.

By performing the Customer Experience Management (CEM), the company can find out the critical needs of and decisive stages in dealing with the customers, make resource planning, marketing, as well as company strategies effectively and efficiently. Under CEM, customer critical moments are defined accordingly under each part of the customer process cycle, which are the PRE-purchase/consumption, ATpurchase/consumption, and POSTpurchase/consumption. Each customer process cycle will have its own customer multi-channel touch points, and for simplification, they are grouped into "Physical Touch", "Call", "Internet" and "Others".

. Customer Service Center - Financial Analysis . On-site service - Financial Analysis . Events - Exhibition . Inbound Calls - Call for Enquiries . Outbound Calls - Tele-Marketing . Inbound Email - Email for Enquiries . Outbound Email - e-Marketing . Portal - FAQ session . Advertising - Image Building

In the Pre-purchase Phase, there are eight customer touch-points, which include:

In the At-purchase Phase, there are ten customer touch-points, which include:
. Branch - Make Transaction . Customer Service Center - Customer Package Upgrading . On-site service - Contract Signing . Events - Sales Road Show . Inbound Calls - Place Order by Phone . Outbound Calls - Tele-Sales . Inbound Email - Make Transaction by Email . Outbound Email - e-Sales . Portal - e-Banking . Advertising - Invitation to Use the Service

In the Post-purchase Phase, there are nine customer touch-points, which include:
. Branch - Customer Enquiries . Customer Service Center - Customer Enquires . On-site service - Financial Review . Events - VIP Gathering . Inbound Calls - Call for Complaints . Outbound Calls - Follow-up by Phone . Inbound Email - Email for Complaints . Outbound Email - e-Follow-up . Portal - DIY services, e.g. customer information update.