Omi Project

8/4/2019 Omi Project

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CUSTOMER RELATIONSHIP MANAGEMENT

IN BANKS

K.J. SOMAIYA COLLEGE OF ARTS AND COMMERCE

Vidyavihar, Mumbai-400077 .

PROJECT ON

CRM IN BANKS

BANKING AND INSURANCE

SEMISTER-V

SUBMITTED BY: PROJECT GUIDE

OMKAR BHANSE MRS. KANAK AGARWAL

ROLL NO. 04


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CERTIFICATE

This is to certify that MR . OMKAR Y. BHANSE ofB.COM

BANKING AND INSURANCE SEMISTER-V (2011-2012) has

successfully completed the project on CRM IN BANKS underthe guidance ofDR. KANAK AGARWAL.

CO-ORDINATOR PRINCIPAL

(Dr. KANAK AGARWAL) (Dr. MRS. SUDHA VYAS )

INTERNAL EXTERNAL

EXAMINER EXAMINER

PROJECT GUIDE

(Dr. KANAK AGARWAL)


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DECLEARATION

I MR. OMKAR Y. BHANSE student ofB.COM-BANKING AND

INSURANCE SEMISTER-V (2011-2012)hereby declare that

I completed project on CRM IN BANKS Whereby the data or

information have been taken from any book or other sources

the same have been mentioned in bibliography.

The information submitted is true and original to the best of

my knowledge.

SIGNATURE OF STUDENT

OMKAR Y. BHANSE

(RALL NO. 04)


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ACKNOWLEDGEMENT

I have a great pleasure in presenting our project on CRM IN

BANKS.

I sincerely thank with deep sense of gratitude to DR. KANAK

AGARWAL our guide for her kind co-operation for the

fulfillment of this project.

I am highly indebted to our Principal Dr. Mrs. SUDHA VYAS

& our Vice Principal Dr. MAYURESH MULE who took keeninterest and allowed us to perform this project.

I would also like to thank our seniors, librarians who

sincerely helped me getting this information and, last but not

the least our college for a big reason that we are here in front

of you presenting this project.

SIGNATURE OF STUDENT,

OMKAR Y. BHANSE

( ROLL NO. 04)


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INDEX

SR. NO TOPICS PAGE

NO.01 What is CRM

1.1 Purpose of CRM

1.2 CRM Principles

1.3 Is CRM Necessary

1.4 History of CRM

02 CRM Program And Activities

03 Tools For CRM

04 Implementation of CRM

1.1 How to implement CRM

1.2 CRM Via ASP

1.3 Factors for implementation of CRM1.4 Challenges of CRM

05 CRM Related concept

1.1 CRM in chain management

1.2 CRM-ERP integration

1.3 What is E-CRM

1.4 Basic requirement of E-CRM


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SR. NO TOPIC PAGE

NO.

06 Problems and drawbacks

1.1 Reason for CRM Failure

1.2 CEM Framework

1.3 How Does CEM Technology Work

07 CRM In INDIA

1.1 BPOS In INDIA

08 Case Studies on CRM

1.1 Bharati Tele Venture- Telecom Sector

1.2 Wockhardt- Hospital and health care

sector

1.3 HDFC- Banking and Financial Sector

09 Conclusion


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INTRODUCTION

Chapter : 1

What is customer relationship management?

Before we begin to examine conceptual foundations of C.R.M. It will be useful to

define what CRM is. A narrow perspective of customer relationship management

is database marketing emphasizing the promotional aspects of marketing linked

to database efforts.

Another narrow, yet relevant, viewpoint is to consider CRM only as customerretention in which a variety of after marketing tactics is used for customer

bonding or staying in touch after the sale in made.

In today hyper competitive scenario, more than three quarters of the money and

time spent by companies go towards acquiring and retaining customers.

Customer-centricity has become the buzzword and the ones with clear and

relentless focus on customers, enjoy a better competitive position. This is proved

time again. Yet, companies go through meticulous processes to gradually andconsistently mature into an ORGANIZATION FOR THE CUSTOMERS But, how

would you mature into a customer focused or customer-centric organization? The

answer is ; By reading and understanding your customers. Yes, this is all need to

do! And this you need to do not just once, but regularly and consistently over the

lifetime of your customer and beyond.

Reading the customer demographics and understanding their needs (both explicit

and implicit) is what customer insight is all about. Customer insight is the basic

point or the foundation for building a customer centric organization. Everything in

the value chain revolves around this. This is the raw material . This is more a

conversion process rather, since the end product is customer loyalty! Over

decades, many organizations had successfully completed the conversion process

and tasted higher returns, most organizations miserabely failed in their efforts


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CRM relies on customer data to create customer loyalty. The concept of CRM was

again the result of an evolution born out of necessity . When companies

understood the need to obtain and maintain customer data, Which was

exhaustive and scattered in nature and were desperately looking for a tool thatcould compile, preserve use the data in a way they want, technology came to the

rescue with exclusive methods called data mining , data warehousing and thus

data base management techniques were born. Technology is mechanistic and did

not know what is required and what is not. A managerial tool was needed to

perform the directors role in order to decide the path and processes. Thus CRM

was engineered as a tool to manage customer data using IT-enabled techniques

CRM gives framework for the activities. It decides on what to do the objectives,

what is required to do it the resources, who should do it the people, how to do

it the processes, how long to do it the time frame. CRM could be ready made,

tailor made or hand made depending on the specific objectives it is set to achieve.

CRM is unique in the respect that it follows a set of pre-determined processes to

accumulate and manage customer data, which was hitherto unpracticed Hence,

CRM is defined as :

Customer relationship management (CRM) is a business strategy to acquire and

manage the most valuable customer relationships. CRM requires a customer-

centric business philosophy and culture to support effective marketing , sales and

service processes. CRM applications can enable effective customer relationship

management, provided that an enterprise has the right leadership, strategy and

culture

As is implicit in the above definition, the purpose of CRM is to improve marketing

productivity. Marketing productivity is achieved by increasing marketing efficiency

and by enhancing marketing effectiveness. In CRM, marketing efficiency isachieved because cooperative and collaborative processes help in reducing

transaction cost and overall development costs for the company. Two important

processes for CRM include proactive customer business development and building

partnering relationship with most important customers. These lead to superior


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value creation. The basic concept is that the customer is not someone outside the

organization, he is a part of the organization

PURPOSE OF CRM

CRM in its broadest sense, means managing all interactions and business with

customers. This includes, but is not limited to, improving customer service. A good

CRM program will allow a business to acquire customers. Service the customer,

increase the value of the customer to the company, retain good customers, and

determine which customers can be retained or given higher level of service. A

good CRM program can improve customer service by facilitating communication

in several ways:

Provide product information, product use information, and technicalassistance on web sites that are accessible 24 hours a day, 7 days a week.

Identify how each individual customer defines quality, and then design aservice strategy for each customer based on these individual requirements

and expectations.

Provide a fast mechanism for managing and scheduling follow-up salescalls to assess post purchase cognitive dissonance, repurchase

probabilities, repurchase times, repurchase frequencies.

Provide a mechanism to track all points of contact between a customer andthe company, and do it in an integrated way so that all sources and typesof contact are included, and all user of the system see the same view of the

customer (reduces confusion).

Help to identify potential problems quickly, before they occur. Provide a user-friendly mechanism for registering customer complaints. Provide fast mechanism for handling problems and complaints. Provide a fast mechanism for correcting service deficiencies. Use internet cookies to track customer interests and personalize product

offerings accordingly.

Use the Internet to engage in collaborative customization or real-timecustomization

Provide a fast mechanism for managing and scheduling maintenance,repair, and on-going support (improve efficiency and effectiveness)


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The CRM program can be integrated into other cross-functional systemsand thereby provide accounting and production information to customers

when they want it.

Key CRM principle

y Differentiate CustomersAll customers are not equal; recognize and reward best customers

disproportionately. Understanding each customer becomes particularly

important. And the same customers reaction to a cellular company operator

may be quite different as compared to a car dealer. Besides for the sameproduct or the service not all customers can be treated alike and CRM needs

to differentiate between a high value customer and a low value customer.

What CRM needs to understand while differentiating customer is:

1. Sensitivities, Tastes, Preferences andPersonalities2. Lifestyle and age3. Culture Background and education4. Physical and psychological characteristics

y Differentiating Offerings1. Low value customer requiring high value customer offerings.2. Low value customer with potential to become high value in near

future.

3. High value customer requiring high value service.4. High value customer requiring low value service.

y Keeping Existing Customers


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Grading customers from very satisfied to very disappointed should help the

organization in improving its customer satisfactions levels and scores. As

the satisfaction level for each customer improves, so shall the customer

retention with the organization.

y Maximizing Lifetime valueExploit up-selling and cross-selling potential. By identifying life stage and

life event trigger points by customer, marketers can maximize share of

purchase potential. Thus the single adults shall require a new car stereo and

as he grows into a married couple his needs grow into appliances.

y Increase LoyaltyLoyal customers are more profitable . Any company will like its mindshare

status to improve from being an advocate. Company has to invest in terms

of its product and service offerings to its customers . It has to innovate and

meet the very needs of its clients/customers so that they remain as

advocates on the loyalty curve. Referral sales invariably are low cost high

margin sales.

Summarizing CRM activities

The CRM cycle can be briefly described as follows:

1. Learning from customers and prospects, (having in depth knowledgeof customer)

2. Creating value for customer and prospects3. Creating loyalty4.Acquiring new customers5. Creating profits6.Acquiring new customers

Why CRM is necessary?

Several companies are turning to customer-relationship management systems and

strategies to gain a better understanding of their customers want and needs. Used


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in association with data warehousing, data mining, call centers and other

intelligence-based applications, CRM allows companies to gather and access

information about customers buying histories, preferences, complaints, and other

data so they can better anticipate what customer will want. The goal is to instill

greater customer loyalty. Other benefits includes:

Faster response to customer inquiries. Increased efficiency through automation. Deeper understanding of customers. Increased marketing and selling opportunities. Identifying the most profitable customers. Receiving customer feedback that leads to new and improved products or

services.

Benefits of CRM

Implementing a customer relationship management (CRM) solution might

involve considerable time and expanses. However, there are many potential

benefits. A major benefit can be the development of better relations with

your existing customers, which can lead to:

y Increased sales through better timing due to anticipating needs based onhistoric trends

y Identifying needs more effectively by understanding specific customerrequirements

y Cross-selling of other products by highlighting and suggesting alternativesor enhancements

y Effective targeted marketing communications aimed specifically atcustomer needs

y A more personal approach and the development of new or improvedproducts and services in order to win more business in the future

y Enhanced customer satisfaction and retention, ensuring that your goodreputation in the marketplace continues to grow


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y Increased value from your existing customers and reduced costs associatedwith supporting and servicing them, increasing your overall efficiency and

reducing total cost of sales

Once your business starts to look after its existing customer effectively,

efforts can be concentrated on finding new customers and expanding your

market, The more you know about your customers, the easier it is to identify

new prospects and increase your customer base.

Even with years of accumulated knowledge, there is always room for

improvement. Customer needs change over time, and technology can make

it easier to find out more about customers and ensure that everyone in an

organization can exploit this information.

History of CRM

Customer Relationship Management (CRM) is one of those magnificent

concepts that swept the business world in the 1990 with the promise of

forever changing the way businesses small and large interacted with their

customer bases. In the short term, however, it proved to be an unwieldy

process that was better in theory than in practice for a variety of reasons.

First among these was that it was simply so difficult and expensive to track

and keep the high volume of records needed accurately and constantly

update them.

In the last several years, however, newer software systems and advanced

tracking features have vastly improved CRM capabilities and the real

promise of CRM is becoming a reality. As the price of newer, more

customizable Internet solutions have hit the marketplace ; competition hasdriven the prices down so that even relatively small businesses are reaping

the benefit of some custom CRM programs.

Inthe beginning.


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The 1980 saw the emergence of database marketing, which was simply a

catch phrase to define the practice of setting up customer service groups to

speak individually to all of a company customers.

In the case of larger, key clients it was a valuable tool for keeping the lines of

communications open and tailoring service to the client needs. In the case ofsmaller clients, however, it tended to provide repetitive, survey-like information

that cluttered database and did not provide much insight. vAs companies began

tracking database information, they realized that the bare bones were all tht was

needed in most cases: what they buy regularly, what they spend, what they do.

Advances inthe 1990`s

In the 1990 companies began to improve on Customer Relationship

Management by making it more of a two-way street. Instead of simply

gathering data for their own use. They began giving to back their customers

not only in terms of the obvious goal of improved customer service, but in

incentives, gifts and other perks for customer loyalty.

This was the beginning of the familiar frequent flyer programs, bonus points

on credit cards and host of other resources that are based on CRM tracking

of customer activity and spending patterns. CRM was now being used a say

to increase sales passively as well as through active improvement of

customer service.

True CRMcomes ofage

Real Customer Relationship Management as its thought of today reallybegan in earnest in the early years of the century. As software companies

began releasing newer, more advanced solutions that were customizable

across industries, it became feasible to really use the information in a

dynamic way.


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Instead of feeding information into a static database for future reference,

CRM became a way to continuously update understanding of customer

needs and behavior. Branching of information, sub-folders, and custom

tailored features enabled companies to break down information into

smaller subsets so that they could evaluate not only concrete statistics, but

information on the motivation and reactions of customers.

The Internet provided a huge boon to the development of these huge

databases enabling offsite information storage, where before companies

had difficulty supporting the enormous amounts of information . The

Internet provided new possibilities and CRM took off as providers began

moving toward Internet solutions.

With the increased fluidity of these programs came a less rigid relationship

between sales, customer service and marketing. CRM enabled the

development of new strategies for more cooperative work between these

different divisions through shared information and understanding, leading

to increased customer satisfaction from order to end product.

Today , CRM is a still utilized most frequently by companies That rely

heavily on two distinct features : customer service or technology . The three

sectors of business that rely most heavily on CRM and use it to great

advantage are financial services , a variety of high tech corporations and

the telecommunications industry .

The financial services industry in particular tracks the level of client

satisfaction and what customers are looking for in terms of changes and

personalized features . They also track changes in investment habits and

spending patterns as the economy shifts . Software specific to the industrycan give financial service providers truly impressive feedback in these

areas.

In recent years however , several factors have contributed to the rapid

development and evolution of CRM . These include:-


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1. The growing de intermediation process in many industries due to theadvent of sophisticated computer and telecommunication technologies

that allow producers to directly interact with end customers . For

2. Example ,in many industries such as airlines , banks insurances , softwareor household appliances and even consumables , the de-intermediation

process is the nature of marketing and consequently making relationship

marketing more popular . databases and direct marketing tools give

them the means to individualize their marketing efforts .

3.Advances in information technology , networking and manufacturingtechnology have helped companies to quickly match competition . As a

result product quality and cost are no longer significant competitive

advantages.

4. The growth in service economy . Since services are typically producedand delivered at the same institution ,it minimizes the role of the

middlemen .

5.Another force driving the adoption of CRM has been the total qualitymovement . When companies embraced TQM it became necessary to

involve customers and suppliers in implementing the program at all

levels of the value chain . This needed close working relationships with

the customers .Thus several companies such as Motorola , IBM , General

Motors , Xerox , Ford, Toyota etc formed partnering relations with

suppliers and customers with practice TQM . other programs such as JIT

and MRPalso made use of interdependent relationships between

suppliers and customers .

6. Customers expectations are changing almost on a daily basis . NewlyEmpowered customers who choose how to communicate with the

companies across various available channels. Also nowadays consumers

expect a high degree of personalization .

7. Emerging real time , interactive channels including e-mail , ATMs andcall centre that must be synchronized with customers non-electronic

activities . The speed of business change , requiring flexibility and rapid

adoption to technologies .

8. In the current era of hyper competition , marketers are forced to be moreconcerned with customer retention and customer loyalty .


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9.As several researches have found out retaining customers is lessexpensive and more sustainable competitive advantage than acquiring

new ones .

10.On the supply side it pays more to develop closer relationships with afew suppliers than to develop more vendors

11.The globalization of world marketplace makes it necessary to haveglobal account management for the customers .

Chapter 2 :

CRM Programs & Activities

One - to-one Marketing

Meeting and satisfying each customers need uniquely and individually . In the

mass markets individualized information on customers is now possible at low cost

due to the rapid development in the information technology and due to

availability of scalable data warehouses and data mining products . By using

online information and database on individual customer interactions , marketers

aim to fulfill the unique need of each mass market customer. Information on

individual customers is utilized to develop frequency marketing , interactive

marketing and after marketing programs in order to develop relationship with

high yielding customers . In the context of business to-business markets ,

individual marketing has been in place of quite sometime . Known as Key Account

Management Program, here marketers appoint customer teams to husband the

company resources according to individual customer needs .

Continuity Marketing Programs

Take the shape of membership and loyalty card programs where customers are

often rewarded for their member and loyalty relationships with the marketers. The

basic premise of continuity marketing programs is to retain customers and

increase loyalty through long-term special services that has a potential to increase


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mutual value through long-term special services that has a potential to increase

mutual value through learning about each other .

Partnering programs

The third type of CRM programs is partnering relationships between customer and

marketers to serve end user needs . In the mass markets , two types of partnering

programs are most common : co-branding and affinity partnering .

Traditionally customer relationship management ( CRM ) revolves around the

three functions of selling , marketing and support . various process models have

been built around how these functions are integrated and operated in a customer

oriented enterprise. There is however a fourth critical function that is lacking in

most CRM models .

The fourth function that often is the source of a competitive edge is that of

innovation . companies must continually reinvent themselves to deliver an

improved and often a totally new value offering to their customer base . CRM

must provide the customer intelligence that feeds information back in to the

enterprises knowledge management process where it can trigger new innovation

process . When CRM is integrated into the innovation process , significant value

can be derived from faster time to market cycle times and with new process and

services .

Marketing automation must ensure that the innovation processes are actually

market driven. A market driven innovation process must include both strategies

that are focused on satisfying customer requirements as well as strategies focusedat redefining customer requirements. Sales automation should be integrated with

the innovation process by ensuring that all sales channels are prepared and ready

to take new processes and services to market before competitive forces can react.

Customer service automation must be designed to empower the customer with

the option of assisting with the design of the value offering. Redefining CRM


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around innovation, sales, marketing and service can identify new competitive

opportunities for an enterprise.

There are three parts of application architecture of CRM:

Operational - Automation to the basic business processes (marketing, sales,service)

Analytical support to analyze customer behavior, implements businessintelligence alike technology

Collaborative ensures the contact with customers (phone, email, fax, web,sms, post, in person)

Operational CRM

Operational CRM means supporting the front office business processes, which

include customer contact (sales, marketing and service). Tasks resulting from

these processes are forwarded to resources responsible for them, as well as the

information necessary for carrying out the tasks and interfaces to back-end

applications are being provided and activities with customers are being

documented for further reference.

Operational CRM provides the following benefits:

y Delivers personalized and efficient marketing, sales, and service throughmulti-channel collaboration.

y Enables a 360-degree view of your customer while you are interacting withthem.

y Sales people and service engineers can access complete history of allcustomer interaction with your company, regardless of the touch point.

The operational part of CRM typically involves three general areas of business:

y Sales Force Automation (SFA)SFA involves of the companys critical sales and sales force management

functions, for example, lead/account management, contact management,

quote management, forecasting, sales administration, keeping track of


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customer preferences, buying habits and demographics, as well as

performance management. SFA tools are designed to improve field sales

productivity. Key infrastructure requirements of SFA are mobile

synchronization and integrated product configuration.

y Customer Service and Support (CSS)CSS automates some service requests, complaints, product returns, and

information requests. Traditional internal help desk and traditional internal

inbound call-center support for customer inquiries are now evolved into the

customer interaction center (CIC), using multiple channels ( Web, phone/fax,

face-to-face, kiosk, etc.). Key infrastructure requirements of CSS include computer

telephony integration (CTI) which provides high volume processing capability, and

reliability.

y Enterprise Marketing Automation (EMA)EMA provides information about the business environment, including

competitors, industry trends, and macro-environmental variables. It is the

execution side of campaign and lead management. The intent of EMAapplications is to improve marketing campaign efficiencies. Functions

include demographic analysis, variable segmentation, and predictive

modeling occurs on the analytical (Business Intelligence) side.

Integrated CRM software is often also known as front office solutions This

is because they deal directly with the customer. Many call centers use CRM

software to store all of their customers details. When a customer calls, the

system can be used to retrieve and store information relevant to the

customer. By serving the customer quickly and efficiently, and also keeping

all information of a customer in one place, a company aims to make cost

savings, and also encourage new customers.

CRM solutions can also be used to allow customers to perform their own

service via a variety of communication channels. For example, you might be


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able to check your bank balance via your WAPphone without ever having

to talk to a person, saving money for the company, and saving your time.

AnalyticalCRM

In analytical CRM, data gathered within operational CRM and/or other

sources are analyzed to segment customers or to identify potential to

enhance client relationship. Customer analysis typically can lead to

targeted campaigns to increase share of customers wallet. Examples of

campaigns directed towards customer are:

y Acquisition: Cross-sell, up-selly Retention: Retaining customers who leave due to maturity or attrition.y Information: Providing timely and regular information to customers.y Modification: Altering details of the transactional nature of the

customers relationship.

Analysis typically covers but is not limited to:

y Decision support: Dashboards, reporting, metrics, performance etc.y Predictive modeling of customer attributesy Strategy and research.

Analysis of customer

data may relate to one or more of the following analysis :

y Contact cannel optimizationy Contact Optimizationy Customer Acquisition/Reactivation/Retentiony Customer Segmentationy Customer Satisfaction Measurement / Increasey Sales Coverage Optimizationy FraudDetection and analysisy Financial Forecastsy Pricing Optimization


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y ProductDevelopmenty Program Evaluationy Risk Assessment and Management

Data collection and analysis is viewed as a continuing and iterative process.

Ideally, business decisions are refined over time, based on feedback from earlier

analysis and decisions. Therefore, most successful analytical CRM projects take

advantage of a data warehouse to provide suitable data.

Business Intelligence is a related discipline offering more functionality as separate

application software.

Collaborative CRM

Collaborative CRM facilitates interactions with customer through all channels

(personal, letter, fax, phone, web, e-mail) and supports coordination of employee

teams and channels. It is a solution that brings people, processes and data

together so companies can better serve and retain their customers. The data/

activities can be structured , unstructured, conversational and/ or transactional in

nature.

Collaborative CRM provides the following benefits:

y Enables efficient productive customer interactions across allcommunications channels.

y Enables web collaboration to reduce customer service costs.y Integrates call centers enabling multi-channel personal customer

interaction.

y Integrates view of the customer while interaction at the transaction level.


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Chapter 3:

Tools For CRM

Customer database

A good customer information system should consist of a regular flow of

information, systematic collection of information that is properly evaluated and

compared against different points in time, and it has sufficient depth to

understand the customer and accurately anticipate their behavioral patterns in

future. The customer databases helps the company to plan, implement, and

monitor customer contact. Customer relationships are increasingly sustained by

information systems. Companies are increasingly adding data from a variety of

resources to their databases. Customer data strategy should focus on processes

to manage customer acquisitions, retention, and development.

Call Centre

A call centre is a centralized office used for the purpose of receiving and

transmitting a large volume of requests by telephone.

A call centre is operated by a company to administer incoming product support or

information inquiries from customers. Outgoing calls for telemarketing, clientele,

and debt collection are also made. In addition to a call centre, collective handling

of letters, faxes, and e-mails at one location is known as a contact centre.

A call centre is often operated through an extensive open workspace, with work

stations that include a computer, a telephone set/ headset connected to a telecomswitch, and one or more supervisor stations. It can be independently operated or

networked with additional centers, often linked to a corporate computer network,

including mainframes, microcomputers and LANs.


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Increasingly, the voice and data pathways into the centre are linked through a set

of new technologies called computer technology integration (CTI)

Most major businesses use call centers to interact with their customers. Examples

include utility companies, mail order catalogue firms, and customer supports for

computer hardware and software. Some businesses even service internal functions

through call centers. Examples of this include help desk and sales supports.

Systems Integration

While CRM solutions are front office automation solutions, ERP is back office

automation solution. An ERPhelps in automating business functions of

production, finance, inventory, order fulfillment and human resource giving an

integrated view of business, where as CRM automates the relationship with

customer covering contact and opportunity management, marketing and product

knowledge, sales force management, sales forecasting, customer order processing

and fulfillment, delivery, installation, pre-sale and post-sale services and complaint

handling by providing an integrated view of the customer. It is necessary that the

two systems integrate with each other and complement information as well as

business workflow. Therefore, CRM and ERPare complementary. This integration

of CRM with ERPhelps companies to provide faster customer service through an

enabled network, which can direct all customer queries and issues through

appropriate channels to the right place for speedy resolution. This will help the

company in tracking and correcting the product problems reported by customers

by feeding this information into the R&D operations via ERP.

Data Mining for CRM: Some Relevant Issues

Data Mining is an important enable for CRM. Advances in data storage and

processing technologies have made it possible today to store very large amounts

of data in what are called data warehouses and then use data mining tools to

extract relevant information. Data mining helps in the process of understanding a


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customer by providing the necessary information and facilitates informed

decision-making.

Chapter4:

Implementation of CRM

How to implement CRM?

The implementation of a customer relationship management (CRM) solution is the

best treated as a six-stage process, moving from collecting information about yourcustomers and processing it to using that information to improve your marketing

and the customer experience.

Stage one collecting informationThe priority should be capture the information you need to identify your

customers and categorise their behavior. Those businesses with a website and

online customer service have an advantage as customers can enter and maintain

their own details when they buy.

Stage two Storing informationThe most effective way to store and manage your customer information is in a

relational database a centralized customer database that will allow you to

run all your systems from the same source, ensuring that everyone uses up-to-

date information.

Stage three Accessing information

With information collected And stored centrally, the next stage is to make this

information available to staff in the most useful format.

Stage four Analysing Customer Behaviour


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Using data mining tools in spreadsheet programs, which analyse data to

identify patterns or relationships, you can begin to profile develop sales

strategies.customers and

Stage five Marketing more effectivelyMany businesses find that a small percentage of their customers generate a

high percentage of their profits. Using CRM to gain a better understanding of

your customers needs, desires and self-perception, you can reward and target

your most valuable customers.

Stage six Enhancing the customer experienceJust as a small group of customers often take up disproportionate amount of

staff time. If their problems can be identified and resolved quickly, your staff

will have more time for other customers.

Types for implementing CRM

Purchasing or Licensing SoftwareOwning the Software and running it on your own servers is ideal if you have

highly customized enterprise resource planning, or ERP, or order management

system, or OMS, software. If you have third-party software for your back-

office processes (accounting, ERP, OMS, etc.) and your front-end systems

(content management, merchandising, checkout, personalization engine),

then you should be able to find CRM software that works with at least some of

your systems without extensive customization. Its unavoidable that you will

have to do some customization, but by working with vendors that havepartnerships and interfaces with your existing vendors and their software or

with vendors that have partnerships with the ASPs that host your existing

solutions you can keep customization to a minimum. Customization is not

only expensive when you first install third-party software. But its also

expensive every time you try to apply a patch or van upgrade.


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The advantages of purchasing or licensing the software and implementing it

on your own servers are that you have complete control over the software and

over the data. There arent any of the privacy issues that might arise from

having your data residing with a third party. If you already have a customer

service department with trained associates, and you dont expect rapid

growth or you believe you are equipped to handle rapid growth then theres

no point in paying to train CSRs elsewhere

CRM via ASPOnly recently have CRM services become available via an ASPThere are two

kinds of ASPs providing CRM solutions. With one type, of which shop Tok is

one example, the ASPhosts its own CRM software. The other5 type hosts abest of bread third party solution. The disadvantage of third type is that when

something isnt working with the software, you dont always the whether the

problem rests with the ASPor with the software ,and you cant necessarily get

it fixed. with ASPs that5 hosts their own software, the vender hears you

requirements for new features and your complaints about existing

functionality.

When you work with an ASP, the first thing you will want to know the degree

to which you can customize the software so that your other business software

will take to your CRM software . after all ,your CSRs need to know what a

customer has purchased to handle inquiries from that customer, requiring

between the order-management system and the CRM system. If the customer

database doesnt talk to the CRM system, then your marketing department

cant segment customers based on purchases and the use the analytical tools

frequently built into CRM software to make intelligent decisions on what kind

of promotions to make to attract the highest-value customers.

Outsourcing Customer Service


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While you can outsource customer service, which is one component of CRM,

you cant outsource business intelligence , which is the component of CRM. If

the strategic component of CRM. If you dont need to integrate with existing

system, or you only need limited integration, then the fastest route to take is

to outsource your customer service to a full-service provider who will give you

Web access to the business-intelligence tools. Most full-service customer-

service providers will work with best-of-breed CRM vendors and offers you a

choice of CRM systems with which to manage your customers. Some are also

willing to purchases and install the CRM software of your choice on their

servers, but be aware that this will eliminate the advantage of a quick

implementation, lower entry costs and CRSs who already know the software.

The cost associated with outsourcing CRM is usually a significant startup cost

for developing your materials, their training materials and your knowledge

base, then a monthly fee based either on the number of hours of CRS you

want available or on the number of calls/messages they receive for your site.

The pay-as-you-go model can be very attractive to smaller members. The

ability to grow quickly can be an advantage for any size Web merchant.

Critical Success Factors for Implementation of CRM Systems

Critical success factors have been defined as the elements that make a project

a success, and as the events and conditions in a few key areas which

absolutely must go right for the business to succeed These include trust,

effective communication, and top management support. For this to occur,

proper measurement tools and metrics must be utilized to effectively control

the project. The Key CSF for CRM projects are:

Key Stakeholder Support

Support from all stakeholders in the organization, including top management

and all management levels, employees, government, suppliers, strategic


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partners and investors. Includes the timely reporting of the project status with

accurate information.

Sufficient Resources

Resources of money, equipment and expertise available with appropriate

support structures in place. Includes time and budget allocations for training.

y Clearly Defined ObjectiveA clearly defined mission with a set of defined goals and objectives

communicated to all stakeholders through clearly defined communication

channels, with alignment of project and corporate goals. This is managed

through a detailed project plan.

y Managing ChangeProject changes are implemented through formally defined process, with

appropriate approvals sought. Any scope changes are mutually agreed

and documented, with appropriate analysis of resource requirements.

Challenges of CRM Implementation

Organizations face a number of key challenges in implementing CRM

systems. These include:

y Methodology driven by end usersIT personal do not have knowledge or authority to influence corporate

decisions makers

y Lack of customer centric cultureCRM projects are mostly driven by a functional head, such as a VPor

sales/marketing, and rarely produce an enterprise view of customers.


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y Lack of customer centric cultureAn acceptable return on investment will no be achieved if the organization

does not have a strong customer centric culture

y Inappropriate design approachCRM is designed to model a single functional view not an enterprise wide

customer view, resulting in failure

As can be seen from the challenges faced, it is important for organizations

to realize that a CRM system implementation will only succeed when it is

supported by a customer focused organizational culture.

Chapter5:

CRM Related Concepts

y Knowledge ManagementKnowledge Management (KM) refers to a range of practices used by

organizations to identify, create, represent, and distribute knowledge for

reuse and learning across the organization.

Knowledge Management programs are typically tied to organizational

objectives and are intended to lead to the achievement of specific

business outcomes such as improved performance, competitive

advantage, or higher levels of innovation.

While Knowledge Management programs are closely related to

Organizational Learning by its Organizational Learning initiatives.

Knowledge Management may be distinguished from Organizational

Learning by its greater focus von the management of specific knowledge

assets and development and cultivation of the channels through which

knowledge flows. In recent years, Personal Knowledge Management

(PKM) practice has arisen in which individuals apply KM practice to

themselves, their role in the organization and their carrier development.


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Knowledge Management is a continually evolving discipline, with a wide

range of contributions and a wide range of views on what represents good

practice in knowledge Management.

Knowledge Management Plays a key Role in CRM Success

CRM and KM were once considered entirely different disciplines, with the

two sharing little but perhaps the same data warehouse hardware and a

vague understanding that both efforts were meant to improve business

efficiency and customer satisfaction. It has become clear, however, thatthe two disciplines were really working toward the same goal, and that to

deliver continuous improvement to business clients, they would have to

start speaking the same language.

KM focuses largely on finding the right solution to a problem that requiresdetailed insight, be it locating the right experts, at the right time, or

ensuring that the solution to a complex problem can be written once but

reused many times.

y Regain ManagementThe cost of acquiring a new customer is 9 to 12 times that ofholding on

to an existing customer. Philip Kotler

Goal of customer regain management is to reinitiate valuable customer

relationships, whichhave been already terminated. Regain management

has to detect such lost customers, select valuable relationships and

attempt to regain them in an efficient way, for which a systematic process

is necessary. Addition to this process structure, there is an information


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base needed , which enable the exchange of collected information along

the customer regain process.

- An incentive strategy tempts to regain business relation by offeringcustomers some form of incentive like for example ticket for events, gifts &

discounts.- A compensation strategy aims to compensate some disservices, which as

the motive for termination. For example the company could offer some

form of vouchers.

- A dialogue strategy tries to regain trust through a dialog.- A convincing strategy aims to persuade customers by means of use

argumentations & Explanation of some product advantages.

y CRM in Supply Chain Management (SCM)Supply Chain management (SCM) is a business system of enterprise

strategies, business processes & information technologies for improving the

planning, execution & collaboration of material flows, information flows,

financial flows & workforce flows in the supply chain. SCM is supported by

modular software applications that integrate activities across

organizations, from demand forecasting, product planning, parts

purchasing, inventory control, manufacturing and product assembly to

product distribution. In the context of SCM, where alliances & partnership

are keys to success, CSM plays an important role in building long-term

relationships. The success of relationship depends upon sharing of saving

from the supply chain, which may be reinvested to further enhance its

efficiency & sustain the competitive advantage.

Goals of SCM

- To reduce inventory cost,- To increase sales,


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- To improve the coordination & the collaboration with suppliers,manufacturer & distributers.

y CRM-ERP InformationER

P

s foundation, it is based on creating internally stable business functions &predictable prices control. The concept of ERPwas the integration of all back-

office functions so that the basic problems responsible for interception &

breaks in the process where smooth out & the incompatibilities of the best-of-

breed applications were eliminated or reduced. This doesnt work with CRM

which is external. How can you be in command of processed when they are

based on your customers behavior? Conceptually, one important reason for

CRM is real time response to the constantly liquid-shifting of customer

demands, which is not controlled internally at all. It also means the psychologyof the front-office is quite different from the psychology of the back-office.

The simplest option is to hire a systems integrator to come in & integrate the

systems. However, the obvious hazard here is that they are not only dealing

with ERP& CRM applications they may not know much about, they are also

dealing with your legacy system, which they know nothing about. But

integrating all of that is what you could hire the ERPvendors CRM solution .

The third solution is what many companies are increasingly turning to

Enterprise Application Integration (EAI)

What is E-CRM?

In a simple term, it provides to companies a means to product interactive,

personalized & relevant communication with customers across both electronic

& traditional channels. It utilizes a complete view of the customer to make thedecision about the messaging, offers & channel delivery. It synchronies

communications across disjointed costumer facing system. It focuses on

understanding of customer activities, personalized relationships affect the

business. Advocate of E-CRM recognized that a comprehensive understanding

of customer activities, personalization, relevance, permission, time lines &


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metrics is a means to an end optimize the value of your most important asset:

your customer.

For fortune 500 companies, evolving to E-CRM requires process &

organizational changes, a suite of integrated applications & a non-trivial

technical architecture to support both the E-CRM process & the enterpriseapplications that automate the process. Mid-size companys benefits from less

sophisticated & easier-it-implement, hosted solutions offered through

Application Service Provider. But regardless of the size of the firm, you have no

choice but to evolve to E-CRM quickly.

E-CRM v/s CRM: The Differences

Being able to take care of your customer via internet or customer being able to

take care of themselves online: Thats the difference between CRM & E-CRM. Itimplies a myriad of issues, questions, approaches, technologies & architecture

that are different from client/server-based CRM. Many of them are issue

general to the internet. Others are issues related to the creation of applications

for the internet. The third group is related directly to E-CRM & its actual value

to business.

Companies agree that E-CRM is critical to their business, but unfortunately very

few understands exactly what it is or how to evolve from their existing

database marketing practices to an E-CRM solution.

BasicRequirements ofE-CRMorSix EofE-CRM

y Electronic ChannelsNew electronic channels such as the Web and personalized e-Messaging

have become the medium for fast, interactive and economic customer

communications, challenging companies to keep pace with this increased

velocity.

y Enterprise


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Through E-CRM, a company gains the means to touch and shape a

customers experience across the entire organization, reaching beyond

just the bounds of marketing to sales, services and corner offices whose

occupants need to understand and assess customer behavior. An E-CRM

strategy relies heavily on the construction and maintenance of a data

warehouse that provides a consolidated, detailed view of individual

customer behavior and communication history.

y EmpowermentIn this new age, E-CRM strategies must be structured to accommodate

customers who now have the power to decide when and how to

communicate with the company and through which channel, which ability

to opt for or out of. Consumers decide which firms earn the privilege to

talk with them.

y EconomicsToo many companies execute communication strategies with little effort

or ability to understand the economics of customer relationships and

channel delivery choices. Yet customer economics drives smart asset

allocation decisions, directing resources and effort at individuals likely to

provide the greatest return on customer communication initiatives.

y EvaluationUnderstanding customer economics relies on a companys ability to

attribute customer behavior to marketing programs. A company should

evaluate customer interactions along with various customer touch point

channels and compare anticipated ROI against returns, through customeranalytic reporting. Evaluation of results allows companies to continuously

refine and improve efforts to optimize relationships between companies

and their customers.

y External Information


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The use of Customer-sanctioned external information can be employed to

further understand customer needs. This information can be gained from

resources such as third-party information networks and webpage profiler

applications, under the condition that companies adhere to strict

consumer opt-in rules and privacy concerns.

Chapter 6:

Problems and Drawbacks

There are several reasons why a customer relationship management (CRM)

solution might not have the desired results.

There could be a lackofcommitmentfrom people within the company to the

implementation of a CRM solution. Adapting to a customer-focused approach may

require a culture change. There is a danger that relationships with a customerswill break down somewhere along the line, unless everyone in the business is

committed to viewing their operations from the customers perspective. The result

is customer dissatisfaction and eventual loss of revenue.

Poorcommunication can prevent buy-in. In order to make CRM work, all the

relevant people in your business must know what information you need and how

to use it.

Weakleadership could cause problems for any CRM implementation plan. The

onus is on management to lead by example and push for a customer focus on

every project. If a proposed plan isnt right for your customers, dont do it. Send

your teams back to the drawing board to come up with a solution that will work.

Trying to implement CRM as a complete solution in one goes is attempting but

risky strategy. It is better to break your CRM project down into manageable pieces

by setting up pilot programs and short-term milestones. Consider starting with a

pilot project that incorporates all the necessary departments and group but issmall and flexible enough to allow adjustments along the way. Dont

underestimate how much data you will require, and make sure that you can

expand your systems if necessary. You need to carefully consider what data is

collected and stored to ensure that only useful data is kept.


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You must also ensure you comply with the eight principles of the Data Protection

Act that govern the processing of information on living, identifiable individuals.

For more information, see their guide on how to complywithdataprotection

legislation.Avoid

adopting

rigi

dr

ule

s which cannot be changed to be more flexible to the

needs of individual customers.

ReasonsforCRMImplementation Failure

An understanding of the challenges and critical success factors is paramount to

project success. In this way, the organization is aware of those factors by which

success can be measured, and will ensure the CRM system is implemented in a

manner to satisfy all stakeholders. The main reasons for CRM failures include:

Customer focusOrganizational culture is not customer focused, with limited involvement of

customer facing personnel in the design and implementation phase.

Organizational ManagementLack of support and understanding from senior management, lack of CRM

understanding, lack of communications and changing business needs.

Project ManagementMisalignment between project and business requirements, with unrealistic

goals, timelines, coupled with a lack of planning and insufficient reporting and

control.

Team MembersLack of support, incentives and lack of technical knowledge

Data & Warehouse RequirementsPoor quality data, inconsistent data between different systems


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Technical FactorsShort term solution focus not aligned to long term architectural infrastructure

growth, no prototyping or testing, misunderstanding technical requirements.

CRM is failing because the correct capabilities are not being built at the

enterprise level. The requisite changes in organizational culture, behavior and

attitude are not being implemented. Overall, in failed projects, there is the

little or no alignment between stakeholders on success criteria, critical success

factors, performance metrics, project drivers, nor on the dynamics of how

these parameters may change over the project life cycle. The requirements of

the customer are either misunderstood, or not taken into account. The result

is an inconsistency in focus, with less than optimum system design and

implementation.

Hence CRM is failing due to primary reasons: a) technical; due to the size,

complexity, and lack of knowledge of technology, and b) human behavior; due

to general change management issues in the organization. What is required is

a coherent, all encompassing strategy that focuses on key stakeholder

requirements. Companies underestimate the complexities of CRM projects,

lack clearly defined business objectives, and tend to invest inadequately in the

provision of CRM software.

1 . The CRM Framework

Schmitts book Customer Experience Management offers the following five

steps framework that should help managers understand and manage the

customer experience

Step 1:Analyzingtheexperiential worldofthecustomer

y Analyze socio-cultural of the customer (needs/wants/lifestyle)y Analyze business concept (requirements/solutions)


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Step 2:Buildingthe Experientialplatform

y Connection between strategy and implementationy Specifies the value that the customer can expect from the product.Whereas steps 1 (Analysis) and 2 (Strategy) form the basis for CEM, steps

3, 4, 5 are focusing on implementation.

Step 3:DesigningtheBrandexperience

y Experiential features, product aesthetics, look and feel e.g. logosStep 4: Structuringthecustomerinterface

y All sorts of dynamic exchanges and contract points with customersy Intangible elements (i.e. value, attitude, behavior

Step 5: Engagingincontinuous experientialinnovation

y Anything that improves and customers personal lives and businesscustomers working lives

And finally, to bring all pieces together, a holistic approach is required that

provides a linkage the different steps and connects them with the organization.

How Does CEM Technology Work?

CEM Technology captures customer experience information across all customer

touch points and feeds it back to the organization so that action can be taken to

improve profitability. At the beginning or end (or both) of an interaction, and

within context, the customer is invited (automatically or manually) to provide their

perspective via four or five short questions. Done properly, thisprocess will

resultin betterthan80% customerparticipation and have a measurablypositive effect on customers.

Whether phone, email or Web channels, the experience information is collected

within context of the interaction. The question that are delivered to the customer

are specific to that interaction type; the people, products and processes that were


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part of the interaction; and the customer. The questions are also conditional in

nature and facilitate both quantitative as well as qualitative experience

information.

CEM Technology accesses existing CRM data, productivity metrics, and

incorporates key information related to customer behavior and profitability.Information such as retention rates, average purchase amounts, store sales,

complaint and resolution rates, customer segments, etc. are all combined with

customer experience information and analyzed/reported in real-time. The strength

of a CEM system is in its ability to continually align company performance with

customer needs and behaviors, enabling companies to make effective, correct,

and critical day-to-day adjustments in resource allocation and execution- as wellas enterprise-wide shifts in strategy.

Customer Experiences can be categorized into three unique states. The state of the

customer experience has implications on the type of information to communicate

with and collect from customers. The three states of customer Experience are:

Normal Experience, critical Experience, and Unique Experience.


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Managing Customer Interaction

Experience

Types

Key words Stage Objectives Profit

Implications

Normal 1. Education2. Competenc

e3. Consistenc

y

1.Early2.Middl

e

1. EstablishPositive

Perceptions2. Validate

Expectations

3.EstablishTrust ,loyalty,

satisfaction4.EngageCustom

ers

1.Reduceearly phase

customerturnover

2. Reduce

service andsupport costs

3.Reduceresearch

expense

Critical 1. Opportunity

2. Flexibility3. Problem

resolution

1.Early2.Middl

e

3.Mature

1.ServiceRecovery

2. Positive

MemorableExperiences

1. Reduceturnover

2. Promote

Positiveword-of-

mouth

endorsement

s

Unique 1. Appropriate timing

2. Appropriate context

1.Middle

2.Matur

e

1. Up SellProducts,

Services

2. Cross SellProducts

,Services

1. Increaseaverage

purchase

levels2.Increase

proportion of

high margin

sales


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Chapter 7 :

CRM in India

Software is to India what oil was to gulf. It is therefore no surprise that the Indian

companies are jumping into the CRM bandwagon to seize a chunk of the global

market, both products as well as services.

With a vast talent pool; India is a fast becoming an important developmentbase

of CRM major companies. This trend is likely to increase in the future. Call centers,

Catering primarily to the American and European markets are coming up in and

around the metros. With the easing of infrastructure constraints, India is likely to

emerge as a significant player in the segment.

Companies in India are realizing the need for CRM and some of the forward

thinking ones have been strategically investing in CRM initiatives and relate

activities. Even though, some industries like steel, aluminum and cement could get

by without any active customer management, they realize that is now all history

and that they have to do something to create and build relationships.

So the awareness of CRM there. The first steps have been taken by many. The

question is whether you want to compare CRM programs of Indian companies

with the standards and best practices of players like Ikea and Marriot who have

been torchbearers in this field. India has a long away to go. Indian companies

would do well to realize that CRM cannot be delegated to the marketing

department.

It has to be whole revolution within the entire organization. The entire

organization from the chairman to the doorman has to be a galvanized to become

a customer-oriented organization. Its about training, learning, rescaling and the

ability to adapt that will distinguish the laggards from the winners. It needs a CEO

who walks the talk, in other words CRM is an absolute necessity now for thesmallest kirana store to a large player like Ambuja Cement. One has 200

customers. But both cant afford to loose even a single of their customers, because

the cost of creating a new customer is 5 to 10 times more than the cost of

retaining an old, good customer. CRM is now an integral part of organizational

strategy and overall business objectives.


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Has CRM in India been reduced to an empty buzzword thats tossed around so

that a company appears to be keeping up with the industry? Not entirely, because

organizations like Standard Chartered Bank, ICICI Lombard, BPL Telecom and Air-

India have successfully used these tools-and benifited. The difference lies in the

way CRM has been deployed at these organizations. It is a combination of

technology and process change that has worked.

Adoption of CRM by Indian companies is at an infancy stage. The CRM enabled

companies include Modi Xerox, Tata Telecom, TVS Electronics, HP India, Tata Info

Tech, Carrier Refrigeration, Tata Teleservices, Satyam Info way, Planet M,

Epicenter Technologies among many others.

India even has a CRM Foundation in NewDelhi, founded with the purpose of

assessing and improving CRM practices. Founding members include Tata Telecom,

Escotel, Modi Xerox, Global Groupware, AC Nielsen, Carrier Aircon, and Motorala

India, among others.

Outsourcing CRM back offices. India is growing to be the back office of the world,

and many Indian companies are managing CRM operations for Fortune 500 and

medium-sized companies in USA and Europe. Now that the outsourcing market is

mature, Indian companies may also begin to outsource for cost reduction.

BPOS in India

The business process outsourcing industry in India hasa grown by leaps and

bounds and as its size increases so does its competitive advantage. Compared with

1996 when this Industry had started inroads into the United States with Outbound

Telemarketing campaigns, today the vehicle for these calls-the internet has

become cheaper and more reliable for the average Indian business.

The business has boomed to the extent that many people are now running BPOS

out of their cyber cafes and houses in NewDelhi.

The sector witnessed considerable activity during 2004-05, including a ramping up

of operations by major Indian and MNC players and stepped up hiring. The


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domestic BPO market, castalyzed by demand from the telecommunications and

BFSI segments, matched the growth of BPO exports. The market experienced

maturity and consolidation, a result of numerous mergers and acquisitions taking

place within the sector. There were over 400 companies operating within the

Indian BPO space, including captive units (of both MNCs and Indian companies)

and third-party services providers.

The Indian BPO industry remains on a growth path, emerging as one of the key

investment markets in the country.

BPO is one of the greatest global forces for improvement today. CRM outsourcing

providers alone have a $30 billion market opportunity and businesses that

capitalize on the potential cannot only reduce cost, but also increase productivity

and raise revenue significantly.

BPO began as a way to significantly reduce labor costs for low-value or

transactions activities (e.g., help desk calls, bill payments), but now, its emerging

as a way to deal with higher complexity, value-added activities. However, few

companies have realized the full range of benefits that BPO offers. To capture

these benefits organizations need to do two things: outsource to improve

productivity (not just costs) and cost-effectively identify emerging revenue

opportunities.


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Chapter :- 8

Case Studies on CRM

1.Bharati Tele-Ventures- Telecom Sector

Bharti Tele-ventures is one of the Indias leading private sector telecom operators.

Its cellular business, AIRTEL, is a leading mobile telephony brand. Like any Telco,

Bharti considers information technology a key business enabler. For telecom IT is

like bread and butter. Bharti believes it plays two significant roles-it works as a

support system, and it can also be a business driver. Thus IT is very important to

Bharti. It had a WAN in place with a mix of leased lines and E1 and E3 lines. The

company also has an extranet in place through which it extends different

applications to its dealers and partners. Bharti have an extremely large

infrastructure based on products from multiple vendors. This includes a range of

high-end servers from Sun and HP. In the telecom business volumes are very large.

They have millions of records and process them everyday, so far them storage is in

terabytes.

Bharti also has a storage area network (SAN) in place. The main data centre is

located in Gurgaon, Haryana. As far as software is concerned, some of the

applications that are running on its network are billing, fraud management,revenue assurance and data warehousing. They also have some internal facing

applications like Oracle Financial and Oracle HRMS.

ThecaseforCRM

Initially, when Bharati started operations, the whole system was run manually. At

that point of time only 40 percent of their customer issues were getting resolved-

this has now gone up to about 90 percent.

It is vital for them to manage the expectation of their customers and provide them

with innovative products and services in a manner which make them loyal. To

achieve this, Bharti needed the right tools. It is this need that made them opt for a

CRM (customer relationship management)


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Cherrypickinga solution

Today Bharti is using the Oracle CRM platform. As part of their vision, they intend

to provide Airtel services anywhere and at any time. A customer should get the

same quality of service no matter which of their call centres he contacts. This has

been their vision, and because of that they have gone in for a centralized

application like CRM.

Before choosing its CRM tool, Bharti evaluated many options. It considered factors

like proper workflow automation, facilitation of knowledge sharing, and

integration with the billing system. After a through evaluation exercise, it decided

to go ahead with the Oracle CRM platform.

Rollit

After starting its services in Delhi, Bharti acquired many circles and sought new

licences in other circles; whenever they got a new licence, they implemented the

CRM tool immediately. But they had to put in a migration strategy in those

acquired circles which had an existing subscriber base. The migration had to be

done in such a manner that the existing customer base did not suffer. The goal

was that all circles would go live by the first quarter of 2004.

The biggest challenge for Bharti was to have a unified process in place. Once this

was done they faced the challenge of imparting training. They went in for such a

large-scale implementation they faced problems. They also had certain technical

difficulties during implementation, but they were able to overcome them.

The CRM strategy at Airtel revolves around two aspects: operational CRM and

analytical CRM. The first is about helping their call centres in the workflow part,

helping them in their day-to-day activities. The second provides staff with the

required information on customers; this is used for business development

activities. Together they help Bharti provide better service to its customers.

Tailor-made schemes


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One of the primary things that Bharti has done with CRM is segmentation of

customers, which has helped in providing customers more value for their money. It

was important to understand and segregate customer needs depending on the

product and services is buying. One of the primary things that Bharti have done in

this solution is the segmentation of customers. With this, Airtel is now able to give

its customers more value for money. With the help of CRM, they are able to

provide customers different schemes and services depending on airtime usage. If

the customer is a heavy user then they have some specific schemes; for normal

users they have other schemes. Apart from this, they have also managed to

segregate their workflow with the help of the CRM tool.

2.Wockhardt- Hospital and health care sector

When you aim to build a world class hospital, you need world-class processes in

place. Keeping this goal in mind and to give patients better value for their money.

WHHI was looking for a solution that would allow the hospital to manage its

patient and staff details database efficiently. It also needed to connect specialists

to the hospital network such that the doctors could monitor the patient remotely.

The WHHI team, which consists of four people, found that the most suitable

solution was to put in place two inter-linked systems. The foursome considered a

CRM solution custom-made to the hospitals needs and a network linking that they

term E-ICU. This system connected the patients monitors to an RAS accessible over

the internet.

The CRM system WHHI put into place not only helps identify the right doctor for

the right occasion, it now also generates reports. Plus it can sort categories of

patients such that the hospital has now been able to start clubs of people with

similar experiences.


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The beginning

To develop and maintain a special relationship with doctors, patients, and

corporate, WHHI required an easily manageable system that would catalog all the

required details. Moreover, with the narrowing difference in service level at hotels

and hospitals internationally, Vishal Bali, Vice President Operations, WHHI,

believed that such implementations are required to create an ambiance of

efficiency. The implementation was also required to track feedback to generate a

patient satisfaction index.

The Solution

To meet the requirements, the hospital approached an outfit called Think Ahead,which conceived, developed and implemented a CRM application to specifically

meet the demands of WHHI. The implementation generates feedback reports,

occupancy reports, average length of stay, waiting and discharge reports. While

all these reports were being filed even earlier, the solution has helped maintain

and update all the reports on daily basis, obviating any chance of delay. The

accuracy rate of the reports has seen a new high as a result.

More importantly the CRM solution has automated relationship management. It

has resulted in the creation of the Happy Hearts Club, a group of people who have

undergone similar heart surgeries at WHHI. At the forum, patients share their

experience and sometimes also learn from each other.

The CRM solution also automatically forwards newsletters and relevant

information to keep in touch with doctors and patients. Vishal Bali, Vice President

Operations explained the importance of this routine task: Hospitalization should

not be seen as an episode but as a patient hospital relation, it is not a one time

transaction. And the CRM solution has helped with just that.

E-Hospital

Besides the CRM system, WHHI has developed an e-ICU. The e-ICU consists of ICU

monitors on the side of the bed. These are connected to a Windows 2000 Servers


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that is linked to Remote Access Servers (RASs). The RASs can be accessed over the

internet via a 2 MBPS line. The E-ICU allows doctors to consult specialists in life

and death situations. A resident doctor can consult a senior consultant while at

the operation table and the CRM solution helps retrieve the most suited

consultant for a given case. This way all decisions can be collaborative.

Furthermore, in case of a smaller problem the doctor is not required to rush to the

hospital. The remote system also means that every patient has 24 *7 coverage

from his/her doctor.

E-Visit

WHHIS association with think Ahead led to other creative initiatives. The first is

the Virtual Family Visit. Relatives and friends can visit any patient online in avirtual patient room. The system is capable of transferring audio, video, text, and

images.

Similarly, WHHI was also able to initiate a tele-medicine program. These are video

links established at medical colleges in the relatively less developed parts of India.

The doctors at WHHI use this link to address classes in these colleges as well as to

make routine follow-ups on chronic patients.

Securityissues

With so much data available over the internet it is natural that information

security would be a concern. To secure its network, the WHHI IT team has set up a

hardware and software firewall. The hardware blocks unauthorized access and the

software firewall acts as an active state packet filtering firewall. The Total Internet

Security Suite scans inbound and outbound network traffic.

Costfactor

Overall, the implementation cost WHHI close to Rs2 million, according to Bali.

Perhaps, the level of automation and improved efficiency due to this system could

be used to establish the systems ROI. However, Bali does not look at it from a

profit perspective, but rather as a Staying in Business investment. According to


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him, as the standards for hospitals improve the world over, Wockhardt must set a

standard in India.

3.HDFC-Banking and Financial Sector

Owing a a Home still remains to be the single most cherished dream for many

Indian households and one need to be treated with great care while assisting

people realize their dreams. At HDFC, the element of care not only reflects in the

very vision that prompted its inception, but also in the manner in which the

company relates to its customers. To HDFC, providing finance for housing is not

merely about earning profits, but way to provide an essential and valuable serviceto the society.

It all began with a thought that took shape in the mind of HDFCS founder, Late

Shri H.T. Parekh, who built the organization on the core values of integrity,

transparency and trust. Though HDFC enjoyed a monopoly when it started out, the

companys firm focus has always been on customer care and satisfaction. It

believed that the best strategies are established with long-term commitment and

relationships with the customers.

Since the company has always been dealing directly with its customer, this has

helped it keep in touch with the changing trends and customer expectations. Its

experience and in-depth knowledge of the sector is a boon for its customers. HDFC

understands that buying a house is an event which happens once in a lifetime for

most and is the single largest investment; hence buying the property with the

fullest knowledge is vital. While buying a property, where except in few cases the

developers have established a brand, most builders are local and relatively

unknown, there are a number of issues and concerns a customer has when he

deals with any developer.

With over 28 years of experience in the real estate industry and business relations

with the developers, it has a through understanding of the market and this is

passed on to the customers. It provides counseling through its property services on


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how and where to buy a house in India, the real estate prices and trends in the

real estate market and any assistance that may be required at various stages of

property dealings. HDFC aims to bring creditability and trust to the property deals.

It has from time to time tied up with developers to bring special packages to its

customers and reach out to them. It conveys the properties to the customers byvisiting companies to put up special counters displaying new projects of builders,

so they dont have to move out to locate a home and make presentations to

address their financial concerns. This approach is also used in colonies with a large

number of families. The company also arranges property fairs where customers

can visit, select the property and seal the deal immediately.

At HDFC, product innovations are based on customer feedback and are aimed at

customer convenience. It was the first company to offer floating rate scenario

turned conducive for customers and introduce part fixed part floating product

enabling customers to hedge their risks in an uncertain interest environment. It

was also the first to launch repayment option that supported housing loans on the

basis of age and customer needs. As the first company to computerize the home

loan process, technology has always been a focus area for the company in itsendeavour to simplify transaction for customers.

All in all HDFC is a brand, which not only offers Housing Finance but Total

Housing Solutions. Given the diverse portfolio of customers that HDFC caters to,

the counselors at HDFC are trained to understand customer requirements and

structure the loan to match individual concern. Departing from the usual norm of

providing just loans, it offers customers a personalized counseling service to help

customers encash on the vast pool of knowledge that comes with its experience.

It follows a single window concept where customers get legal and technical

approvals by its experienced in-house counselors. This usually saves a lot of time

and efforts for customers of obtaining these clearances from other authorities and

save money as the processing and administrative charges cover all these

expenses. Customer service at HDFC goes beyond process handling, with


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counselors taking out time to understand the applicants needs, the demands of

their growing families, the necessity to ensure savings for emergencies and then

arriving at the right amount for them to borrow.

HDFCS philosophy of care also engulfs its interaction with customers who have

defaulted in repaying the loan. From beginning it followed a different model andsetup a follow-up department to deal with delinquent borrowers instead of a

recoveries section, believing that individuals were basically honest and would

pay back in time. Its debt collection policy emphasizes on forecasting borrower

confidence by understanding their crisis; discussing their repayment capacity-

considering their income, number f dependents , he nature of their expenses etc ;

and after ascertaining the facts and the reasons for default work out of solution ,

even reschedule the loan if required . though the policy deals with a negative

situation , it has a strong value based premise that ensures that the

implementation will not be unduly coercive . Infact ,the policy is built on courtesy ,

fair treatment and persuation .

The Home Loan Protection Plan ( a product of HDFC standard Life ) that HDFC

offers to it home loan borrowers provides the customer the comfort of knowing

that in case of the unfortunate death of the borrowers , a sum of moneydepending on the insurance cover will be made available towards repaying the

housing loan . for HDFC , its strength emanates from its intrinsic value of customer

orientation and care . they are the basis for all growth and development .ask at

hand is to bridge the gaps and to provide the common man access to resources to

fulfill his basic dream . In its 28 years of orientations it has assisted 27 lakh

families own a home through loan approvals of over Rs.1,00,000 crores . As it

moves along taking small steps in this direction what makes the effort truly

worthwhile is when it ultimately benefits individuals and the effort trulyworthwhile is when it ultimately benefits individuals and the society at large .


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3.AXISBANK

AXIS bank was the first of the new private banks to have a begun operation in

1994 after the government of India allowed a new private banks to be established.

The bank was promoted jointly by administrator of the specified undertaking of

the Unit Trust Of India (UTI) Life Insurance Corporation Of India (LIC) and otherfourPSU companies i.e. National

Omi Project

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