Customer Relationship Management in Banking Sector

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Presentation Transcript

Customer Relationship Management in Banking Sector : 

Customer Relationship Management in Banking Sector By- Anuj Singh Swati Sharma

Flow of presentation: 

Flow of presentation Introduction to CRM CRM-A powerful tool Objective of CRM in Bank Challenges for CRM Need of CRM CRM Strategy & Goal CRM in Global Bank CRM in Indian Bank Implementation of CRM in Indian Banking System Benefits of CRM to Banks Suggestions CRM in BOA Bibliography

CRM ?????: 

CRM ????? Support to customer life cycle and The basic steps are: -Attracting present and new customers -Acquiring new customers -Serving the customers -Retaining the customers

CRM- A Powerful Tool : 

CRM- A P owerful Tool Help to exploit sales potential and maximize the value of the customer to the bank. CRM integrates various components of a business such as sales, marketing, IT and accounting . it will add customer loyalty to the business. Relatively new method in managing customer loyalty, previously used by retail businesses for many years. The core objective of modern CRM methodology is to help businesses to use technology and human resources to gain a better view of customer behavior.

Objective of CRM in Bank: 

Objective of CRM in Bank Main objectives to implement CRM in the business strategy are: To simplify marketing and sales process To make call centers more efficient To provide better customer service To discover new customers and increase customer revenue To cross sell products more effectively

Challenges Faced by Banks: 

Challenges Faced by Banks

Need of CRM: 

Need of CRM

CRM Strategy and Goals…..: 

CRM Strategy and Goals….. Customer Behavior Patterns Detailed customer data can provide answers to the following questions : Which communication channel do they prefer? What would be the risk of leaving the bank to go to the competition? What is the probability the customer will buy a service or product ? Customer Data Who are our customer? What type of relationship we want with our customer? Customer development (up-selling and cross-selling) Customer service and retention Protection of customer privacy

CRM in Global Bank: 

CRM in Global Bank Global Banks CRM Strategy Goal Bank of America Provide service representatives with 360-degree view of customer relationship for corporate and retail banking Improve customer experience, retention FleetBoston Segment customer base into six different groups based on demographics and banking behavior Attain cross-sell revenues, maximum lifetime value BNP Paribas Deploy CRM system across branch network, integrating with central office, link multiple customer databases Improve customer experience, cross-sell Scotia Bank Integrate call center, branch, and central office; link 80 banking applications to support unified view of customers Improve customer experience, support consistent message

CRM in Indian Bank: 

CRM in Indian Bank Importance of CRM in Indian Bank Through CRM banks can protect market share and boost growth. CRM would also make Indian bankers realize that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover, create, and satisfy customer needs." It enables banks to maximize profitability from every customer.

IMPLEMENTATION OF CRM IN INDIAN BANKS : 

IMPLEMENTATION OF CRM IN INDIAN BANKS Organization Objectives Solution to Suit Business Objectives Focus on All Business Aspects Define the Business Problem Establishing Proper Metrics Business Processes not Technology Implement Change Choose the Right Methodology Using Skilled Managers Choose the Right Vendors Ease of Usage

Organization initiatives for Implementation of CRM practices : 

Organization initiatives for Implementation of CRM practices The ability of the organization to adapt changes in the business environment is to be increased . The mindset of the employees has got to be changed in the development of right attitude, skills, expectations, perceptions and behavior.

BENEFITS OF CRM TO BANKS: 

BENEFITS OF CRM TO BANKS CRM Banking Focuses on the Customer Overall Profitability Satisfied Customers Centralized Information CRM Banking Boosts Small Banks Customer Segregation Aggressive Customer Acquisition Improved Cross-sell Framework Increased Operational Efficiencies and Collaboration Lower Total Cost of Ownership (TCO)

Suggestions: 

Suggestions There is need of constant innovation in retail banking. Indian banking industry should aim to formulate strategies incorporating people, processes and technology issues. Technology implementation should be speeded up. Service culture is to be developed among the staff.

PowerPoint Presentation: 

Bank of America, make opportunity possible for customers and clients at every stage of their financial lives. And this purpose defines and unites them. Every day, BOA focused on delivering value, convenience, expertise and innovation for the individuals, businesses and institutional investors .

CRM Practices in Bank of America: 

CRM Practices in Bank of America Aim: Customer centric banking experience Benefits: easily accessible customer information increases the efficiency and quality of communication with customers increased customer satisfaction increased service consistency higher customer retention effective and measurable campaign activities

CRM Practices in BOA: 

CRM Practices in BOA A Single view of the customer With "Single View of the Customer", all customer demographics, assets, liabilities, product usage, open cases and complaints are collected on a single page. With customer interaction history module, all customer interaction history such as internet banking usage, branch visits, e-mail sent and received, and SMS messages is replicated to MS CRM.

CRM Practices in BOA: 

Sales Force Automation “Sales Force Automation" shows the number of visits made, number of proposals given and the total number of products. Sales force target and KPIs management: Number of outbound phone calls Number of visits made (direct sales team KPI) Number of leads captured Number of applications Number of sales Number of products activated / used CRM Practices in BOA

CRM Practices in BOA: 

Customer Feedback (complaints and customer satisfaction) 3 types of customer feedback: Inquiry Suggestion Complaint Simple vision:” Customer tells the story only once!”, They receive an SMS, “Thank you for your feedback, this is your tracking number” Feedback is assigned to queues for operations: for example: Card ops / Cash ops / IT / Admin / Branch queues CRM Practices in BOA

CRM Practices in BOA: 

Customer Call Center automation Agents get real-time access to customer history, accounts, activities, and interaction information, regardless of the customer’s point of contact with the bank. All data is available in one application, so the call center agent doesn’t have to learn to work with multiple applications and doesn’t have to switch from one screen to another. CRM Practices in BOA

CRM Practices in BOA: 

Lead generation and campaign management Campaign management Define the campaign Associate with target lists Prepare the call script Distribute calls to a team Monitor campaign execution Lead Capture Internet Lead Capture Lead Assignment CRM Practices in BOA

CRM Practices in BOA: 

Customer Retention (Relationship building using Social Media) Relationship building using Social Media Facebook / LinkedIn Friend invitation: “Bank wants to become friends with you.” Facebook attributes in CRM (personal data) Publish campaign on Facebook Campaign Detail on Facebook LinkedIn access from CRM (professional data) CRM Practices in BOA

PowerPoint Presentation: 

Dynamic CRM welcome window and Evaluation of CRM

Bibliography: 

Bibliography http:// www.iitcoman.com http:// www.lambertconsulting.ch http:// www.traviata.eu www.BOA.com

Thank You