Final project report on customer relationship management in bank

final project report on customer relationship management in bank

Customer Relationship Management, Project Report on Customer According to Ashoka dutt head of Citi Bank “the idea of CRM is to know the individual customer intimately, And the final product is sold to the wholesalers and retailers. PROJECT REPORT ON “CUSTOMER RELATIONSHIP MANAGEMENT IN . will be able to build a relationship with their customers that can last a lifetime. and. With a view to achieving the aforesaid objectives of the bank, SME Loan is of paramount shows customer relationship management of Mercantile Bank Limited, which includes The third and last chapter is the project.

For small or medium enterprises, the requirement is different from that of big firms. Most CRM packages provide excellent sales force automation, but not equally good integration with computer telephony, or with web. These are adequate for small and medium firms but not for large firms.

A mix of different software to link the databases, data warehousing software, contact management software, and a CRM package will go a long way in helping to upgrade the small companies. Other internet enabled applications available are enterprise resource planning packages, e-commerce applications, relationship management packages, enterprise portal applications etc. One can adopt the best practices to slash costs, introduce efficiencies into supply chain and internal operations.

This proves to show the numerous choices available in this field. For more than years, banks were using branch based operations. Since the s, things have been really changing with the advent of multiple technologies and applications. Different organisations got affected from this revolution; the banking industry is one of it Sherif, In this technology revolution, technology based remote access delivery channels and payment systems surfaced. ATM displaced cashier tellers, telephone represented by call centers replaced the bank branch, internet replaced the mail, credit cards and electronic cash replaced traditional cash transactions, and interactive television will replace face-to-face transactions Sherif, In recent years, banks have moved towards marketing orientation and the adoption of relationship banking principles.

The key motivators for embracing marketing principles were the competitive pressure that arose from the deregulation of the financial services market particularly in India. This essentially exposed clearing banks and the retail banking market to increased competition and led to a blurring of boundaries in many traditional product markets Durkin, The bank would need a complete view of its customers across the various systems that contain their data.

If the bank could track customer behaviour, executives can have a better understanding, a predicative future behaviour and customer preferences.

The data and applications can help the bank to manage its customer relationship to continue to grow and evolve Dyche, According to Stone et al. In the area of strategy, they are trying to: Create a customer-focused organisation and infrastructure. Gaining accurate picture of customer categories. Assess the lifetime value of customers. Maximise the profitability of each customer relationship. Understand how to attract and keep the best customers.

Maximise rate of return on marketing campaigns. CRM is developing into a major element of corporate strategy for many organizations Rangarajan, ; Shibu, A greater focus on CRM is the only way the banking industrycan protect its market share and boost growth.

final project report on customer relationship management in bank

With intensifying competition, declining market share, deregulations, smarter and more demanding customers, there is competition between the banks to attain a competitive advantage over one another or for sustaining the survival in competition. In India, the banking sector has been operating in a very stable environment from last thirty - forty years.

In current scenario of banking sector, the falling of interest rates and tough competition between these players had made Indian bankers to realise that the purpose of their business is to create and retain a customer and to see that the entire business process is consistent with an integrated effort to discover, retain and satisfy customer needs. But the success of' CRM Strategy depends upon its ability to understand the needs of the customer and to integrate them with the organisation's strategy, people, technology and business process.

Financial services are in a structural change whereby competition and customer demands are increasing. However, the best is yet to come. Speaking of trends and challenges ahead, they agreed that CRM is here to stay but will evolve. Erin Kinikin, vice president of CRM for Giga Information Group set the tone echoed by other participants by saying CRM is one of the most dramatic, fundamental changes in the history of business. CRM is fundamentally the expression of the customer-centric business philosophy.

It is how you respond to the fact that customers are now the drivers in our economy. Insight Technology Group just finished its annual state of the CRM marketplace review, and managing partner Jim Dickie sees major changes. A major West Coast financial institution is realizing that you ve got to sell the way customers want to buy.

Lee traces the rise of customer power concurrent with what we now call CRM from the early 80s, when the supply and demand curves in our economy really started switching over from being a predominately seller-driven economy to a predominately buyer-driven economy.

It started that long ago? Dickies West Coast financial firm recently did a direct mail campaign that invites people to respond any way they like, be it via the company Web site, call center, branch office or whatever, but wherever they come in, that information is shared with the rest of the sites. Vertical solutions are another hot trend. We are approaching the end of the one size fits all CRM market, and entering an age of verticalization and specialization, Kinikin says.

There are different types of customers, different types of business models and selling strategies, and over time there will be different CRM software to support these different models. What you had in the past was companies developing a tool set, and saying go and customize it for your industry. But now you have vendors coming into the market saying they will give you a percent solution for a specific vertical.

Shahnam went so far as to predict that in a few years, there will be no horizontal or generic CRM. Dickie sees it as an efficient versus effective issue: A lot of the stuff we have done has been focused on efficiency, like giving the sales rep more time to make average sales calls. We are realizing the issue is really effectiveness. I need my average rep to make great calls.

I need my average service person to make great service calls. CRM customers are also demanding more and more knowledge management functionality. Essentially, in the e-Business economy, you need to deliver customer organizational knowledge on demand, anytime anywhere, Kinikin said. We are seeing a push to a lot more functionality being put into the CRM tools themselves, agrees Dickie.

Lead tracking systems are great, but what I really want now is knowledge management systems, sales coaching systems, and service intelligence systems to help take the next step.

final project report on customer relationship management in bank

In short, the future of CRM is bright indeed. CRM will become deeply ingrained as a business strategy for most companies. Technology will evolve while technical and organizational challenges are overcome.


Much will change in the years ahead, but one thing is certain: CRM is a journey, not a destination, and customers have their hands on the road map and the steering wheel. Mean, percentage, Standard deviation were used for data analysis.

final project report on customer relationship management in bank

Findings of this research have been Define and explained with the help of bar diagram and pie charts. To know whether the customers are satisfied with services provided by Axis bank. To know whether the customers are satisfied with the staff employed in Axis bank. To know whetherthe customers are satisfied with promotional factors ofAxis bank.

To know whether the customers are satisfied with the working environment of Axis bank. Long-term customers are more likely to become a referral source.

Customers in long-term relationships are more comfortable with the service, the organization, methods and procedures. This helps reduce operating cost and costs arising out of customer error. With increased number of banks, products and services and practically nil switching costs, customers are easily switching banks whenever they find better services and products.

Banks are finding it tough to get new customers, and moreimportantly,retain existing customers. Some customers might have given biased information. There might be mistakes in interpreting the information obtained correctly.

Due to time constraints the study was limited in extent. We could not reach all the departments due to lack of time 5. Finally, this study did not examine whether courteous expressions on personal connections play a role in other customer outcomes such as loyalty and word-of-mouth referrals. Data was collected by the customer respondents of AXIS bank. The sample size of customers was taken of 86 customers from AXIS bank.

The sample was classified based on age, gender, income level, occupation and most preferred delivery channel. Random sampling has been used in this research paper. For this research paper variety of questions has been used to find out complete and proper information about the topic. Findings of this research paper have been defined and explained with the help of bar diagram and pie charts.

The data about customers has been illustrated in the following: Number of male was more than that of female. It shows the age of respondents. Table presented that bulk of respondents were from age group. It has been observed that respondents of earning group were 46 It shows the number of customers using ATM. Delivery of channels of Banks ATM, internet banking, mobile banking, personal banking, are the delivery channels of banks.

People like ATM most due to its convenience. It has been demonstrated, which delivery services were most preferred by respondents. Service factors, staff factors, promotional factor and environment factor are the factors on which CRM depends.

For analysing the data,Mean has been used. Different Mean show the different label of satisfaction in the above table. It demonstrates that highest mean is 4. Respondents are satisfied from deposit service processing speed 3.

It indicates that respondents are very much satisfied from friendliness and politeness of employee 3. Respondents are satisfied from individual attention to customer 3. It indicates that respondents are less satisfied from bank advertising regarding services 2. It indicates that respondents are very much satisfied from location of the bank 4. Respondents are satisfied from the drinking water facility 3.

This would help Axis bank to emerge as no one private sector bank in the country. CRM, according to Axis Bank consists of the following approaches: Getting personalized information on customers. What is the value of the relationship? Customized offerings to the customers. Converting a prospective customer into a true customer.

The bank collects all the information about the customers for processing. Axis bankhas mainly 4 service offerings viz: Moreover, the bank has many customers in each category. So, they collect thedataon one server and thus the company gets the personalized information on each customer byasking them to fill the information in customer application form. After the collection of the personalized information on every customer, thedepartment 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? Afterthis is done, thecompany offers him the customized product. The step which comes after deciding the value of the customer is that the company offersthe person the customized product.

Moreover, they also practice a concept called cross- sellingover 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 savingaccount with the bank then we offer him loan, insurance and other investments.

The last approach of CRM according to Axis bank is that they try to convert theprospective customer into a true customer. Right from the moment the inquiry comes, theyfollow up the customer and then make him to come to the bank occasionally and thenregularly.

Bank collects all the data from customer application form and gets thepersonalizedinformation to know which product to offer to which customer. This process helps incollecting the data and knowing what the customer wants.

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.

After collecting the data from the customer, team decides what product to offer to whichcustomer. In case the bank recognizes you as a valuable customer then it offers a morecustomized service. It refers to offering another product from the service offering of the bank to the customerwhich he has not gone for. For example,If customer has savings account with the 47 bank then they offer him a insurance, fixed deposits etc.

This depends on the value of the customer tothe bank.

final project report on customer relationship management in bank

Cross -selling is not offered to every customer. It depends on how loyal the customeris to the bank. The more business he gives us, the more are his chances of being specialservices offered. The bank distributes feedback forms at all its branches. 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. It has beenobserved 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 againand 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 the market share. The difference can be known through matchingtool parameter.

This refers to; on the server of Axis sum standards are set in terms of valueof the customer and whenever the customer reaches the set standard, the server automaticallyinforms the department to offer him another product. Mean and Standard Deviation is the most popular method of evaluating customer relationships with bank.

Most of the customers prefer ATM which shows that they are active customers of bank. All the services offered by bank are satisfying especially safety deposits, which enhances their faith towards the bank. The bank hinders in advertising and promotional components which is a hindrance in long-run.

The environment of the bank is highly favorable to the customers and is in accordance with their requirements and facilities. Customer relationship management has become need of an hour without which it is difficult to survive in the competitive market 9.

This helps to reduce operating cost and costs arising out. The management must commit itself to allocate major sources and adequate time to customer relationship development.

Customer Relationship Management Projects

Ensure that relationship management should contribute to competitive strategies of the this industry. Let services help the customers at all levels to gain satisfaction. Other methods can also be used such as personal consultancy, fast processing, listen to grievances of the users. Educate more customers about the various banking services available and how to use them. Bank should concentrate on its promotional activities which is equally important in long-run.

Bank has to ensure the security of ATM cards, credit cards, debit cards and personal accounts. This study strongly supports the connection that consumer were more satisfiedwith professional service provider who engaged in both courteous expressions and personal connections forms of sociality.

Moreover, finding revealed that regardless of services context customers expect service provider to be courteous usually ,most conversation begin or endwith a courtesy expression and includes some form of personal connection content.


Identify your customers To launch a one to one initiative the company must be able to locate and contact a fair number of customers or at least a substantial portion of its valuable customers. It is crucial to know the customer details as much as possible, not just their names or address, but their habits, preferences and so forth. Differentiating your customers Customers are different in two principal ways, they represent different levels of value and have different needs.

Once the company identifies its customers differentiating them will help the company to focus its efforts to gain the most advantage with the most valuable customers. Interacting with the customer Interaction is also a crucial component of a successful CRM initiative. It is important to remember that interaction just not occur through marketing and sales channels, customer interact in many different ways with many different areas of the organization so to foster relationship all the areas of the organization must be accessible to the customer.

Significance of the study The CRM customer relationship management is an integrated effort to strengthen the network of relationship for the mutual benefit of both the parties. They have to retain the customers for a long time to avail the benefit of their relations.

The customer relationship management is one of the effective tool to identify, establish and maintain relationship with the customers. With the help of this research we are going to identify the importance of CRM in textile industry. Focus of the problem The textile industry is basically manufacturing based industry.

Through this study we are going to identify the importance of CRM in the textile industry. How it is benefited from CRM? Is their any relevance of implementing CRM? And what role does information technology can play in CRM? To study the current practices of CRM. To find out the impact of CRM on the profitability of the organization. To study the factors affecting the CRM practices. To study the role of information technology in CRM. Research Methodology A research design is simply a plan for study in collecting and analyzing the data.

It helps the researcher to conduct the study in an economical method and relevant to the problem. Research methodology is a systematic way to solve a research problem. The methodology should combine economy with efficiency. Research design The study conducted here is exploratory cum descriptive.

Collection of the data There are two types of data. These data are basically observed and collected by the researcher for the first time. I have used primary data for my project work. Comments and complaints are taken through face to face interviews. Customer retention is also improving. It is because the number of retailers is very large as compared to the wholesalers. So it is not possible for the company to approach to the retailers.

Therefore the company sells to the wholesalers and then wholesalers sell to the retailers. Customers are encouraged to give suggestions and complaints so that the company can improve its working and services. Different customers have different requirements. So the company customize its product accordingly to satisfy the customers. It also gives more choice to the customers. To get the information about the customers and to measure the satisfaction the company conducts surveys.

The company gives credit facility to its customers to increase the sales volume. If the company do not sell on credit the customers may switch over to other companies. The company maintains frequent communication with the customers. As soon as the product is ready or a new product is launched the information is provided to the customers. Communication is also necessary to maintain the interest of the customers in the company.

The company gives concession to its regular customers so as to retain its most valuable and profitable customers. The company regularly reviews the business process in order to eliminate non value-adding activities, to reduce the cost and to make the whole work efficient and effective. If the internal customers are not satisfied and there is lack of coordination among the departments then it will affect the external customers also.

Conclusion From this study it can be concluded that the customer relationship management in Company is satisfactory. The company is using various CRM practices like customization of the product, maintaining interaction with the customers regularly and providing good quality product etc.

Customer relationship management has a certain impact on the profitability of the company. Customer response rate towards marketing activities is also improving.