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customer relationship management - September 20th, 2008

INTRODUCTION OF CRM


Today, banks are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. Banks have realized that managing Customer relationships is a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies. The key which takes the share price of the bank at top most level is the customer.

“Customer is the most important person for a business. He is not an interruption to our work but the purpose of it. He is not an outsider; he is a part of it. We are not doing him a favour; he is doing us a favour by giving us an opportunity to serve him.”

By Mahatma Gandhi


Many organizations have realized that to sustain in the market they have to do more than selling of their product. For this the only mantra is to provide customized and personalized services to customers, which in management is also known as practicing “Customer Relationship Management”. This concept is tremendously gaining importance in corporate circles and is emerging as the business theme for the 21st century.


CUSTOMER

A customer refers to individuals or households that purchase goods and services generated within the economy. The word historically derives from ”custom,” meaning “habit”, a customer was someone who frequented a particular shop, who made it a habit to purchase goods from there and with whom the shopkeeper had to maintain a relationship to keep their “custom,” meaning expected purchases in the future. Customer who was considered to be the king of market is now regarded as the emperor of market. Since all the organizations have the same technology and more or less the same price offering, it is only the customer’s loyalty which can take their business sky high.


RELATIONSHIP

A relationship is a specific connection between objects, entities or concepts. This bond can exist between an individual and an organization or between two individuals or between two organizations. These relationships are categorized as social relationships, causal relationship and mathematical or theoretical relationships which are between components of a modeled system. Herein, presence of both the parties is a must. Both cannot survive without each other.



MANANGEMENT

Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal. Managing of human resources, financial resources, technological and natural resources are the core activities of a business.

In today’s competitive environment, customer is not only the king but the emperor of the market. Two things a service provider has to keep in mind while performing business activities:

• Customer’s time is precious.
• Apart from this, there are several other service providers to serve his customer.

The personnel who manages these relationships with the customers is called Customer Relationship Manager and the process carried out by the bank is called Customer Relationship Management. The manager has certain set of responsibilities and goals to be achieved for his organization.The work are to maintain and enhance relationships with the valued customers.
Converting a stranger to a potential buyer and then to a loyal customer who does not change his loyalty even if there are cost benefits, this task is undertaken by the Customer Relationship Manager. Essentially he reshapes business process to meet customer expectations, empower employees to best serve the customer and determine how to most efficiently and effectively deliver on those needs.
DEFINITIONS OF CRM



“ Customer Relationship Management is an integrated effort to maintain and build up a network with individual consumers and to continuously strengthen the network for mutual benefits of both the sides, through interactive, individualized and value added contacts over a long period of time.”

Shani and Chalsani

“Customer Relationship Management is to focus on an individual or one to one relationship with the customers that integrate database knowledge with long term customer’s retention and the growth strategy.”

Peppers and Rogers

“The coherent management of contacts and interactions with customers’. They identify that “The essence of a CRM system is that customer data is collected from all touch points and deposited into one central data pool for more effective marketing, better order processing, production and accounting.”

The chartered Institute of Marketing

OBJECTIVE OF CRM



• CRM aims at integrating all business strategies that places the customer at the centre of a business consciousness.

• Aligning of organization towards customers.

• Integrating your customer touch points.

• Knowing and understanding your customers and potential customers.

• Establishing and managing relationships with customers.










PRINCIPLES OF CRM


Differentiate Customers

All 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 same product 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 customers is
 Sensitivities, Preferences and personalities.
 Life style and age.
 Culture background and education
 Physical and psychological characteristics.

Differentiating Offerings
 Low value customer requiring high value customer offerings.
 Low value customer with potential to become high value in near future.
 High value customer requiring high value service.
 High value customer requiring low value service.


Keeping existing customers

Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improves as well as customer retention with the organization.

Maximizing life time value

Exploit 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.


Increase Loyalty

Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to 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 low cost high margin sales.



MULTIPLE MARKETING MODEL






Figure 1.1




Relationships and Interaction with customers:

With the new marketing approach it becomes an imperative for businesses to formulate their Marketing activities to, and to build relationships, networks, and interactions with, a number of different, but often equally important markets.

It is apparent from the figure that the customer market is often the key market. the importance for a business of retaining its customers, with evidence suggesting that retention of customers leads to increased market share and eventually bigger profits. Marketing tools that businesses can employ for retaining customers may, therefore, provide for a competitive advantage.

CRM-oriented businesses market their products and services through relationships and interactions with multiple markets, most notably the customer market. This is why relationship marketing is termed 'customer relationship management' when it emphasizes the customer market in particular.
The Referral market:
Constitutes of customers who have been referred to the business by way of word-of-mouth.
The Influencer market
Constitutes of individuals, organizations, or institutions that directly or,
Indirectly, impact on the business.
The internal market
Constitutes of the business’ own employees.

Segmentation of Customers



This process is key, as it permits Bank to better understand the type of clients it is dealing with, and to better adapt its marketing communication.


The bank has chosen to combines external and internal information in order to build an effective and efficient segmentation. The important elements to consider for segmentation are the clients' attitude and needs; socio- demographic situation; actual and potential profitability; and behavior in terms of distribution channel use and products. An excellent segmentation will also enable the bank to find and focus on clients who will be considered as referrals by others. Their recommendations of the bank will be taken seriously, and the potential future client base widens. The bank has identified five groups according to their risk level, distribution use, revenues, interest in insurance, and socio-demographics.







Segment Important criteria to adapt CRM Relationships
First segment (18 per cent)  Enjoy high risk levels
 Frequent use of self-banking, telephone, e-mail, etc.
 Keen to buy insurance with their bank
Second segment (18 per cent)  Enjoy low risk levels
 Most frequent use of self-banking, telephone, e-mail, fax, etc
 Not keen on buying insurance with their bank
Third segment (23 per cent)  Enjoy low risk levels
 Frequent agency visitors; no telephone, etc.; seldom use of self banking
 Do not consider bank as good insurance providers
Fourth segment (32 per cent)  Enjoy low risk levels
 Most frequent agency visitors; no telephone, etc.; very seldom
 use self-banking
 Not opposed to buying insurance with their bank
Fifth segment (9 per cent)  Enjoy medium risk levels
 Frequent agency visitors and frequent use of self-banking; no
 Telephone or e-mail, etc.
 Particularly opposed to buying insurance with their bank

CUSTOMER LIFE CYCLE



Customer Life Cycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using and maintaining loyalty to a product or service. Marketing analysts Jim Sterne and Matt Cutler have developed a matrix that breaks the customer life cycle into five distinct steps: reach, acquisition, conversion, retention and loyalty.


This means getting a potential customer’s attention, teaching them what you have to offer, turning them into a paying customer, and then keeping them as a loyal customer whose satisfaction with the product or service urges other customers to join the cycle.




















The customer life cycle is often depicted by an ellipse, representing the fact that customer retention truly is a cycle and the goal of effective CRM is to get the customer to move through the cycle again and again.


There are many types of current and savings account, and you wish to buy property and so take out a mortgage. You could take out a car loan, to buy a vehicle to get you to work. It would also be advisable to take out pension. As you progress through your career you begin your own family, and save for your own children education. A number of savings plans and schemes and ultimately ICICI offer you pension planning’s.











THE CRM BUSINESS CYCLE



As shown in the diagram, for any organization, business starts with the acquisition of customers. However, any successful CRM initiative is highly dependent on a sound understanding of customers.








UNDERSTAND AND DIFFERENTIATE

Organizations cannot have a relationship with customers unless they understand them, what they value, what types of service are important to them, how and when they like so interact, and what they want to buy. True understanding is based on a combination of detailed analysis and interaction. Several activities are important:

 Profiling to understand demographics, purchase patterns and channel preference.

 Segmentation to identify logical unique groups of customers that tend to look
Alike and behave in a similar fashion. While the promise of "one-to-one" marketing sound good, we have not seen many organizations that have mastered the art of treating each customer uniquely. Identification of actionable segments is a practical place to start.

 Primary research to capture needs and attitudes.

 Customer valuation to understand profitability, as well as lifetime value or long




CUSTOMER SATISFACTION


Customer satisfaction means giving the customers what they really want, when they want it and the way they want it. It involves understanding customer expectations and meeting them fully.

It can be defined as” an outcome of purchase and use resulting from the buyer’s comparison of rewards and the costs of the purchase in relation to the anticipated consequences. (Churchill and Superman 1982, 493)

Customer is an individual or an organization. Their requirements are very
similar.
 Conformance of services to their requirements and its performance in actual stage
 Competitive prices
 Quality and reliability
 Prompt delivery
 Service







IMPORTANCE OF CUSTOMER SATISFACTION


Differentiation strategy: -

Satisfaction is quickly becoming the key to competitive posture within an industry. Initially, products or services secure life in the market by fulfilling a basic need. But only offering minimal functionality grants a product nothing than a commodity status. To ensure long-term market success, businesses have created brands. Brands allowed businesses to develop and sustain an image, differentiating one another’s products in the eyes of customer. Today most companies are leveraging branding to its maximum benefit.

To further differentiate brands, customer satisfaction is the most likely next strategy. Companies are realizing that the brand that best satisfies its customers not only keeps them longer, but also benefits from positive word of mouth.

Improved profitability: -

There is both an intuitive belief and empirical evidence that improved customer satisfaction will increase organizational profitability.


Improved customer retention: -

Satisfaction extends customer lifetimes and lifetime values. Also focusing on satisfaction helps to estimate negative word if mouth of dissatisfied customers. Losing a not satisfied customer is more severe than it sounds because one dissatisfied customer may speak to as many as nine others, increasing its dissatisfaction by nine folds.

Improved market share: -

There are always four sources of business for a firm. Four sources of customers in any purchase decision have been identified as: retained customers, customers switching from competition, customers new to the category and customers leaving the category. Different probabilities of success are associated

with each of these four classes of customers because retained customers exhibit probability for additional business, they deserve more attention and focus than they currently receives.


Customer Satisfaction has long reaching impact on the current and perhaps future viability of an organization. The cycle suggests that satisfied customers tolerate higher margins that can be used to better pay employees. This boosts employee moral, reducing employee turnover, which in turn helps to produce more satisfied customers and so on.


HOW TO ACHIEVE CUSTOMER SATISFACTION?








CUSTOMER RETENTION


The trend in marketing towards building relationships with customers continues to grow and marketers have become increasingly interested in retaining customers over the long run. Marketing analysts have identified satisfaction as a key determinant in a consumer’s decision making, relating to keeping or dropping a given product or service relationship.

According to Oliver, satisfaction is the consumer’s fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provided a pleasurable level of consumption related fulfillment, including level of under or over fulfillment.

Banks do spend a lot of money through different media to attract new customers to the business. Attracting new customers requires substantial skills and effort. However, these skilful efforts will be of little use if the bank suffers from high customer churn. Unless organizations pursue customer retention strategies, the problem cannot be solved. It is important to know how much loss the bank makes when it losses customers.




The key to customer retention is to offer continuous satisfaction to customers.

According to Philip Kotler, a highly satisfied customer

• Stay loyal and longer.
• Buys more as the companies introduces new products and upgrades existing products.
• Talks favourably about the company and its products.
• Pay less attention to competing brands and advertising and is less sensitive to price.
• Offers product or service ideas to the company.
• Costs less to serve than making new customers because transactions take place in a routine manner.


It is necessary, therefore, to measure customer satisfaction regularly by surveying the customers to know whether they are highly satisfied, indifferent, dissatisfied or highly dissatisfied. Customer complaints are one of the important sources to track the level of customer satisfaction. Speedy recovery of complaints results in a stronger customer base. In the words of Albrecht and Zemke, between 54% and 70% of the customers who register a complaint will do business again with the organization if their complaint is resolved.




The key to customer retention is relationship marketing. The service company should develop overtime the means of monitoring and evaluating the quality of relationship. There are two basic approaches that can be pursed to monitor the relationship: relationship survey and customer database.

The “three “levels of retention strategies:

• Level one : Financial Bonds

• Level two : Financial and Social Bonds.

• Level three : Financial, Social and Structural bonds.

1. Financial Bonds :-

At this level, customers are offered financial incentives either for greater volume purchases or for continuation of relationship for a long time.

2. Financial and Social Bonds:-

At this level, the firm intends to develop long – term relationships with customers through social as well as financial bonds. The customers are identified by name and services are customized to fit individual needs. Marketers are looking for new ways to keep in touch with their customers by providing a personal touch and building informal relationships.




3. Financial, Social and Structural Bonds:-

The strategy is to develop structural bonds along with financial and social bonds. Structural bonds are created by providing highly customized service to the clients. Specific customer needs are brought into organizational system to design new ways and to improve the offerings to the clients.


In service business, sometimes there is a possibility of things going wrong. Under such circumstances, a recovery strategy needs to be designed for retaining customers. Effective recovery is essential to save and even build relationships. Therefore, service firms should track and anticipate recovery opportunities.




























Overview

• ICICI Bank is India’s second – largest bank.

• The bank has total assets of Rs. 3,997.95 billion and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008.


• The bank has around 1,308 branches and 3,950 ATMs in India and presence in 18 countries.

• ICICI Bank offers wide range of banking products and financial services to corporate and retail customers.

• ICICI Bank has subsidiaries in the UK, Russia and Canada, branches in USA, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

• ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).




Global Recognition

• “Bank of the Year” and “Best Multi-Channel Strategy” - The Banker, UK
• “Best managed bank in Asia” – Euro money
• “Best Bank in India” and “Best Trade Finance Bank in India” - Global Finance
• “Best Consumer Internet Bank in India” - Global Finance
• “Bank of the Year from the Emerging Markets”- The Banker, UK
• “Excellence in retail banking” - Asian Bankers’ Journal














ORGANISATION STRUCTURE OF ICICI BANK


HISTORY OF CRM IN ICICI BANK


The CRM initiatives in India’s ICICI Bank hold together its compelling story of growth. Its growth in customer base, channels, and product and service offerings. Since its inception in 1995, the bank has grown to have 15.8 million customers, holding about 17 million accounts. The bank’s network has expanded to 610 branches and standalone counters and over 2,000 ATMs.

CRM has been envisioned by the bank to support its goals in sales, customer service, and analytics. Already, about 30.40% of the bank’s home loans are cross-sold to existing customers. Similar ratios have also been reported in the sale of insurance policies. Ratios of about 50.60% have been seen out of the credit cards and personal loans business. The bank’s stated intention is to take these ratios to as high as 60.75%. ICICI Bank states that these high levels of relationship maximization are made possible by how its CRM system is able to "know and understand the customer better.” which customer is most suitable for what kind of product and at what point in time."

In the area of service, the bank receives as many as 150,000 customer requests per day, a challenge not only to channel capacity but also to how the bank is able to ensure that each request is recorded, tracked, and resolved. Last, customer analytics have been used to support various strategic decisions of the bank. Recent strategic decisions of note are several anti attrition programs, the intended attrition of unprofitable customers, the imposition of fees, and various customer segment tactical initiatives.

ICICI Bank’s CRM capability is built on a “Teradata” data warehouse that integrates data from multiple sources, including the Oracle database and various flat files. The system provides users with information about each customer’s checking accounts, fixed deposits, credit cards, and other financial information. The bank has taken on the end-to-end proposition of SAS for enterprise intelligence, which offers a credible integrated approach to analytics, including data detection, data cleansing, data preparation, event detection, reporting and business intelligence, and campaign analysis. The bank estimates that it is able to track more than 1,200 parameters concerning demographics, transactions made, channel usage, and product relationships. Through Behavior Explorer and views, business users develop customer profiles and run ad hoc queries. Analysts then use the information to guide product development and marketing campaigns that are intended to address each individual’s total requirements, instead of just pushing a product. The success of cross-selling to existing customers has also been enabled by the bank’s growing capabilities in lead management. The home loans business unit, for example, has built a lead management system rolled out to about 700 users. The system is able to allocate leads, schedule meetings, provide a record of all interactions with the customer, and give reminders for customer follow-ups. A lead generation tool has also been developed in-house to capture and route
Product applications made over mobile phones.









CRM OF ICICI BANK


1. What is your understanding of CRM?

CRM, according to ICICI consists of following approaches:

[A] Getting personalized information on customers.
[B] What is the value of the relationship?
[C] Customized offerings to the customers
[D] Converting a prospective customer into a true customer.

[A] GETTING PERSONALIZED INFORMATION ON CUSTOMERS

The bank collects all the information about the customers for processing. ICICI bank has mainly 4 service offerings viz: loan account, saving account, current account and fixed deposits. Moreover, the bank has many customers in each category. So, they collect the data on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form.





[B] WHAT IS THE VALUE OF THE RELATIONSHIP?

After the collection of the personalized information on every customer, the department checks out the value of the relationship with each and every customer. Later, they decide how to approach the customer for knowing what his needs and wants are? After this is done, the company offers him the customized product.

[C] CUSTOMIZED OFFERINGS TO THE CUSTOMER –

The step which comes after deciding the value of the customer is that the company offers the person the customized product. Moreover, they also practice a concept called cross- selling over here. Cross – selling refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example If customer has saving account with the bank then we offer him loan, insurance and other investments.

[D] CONVERTING A PROSPECTIVE CUSTOMER INTO A TRUE CUSTOMER.

The last approach of CRM according to ICICI bank is that they try to convert the prospective customer into a true customer. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly.

The processes for delivering CRM

The tools and the processes are as follow –

• Customer application form
• Centralized software where the whole data is collected.
• Wide range of offering
• Cross – selling and
• Feedback forms

Customer application forms

Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants.

Centralized software where the whole data is collected

The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross –selling.




Wide range of offering

After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then is offers a more customized service.

Cross – selling

It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example If customer has savings account with the bank then they offer him a insurance, fixed deposits etc.

This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives us, the more are his chances of being special services offered.

Feedback forms

The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used, employee behavior and promptness in solving customer’s problems, are taken and they are analyzed.



CRM of ICICI different from other banks

Most banks have their own databases but because of the huge technological investments done by ICICI the databases in all the branches are integrated, which means they can be accessed from anywhere and at anytime. ICICI bank has tied up with Terradata Company for making their software and is the only bank doing this.
The difference can be known through matching tool parameter. This refers to, on the server of ICICI sum standards are set in terms of value of the customer and whenever the customer reaches the set standard, the server automatically informs the department to offer him another product.

How is CRM helping you in retaining and increasing the market share?

CRM helps to know the needs and wants of the customer. So, on the basis of this company can decide which product to offer to which customer.

More over, under CRM, we have identified that cross – selling is the best weapon. It enhances the relationship value with the customer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the company. This helps in retaining the market share.
Now, the satisfied customers help in the word- of – mouth promotion of the bank, which eventually increases our market share.



Does technology helps in practicing CRM?

Yes, the whole base for practicing CRM is technology. It helps in collecting the data, processing the data and then according to the available information offering different products to the customer through emails, call centre, pop ups during the transaction in the ATM.
















DIFFERENT CHANNELS FOR ACCESS SERVICES


Bank Branch ATM Phone Banking
Internet Banking Insta Banking Mobile Banking
Call Centre

BANK BRANCH

You can find a host of ICICI retail products at our widespread Bank Branch network-Bank Accounts, Credit and Debit cards, Bonds, Demat Accounts, Loans against Shares, etc.

ATM NETWORKS

 More than 3500 networked ATMs across the country
 Make balance enquiries
 Make cash withdrawals
 Free access to all ATMs
 Trilingual ATMs
 Payee name available on the Mini statement.
 Mini statement shows last 10 transactions
 Ledger Balance available in Mini statement.



PHONE BANKING
 24 hour manned Customer Care Center
 Interactive Voice Response (IVR) facility available.
 Bill pay requests
 Stop payment request
 Balance enquiries
 Give standing instructions for payments
 Open a Fixed Deposit
 Dial – a - draft


INTERNET BANKING

 Payment of Utility Bills-electricity, phone etc.
 Online Railway ticket booking
 3-in-1 Demat Account
 Inter Bank funds transfer (available in select cities)
 Third party transfers
 Credit Card bill payments
 Enable mobile banking alerts





Importance of Internet Banking for customers


Bill payments

You can pay your bills like electricity, telephone, gas etc, mobile phone bills and insurance premium bills etc online, or through phone banking. Just log on to icicibank.Com or call the phone banking number to do the same.

 Check the status of the payments made
 Query on all the bill payments made by you
 The bill pay service is absolutely free of cost.

Mobile Banking

 ICICI bank mobile banking enables you to bank while being on
the move.
 ICICI bank mobile banking can be divided into two broad categories of facilities:
 Alert facility: ICICI bank mobile banking alerts facility keeps you informed about the significant transactions in your accounts. It keeps you updated wherever you go.
 Request facility: ICICI bank mobile banking requests facility enables you to query for your account balance.



INSTA BANKING

ICICI Bank’s “Insta Banking” enables you to conduct banking transactions anytime from anywhere. You can avail of this anywhere-Anytime banking service through our 24-hour channels like ATM, Internet Banking, Instant Voice Response (IVR) Banking and Mobile Banking, and from 8 a.m. to 8 p.m.

These unique and user-friendly channels have brought banking services to your fingertips. From balance enquiry to checking cheque status to ordering a new cheque book, you can communicate with ICICI Bank from the comfort of your home or in the middle of a busy day at the office.

CALL CENTRE

MUMBAI CALL CENTRE

• Handle 25 different products with 10 million customers with 620 positions.

• Call centre is a cheaper channel than the branch, and often it is more convenient for the customer.






• The ability to serve across all product categories from a single location has enabled the bank to provide a level of service qualitatively superior to its competitors, and this is offered as a complementary extension of the branch capabilities.

• The relationship between the branches and the call centre is very good, and the branches are discovering how to focus their efforts on more rewarding service relationships.

• The biggest challenge is the people management side of the equation: your call centre service is going to be as good as your people. They have to be motivated; they have to empathize with the customer.
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Re: customer relationship management - September 21st, 2008

easy guide to CRm....c d attachments..........
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Re: Rahul's Projects Section - November 4th, 2008

CAN U PLEASE HELP ME WITH THE TOPIC "C.R.M. IN HOTEL INDUSTRY".
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Re: Rahul's Projects Section - November 4th, 2008

Quote:
Originally Posted by jas777 View Post
CAN U PLEASE HELP ME WITH THE TOPIC "C.R.M. IN HOTEL INDUSTRY".
All employees, at all properties, should have the training and up-to-date information that allows them to provide seamless, consistent, personalized service to the customer. According to Jens Thraenhart, director Internet strategy, Fairmont Hotels and Resorts, “A successful CRM and customer retention strategy in the hotel industry is dependent on the implementation at the property level. It is important to train front line employees to capture information from many offline touch points, in combination with online data capture. Training is vital to ensure consistency and cleanliness of guest information.” This information should be immediately available to front desk receptionists, call center agents, pit bosses, concierge and housekeeping staff, and so on, and should be served up at the right time.

chk this link for more...........

Where CRM in hospitality industry should go next?

WikiAnswers - What is the present scenario of hotel industry


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Re: customer relationship management
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Re: customer relationship management - April 25th, 2016

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Originally Posted by asimanand View Post
INTRODUCTION OF CRM


Today, banks are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. Banks have realized that managing Customer relationships is a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies. The key which takes the share price of the bank at top most level is the customer.

“Customer is the most important person for a business. He is not an interruption to our work but the purpose of it. He is not an outsider; he is a part of it. We are not doing him a favour; he is doing us a favour by giving us an opportunity to serve him.”

By Mahatma Gandhi


Many organizations have realized that to sustain in the market they have to do more than selling of their product. For this the only mantra is to provide customized and personalized services to customers, which in management is also known as practicing “Customer Relationship Management”. This concept is tremendously gaining importance in corporate circles and is emerging as the business theme for the 21st century.


CUSTOMER

A customer refers to individuals or households that purchase goods and services generated within the economy. The word historically derives from ”custom,” meaning “habit”, a customer was someone who frequented a particular shop, who made it a habit to purchase goods from there and with whom the shopkeeper had to maintain a relationship to keep their “custom,” meaning expected purchases in the future. Customer who was considered to be the king of market is now regarded as the emperor of market. Since all the organizations have the same technology and more or less the same price offering, it is only the customer’s loyalty which can take their business sky high.


RELATIONSHIP

A relationship is a specific connection between objects, entities or concepts. This bond can exist between an individual and an organization or between two individuals or between two organizations. These relationships are categorized as social relationships, causal relationship and mathematical or theoretical relationships which are between components of a modeled system. Herein, presence of both the parties is a must. Both cannot survive without each other.



MANANGEMENT

Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal. Managing of human resources, financial resources, technological and natural resources are the core activities of a business.

In today’s competitive environment, customer is not only the king but the emperor of the market. Two things a service provider has to keep in mind while performing business activities:

• Customer’s time is precious.
• Apart from this, there are several other service providers to serve his customer.

The personnel who manages these relationships with the customers is called Customer Relationship Manager and the process carried out by the bank is called Customer Relationship Management. The manager has certain set of responsibilities and goals to be achieved for his organization.The work are to maintain and enhance relationships with the valued customers.
Converting a stranger to a potential buyer and then to a loyal customer who does not change his loyalty even if there are cost benefits, this task is undertaken by the Customer Relationship Manager. Essentially he reshapes business process to meet customer expectations, empower employees to best serve the customer and determine how to most efficiently and effectively deliver on those needs.
DEFINITIONS OF CRM



“ Customer Relationship Management is an integrated effort to maintain and build up a network with individual consumers and to continuously strengthen the network for mutual benefits of both the sides, through interactive, individualized and value added contacts over a long period of time.”

Shani and Chalsani

“Customer Relationship Management is to focus on an individual or one to one relationship with the customers that integrate database knowledge with long term customer’s retention and the growth strategy.”

Peppers and Rogers

“The coherent management of contacts and interactions with customers’. They identify that “The essence of a CRM system is that customer data is collected from all touch points and deposited into one central data pool for more effective marketing, better order processing, production and accounting.”

The chartered Institute of Marketing

OBJECTIVE OF CRM



• CRM aims at integrating all business strategies that places the customer at the centre of a business consciousness.

• Aligning of organization towards customers.

• Integrating your customer touch points.

• Knowing and understanding your customers and potential customers.

• Establishing and managing relationships with customers.










PRINCIPLES OF CRM


Differentiate Customers

All 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 same product 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 customers is
 Sensitivities, Preferences and personalities.
 Life style and age.
 Culture background and education
 Physical and psychological characteristics.

Differentiating Offerings
 Low value customer requiring high value customer offerings.
 Low value customer with potential to become high value in near future.
 High value customer requiring high value service.
 High value customer requiring low value service.


Keeping existing customers

Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improves as well as customer retention with the organization.

Maximizing life time value

Exploit 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.


Increase Loyalty

Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to 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 low cost high margin sales.



MULTIPLE MARKETING MODEL






Figure 1.1




Relationships and Interaction with customers:

With the new marketing approach it becomes an imperative for businesses to formulate their Marketing activities to, and to build relationships, networks, and interactions with, a number of different, but often equally important markets.

It is apparent from the figure that the customer market is often the key market. the importance for a business of retaining its customers, with evidence suggesting that retention of customers leads to increased market share and eventually bigger profits. Marketing tools that businesses can employ for retaining customers may, therefore, provide for a competitive advantage.

CRM-oriented businesses market their products and services through relationships and interactions with multiple markets, most notably the customer market. This is why relationship marketing is termed 'customer relationship management' when it emphasizes the customer market in particular.
The Referral market:
Constitutes of customers who have been referred to the business by way of word-of-mouth.
The Influencer market
Constitutes of individuals, organizations, or institutions that directly or,
Indirectly, impact on the business.
The internal market
Constitutes of the business’ own employees.

Segmentation of Customers



This process is key, as it permits Bank to better understand the type of clients it is dealing with, and to better adapt its marketing communication.


The bank has chosen to combines external and internal information in order to build an effective and efficient segmentation. The important elements to consider for segmentation are the clients' attitude and needs; socio- demographic situation; actual and potential profitability; and behavior in terms of distribution channel use and products. An excellent segmentation will also enable the bank to find and focus on clients who will be considered as referrals by others. Their recommendations of the bank will be taken seriously, and the potential future client base widens. The bank has identified five groups according to their risk level, distribution use, revenues, interest in insurance, and socio-demographics.







Segment Important criteria to adapt CRM Relationships
First segment (18 per cent)  Enjoy high risk levels
 Frequent use of self-banking, telephone, e-mail, etc.
 Keen to buy insurance with their bank
Second segment (18 per cent)  Enjoy low risk levels
 Most frequent use of self-banking, telephone, e-mail, fax, etc
 Not keen on buying insurance with their bank
Third segment (23 per cent)  Enjoy low risk levels
 Frequent agency visitors; no telephone, etc.; seldom use of self banking
 Do not consider bank as good insurance providers
Fourth segment (32 per cent)  Enjoy low risk levels
 Most frequent agency visitors; no telephone, etc.; very seldom
 use self-banking
 Not opposed to buying insurance with their bank
Fifth segment (9 per cent)  Enjoy medium risk levels
 Frequent agency visitors and frequent use of self-banking; no
 Telephone or e-mail, etc.
 Particularly opposed to buying insurance with their bank

CUSTOMER LIFE CYCLE



Customer Life Cycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using and maintaining loyalty to a product or service. Marketing analysts Jim Sterne and Matt Cutler have developed a matrix that breaks the customer life cycle into five distinct steps: reach, acquisition, conversion, retention and loyalty.


This means getting a potential customer’s attention, teaching them what you have to offer, turning them into a paying customer, and then keeping them as a loyal customer whose satisfaction with the product or service urges other customers to join the cycle.




















The customer life cycle is often depicted by an ellipse, representing the fact that customer retention truly is a cycle and the goal of effective CRM is to get the customer to move through the cycle again and again.


There are many types of current and savings account, and you wish to buy property and so take out a mortgage. You could take out a car loan, to buy a vehicle to get you to work. It would also be advisable to take out pension. As you progress through your career you begin your own family, and save for your own children education. A number of savings plans and schemes and ultimately ICICI offer you pension planning’s.











THE CRM BUSINESS CYCLE



As shown in the diagram, for any organization, business starts with the acquisition of customers. However, any successful CRM initiative is highly dependent on a sound understanding of customers.








UNDERSTAND AND DIFFERENTIATE

Organizations cannot have a relationship with customers unless they understand them, what they value, what types of service are important to them, how and when they like so interact, and what they want to buy. True understanding is based on a combination of detailed analysis and interaction. Several activities are important:

 Profiling to understand demographics, purchase patterns and channel preference.

 Segmentation to identify logical unique groups of customers that tend to look
Alike and behave in a similar fashion. While the promise of "one-to-one" marketing sound good, we have not seen many organizations that have mastered the art of treating each customer uniquely. Identification of actionable segments is a practical place to start.

 Primary research to capture needs and attitudes.

 Customer valuation to understand profitability, as well as lifetime value or long




CUSTOMER SATISFACTION


Customer satisfaction means giving the customers what they really want, when they want it and the way they want it. It involves understanding customer expectations and meeting them fully.

It can be defined as” an outcome of purchase and use resulting from the buyer’s comparison of rewards and the costs of the purchase in relation to the anticipated consequences. (Churchill and Superman 1982, 493)

Customer is an individual or an organization. Their requirements are very
similar.
 Conformance of services to their requirements and its performance in actual stage
 Competitive prices
 Quality and reliability
 Prompt delivery
 Service







IMPORTANCE OF CUSTOMER SATISFACTION


Differentiation strategy: -

Satisfaction is quickly becoming the key to competitive posture within an industry. Initially, products or services secure life in the market by fulfilling a basic need. But only offering minimal functionality grants a product nothing than a commodity status. To ensure long-term market success, businesses have created brands. Brands allowed businesses to develop and sustain an image, differentiating one another’s products in the eyes of customer. Today most companies are leveraging branding to its maximum benefit.

To further differentiate brands, customer satisfaction is the most likely next strategy. Companies are realizing that the brand that best satisfies its customers not only keeps them longer, but also benefits from positive word of mouth.

Improved profitability: -

There is both an intuitive belief and empirical evidence that improved customer satisfaction will increase organizational profitability.


Improved customer retention: -

Satisfaction extends customer lifetimes and lifetime values. Also focusing on satisfaction helps to estimate negative word if mouth of dissatisfied customers. Losing a not satisfied customer is more severe than it sounds because one dissatisfied customer may speak to as many as nine others, increasing its dissatisfaction by nine folds.

Improved market share: -

There are always four sources of business for a firm. Four sources of customers in any purchase decision have been identified as: retained customers, customers switching from competition, customers new to the category and customers leaving the category. Different probabilities of success are associated

with each of these four classes of customers because retained customers exhibit probability for additional business, they deserve more attention and focus than they currently receives.


Customer Satisfaction has long reaching impact on the current and perhaps future viability of an organization. The cycle suggests that satisfied customers tolerate higher margins that can be used to better pay employees. This boosts employee moral, reducing employee turnover, which in turn helps to produce more satisfied customers and so on.


HOW TO ACHIEVE CUSTOMER SATISFACTION?








CUSTOMER RETENTION


The trend in marketing towards building relationships with customers continues to grow and marketers have become increasingly interested in retaining customers over the long run. Marketing analysts have identified satisfaction as a key determinant in a consumer’s decision making, relating to keeping or dropping a given product or service relationship.

According to Oliver, satisfaction is the consumer’s fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provided a pleasurable level of consumption related fulfillment, including level of under or over fulfillment.

Banks do spend a lot of money through different media to attract new customers to the business. Attracting new customers requires substantial skills and effort. However, these skilful efforts will be of little use if the bank suffers from high customer churn. Unless organizations pursue customer retention strategies, the problem cannot be solved. It is important to know how much loss the bank makes when it losses customers.




The key to customer retention is to offer continuous satisfaction to customers.

According to Philip Kotler, a highly satisfied customer

• Stay loyal and longer.
• Buys more as the companies introduces new products and upgrades existing products.
• Talks favourably about the company and its products.
• Pay less attention to competing brands and advertising and is less sensitive to price.
• Offers product or service ideas to the company.
• Costs less to serve than making new customers because transactions take place in a routine manner.


It is necessary, therefore, to measure customer satisfaction regularly by surveying the customers to know whether they are highly satisfied, indifferent, dissatisfied or highly dissatisfied. Customer complaints are one of the important sources to track the level of customer satisfaction. Speedy recovery of complaints results in a stronger customer base. In the words of Albrecht and Zemke, between 54% and 70% of the customers who register a complaint will do business again with the organization if their complaint is resolved.




The key to customer retention is relationship marketing. The service company should develop overtime the means of monitoring and evaluating the quality of relationship. There are two basic approaches that can be pursed to monitor the relationship: relationship survey and customer database.

The “three “levels of retention strategies:

• Level one : Financial Bonds

• Level two : Financial and Social Bonds.

• Level three : Financial, Social and Structural bonds.

1. Financial Bonds :-

At this level, customers are offered financial incentives either for greater volume purchases or for continuation of relationship for a long time.

2. Financial and Social Bonds:-

At this level, the firm intends to develop long – term relationships with customers through social as well as financial bonds. The customers are identified by name and services are customized to fit individual needs. Marketers are looking for new ways to keep in touch with their customers by providing a personal touch and building informal relationships.




3. Financial, Social and Structural Bonds:-

The strategy is to develop structural bonds along with financial and social bonds. Structural bonds are created by providing highly customized service to the clients. Specific customer needs are brought into organizational system to design new ways and to improve the offerings to the clients.


In service business, sometimes there is a possibility of things going wrong. Under such circumstances, a recovery strategy needs to be designed for retaining customers. Effective recovery is essential to save and even build relationships. Therefore, service firms should track and anticipate recovery opportunities.




























Overview

• ICICI Bank is India’s second – largest bank.

• The bank has total assets of Rs. 3,997.95 billion and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008.


• The bank has around 1,308 branches and 3,950 ATMs in India and presence in 18 countries.

• ICICI Bank offers wide range of banking products and financial services to corporate and retail customers.

• ICICI Bank has subsidiaries in the UK, Russia and Canada, branches in USA, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

• ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).




Global Recognition

• “Bank of the Year” and “Best Multi-Channel Strategy” - The Banker, UK
• “Best managed bank in Asia” – Euro money
• “Best Bank in India” and “Best Trade Finance Bank in India” - Global Finance
• “Best Consumer Internet Bank in India” - Global Finance
• “Bank of the Year from the Emerging Markets”- The Banker, UK
• “Excellence in retail banking” - Asian Bankers’ Journal














ORGANISATION STRUCTURE OF ICICI BANK


HISTORY OF CRM IN ICICI BANK


The CRM initiatives in India’s ICICI Bank hold together its compelling story of growth. Its growth in customer base, channels, and product and service offerings. Since its inception in 1995, the bank has grown to have 15.8 million customers, holding about 17 million accounts. The bank’s network has expanded to 610 branches and standalone counters and over 2,000 ATMs.

CRM has been envisioned by the bank to support its goals in sales, customer service, and analytics. Already, about 30.40% of the bank’s home loans are cross-sold to existing customers. Similar ratios have also been reported in the sale of insurance policies. Ratios of about 50.60% have been seen out of the credit cards and personal loans business. The bank’s stated intention is to take these ratios to as high as 60.75%. ICICI Bank states that these high levels of relationship maximization are made possible by how its CRM system is able to "know and understand the customer better.” which customer is most suitable for what kind of product and at what point in time."

In the area of service, the bank receives as many as 150,000 customer requests per day, a challenge not only to channel capacity but also to how the bank is able to ensure that each request is recorded, tracked, and resolved. Last, customer analytics have been used to support various strategic decisions of the bank. Recent strategic decisions of note are several anti attrition programs, the intended attrition of unprofitable customers, the imposition of fees, and various customer segment tactical initiatives.

ICICI Bank’s CRM capability is built on a “Teradata” data warehouse that integrates data from multiple sources, including the Oracle database and various flat files. The system provides users with information about each customer’s checking accounts, fixed deposits, credit cards, and other financial information. The bank has taken on the end-to-end proposition of SAS for enterprise intelligence, which offers a credible integrated approach to analytics, including data detection, data cleansing, data preparation, event detection, reporting and business intelligence, and campaign analysis. The bank estimates that it is able to track more than 1,200 parameters concerning demographics, transactions made, channel usage, and product relationships. Through Behavior Explorer and views, business users develop customer profiles and run ad hoc queries. Analysts then use the information to guide product development and marketing campaigns that are intended to address each individual’s total requirements, instead of just pushing a product. The success of cross-selling to existing customers has also been enabled by the bank’s growing capabilities in lead management. The home loans business unit, for example, has built a lead management system rolled out to about 700 users. The system is able to allocate leads, schedule meetings, provide a record of all interactions with the customer, and give reminders for customer follow-ups. A lead generation tool has also been developed in-house to capture and route
Product applications made over mobile phones.









CRM OF ICICI BANK


1. What is your understanding of CRM?

CRM, according to ICICI consists of following approaches:

[A] Getting personalized information on customers.
[B] What is the value of the relationship?
[C] Customized offerings to the customers
[D] Converting a prospective customer into a true customer.

[A] GETTING PERSONALIZED INFORMATION ON CUSTOMERS

The bank collects all the information about the customers for processing. ICICI bank has mainly 4 service offerings viz: loan account, saving account, current account and fixed deposits. Moreover, the bank has many customers in each category. So, they collect the data on one server and thus the company gets the personalized information on each customer by asking them to fill the information in customer application form.





[B] WHAT IS THE VALUE OF THE RELATIONSHIP?

After the collection of the personalized information on every customer, the department checks out the value of the relationship with each and every customer. Later, they decide how to approach the customer for knowing what his needs and wants are? After this is done, the company offers him the customized product.

[C] CUSTOMIZED OFFERINGS TO THE CUSTOMER –

The step which comes after deciding the value of the customer is that the company offers the person the customized product. Moreover, they also practice a concept called cross- selling over here. Cross – selling refers to offering another product from the service offering of the bank to the customer which he has not gone for. Example If customer has saving account with the bank then we offer him loan, insurance and other investments.

[D] CONVERTING A PROSPECTIVE CUSTOMER INTO A TRUE CUSTOMER.

The last approach of CRM according to ICICI bank is that they try to convert the prospective customer into a true customer. Right from the moment the inquiry comes, they follow- up the customer and then make him to come to the bank occasionally and then regularly.

The processes for delivering CRM

The tools and the processes are as follow –

• Customer application form
• Centralized software where the whole data is collected.
• Wide range of offering
• Cross – selling and
• Feedback forms

Customer application forms

Bank collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants.

Centralized software where the whole data is collected

The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross –selling.




Wide range of offering

After collecting the data from the customer, team decides what product to offer to which customer. In case the bank recognizes you as a valuable customer then is offers a more customized service.

Cross – selling

It refers to offering another product from the service offering of the bank to the customer which he has not gone for. For example If customer has savings account with the bank then they offer him a insurance, fixed deposits etc.

This depends on the value of the customer to the bank. Cross selling is not offered to every customer. It depends on how loyal the customer is to the bank. The more business he gives us, the more are his chances of being special services offered.

Feedback forms

The bank distributes feedback forms at all its branches. The customer feedbacks on the service, technology used, employee behavior and promptness in solving customer’s problems, are taken and they are analyzed.



CRM of ICICI different from other banks

Most banks have their own databases but because of the huge technological investments done by ICICI the databases in all the branches are integrated, which means they can be accessed from anywhere and at anytime. ICICI bank has tied up with Terradata Company for making their software and is the only bank doing this.
The difference can be known through matching tool parameter. This refers to, on the server of ICICI sum standards are set in terms of value of the customer and whenever the customer reaches the set standard, the server automatically informs the department to offer him another product.

How is CRM helping you in retaining and increasing the market share?

CRM helps to know the needs and wants of the customer. So, on the basis of this company can decide which product to offer to which customer.

More over, under CRM, we have identified that cross – selling is the best weapon. It enhances the relationship value with the customer. This satisfies the customer and that is the reason why the customer keeps on coming again and again to the company. This helps in retaining the market share.
Now, the satisfied customers help in the word- of – mouth promotion of the bank, which eventually increases our market share.



Does technology helps in practicing CRM?

Yes, the whole base for practicing CRM is technology. It helps in collecting the data, processing the data and then according to the available information offering different products to the customer through emails, call centre, pop ups during the transaction in the ATM.
















DIFFERENT CHANNELS FOR ACCESS SERVICES


Bank Branch ATM Phone Banking
Internet Banking Insta Banking Mobile Banking
Call Centre

BANK BRANCH

You can find a host of ICICI retail products at our widespread Bank Branch network-Bank Accounts, Credit and Debit cards, Bonds, Demat Accounts, Loans against Shares, etc.

ATM NETWORKS

 More than 3500 networked ATMs across the country
 Make balance enquiries
 Make cash withdrawals
 Free access to all ATMs
 Trilingual ATMs
 Payee name available on the Mini statement.
 Mini statement shows last 10 transactions
 Ledger Balance available in Mini statement.



PHONE BANKING
 24 hour manned Customer Care Center
 Interactive Voice Response (IVR) facility available.
 Bill pay requests
 Stop payment request
 Balance enquiries
 Give standing instructions for payments
 Open a Fixed Deposit
 Dial – a - draft


INTERNET BANKING

 Payment of Utility Bills-electricity, phone etc.
 Online Railway ticket booking
 3-in-1 Demat Account
 Inter Bank funds transfer (available in select cities)
 Third party transfers
 Credit Card bill payments
 Enable mobile banking alerts





Importance of Internet Banking for customers


Bill payments

You can pay your bills like electricity, telephone, gas etc, mobile phone bills and insurance premium bills etc online, or through phone banking. Just log on to icicibank.Com or call the phone banking number to do the same.

 Check the status of the payments made
 Query on all the bill payments made by you
 The bill pay service is absolutely free of cost.

Mobile Banking

 ICICI bank mobile banking enables you to bank while being on
the move.
 ICICI bank mobile banking can be divided into two broad categories of facilities:
 Alert facility: ICICI bank mobile banking alerts facility keeps you informed about the significant transactions in your accounts. It keeps you updated wherever you go.
 Request facility: ICICI bank mobile banking requests facility enables you to query for your account balance.



INSTA BANKING

ICICI Bank’s “Insta Banking” enables you to conduct banking transactions anytime from anywhere. You can avail of this anywhere-Anytime banking service through our 24-hour channels like ATM, Internet Banking, Instant Voice Response (IVR) Banking and Mobile Banking, and from 8 a.m. to 8 p.m.

These unique and user-friendly channels have brought banking services to your fingertips. From balance enquiry to checking cheque status to ordering a new cheque book, you can communicate with ICICI Bank from the comfort of your home or in the middle of a busy day at the office.

CALL CENTRE

MUMBAI CALL CENTRE

• Handle 25 different products with 10 million customers with 620 positions.

• Call centre is a cheaper channel than the branch, and often it is more convenient for the customer.






• The ability to serve across all product categories from a single location has enabled the bank to provide a level of service qualitatively superior to its competitors, and this is offered as a complementary extension of the branch capabilities.

• The relationship between the branches and the call centre is very good, and the branches are discovering how to focus their efforts on more rewarding service relationships.

• The biggest challenge is the people management side of the equation: your call centre service is going to be as good as your people. They have to be motivated; they have to empathize with the customer.
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