CRM Best Practices: A Case Study ofBank of Baroda

Bank of Baroda : FactsFounded by Maharaja Sayajirao Gaekwad IIIEstablished in Vadodara in the year 1908 and is headquartered in MumbaiNationalized in the year 1969Network of around 2,897 branches.Employs over 38,000 personnel across 25 countries

SummaryPresentation studies the deployment of CRM Best Practices and how effectively they have been deployed in the Bank of Baroda

MethodologyObservations: EvaluationLessons: What was learned

MethodologyCase Study Research Design

MethodologyResearcher developed 140 statements, each representing a CRM practiceA panel of five experts classified these as relevant CRM practice and CRM best practicePractices with complete consensus amongst the judges selected29 strategies studied as standard CRM practice

CRMWhat is organization approach?

Organizational ApproachMission and Vision statement strives to achieve customer delight through integration of products, technology and quality service of global standards.Business Process Reengineering (BPR) exercise aimed at transformation into a sales-and service organizationCMD and top management send communiqus via meetings, letters, internal circulars, in-house magazine and e-mails

Investing TimeAn Evaluation of Banks initiatives

Develop high return customerProvide wealth management services to cater to high net worth individual (HNI) customersManned by dedicated Financial Advisors, who act as single contact point for HNI customersCustomers given various special privileges

Customer segmentationBank Of Baroda approach

Extend umbrella to allNo formal method of customer segmentation being implemented in the bankOnly designated branches offer HNI servicesBranches that provide wealth management services target savings account customers who maintain Rs. 0.1 million as average quarterly balance

DistributionchannelsBank Of Baroda approach

Customer reachRetail Loan Factories for centralized loan processing and related customer service in 11citiesStrong branch networkNew initiatives like phone banking and mobile banking services

Customer dataBank Of Baroda approach

Innovation in line with customer aspirationsNew products designed in line with data e.g. education loans in response to the increasing demandIdentified needs that are currently not satisfied by other banks Innovative products, namely, loans for pensioners, women, financing foreign tours, marriages, CNG kitsProviding 12- hour banking across all Core Banking Solution branches

Customer FeedbackBank Of Baroda approach

Feedback Each complaint replied within 15 daysEmployees told to resolve complaints within 48 hours of registrationCustomer gives written letter of satisfaction with the resolutionCustomer Cell in each city supervised by a executive of the rank of assistant general manager

Customer Recovery StrategiesBank Of Baroda approach

Conflict resolutionBank is a member of Banking Codes and Standards Board of India (BCSBI)Compensation policy in place to compensate customers for financial losses incurred due to service failures

ResourcesPhilosophy & Legal: www.opensource.org Fun: www.slashdot.org

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Bonding with the Customer Bank Of Baroda approach

Customer AssociationBank maintains an updated records of their Customers who have had a long association with the Bank and they are sent greetings on Festive Occasions like Diwali , they are also gifted with Merchandise such as Bags, Diaries and Desk Calendars.

However unlike most of their competitors they do not have a system of tracking Birthdays and sending cards to key customers , which can be an area of improvement.

Increasing the Customer Share Bank Of Baroda approach

Cross Selling Products / Services The Managers & Officers are required to actively cross sell products like Loans, Mutual Funds and Credit Cards to existing Branch Customers, besides bringing new Customers. The Marketing Executive at each retail loan factory target the branch customers of a local area with an AQB of Rs.0.1 million or more in their Savings Account.

Customer Centric Information Systems Bank Of Baroda approach

Relevant MIS at the Bank The Banks IS is designed to provide the balance status of its products tagged to a Single Customer Id , it also provides details like Name, Age, Gender, Marital Status, Residential and Office Address etc. By using same the End-User can log in to a Web Interface and do most of the day to day banking operations.

Use of Information Systems The Bank has implemented the Financial CBS across the Organization to put all of their business channels on a common network. This reduces rework and save more time than ever before.

This enables the Financial Analyst to single unified view of the Customer, covering all deposits and loan products across all CBS Branches.

Use of Information Systems(contd.) The Bank is still to implement a relatively new Technology Data Mining for Lead Tracking that helps banks to reach out to existing / engage new customers based on the analysis done by the Tool itself.

Monitoring PerformanceBank Of Baroda approach

Assessment The Performance standards are assessed on the basis of Asset and Service Quality.

The important parameters to Judge Service Quality :No. of Complaints ReceivedTime Taken to Resolve it.Steps to Prevent the Re-occurrence.Monitor the TAT for processing big ticket loans.

Assessment The Performance standards are assessed on the basis of Asset and Service Quality.

The important parameters to judge Service Quality :

No. of Complaints ReceivedTime Taken to Resolve it.Steps to Prevent the Re-occurrence.Monitor the TAT for processing big ticket loans.

Assessment (contd.) The Performance standards are assessed on the basis of Asset and Service Quality.

The important parameters to Judge Asset Quality :Senior Managers pay a surprise visit to banches one on 6 months to check the Services and Facilities at the Branch for the Customers.

Regular checks if the current Infrastructure like ATMs, Kiosks, for Loan Information , Serial Token vending machine and the May I help You Desks are working as per the specified Norms.

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