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CUSTOMER RELATIONSHIP MANAGEMENT
IN BANKS
K.J. SOMAIYA COLLEGE OF ARTS AND COMMERCE
Vidyavihar, Mumbai-400077 .
PROJECT ON
CRM IN BANKS
BANKING AND INSURANCE
SEMISTER-V
SUBMITTED BY: PROJECT GUIDE
OMKAR BHANSE MRS. KANAK AGARWAL
ROLL NO. 04
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CERTIFICATE
This is to certify that MR . OMKAR Y. BHANSE ofB.COM
BANKING AND INSURANCE SEMISTER-V (2011-2012) has
successfully completed the project on CRM IN BANKS underthe guidance ofDR. KANAK AGARWAL.
CO-ORDINATOR PRINCIPAL
(Dr. KANAK AGARWAL) (Dr. MRS. SUDHA VYAS )
INTERNAL EXTERNAL
EXAMINER EXAMINER
PROJECT GUIDE
(Dr. KANAK AGARWAL)
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DECLEARATION
I MR. OMKAR Y. BHANSE student ofB.COM-BANKING AND
INSURANCE SEMISTER-V (2011-2012)hereby declare that
I completed project on CRM IN BANKS Whereby the data or
information have been taken from any book or other sources
the same have been mentioned in bibliography.
The information submitted is true and original to the best of
my knowledge.
SIGNATURE OF STUDENT
OMKAR Y. BHANSE
(RALL NO. 04)
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ACKNOWLEDGEMENT
I have a great pleasure in presenting our project on CRM IN
BANKS.
I sincerely thank with deep sense of gratitude to DR. KANAK
AGARWAL our guide for her kind co-operation for the
fulfillment of this project.
I am highly indebted to our Principal Dr. Mrs. SUDHA VYAS
& our Vice Principal Dr. MAYURESH MULE who took keeninterest and allowed us to perform this project.
I would also like to thank our seniors, librarians who
sincerely helped me getting this information and, last but not
the least our college for a big reason that we are here in front
of you presenting this project.
SIGNATURE OF STUDENT,
OMKAR Y. BHANSE
( ROLL NO. 04)
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INDEX
SR. NO TOPICS PAGE
NO.01 What is CRM
1.1 Purpose of CRM
1.2 CRM Principles
1.3 Is CRM Necessary
1.4 History of CRM
02 CRM Program And Activities
03 Tools For CRM
04 Implementation of CRM
1.1 How to implement CRM
1.2 CRM Via ASP
1.3 Factors for implementation of CRM1.4 Challenges of CRM
05 CRM Related concept
1.1 CRM in chain management
1.2 CRM-ERP integration
1.3 What is E-CRM
1.4 Basic requirement of E-CRM
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SR. NO TOPIC PAGE
NO.
06 Problems and drawbacks
1.1 Reason for CRM Failure
1.2 CEM Framework
1.3 How Does CEM Technology Work
07 CRM In INDIA
1.1 BPOS In INDIA
08 Case Studies on CRM
1.1 Bharati Tele Venture- Telecom Sector
1.2 Wockhardt- Hospital and health care
sector
1.3 HDFC- Banking and Financial Sector
09 Conclusion
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INTRODUCTION
Chapter : 1
What is customer relationship management?
Before we begin to examine conceptual foundations of C.R.M. It will be useful to
define what CRM is. A narrow perspective of customer relationship management
is database marketing emphasizing the promotional aspects of marketing linked
to database efforts.
Another narrow, yet relevant, viewpoint is to consider CRM only as customerretention in which a variety of after marketing tactics is used for customer
bonding or staying in touch after the sale in made.
In today hyper competitive scenario, more than three quarters of the money and
time spent by companies go towards acquiring and retaining customers.
Customer-centricity has become the buzzword and the ones with clear and
relentless focus on customers, enjoy a better competitive position. This is proved
time again. Yet, companies go through meticulous processes to gradually andconsistently mature into an ORGANIZATION FOR THE CUSTOMERS But, how
would you mature into a customer focused or customer-centric organization? The
answer is ; By reading and understanding your customers. Yes, this is all need to
do! And this you need to do not just once, but regularly and consistently over the
lifetime of your customer and beyond.
Reading the customer demographics and understanding their needs (both explicit
and implicit) is what customer insight is all about. Customer insight is the basic
point or the foundation for building a customer centric organization. Everything in
the value chain revolves around this. This is the raw material . This is more a
conversion process rather, since the end product is customer loyalty! Over
decades, many organizations had successfully completed the conversion process
and tasted higher returns, most organizations miserabely failed in their efforts
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CRM relies on customer data to create customer loyalty. The concept of CRM was
again the result of an evolution born out of necessity . When companies
understood the need to obtain and maintain customer data, Which was
exhaustive and scattered in nature and were desperately looking for a tool thatcould compile, preserve use the data in a way they want, technology came to the
rescue with exclusive methods called data mining , data warehousing and thus
data base management techniques were born. Technology is mechanistic and did
not know what is required and what is not. A managerial tool was needed to
perform the directors role in order to decide the path and processes. Thus CRM
was engineered as a tool to manage customer data using IT-enabled techniques
CRM gives framework for the activities. It decides on what to do the objectives,
what is required to do it the resources, who should do it the people, how to do
it the processes, how long to do it the time frame. CRM could be ready made,
tailor made or hand made depending on the specific objectives it is set to achieve.
CRM is unique in the respect that it follows a set of pre-determined processes to
accumulate and manage customer data, which was hitherto unpracticed Hence,
CRM is defined as :
Customer relationship management (CRM) is a business strategy to acquire and
manage the most valuable customer relationships. CRM requires a customer-
centric business philosophy and culture to support effective marketing , sales and
service processes. CRM applications can enable effective customer relationship
management, provided that an enterprise has the right leadership, strategy and
culture
As is implicit in the above definition, the purpose of CRM is to improve marketing
productivity. Marketing productivity is achieved by increasing marketing efficiency
and by enhancing marketing effectiveness. In CRM, marketing efficiency isachieved because cooperative and collaborative processes help in reducing
transaction cost and overall development costs for the company. Two important
processes for CRM include proactive customer business development and building
partnering relationship with most important customers. These lead to superior
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value creation. The basic concept is that the customer is not someone outside the
organization, he is a part of the organization
PURPOSE OF CRM
CRM in its broadest sense, means managing all interactions and business with
customers. This includes, but is not limited to, improving customer service. A good
CRM program will allow a business to acquire customers. Service the customer,
increase the value of the customer to the company, retain good customers, and
determine which customers can be retained or given higher level of service. A
good CRM program can improve customer service by facilitating communication
in several ways:
Provide product information, product use information, and technicalassistance on web sites that are accessible 24 hours a day, 7 days a week.
Identify how each individual customer defines quality, and then design aservice strategy for each customer based on these individual requirements
and expectations.
Provide a fast mechanism for managing and scheduling follow-up salescalls to assess post purchase cognitive dissonance, repurchase
probabilities, repurchase times, repurchase frequencies.
Provide a mechanism to track all points of contact between a customer andthe company, and do it in an integrated way so that all sources and typesof contact are included, and all user of the system see the same view of the
customer (reduces confusion).
Help to identify potential problems quickly, before they occur. Provide a user-friendly mechanism for registering customer complaints. Provide fast mechanism for handling problems and complaints. Provide a fast mechanism for correcting service deficiencies. Use internet cookies to track customer interests and personalize product
offerings accordingly.
Use the Internet to engage in collaborative customization or real-timecustomization
Provide a fast mechanism for managing and scheduling maintenance,repair, and on-going support (improve efficiency and effectiveness)
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The CRM program can be integrated into other cross-functional systemsand thereby provide accounting and production information to customers
when they want it.
Key CRM principle
y Differentiate CustomersAll customers are not equal; recognize and reward best customers
disproportionately. Understanding each customer becomes particularly
important. And the same customers reaction to a cellular company operator
may be quite different as compared to a car dealer. Besides for the sameproduct or the service not all customers can be treated alike and CRM needs
to differentiate between a high value customer and a low value customer.
What CRM needs to understand while differentiating customer is:
1. Sensitivities, Tastes, Preferences andPersonalities2. Lifestyle and age3. Culture Background and education4. Physical and psychological characteristics
y Differentiating Offerings1. Low value customer requiring high value customer offerings.2. Low value customer with potential to become high value in near
future.
3. High value customer requiring high value service.4. High value customer requiring low value service.
y Keeping Existing Customers
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Grading customers from very satisfied to very disappointed should help the
organization in improving its customer satisfactions levels and scores. As
the satisfaction level for each customer improves, so shall the customer
retention with the organization.
y Maximizing Lifetime valueExploit up-selling and cross-selling potential. By identifying life stage and
life event trigger points by customer, marketers can maximize share of
purchase potential. Thus the single adults shall require a new car stereo and
as he grows into a married couple his needs grow into appliances.
y Increase LoyaltyLoyal customers are more profitable . Any company will like its mindshare
status to improve from being an advocate. Company has to invest in terms
of its product and service offerings to its customers . It has to innovate and
meet the very needs of its clients/customers so that they remain as
advocates on the loyalty curve. Referral sales invariably are low cost high
margin sales.
Summarizing CRM activities
The CRM cycle can be briefly described as follows:
1. Learning from customers and prospects, (having in depth knowledgeof customer)
2. Creating value for customer and prospects3. Creating loyalty4.Acquiring new customers5. Creating profits6.Acquiring new customers
Why CRM is necessary?
Several companies are turning to customer-relationship management systems and
strategies to gain a better understanding of their customers want and needs. Used
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in association with data warehousing, data mining, call centers and other
intelligence-based applications, CRM allows companies to gather and access
information about customers buying histories, preferences, complaints, and other
data so they can better anticipate what customer will want. The goal is to instill
greater customer loyalty. Other benefits includes:
Faster response to customer inquiries. Increased efficiency through automation. Deeper understanding of customers. Increased marketing and selling opportunities. Identifying the most profitable customers. Receiving customer feedback that leads to new and improved products or
services.
Benefits of CRM
Implementing a customer relationship management (CRM) solution might
involve considerable time and expanses. However, there are many potential
benefits. A major benefit can be the development of better relations with
your existing customers, which can lead to:
y Increased sales through better timing due to anticipating needs based onhistoric trends
y Identifying needs more effectively by understanding specific customerrequirements
y Cross-selling of other products by highlighting and suggesting alternativesor enhancements
y Effective targeted marketing communications aimed specifically atcustomer needs
y A more personal approach and the development of new or improvedproducts and services in order to win more business in the future
y Enhanced customer satisfaction and retention, ensuring that your goodreputation in the marketplace continues to grow
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y Increased value from your existing customers and reduced costs associatedwith supporting and servicing them, increasing your overall efficiency and
reducing total cost of sales
Once your business starts to look after its existing customer effectively,
efforts can be concentrated on finding new customers and expanding your
market, The more you know about your customers, the easier it is to identify
new prospects and increase your customer base.
Even with years of accumulated knowledge, there is always room for
improvement. Customer needs change over time, and technology can make
it easier to find out more about customers and ensure that everyone in an
organization can exploit this information.
History of CRM
Customer Relationship Management (CRM) is one of those magnificent
concepts that swept the business world in the 1990 with the promise of
forever changing the way businesses small and large interacted with their
customer bases. In the short term, however, it proved to be an unwieldy
process that was better in theory than in practice for a variety of reasons.
First among these was that it was simply so difficult and expensive to track
and keep the high volume of records needed accurately and constantly
update them.
In the last several years, however, newer software systems and advanced
tracking features have vastly improved CRM capabilities and the real
promise of CRM is becoming a reality. As the price of newer, more
customizable Internet solutions have hit the marketplace ; competition hasdriven the prices down so that even relatively small businesses are reaping
the benefit of some custom CRM programs.
Inthe beginning.
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The 1980 saw the emergence of database marketing, which was simply a
catch phrase to define the practice of setting up customer service groups to
speak individually to all of a company customers.
In the case of larger, key clients it was a valuable tool for keeping the lines of
communications open and tailoring service to the client needs. In the case ofsmaller clients, however, it tended to provide repetitive, survey-like information
that cluttered database and did not provide much insight. vAs companies began
tracking database information, they realized that the bare bones were all tht was
needed in most cases: what they buy regularly, what they spend, what they do.
Advances inthe 1990`s
In the 1990 companies began to improve on Customer Relationship
Management by making it more of a two-way street. Instead of simply
gathering data for their own use. They began giving to back their customers
not only in terms of the obvious goal of improved customer service, but in
incentives, gifts and other perks for customer loyalty.
This was the beginning of the familiar frequent flyer programs, bonus points
on credit cards and host of other resources that are based on CRM tracking
of customer activity and spending patterns. CRM was now being used a say
to increase sales passively as well as through active improvement of
customer service.
True CRMcomes ofage
Real Customer Relationship Management as its thought of today reallybegan in earnest in the early years of the century. As software companies
began releasing newer, more advanced solutions that were customizable
across industries, it became feasible to really use the information in a
dynamic way.
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Instead of feeding information into a static database for future reference,
CRM became a way to continuously update understanding of customer
needs and behavior. Branching of information, sub-folders, and custom
tailored features enabled companies to break down information into
smaller subsets so that they could evaluate not only concrete statistics, but
information on the motivation and reactions of customers.
The Internet provided a huge boon to the development of these huge
databases enabling offsite information storage, where before companies
had difficulty supporting the enormous amounts of information . The
Internet provided new possibilities and CRM took off as providers began
moving toward Internet solutions.
With the increased fluidity of these programs came a less rigid relationship
between sales, customer service and marketing. CRM enabled the
development of new strategies for more cooperative work between these
different divisions through shared information and understanding, leading
to increased customer satisfaction from order to end product.
Today , CRM is a still utilized most frequently by companies That rely
heavily on two distinct features : customer service or technology . The three
sectors of business that rely most heavily on CRM and use it to great
advantage are financial services , a variety of high tech corporations and
the telecommunications industry .
The financial services industry in particular tracks the level of client
satisfaction and what customers are looking for in terms of changes and
personalized features . They also track changes in investment habits and
spending patterns as the economy shifts . Software specific to the industrycan give financial service providers truly impressive feedback in these
areas.
In recent years however , several factors have contributed to the rapid
development and evolution of CRM . These include:-
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1. The growing de intermediation process in many industries due to theadvent of sophisticated computer and telecommunication technologies
that allow producers to directly interact with end customers . For
2. Example ,in many industries such as airlines , banks insurances , softwareor household appliances and even consumables , the de-intermediation
process is the nature of marketing and consequently making relationship
marketing more popular . databases and direct marketing tools give
them the means to individualize their marketing efforts .
3.Advances in information technology , networking and manufacturingtechnology have helped companies to quickly match competition . As a
result product quality and cost are no longer significant competitive
advantages.
4. The growth in service economy . Since services are typically producedand delivered at the same institution ,it minimizes the role of the
middlemen .
5.Another force driving the adoption of CRM has been the total qualitymovement . When companies embraced TQM it became necessary to
involve customers and suppliers in implementing the program at all
levels of the value chain . This needed close working relationships with
the customers .Thus several companies such as Motorola , IBM , General
Motors , Xerox , Ford, Toyota etc formed partnering relations with
suppliers and customers with practice TQM . other programs such as JIT
and MRPalso made use of interdependent relationships between
suppliers and customers .
6. Customers expectations are changing almost on a daily basis . NewlyEmpowered customers who choose how to communicate with the
companies across various available channels. Also nowadays consumers
expect a high degree of personalization .
7. Emerging real time , interactive channels including e-mail , ATMs andcall centre that must be synchronized with customers non-electronic
activities . The speed of business change , requiring flexibility and rapid
adoption to technologies .
8. In the current era of hyper competition , marketers are forced to be moreconcerned with customer retention and customer loyalty .
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9.As several researches have found out retaining customers is lessexpensive and more sustainable competitive advantage than acquiring
new ones .
10.On the supply side it pays more to develop closer relationships with afew suppliers than to develop more vendors
11.The globalization of world marketplace makes it necessary to haveglobal account management for the customers .
Chapter 2 :
CRM Programs & Activities
One - to-one Marketing
Meeting and satisfying each customers need uniquely and individually . In the
mass markets individualized information on customers is now possible at low cost
due to the rapid development in the information technology and due to
availability of scalable data warehouses and data mining products . By using
online information and database on individual customer interactions , marketers
aim to fulfill the unique need of each mass market customer. Information on
individual customers is utilized to develop frequency marketing , interactive
marketing and after marketing programs in order to develop relationship with
high yielding customers . In the context of business to-business markets ,
individual marketing has been in place of quite sometime . Known as Key Account
Management Program, here marketers appoint customer teams to husband the
company resources according to individual customer needs .
Continuity Marketing Programs
Take the shape of membership and loyalty card programs where customers are
often rewarded for their member and loyalty relationships with the marketers. The
basic premise of continuity marketing programs is to retain customers and
increase loyalty through long-term special services that has a potential to increase
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mutual value through long-term special services that has a potential to increase
mutual value through learning about each other .
Partnering programs
The third type of CRM programs is partnering relationships between customer and
marketers to serve end user needs . In the mass markets , two types of partnering
programs are most common : co-branding and affinity partnering .
Traditionally customer relationship management ( CRM ) revolves around the
three functions of selling , marketing and support . various process models have
been built around how these functions are integrated and operated in a customer
oriented enterprise. There is however a fourth critical function that is lacking in
most CRM models .
The fourth function that often is the source of a competitive edge is that of
innovation . companies must continually reinvent themselves to deliver an
improved and often a totally new value offering to their customer base . CRM
must provide the customer intelligence that feeds information back in to the
enterprises knowledge management process where it can trigger new innovation
process . When CRM is integrated into the innovation process , significant value
can be derived from faster time to market cycle times and with new process and
services .
Marketing automation must ensure that the innovation processes are actually
market driven. A market driven innovation process must include both strategies
that are focused on satisfying customer requirements as well as strategies focusedat redefining customer requirements. Sales automation should be integrated with
the innovation process by ensuring that all sales channels are prepared and ready
to take new processes and services to market before competitive forces can react.
Customer service automation must be designed to empower the customer with
the option of assisting with the design of the value offering. Redefining CRM
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around innovation, sales, marketing and service can identify new competitive
opportunities for an enterprise.
There are three parts of application architecture of CRM:
Operational - Automation to the basic business processes (marketing, sales,service)
Analytical support to analyze customer behavior, implements businessintelligence alike technology
Collaborative ensures the contact with customers (phone, email, fax, web,sms, post, in person)
Operational CRM
Operational CRM means supporting the front office business processes, which
include customer contact (sales, marketing and service). Tasks resulting from
these processes are forwarded to resources responsible for them, as well as the
information necessary for carrying out the tasks and interfaces to back-end
applications are being provided and activities with customers are being
documented for further reference.
Operational CRM provides the following benefits:
y Delivers personalized and efficient marketing, sales, and service throughmulti-channel collaboration.
y Enables a 360-degree view of your customer while you are interacting withthem.
y Sales people and service engineers can access complete history of allcustomer interaction with your company, regardless of the touch point.
The operational part of CRM typically involves three general areas of business:
y Sales Force Automation (SFA)SFA involves of the companys critical sales and sales force management
functions, for example, lead/account management, contact management,
quote management, forecasting, sales administration, keeping track of
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customer preferences, buying habits and demographics, as well as
performance management. SFA tools are designed to improve field sales
productivity. Key infrastructure requirements of SFA are mobile
synchronization and integrated product configuration.
y Customer Service and Support (CSS)CSS automates some service requests, complaints, product returns, and
information requests. Traditional internal help desk and traditional internal
inbound call-center support for customer inquiries are now evolved into the
customer interaction center (CIC), using multiple channels ( Web, phone/fax,
face-to-face, kiosk, etc.). Key infrastructure requirements of CSS include computer
telephony integration (CTI) which provides high volume processing capability, and
reliability.
y Enterprise Marketing Automation (EMA)EMA provides information about the business environment, including
competitors, industry trends, and macro-environmental variables. It is the
execution side of campaign and lead management. The intent of EMAapplications is to improve marketing campaign efficiencies. Functions
include demographic analysis, variable segmentation, and predictive
modeling occurs on the analytical (Business Intelligence) side.
Integrated CRM software is often also known as front office solutions This
is because they deal directly with the customer. Many call centers use CRM
software to store all of their customers details. When a customer calls, the
system can be used to retrieve and store information relevant to the
customer. By serving the customer quickly and efficiently, and also keeping
all information of a customer in one place, a company aims to make cost
savings, and also encourage new customers.
CRM solutions can also be used to allow customers to perform their own
service via a variety of communication channels. For example, you might be
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able to check your bank balance via your WAPphone without ever having
to talk to a person, saving money for the company, and saving your time.
AnalyticalCRM
In analytical CRM, data gathered within operational CRM and/or other
sources are analyzed to segment customers or to identify potential to
enhance client relationship. Customer analysis typically can lead to
targeted campaigns to increase share of customers wallet. Examples of
campaigns directed towards customer are:
y Acquisition: Cross-sell, up-selly Retention: Retaining customers who leave due to maturity or attrition.y Information: Providing timely and regular information to customers.y Modification: Altering details of the transactional nature of the
customers relationship.
Analysis typically covers but is not limited to:
y Decision support: Dashboards, reporting, metrics, performance etc.y Predictive modeling of customer attributesy Strategy and research.
Analysis of customer
data may relate to one or more of the following analysis :
y Contact cannel optimizationy Contact Optimizationy Customer Acquisition/Reactivation/Retentiony Customer Segmentationy Customer Satisfaction Measurement / Increasey Sales Coverage Optimizationy FraudDetection and analysisy Financial Forecastsy Pricing Optimization
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y ProductDevelopmenty Program Evaluationy Risk Assessment and Management
Data collection and analysis is viewed as a continuing and iterative process.
Ideally, business decisions are refined over time, based on feedback from earlier
analysis and decisions. Therefore, most successful analytical CRM projects take
advantage of a data warehouse to provide suitable data.
Business Intelligence is a related discipline offering more functionality as separate
application software.
Collaborative CRM
Collaborative CRM facilitates interactions with customer through all channels
(personal, letter, fax, phone, web, e-mail) and supports coordination of employee
teams and channels. It is a solution that brings people, processes and data
together so companies can better serve and retain their customers. The data/
activities can be structured , unstructured, conversational and/ or transactional in
nature.
Collaborative CRM provides the following benefits:
y Enables efficient productive customer interactions across allcommunications channels.
y Enables web collaboration to reduce customer service costs.y Integrates call centers enabling multi-channel personal customer
interaction.
y Integrates view of the customer while interaction at the transaction level.
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Chapter 3:
Tools For CRM
Customer database
A good customer information system should consist of a regular flow of
information, systematic collection of information that is properly evaluated and
compared against different points in time, and it has sufficient depth to
understand the customer and accurately anticipate their behavioral patterns in
future. The customer databases helps the company to plan, implement, and
monitor customer contact. Customer relationships are increasingly sustained by
information systems. Companies are increasingly adding data from a variety of
resources to their databases. Customer data strategy should focus on processes
to manage customer acquisitions, retention, and development.
Call Centre
A call centre is a centralized office used for the purpose of receiving and
transmitting a large volume of requests by telephone.
A call centre is operated by a company to administer incoming product support or
information inquiries from customers. Outgoing calls for telemarketing, clientele,
and debt collection are also made. In addition to a call centre, collective handling
of letters, faxes, and e-mails at one location is known as a contact centre.
A call centre is often operated through an extensive open workspace, with work
stations that include a computer, a telephone set/ headset connected to a telecomswitch, and one or more supervisor stations. It can be independently operated or
networked with additional centers, often linked to a corporate computer network,
including mainframes, microcomputers and LANs.
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Increasingly, the voice and data pathways into the centre are linked through a set
of new technologies called computer technology integration (CTI)
Most major businesses use call centers to interact with their customers. Examples
include utility companies, mail order catalogue firms, and customer supports for
computer hardware and software. Some businesses even service internal functions
through call centers. Examples of this include help desk and sales supports.
Systems Integration
While CRM solutions are front office automation solutions, ERP is back office
automation solution. An ERPhelps in automating business functions of
production, finance, inventory, order fulfillment and human resource giving an
integrated view of business, where as CRM automates the relationship with
customer covering contact and opportunity management, marketing and product
knowledge, sales force management, sales forecasting, customer order processing
and fulfillment, delivery, installation, pre-sale and post-sale services and complaint
handling by providing an integrated view of the customer. It is necessary that the
two systems integrate with each other and complement information as well as
business workflow. Therefore, CRM and ERPare complementary. This integration
of CRM with ERPhelps companies to provide faster customer service through an
enabled network, which can direct all customer queries and issues through
appropriate channels to the right place for speedy resolution. This will help the
company in tracking and correcting the product problems reported by customers
by feeding this information into the R&D operations via ERP.
Data Mining for CRM: Some Relevant Issues
Data Mining is an important enable for CRM. Advances in data storage and
processing technologies have made it possible today to store very large amounts
of data in what are called data warehouses and then use data mining tools to
extract relevant information. Data mining helps in the process of understanding a
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customer by providing the necessary information and facilitates informed
decision-making.
Chapter4:
Implementation of CRM
How to implement CRM?
The implementation of a customer relationship management (CRM) solution is the
best treated as a six-stage process, moving from collecting information about yourcustomers and processing it to using that information to improve your marketing
and the customer experience.
Stage one collecting informationThe priority should be capture the information you need to identify your
customers and categorise their behavior. Those businesses with a website and
online customer service have an advantage as customers can enter and maintain
their own details when they buy.
Stage two Storing informationThe most effective way to store and manage your customer information is in a
relational database a centralized customer database that will allow you to
run all your systems from the same source, ensuring that everyone uses up-to-
date information.
Stage three Accessing information
With information collected And stored centrally, the next stage is to make this
information available to staff in the most useful format.
Stage four Analysing Customer Behaviour
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Using data mining tools in spreadsheet programs, which analyse data to
identify patterns or relationships, you can begin to profile develop sales
strategies.customers and
Stage five Marketing more effectivelyMany businesses find that a small percentage of their customers generate a
high percentage of their profits. Using CRM to gain a better understanding of
your customers needs, desires and self-perception, you can reward and target
your most valuable customers.
Stage six Enhancing the customer experienceJust as a small group of customers often take up disproportionate amount of
staff time. If their problems can be identified and resolved quickly, your staff
will have more time for other customers.
Types for implementing CRM
Purchasing or Licensing SoftwareOwning the Software and running it on your own servers is ideal if you have
highly customized enterprise resource planning, or ERP, or order management
system, or OMS, software. If you have third-party software for your back-
office processes (accounting, ERP, OMS, etc.) and your front-end systems
(content management, merchandising, checkout, personalization engine),
then you should be able to find CRM software that works with at least some of
your systems without extensive customization. Its unavoidable that you will
have to do some customization, but by working with vendors that havepartnerships and interfaces with your existing vendors and their software or
with vendors that have partnerships with the ASPs that host your existing
solutions you can keep customization to a minimum. Customization is not
only expensive when you first install third-party software. But its also
expensive every time you try to apply a patch or van upgrade.
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The advantages of purchasing or licensing the software and implementing it
on your own servers are that you have complete control over the software and
over the data. There arent any of the privacy issues that might arise from
having your data residing with a third party. If you already have a customer
service department with trained associates, and you dont expect rapid
growth or you believe you are equipped to handle rapid growth then theres
no point in paying to train CSRs elsewhere
CRM via ASPOnly recently have CRM services become available via an ASPThere are two
kinds of ASPs providing CRM solutions. With one type, of which shop Tok is
one example, the ASPhosts its own CRM software. The other5 type hosts abest of bread third party solution. The disadvantage of third type is that when
something isnt working with the software, you dont always the whether the
problem rests with the ASPor with the software ,and you cant necessarily get
it fixed. with ASPs that5 hosts their own software, the vender hears you
requirements for new features and your complaints about existing
functionality.
When you work with an ASP, the first thing you will want to know the degree
to which you can customize the software so that your other business software
will take to your CRM software . after all ,your CSRs need to know what a
customer has purchased to handle inquiries from that customer, requiring
between the order-management system and the CRM system. If the customer
database doesnt talk to the CRM system, then your marketing department
cant segment customers based on purchases and the use the analytical tools
frequently built into CRM software to make intelligent decisions on what kind
of promotions to make to attract the highest-value customers.
Outsourcing Customer Service
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While you can outsource customer service, which is one component of CRM,
you cant outsource business intelligence , which is the component of CRM. If
the strategic component of CRM. If you dont need to integrate with existing
system, or you only need limited integration, then the fastest route to take is
to outsource your customer service to a full-service provider who will give you
Web access to the business-intelligence tools. Most full-service customer-
service providers will work with best-of-breed CRM vendors and offers you a
choice of CRM systems with which to manage your customers. Some are also
willing to purchases and install the CRM software of your choice on their
servers, but be aware that this will eliminate the advantage of a quick
implementation, lower entry costs and CRSs who already know the software.
The cost associated with outsourcing CRM is usually a significant startup cost
for developing your materials, their training materials and your knowledge
base, then a monthly fee based either on the number of hours of CRS you
want available or on the number of calls/messages they receive for your site.
The pay-as-you-go model can be very attractive to smaller members. The
ability to grow quickly can be an advantage for any size Web merchant.
Critical Success Factors for Implementation of CRM Systems
Critical success factors have been defined as the elements that make a project
a success, and as the events and conditions in a few key areas which
absolutely must go right for the business to succeed These include trust,
effective communication, and top management support. For this to occur,
proper measurement tools and metrics must be utilized to effectively control
the project. The Key CSF for CRM projects are:
Key Stakeholder Support
Support from all stakeholders in the organization, including top management
and all management levels, employees, government, suppliers, strategic
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partners and investors. Includes the timely reporting of the project status with
accurate information.
Sufficient Resources
Resources of money, equipment and expertise available with appropriate
support structures in place. Includes time and budget allocations for training.
y Clearly Defined ObjectiveA clearly defined mission with a set of defined goals and objectives
communicated to all stakeholders through clearly defined communication
channels, with alignment of project and corporate goals. This is managed
through a detailed project plan.
y Managing ChangeProject changes are implemented through formally defined process, with
appropriate approvals sought. Any scope changes are mutually agreed
and documented, with appropriate analysis of resource requirements.
Challenges of CRM Implementation
Organizations face a number of key challenges in implementing CRM
systems. These include:
y Methodology driven by end usersIT personal do not have knowledge or authority to influence corporate
decisions makers
y Lack of customer centric cultureCRM projects are mostly driven by a functional head, such as a VPor
sales/marketing, and rarely produce an enterprise view of customers.
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y Lack of customer centric cultureAn acceptable return on investment will no be achieved if the organization
does not have a strong customer centric culture
y Inappropriate design approachCRM is designed to model a single functional view not an enterprise wide
customer view, resulting in failure
As can be seen from the challenges faced, it is important for organizations
to realize that a CRM system implementation will only succeed when it is
supported by a customer focused organizational culture.
Chapter5:
CRM Related Concepts
y Knowledge ManagementKnowledge Management (KM) refers to a range of practices used by
organizations to identify, create, represent, and distribute knowledge for
reuse and learning across the organization.
Knowledge Management programs are typically tied to organizational
objectives and are intended to lead to the achievement of specific
business outcomes such as improved performance, competitive
advantage, or higher levels of innovation.
While Knowledge Management programs are closely related to
Organizational Learning by its Organizational Learning initiatives.
Knowledge Management may be distinguished from Organizational
Learning by its greater focus von the management of specific knowledge
assets and development and cultivation of the channels through which
knowledge flows. In recent years, Personal Knowledge Management
(PKM) practice has arisen in which individuals apply KM practice to
themselves, their role in the organization and their carrier development.
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Knowledge Management is a continually evolving discipline, with a wide
range of contributions and a wide range of views on what represents good
practice in knowledge Management.
Knowledge Management Plays a key Role in CRM Success
CRM and KM were once considered entirely different disciplines, with the
two sharing little but perhaps the same data warehouse hardware and a
vague understanding that both efforts were meant to improve business
efficiency and customer satisfaction. It has become clear, however, thatthe two disciplines were really working toward the same goal, and that to
deliver continuous improvement to business clients, they would have to
start speaking the same language.
KM focuses largely on finding the right solution to a problem that requiresdetailed insight, be it locating the right experts, at the right time, or
ensuring that the solution to a complex problem can be written once but
reused many times.
y Regain ManagementThe cost of acquiring a new customer is 9 to 12 times that ofholding on
to an existing customer. Philip Kotler
Goal of customer regain management is to reinitiate valuable customer
relationships, whichhave been already terminated. Regain management
has to detect such lost customers, select valuable relationships and
attempt to regain them in an efficient way, for which a systematic process
is necessary. Addition to this process structure, there is an information
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base needed , which enable the exchange of collected information along
the customer regain process.
- An incentive strategy tempts to regain business relation by offeringcustomers some form of incentive like for example ticket for events, gifts &
discounts.- A compensation strategy aims to compensate some disservices, which as
the motive for termination. For example the company could offer some
form of vouchers.
- A dialogue strategy tries to regain trust through a dialog.- A convincing strategy aims to persuade customers by means of use
argumentations & Explanation of some product advantages.
y CRM in Supply Chain Management (SCM)Supply Chain management (SCM) is a business system of enterprise
strategies, business processes & information technologies for improving the
planning, execution & collaboration of material flows, information flows,
financial flows & workforce flows in the supply chain. SCM is supported by
modular software applications that integrate activities across
organizations, from demand forecasting, product planning, parts
purchasing, inventory control, manufacturing and product assembly to
product distribution. In the context of SCM, where alliances & partnership
are keys to success, CSM plays an important role in building long-term
relationships. The success of relationship depends upon sharing of saving
from the supply chain, which may be reinvested to further enhance its
efficiency & sustain the competitive advantage.
Goals of SCM
- To reduce inventory cost,- To increase sales,
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- To improve the coordination & the collaboration with suppliers,manufacturer & distributers.
y CRM-ERP InformationER
P
s foundation, it is based on creating internally stable business functions &predictable prices control. The concept of ERPwas the integration of all back-
office functions so that the basic problems responsible for interception &
breaks in the process where smooth out & the incompatibilities of the best-of-
breed applications were eliminated or reduced. This doesnt work with CRM
which is external. How can you be in command of processed when they are
based on your customers behavior? Conceptually, one important reason for
CRM is real time response to the constantly liquid-shifting of customer
demands, which is not controlled internally at all. It also means the psychologyof the front-office is quite different from the psychology of the back-office.
The simplest option is to hire a systems integrator to come in & integrate the
systems. However, the obvious hazard here is that they are not only dealing
with ERP& CRM applications they may not know much about, they are also
dealing with your legacy system, which they know nothing about. But
integrating all of that is what you could hire the ERPvendors CRM solution .
The third solution is what many companies are increasingly turning to
Enterprise Application Integration (EAI)
What is E-CRM?
In a simple term, it provides to companies a means to product interactive,
personalized & relevant communication with customers across both electronic
& traditional channels. It utilizes a complete view of the customer to make thedecision about the messaging, offers & channel delivery. It synchronies
communications across disjointed costumer facing system. It focuses on
understanding of customer activities, personalized relationships affect the
business. Advocate of E-CRM recognized that a comprehensive understanding
of customer activities, personalization, relevance, permission, time lines &
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metrics is a means to an end optimize the value of your most important asset:
your customer.
For fortune 500 companies, evolving to E-CRM requires process &
organizational changes, a suite of integrated applications & a non-trivial
technical architecture to support both the E-CRM process & the enterpriseapplications that automate the process. Mid-size companys benefits from less
sophisticated & easier-it-implement, hosted solutions offered through
Application Service Provider. But regardless of the size of the firm, you have no
choice but to evolve to E-CRM quickly.
E-CRM v/s CRM: The Differences
Being able to take care of your customer via internet or customer being able to
take care of themselves online: Thats the difference between CRM & E-CRM. Itimplies a myriad of issues, questions, approaches, technologies & architecture
that are different from client/server-based CRM. Many of them are issue
general to the internet. Others are issues related to the creation of applications
for the internet. The third group is related directly to E-CRM & its actual value
to business.
Companies agree that E-CRM is critical to their business, but unfortunately very
few understands exactly what it is or how to evolve from their existing
database marketing practices to an E-CRM solution.
BasicRequirements ofE-CRMorSix EofE-CRM
y Electronic ChannelsNew electronic channels such as the Web and personalized e-Messaging
have become the medium for fast, interactive and economic customer
communications, challenging companies to keep pace with this increased
velocity.
y Enterprise
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Through E-CRM, a company gains the means to touch and shape a
customers experience across the entire organization, reaching beyond
just the bounds of marketing to sales, services and corner offices whose
occupants need to understand and assess customer behavior. An E-CRM
strategy relies heavily on the construction and maintenance of a data
warehouse that provides a consolidated, detailed view of individual
customer behavior and communication history.
y EmpowermentIn this new age, E-CRM strategies must be structured to accommodate
customers who now have the power to decide when and how to
communicate with the company and through which channel, which ability
to opt for or out of. Consumers decide which firms earn the privilege to
talk with them.
y EconomicsToo many companies execute communication strategies with little effort
or ability to understand the economics of customer relationships and
channel delivery choices. Yet customer economics drives smart asset
allocation decisions, directing resources and effort at individuals likely to
provide the greatest return on customer communication initiatives.
y EvaluationUnderstanding customer economics relies on a companys ability to
attribute customer behavior to marketing programs. A company should
evaluate customer interactions along with various customer touch point
channels and compare anticipated ROI against returns, through customeranalytic reporting. Evaluation of results allows companies to continuously
refine and improve efforts to optimize relationships between companies
and their customers.
y External Information
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The use of Customer-sanctioned external information can be employed to
further understand customer needs. This information can be gained from
resources such as third-party information networks and webpage profiler
applications, under the condition that companies adhere to strict
consumer opt-in rules and privacy concerns.
Chapter 6:
Problems and Drawbacks
There are several reasons why a customer relationship management (CRM)
solution might not have the desired results.
There could be a lackofcommitmentfrom people within the company to the
implementation of a CRM solution. Adapting to a customer-focused approach may
require a culture change. There is a danger that relationships with a customerswill break down somewhere along the line, unless everyone in the business is
committed to viewing their operations from the customers perspective. The result
is customer dissatisfaction and eventual loss of revenue.
Poorcommunication can prevent buy-in. In order to make CRM work, all the
relevant people in your business must know what information you need and how
to use it.
Weakleadership could cause problems for any CRM implementation plan. The
onus is on management to lead by example and push for a customer focus on
every project. If a proposed plan isnt right for your customers, dont do it. Send
your teams back to the drawing board to come up with a solution that will work.
Trying to implement CRM as a complete solution in one goes is attempting but
risky strategy. It is better to break your CRM project down into manageable pieces
by setting up pilot programs and short-term milestones. Consider starting with a
pilot project that incorporates all the necessary departments and group but issmall and flexible enough to allow adjustments along the way. Dont
underestimate how much data you will require, and make sure that you can
expand your systems if necessary. You need to carefully consider what data is
collected and stored to ensure that only useful data is kept.
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You must also ensure you comply with the eight principles of the Data Protection
Act that govern the processing of information on living, identifiable individuals.
For more information, see their guide on how to complywithdataprotection
legislation.Avoid
adopting
rigi
dr
ule
s which cannot be changed to be more flexible to the
needs of individual customers.
ReasonsforCRMImplementation Failure
An understanding of the challenges and critical success factors is paramount to
project success. In this way, the organization is aware of those factors by which
success can be measured, and will ensure the CRM system is implemented in a
manner to satisfy all stakeholders. The main reasons for CRM failures include:
Customer focusOrganizational culture is not customer focused, with limited involvement of
customer facing personnel in the design and implementation phase.
Organizational ManagementLack of support and understanding from senior management, lack of CRM
understanding, lack of communications and changing business needs.
Project ManagementMisalignment between project and business requirements, with unrealistic
goals, timelines, coupled with a lack of planning and insufficient reporting and
control.
Team MembersLack of support, incentives and lack of technical knowledge
Data & Warehouse RequirementsPoor quality data, inconsistent data between different systems
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Technical FactorsShort term solution focus not aligned to long term architectural infrastructure
growth, no prototyping or testing, misunderstanding technical requirements.
CRM is failing because the correct capabilities are not being built at the
enterprise level. The requisite changes in organizational culture, behavior and
attitude are not being implemented. Overall, in failed projects, there is the
little or no alignment between stakeholders on success criteria, critical success
factors, performance metrics, project drivers, nor on the dynamics of how
these parameters may change over the project life cycle. The requirements of
the customer are either misunderstood, or not taken into account. The result
is an inconsistency in focus, with less than optimum system design and
implementation.
Hence CRM is failing due to primary reasons: a) technical; due to the size,
complexity, and lack of knowledge of technology, and b) human behavior; due
to general change management issues in the organization. What is required is
a coherent, all encompassing strategy that focuses on key stakeholder
requirements. Companies underestimate the complexities of CRM projects,
lack clearly defined business objectives, and tend to invest inadequately in the
provision of CRM software.
1 . The CRM Framework
Schmitts book Customer Experience Management offers the following five
steps framework that should help managers understand and manage the
customer experience
Step 1:Analyzingtheexperiential worldofthecustomer
y Analyze socio-cultural of the customer (needs/wants/lifestyle)y Analyze business concept (requirements/solutions)
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Step 2:Buildingthe Experientialplatform
y Connection between strategy and implementationy Specifies the value that the customer can expect from the product.Whereas steps 1 (Analysis) and 2 (Strategy) form the basis for CEM, steps
3, 4, 5 are focusing on implementation.
Step 3:DesigningtheBrandexperience
y Experiential features, product aesthetics, look and feel e.g. logosStep 4: Structuringthecustomerinterface
y All sorts of dynamic exchanges and contract points with customersy Intangible elements (i.e. value, attitude, behavior
Step 5: Engagingincontinuous experientialinnovation
y Anything that improves and customers personal lives and businesscustomers working lives
And finally, to bring all pieces together, a holistic approach is required that
provides a linkage the different steps and connects them with the organization.
How Does CEM Technology Work?
CEM Technology captures customer experience information across all customer
touch points and feeds it back to the organization so that action can be taken to
improve profitability. At the beginning or end (or both) of an interaction, and
within context, the customer is invited (automatically or manually) to provide their
perspective via four or five short questions. Done properly, thisprocess will
resultin betterthan80% customerparticipation and have a measurablypositive effect on customers.
Whether phone, email or Web channels, the experience information is collected
within context of the interaction. The question that are delivered to the customer
are specific to that interaction type; the people, products and processes that were
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part of the interaction; and the customer. The questions are also conditional in
nature and facilitate both quantitative as well as qualitative experience
information.
CEM Technology accesses existing CRM data, productivity metrics, and
incorporates key information related to customer behavior and profitability.Information such as retention rates, average purchase amounts, store sales,
complaint and resolution rates, customer segments, etc. are all combined with
customer experience information and analyzed/reported in real-time. The strength
of a CEM system is in its ability to continually align company performance with
customer needs and behaviors, enabling companies to make effective, correct,
and critical day-to-day adjustments in resource allocation and execution- as wellas enterprise-wide shifts in strategy.
Customer Experiences can be categorized into three unique states. The state of the
customer experience has implications on the type of information to communicate
with and collect from customers. The three states of customer Experience are:
Normal Experience, critical Experience, and Unique Experience.
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Managing Customer Interaction
Experience
Types
Key words Stage Objectives Profit
Implications
Normal 1. Education2. Competenc
e3. Consistenc
y
1.Early2.Middl
e
1. EstablishPositive
Perceptions2. Validate
Expectations
3.EstablishTrust ,loyalty,
satisfaction4.EngageCustom
ers
1.Reduceearly phase
customerturnover
2. Reduce
service andsupport costs
3.Reduceresearch
expense
Critical 1. Opportunity
2. Flexibility3. Problem
resolution
1.Early2.Middl
e
3.Mature
1.ServiceRecovery
2. Positive
MemorableExperiences
1. Reduceturnover
2. Promote
Positiveword-of-
mouth
endorsement
s
Unique 1. Appropriate timing
2. Appropriate context
1.Middle
2.Matur
e
1. Up SellProducts,
Services
2. Cross SellProducts
,Services
1. Increaseaverage
purchase
levels2.Increase
proportion of
high margin
sales
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Chapter 7 :
CRM in India
Software is to India what oil was to gulf. It is therefore no surprise that the Indian
companies are jumping into the CRM bandwagon to seize a chunk of the global
market, both products as well as services.
With a vast talent pool; India is a fast becoming an important developmentbase
of CRM major companies. This trend is likely to increase in the future. Call centers,
Catering primarily to the American and European markets are coming up in and
around the metros. With the easing of infrastructure constraints, India is likely to
emerge as a significant player in the segment.
Companies in India are realizing the need for CRM and some of the forward
thinking ones have been strategically investing in CRM initiatives and relate
activities. Even though, some industries like steel, aluminum and cement could get
by without any active customer management, they realize that is now all history
and that they have to do something to create and build relationships.
So the awareness of CRM there. The first steps have been taken by many. The
question is whether you want to compare CRM programs of Indian companies
with the standards and best practices of players like Ikea and Marriot who have
been torchbearers in this field. India has a long away to go. Indian companies
would do well to realize that CRM cannot be delegated to the marketing
department.
It has to be whole revolution within the entire organization. The entire
organization from the chairman to the doorman has to be a galvanized to become
a customer-oriented organization. Its about training, learning, rescaling and the
ability to adapt that will distinguish the laggards from the winners. It needs a CEO
who walks the talk, in other words CRM is an absolute necessity now for thesmallest kirana store to a large player like Ambuja Cement. One has 200
customers. But both cant afford to loose even a single of their customers, because
the cost of creating a new customer is 5 to 10 times more than the cost of
retaining an old, good customer. CRM is now an integral part of organizational
strategy and overall business objectives.
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Has CRM in India been reduced to an empty buzzword thats tossed around so
that a company appears to be keeping up with the industry? Not entirely, because
organizations like Standard Chartered Bank, ICICI Lombard, BPL Telecom and Air-
India have successfully used these tools-and benifited. The difference lies in the
way CRM has been deployed at these organizations. It is a combination of
technology and process change that has worked.
Adoption of CRM by Indian companies is at an infancy stage. The CRM enabled
companies include Modi Xerox, Tata Telecom, TVS Electronics, HP India, Tata Info
Tech, Carrier Refrigeration, Tata Teleservices, Satyam Info way, Planet M,
Epicenter Technologies among many others.
India even has a CRM Foundation in NewDelhi, founded with the purpose of
assessing and improving CRM practices. Founding members include Tata Telecom,
Escotel, Modi Xerox, Global Groupware, AC Nielsen, Carrier Aircon, and Motorala
India, among others.
Outsourcing CRM back offices. India is growing to be the back office of the world,
and many Indian companies are managing CRM operations for Fortune 500 and
medium-sized companies in USA and Europe. Now that the outsourcing market is
mature, Indian companies may also begin to outsource for cost reduction.
BPOS in India
The business process outsourcing industry in India hasa grown by leaps and
bounds and as its size increases so does its competitive advantage. Compared with
1996 when this Industry had started inroads into the United States with Outbound
Telemarketing campaigns, today the vehicle for these calls-the internet has
become cheaper and more reliable for the average Indian business.
The business has boomed to the extent that many people are now running BPOS
out of their cyber cafes and houses in NewDelhi.
The sector witnessed considerable activity during 2004-05, including a ramping up
of operations by major Indian and MNC players and stepped up hiring. The
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domestic BPO market, castalyzed by demand from the telecommunications and
BFSI segments, matched the growth of BPO exports. The market experienced
maturity and consolidation, a result of numerous mergers and acquisitions taking
place within the sector. There were over 400 companies operating within the
Indian BPO space, including captive units (of both MNCs and Indian companies)
and third-party services providers.
The Indian BPO industry remains on a growth path, emerging as one of the key
investment markets in the country.
BPO is one of the greatest global forces for improvement today. CRM outsourcing
providers alone have a $30 billion market opportunity and businesses that
capitalize on the potential cannot only reduce cost, but also increase productivity
and raise revenue significantly.
BPO began as a way to significantly reduce labor costs for low-value or
transactions activities (e.g., help desk calls, bill payments), but now, its emerging
as a way to deal with higher complexity, value-added activities. However, few
companies have realized the full range of benefits that BPO offers. To capture
these benefits organizations need to do two things: outsource to improve
productivity (not just costs) and cost-effectively identify emerging revenue
opportunities.
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Chapter :- 8
Case Studies on CRM
1.Bharati Tele-Ventures- Telecom Sector
Bharti Tele-ventures is one of the Indias leading private sector telecom operators.
Its cellular business, AIRTEL, is a leading mobile telephony brand. Like any Telco,
Bharti considers information technology a key business enabler. For telecom IT is
like bread and butter. Bharti believes it plays two significant roles-it works as a
support system, and it can also be a business driver. Thus IT is very important to
Bharti. It had a WAN in place with a mix of leased lines and E1 and E3 lines. The
company also has an extranet in place through which it extends different
applications to its dealers and partners. Bharti have an extremely large
infrastructure based on products from multiple vendors. This includes a range of
high-end servers from Sun and HP. In the telecom business volumes are very large.
They have millions of records and process them everyday, so far them storage is in
terabytes.
Bharti also has a storage area network (SAN) in place. The main data centre is
located in Gurgaon, Haryana. As far as software is concerned, some of the
applications that are running on its network are billing, fraud management,revenue assurance and data warehousing. They also have some internal facing
applications like Oracle Financial and Oracle HRMS.
ThecaseforCRM
Initially, when Bharati started operations, the whole system was run manually. At
that point of time only 40 percent of their customer issues were getting resolved-
this has now gone up to about 90 percent.
It is vital for them to manage the expectation of their customers and provide them
with innovative products and services in a manner which make them loyal. To
achieve this, Bharti needed the right tools. It is this need that made them opt for a
CRM (customer relationship management)
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Cherrypickinga solution
Today Bharti is using the Oracle CRM platform. As part of their vision, they intend
to provide Airtel services anywhere and at any time. A customer should get the
same quality of service no matter which of their call centres he contacts. This has
been their vision, and because of that they have gone in for a centralized
application like CRM.
Before choosing its CRM tool, Bharti evaluated many options. It considered factors
like proper workflow automation, facilitation of knowledge sharing, and
integration with the billing system. After a through evaluation exercise, it decided
to go ahead with the Oracle CRM platform.
Rollit
After starting its services in Delhi, Bharti acquired many circles and sought new
licences in other circles; whenever they got a new licence, they implemented the
CRM tool immediately. But they had to put in a migration strategy in those
acquired circles which had an existing subscriber base. The migration had to be
done in such a manner that the existing customer base did not suffer. The goal
was that all circles would go live by the first quarter of 2004.
The biggest challenge for Bharti was to have a unified process in place. Once this
was done they faced the challenge of imparting training. They went in for such a
large-scale implementation they faced problems. They also had certain technical
difficulties during implementation, but they were able to overcome them.
The CRM strategy at Airtel revolves around two aspects: operational CRM and
analytical CRM. The first is about helping their call centres in the workflow part,
helping them in their day-to-day activities. The second provides staff with the
required information on customers; this is used for business development
activities. Together they help Bharti provide better service to its customers.
Tailor-made schemes
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One of the primary things that Bharti has done with CRM is segmentation of
customers, which has helped in providing customers more value for their money. It
was important to understand and segregate customer needs depending on the
product and services is buying. One of the primary things that Bharti have done in
this solution is the segmentation of customers. With this, Airtel is now able to give
its customers more value for money. With the help of CRM, they are able to
provide customers different schemes and services depending on airtime usage. If
the customer is a heavy user then they have some specific schemes; for normal
users they have other schemes. Apart from this, they have also managed to
segregate their workflow with the help of the CRM tool.
2.Wockhardt- Hospital and health care sector
When you aim to build a world class hospital, you need world-class processes in
place. Keeping this goal in mind and to give patients better value for their money.
WHHI was looking for a solution that would allow the hospital to manage its
patient and staff details database efficiently. It also needed to connect specialists
to the hospital network such that the doctors could monitor the patient remotely.
The WHHI team, which consists of four people, found that the most suitable
solution was to put in place two inter-linked systems. The foursome considered a
CRM solution custom-made to the hospitals needs and a network linking that they
term E-ICU. This system connected the patients monitors to an RAS accessible over
the internet.
The CRM system WHHI put into place not only helps identify the right doctor for
the right occasion, it now also generates reports. Plus it can sort categories of
patients such that the hospital has now been able to start clubs of people with
similar experiences.
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The beginning
To develop and maintain a special relationship with doctors, patients, and
corporate, WHHI required an easily manageable system that would catalog all the
required details. Moreover, with the narrowing difference in service level at hotels
and hospitals internationally, Vishal Bali, Vice President Operations, WHHI,
believed that such implementations are required to create an ambiance of
efficiency. The implementation was also required to track feedback to generate a
patient satisfaction index.
The Solution
To meet the requirements, the hospital approached an outfit called Think Ahead,which conceived, developed and implemented a CRM application to specifically
meet the demands of WHHI. The implementation generates feedback reports,
occupancy reports, average length of stay, waiting and discharge reports. While
all these reports were being filed even earlier, the solution has helped maintain
and update all the reports on daily basis, obviating any chance of delay. The
accuracy rate of the reports has seen a new high as a result.
More importantly the CRM solution has automated relationship management. It
has resulted in the creation of the Happy Hearts Club, a group of people who have
undergone similar heart surgeries at WHHI. At the forum, patients share their
experience and sometimes also learn from each other.
The CRM solution also automatically forwards newsletters and relevant
information to keep in touch with doctors and patients. Vishal Bali, Vice President
Operations explained the importance of this routine task: Hospitalization should
not be seen as an episode but as a patient hospital relation, it is not a one time
transaction. And the CRM solution has helped with just that.
E-Hospital
Besides the CRM system, WHHI has developed an e-ICU. The e-ICU consists of ICU
monitors on the side of the bed. These are connected to a Windows 2000 Servers
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that is linked to Remote Access Servers (RASs). The RASs can be accessed over the
internet via a 2 MBPS line. The E-ICU allows doctors to consult specialists in life
and death situations. A resident doctor can consult a senior consultant while at
the operation table and the CRM solution helps retrieve the most suited
consultant for a given case. This way all decisions can be collaborative.
Furthermore, in case of a smaller problem the doctor is not required to rush to the
hospital. The remote system also means that every patient has 24 *7 coverage
from his/her doctor.
E-Visit
WHHIS association with think Ahead led to other creative initiatives. The first is
the Virtual Family Visit. Relatives and friends can visit any patient online in avirtual patient room. The system is capable of transferring audio, video, text, and
images.
Similarly, WHHI was also able to initiate a tele-medicine program. These are video
links established at medical colleges in the relatively less developed parts of India.
The doctors at WHHI use this link to address classes in these colleges as well as to
make routine follow-ups on chronic patients.
Securityissues
With so much data available over the internet it is natural that information
security would be a concern. To secure its network, the WHHI IT team has set up a
hardware and software firewall. The hardware blocks unauthorized access and the
software firewall acts as an active state packet filtering firewall. The Total Internet
Security Suite scans inbound and outbound network traffic.
Costfactor
Overall, the implementation cost WHHI close to Rs2 million, according to Bali.
Perhaps, the level of automation and improved efficiency due to this system could
be used to establish the systems ROI. However, Bali does not look at it from a
profit perspective, but rather as a Staying in Business investment. According to
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him, as the standards for hospitals improve the world over, Wockhardt must set a
standard in India.
3.HDFC-Banking and Financial Sector
Owing a a Home still remains to be the single most cherished dream for many
Indian households and one need to be treated with great care while assisting
people realize their dreams. At HDFC, the element of care not only reflects in the
very vision that prompted its inception, but also in the manner in which the
company relates to its customers. To HDFC, providing finance for housing is not
merely about earning profits, but way to provide an essential and valuable serviceto the society.
It all began with a thought that took shape in the mind of HDFCS founder, Late
Shri H.T. Parekh, who built the organization on the core values of integrity,
transparency and trust. Though HDFC enjoyed a monopoly when it started out, the
companys firm focus has always been on customer care and satisfaction. It
believed that the best strategies are established with long-term commitment and
relationships with the customers.
Since the company has always been dealing directly with its customer, this has
helped it keep in touch with the changing trends and customer expectations. Its
experience and in-depth knowledge of the sector is a boon for its customers. HDFC
understands that buying a house is an event which happens once in a lifetime for
most and is the single largest investment; hence buying the property with the
fullest knowledge is vital. While buying a property, where except in few cases the
developers have established a brand, most builders are local and relatively
unknown, there are a number of issues and concerns a customer has when he
deals with any developer.
With over 28 years of experience in the real estate industry and business relations
with the developers, it has a through understanding of the market and this is
passed on to the customers. It provides counseling through its property services on
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how and where to buy a house in India, the real estate prices and trends in the
real estate market and any assistance that may be required at various stages of
property dealings. HDFC aims to bring creditability and trust to the property deals.
It has from time to time tied up with developers to bring special packages to its
customers and reach out to them. It conveys the properties to the customers byvisiting companies to put up special counters displaying new projects of builders,
so they dont have to move out to locate a home and make presentations to
address their financial concerns. This approach is also used in colonies with a large
number of families. The company also arranges property fairs where customers
can visit, select the property and seal the deal immediately.
At HDFC, product innovations are based on customer feedback and are aimed at
customer convenience. It was the first company to offer floating rate scenario
turned conducive for customers and introduce part fixed part floating product
enabling customers to hedge their risks in an uncertain interest environment. It
was also the first to launch repayment option that supported housing loans on the
basis of age and customer needs. As the first company to computerize the home
loan process, technology has always been a focus area for the company in itsendeavour to simplify transaction for customers.
All in all HDFC is a brand, which not only offers Housing Finance but Total
Housing Solutions. Given the diverse portfolio of customers that HDFC caters to,
the counselors at HDFC are trained to understand customer requirements and
structure the loan to match individual concern. Departing from the usual norm of
providing just loans, it offers customers a personalized counseling service to help
customers encash on the vast pool of knowledge that comes with its experience.
It follows a single window concept where customers get legal and technical
approvals by its experienced in-house counselors. This usually saves a lot of time
and efforts for customers of obtaining these clearances from other authorities and
save money as the processing and administrative charges cover all these
expenses. Customer service at HDFC goes beyond process handling, with
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counselors taking out time to understand the applicants needs, the demands of
their growing families, the necessity to ensure savings for emergencies and then
arriving at the right amount for them to borrow.
HDFCS philosophy of care also engulfs its interaction with customers who have
defaulted in repaying the loan. From beginning it followed a different model andsetup a follow-up department to deal with delinquent borrowers instead of a
recoveries section, believing that individuals were basically honest and would
pay back in time. Its debt collection policy emphasizes on forecasting borrower
confidence by understanding their crisis; discussing their repayment capacity-
considering their income, number f dependents , he nature of their expenses etc ;
and after ascertaining the facts and the reasons for default work out of solution ,
even reschedule the loan if required . though the policy deals with a negative
situation , it has a strong value based premise that ensures that the
implementation will not be unduly coercive . Infact ,the policy is built on courtesy ,
fair treatment and persuation .
The Home Loan Protection Plan ( a product of HDFC standard Life ) that HDFC
offers to it home loan borrowers provides the customer the comfort of knowing
that in case of the unfortunate death of the borrowers , a sum of moneydepending on the insurance cover will be made available towards repaying the
housing loan . for HDFC , its strength emanates from its intrinsic value of customer
orientation and care . they are the basis for all growth and development .ask at
hand is to bridge the gaps and to provide the common man access to resources to
fulfill his basic dream . In its 28 years of orientations it has assisted 27 lakh
families own a home through loan approvals of over Rs.1,00,000 crores . As it
moves along taking small steps in this direction what makes the effort truly
worthwhile is when it ultimately benefits individuals and the effort trulyworthwhile is when it ultimately benefits individuals and the society at large .
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3.AXISBANK
AXIS bank was the first of the new private banks to have a begun operation in
1994 after the government of India allowed a new private banks to be established.
The bank was promoted jointly by administrator of the specified undertaking of
the Unit Trust Of India (UTI) Life Insurance Corporation Of India (LIC) and otherfourPSU companies i.e. National
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