Relationship between Customer Value and CRM in Banks

1. Shreyansh Chauhan – 351462. Ramneek Puri – 351813. Vikas Mulchandani – 352014. Yuvraj Suryavanshi – 35204

IMPORTANCE OF CRM AS A STRATEGIC TOOL

Customer

Consumer

Co-creator of Value

Co-developer of CompetenciesCo-operator

Co-producer

POLYHEDRAL ROLE OF CUSTOMERS IN 21ST CENTURY

ROLE OF CRM IN VALUE CHAIN

Suspect

Prospect

Customer

ClientAdvocate

Moving customer up the loyalty ladder

RESEARCH METHODOLOGY

• Research Papers• News Articles• Banking Industry

Reports

Secondary Research

• Interview of key officials of various banks(SBI, ICICI, PNB)

Provider• Surveys:• 1) Consumer Loyalty –

78 responses• 2) Consumer

Satisfaction – 23 responses

Consumer

• Measuring Loyalty - NPS• Measuring Satisfaction –

Kano Model• Loyalty Vs Satisfaction for

various banks

Analysis

CUSTOMER VALUE THROUGH CRM

CREATING CUSTOMER VALUE THROUGH CRM (SERVICE PROVIDER PERSPECTIVE)

• Interviews of managers in 4 banks– SBI– ICICI– Punjab National

Bank– Yes Bank

CREATING CUSTOMER VALUE THROUGH CRM (SERVICE PROVIDER PERSPECTIVE)

• Net Banking• Mobile Banking• E-pay• SMS facility (SBI SMS Unhappy)• Call-centre• No Downtime (ICICI – BCP)• Locker facility• ATMs

• Mobile Banking• Credit Card

• Long working hours (ICICI – 8 to 8)• Friendliness of Employees• Quick response• ATMs

• Time & Energy Cost• Reach (Net/mobile banking)• Convenience (E-pay, ATMs)• Mitigating Psychological Risk (SMS)• Information (Call-centre)• Disaster Recovery (ICICI – BCP)• Quick response to customer• Safety (Locker facility)

Functional Value Social Value Emotional Value Perceived Consumer Sacrifice

MEASURING CUSTOMER LOYALTY USING NPS (CUSTOMER PERSPECTIVE)

Bank Name

No. of Respondents

Avg. Score Advocates Detractors NPS

SBI 16 7.38 8 4 +0.25ICICI 18 7.22 6 4 +0.11HDFC 15 7.00 3 3 0.00Yes Bank 6 6.33 1 2 -0.167PnB 8 5.74 2 4 -0.25Axis Bank 5 7.00 2 - -Total 78 6.76 26 24 +0.03

MEASURING CUSTOMER SATISFACTION USING KANO MODEL

1. Net Banking2. Mobile Banking3. E-pay4. SMS facility5. ATM6. Credit cards7. Call Centres8. Long working hours9. Physical Banking10. Email updates11. Friendliness of employees12. Quick Response13. Min. paper work

Attributes Selected

Bank Name A M I O Cs Cd

SBI 11 37 21 7 0.23 0.56

ICICI 2 22 18 10 0.23 0.61

HDFC 20 38 14 6 0.33 0.56

Yes Bank 5 18 11 5 0.26 0.59

Punjab National Bank 2 13 10 4 0.20 0.58

CUSTOMER SATISFACTION VS LOYALTY

Retrospect Leader

Lost Trapped

HighLow

Loyalty

Satis

facti

onH

igh

Low

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