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Customer Relationship Management in ICICI Bank

( With Special Reference to Thiruvannamalai. )

M.Murugan,
Ph.D Research Scholar , Manonmaniam Sundaranar University, Tirunelveli.
r. S.!. Senthil "umar,
Associate Professor and Research Guide, Central University of Pondicherry,
"araikal Campus, Pondicherry (UT.
Abstract
A study was conducted among 100 respondents to find out the CRM functioning and effectiveness of
the ICICI Bank in ThiruvannamalaiThis study was revealed that regardless of services conte!t customers
e!pect service provider to "e courteous usually #most conversation "egin or end with a courtesy e!pression and
includes some form of personal connection content The important point is that sociality communication can
play a pivotal role in moving the provider and consumer for mere encounters to higher degree of relational
development

"e# $or%s & CRM, ICICI Bank, Service 'ualit#, customer lo#alt#, Thiruvannamalai.
(. Intro%uction
Customer Relationshi! Mana"ement (CRM is a mana"erial !hiloso!hy that see#s to $uild lon"
termrelationshi!s %ith customers. CRM can $e defined as &the develo!ment and maintenance of
mutually $eneficial lon"'term relationshi!s %ith strate"ically si"nificant customers (very sector is
facin" cut'throat com!etition in the mar#et and $an#in" sector is not an e)ce!tion to it. These days,
$an#s are facin" an a""ressive com!etition and they have ta#e efforts to survive in this mar#et
!lace. *an#s have understood that mana"in" Customer relationshi!s is a very essential factor for
their
succ
ess
and
!rofi
ta$il
ity

(. Revie$ of )iterature

Alo# mittal, et al., (+,,-

!resented an article on &An e)!loratory study of CRM orientation
amon" *an# em!loyees.. The !a!er aimed at e)!lorin" the as!ects of the CRM orientation amon"
$an#s em!loyees of $oth the !u$lic and the !rivate sector $an#s. The findin"s of the research
hi"hli"hted that there is need for im!rovement on some of the com!onents of the CRM such as
customer communication, customer orientation, customer care and handlin" of com!laints in $oth
!u$lic and !rivate sector $an#s. The a"ed em!loyees in the !u$lic and !rivate $an#in" institutions
need to im!rove their CRM s#ills in order to com!lete %ith their youn"er counter!arts.
Ta!an, (+,,-

in his article &creatin" customer lifetime'value throu"h effective CRM in
financial services industry., has stressed the im!ortance of the CRM in financial services industry.
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Customer data mana"ement "ives clues a$out the !ro$a$ility of customer demand and technolo"y
hel!s in trac#in" the characteristics and cate"ori/ation of customers de!endin" on their !ast $ehavior.
0e concluded that %ith increased com!etition and customers movin" very fast from firm to firm
another, it is essential to have an inte"rated CRM strate"y across the %hole or"ani/ation for
"eneratin" hi"her customers life'time value.
*. +,-ectives
To study the CRM functionin" and effectiveness of the 1C1C1 *an# in Thiruvannamalai.
To study the advanta"es of CRM schemes introduced $y 1C1C1 *an# to its customers
To study the various customers oriented schemes introduced $y 1C1C1 *an# in the interest of
its customers.

.. /#pothesis
Ma2ority of customers are satisfied %ith the services !rovided $y 1C1C1 *an#.
1C1C1 is al%ays ta#in" initiative for !rovidin" ma)imum satisfaction to its customers.
0. Metho%olog#
Primary study has $een underta#en on micro level $asis on focusin" only a fe% individual customers at
Thiruvannamalai.
The Secondary data has $een o$tained from Articles, 2ournals and some %e$sites Goo"le,
mana"ement !aradise etc.
0.( Sampling population3 '
The !o!ulation for the !resent study has $e mainly customers of 1C1C1 *an#, (m!loyees of
and also !u$lic, includin" those %ho have had some interaction %ith this $an#. They have
$een chosen #ee!in" the o$2ectives of our research study and the constraints of time and
$ud"et that %e have.4,, !eo!le have res!onded.
1. Scope an% 2tilit#
This study has concentrated all the services in "eneral. 5ne can also do com!arative study of
various $an#s and their a!!roach to%ards the customers. 1n the !resent com!etitive $usiness
%orld it $ecomes necessary to ali"n or"ani/ation to%ards customers, 1nte"rate customers6
touch !oints, 7no%in" and understandin" customers and !otential customers, (sta$lishin"
and mana"in" relationshi!s %ith customers. Thus CRM is need of this hour.
3. )imitations
The study is limited to res!ondents from Thiruvannnamalai.
This !ro2ect concentrates on the services "iven to customer in "eneral. Therefore it is
difficult to study the vie% of the customers to%ards one !articular service.
1t %as difficult to study %hat ha!!ens to customer satisfaction %hen %e initially !erceive
a service !rovider as $ein" less than "eneral then over time, that service !rovide 8%arms
u!6 une)!ectedly9
:inally, this study did not e)amine %hether courteous e)!ressions on !ersonal
connections !lay a role in other customer outcomes such as loyalty and %ord'of'mouth
referrals.
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4. !nal#sis
This !ro2ect %ish to study the customer relationshi! mana"ement in 1C1C1 *an#
and ho% this
conce!t %ould hel! to maintain lon" term customer loyalty %ith the $an#. This %ould hel!
1C1C1 $an# to emer"e as no one !rivate sector $an# in the country.
CRM, accordin" to 1C1C1 consists of the follo%in" a!!roaches3
4. Gettin" !ersonali/ed information on customers.
+. ;hat is the value of the relationshi!9
-. Customi/ed offerin"s to the customers.
<. Convertin" a !ros!ective customer into a true customer.
4 Gettin" !ersonali/ed information on customers3
The $an# collects all the information a$out the customers for !rocessin". 1C1C1 $an#
has mainly < service offerin"s vi/3 loan account, savin" account, current account and
fi)ed de!osits. Moreover, the $an# has many customers in each cate"ory. So, they collect the
data
on one server and thus the com!any "ets the !ersonali/ed information on each customer $y
as#in" them to fill the information in customer a!!lication form.
+ ;hat is the value of the relationshi!9
After the collection of the !ersonali/ed information on every customer, the
de!artment chec#s out the value of the relationshi! %ith each and every customer. =ater,
they decide ho% to a!!roach the customer for #no%in" %hat his needs and %ants are9 After
this is done, the
com!any offers him the customi/ed !roduct.
- Customi/ed offerin" to the customers3
The ste! %hich comes after decidin" the value of the customer is that the com!any offers
the !erson the customi/ed !roduct. Moreover, they also !ractice a conce!t called cross'
sellin" over here. Cross > sellin" refers to offerin" another !roduct from the service offerin"
of the $an# to the customer %hich he has not "one for. ()am!le 1f customer has savin"
account %ith the $an# then %e offer him loan, insurance and other investments.
< Convertin" a !ros!ective customer in to a true customer3
The last a!!roach of CRM accordin" to 1C1C1 $an# is that they try to convert the
!ros!ective customer into a true customer. Ri"ht from the moment the in?uiry comes, they
follo%' u! the customer and then ma#e him to come to the $an# occasionally and then
re"ularly.
4.( +vervie$ on ICICI Bank
1C1C1 *an# (formerly 1ndustrial Credit and 1nvestment Cor!oration of 1ndia is a
ma2or $an#in" and financial services or"ani/ation in 1ndia. 1t is the <th lar"est $an# in 1ndia
and the lar"est !rivate sector $an# in 1ndia $y mar#et ca!itali/ation. The $an# also has a
net%or# of 4,@,,A $ranches (as on -4 March +,4, and a$out <,@+4 ATMs in 1ndia and
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!resence in 4B areas of investment $an#in", life and non'life insurance, venture ca!ital
and asset
mana"ement. 1C1C1 *an# is also the lar"est issuer of credit cards in 1ndia.
4.5 6ee% of CRM in the Banking In%ustr#&
A Relationshi!'$ased Mar#etin" a!!roach has the follo%in" $enefits3 '
4. 5ver time, retail $an# customers tend to increase their holdin" of the other !roducts
from across the ran"e of financial !roducts C services availa$le.
+. =on"'term customers are more li#ely to $ecome a referral source.
-. The lon"er a relationshi! continuesD the $etter a $an# can understand the
customer
and hisCher needs E !references, and so "reater the o!!ortunity to tailor !roducts and
services and cross'sell the !roduct C service ran"e.
<. Customers in lon"'term relationshi!s are more comforta$le %ith the service,
the
or"ani/ation, methods and !rocedures. This hel!s reduce o!eratin" cost and costs
arisin" out of customer error. ;ith increased num$er of $an#s, !roducts and
services and !ractically nil s%itchin" costs, customers are easily s%itchin" $an#s
%henever they find $etter services and
!roducts. *an#s are findin" it tou"h to "et ne% customers, and more
im!ortantly,
retain e)istin" customers.
4.* The 7rocesses for elivering CRM&
The tools and the !rocesses are as follo% >
F Customer a!!lication form
F Centrali/ed soft%are %here the %hole data is collected.
F ;ide ran"e of offerin"s
F Cross > sellin"
F :eed$ac# forms
() Customer !pplication 8orms&
*an# collects all the data from customer a!!lication form and "ets the
!ersonali/ed
information to #no% %hich !roduct to offer to %hich customer. This !rocess hel!s in
collectin" the data and #no%in" %hat the customer %ants.
5) Centrali9e% Soft$are $here the Whole ata is Collecte%&
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The data collected throu"h customer a!!lication forms is availa$le at one server and can
$e accessed anytime, any%here. So, this hel!s in the further !rocess of customi/ed offerin"s
and cross >sellin".
*) Wi%e Range of +fferings&
After collectin" the data from the customer, team decides %hat !roduct to offer to %hich
customer. 1n case the $an# reco"ni/es you as a valua$le customer then is offers a more
customi/ed service.
.) Cross : Selling&
1t refers to offerin" another !roduct from the service offerin" of the $an# to the customer
%hich he has not "one for. :or e)am!le 1f customer has savin"s account %ith the $an# then
they offer him a insurance, fi)ed de!osits etc. This de!ends on the value of the customer to
the $an#. Cross sellin" is not offered to every customer. 1t de!ends on ho% loyal the customer
is to the $an#. The more $usiness he "ives us, the more are his chances of $ein" s!ecial
services offered.
0) 8ee%,ack 8orms&
The $an# distri$utes feed$ac# forms at all its $ranches. The customers feed$ac#s on the
service, technolo"y used, em!loyee $ehavior and !rom!tness in solvin" customerGs
!ro$lems, are ta#en and they are analy/ed. CRM hel!s to #no% the needs and %ants of the customer.
So, on the $asis of this com!any can decide %hich !roduct to offer to %hich customer. 1t has $een
o$served that cross > sellin" is the $est %ea!on. 1t enhances the relationshi! value %ith the
customer. This satisfies the customer and that is the reason %hy the customer #ee!s on comin" a"ain
and a"ain to the com!any. This hel!s in retainin" the mar#et share. Ho% ,the satisfied customers hel!
in the %ord' of > mouth !romotion of the $an#, %hich eventually increases our mar#et share.
4.* !%%itional 8eatures of CRM in ICICI Bank&
Most $an#s have their o%n data$ases $ut $ecause of the hu"e technolo"ical investments done
$y 1C1C1 the data$ases in all the $ranches are inte"rated, %hich means they can $e accessed
from any%here and at anytime. 1C1C1 $an# has tied u! %ith Terradata Com!any for ma#in"
their soft%are and is the only $an# doin" this. The difference can $e #no%n throu"h matchin"
tool !arameter. This refers toD on the server of 1C1C1 sum standards are set in terms of value
of the customer and %henever the customer reaches the set standard, the server automatically
informs the de!artment to offer him another !roduct.
4.. ifferent Channels an% Services +ffere% ,# ICICI Bank.
*an# *ranch, ATM, Phone *an#in", 1nternet *an#in", 1nsta *an#in", Mo$ile *an#in", Call
Centre. 1C1C1 *an# offers a host of !roducts and services to its clients, %hich include De!osits,
170
=oans, Cards, 1nvestments, 1nsurance, Demat, HR1 Services and 5nline Services etc.
;. 8in%ings
4. Customer relationshi! mana"ement has $ecome need of an hour %ithout %hich it is difficult
to survive in the com!etitive mar#et.
+. Customers in lon"'term relationshi!s are more comforta$le %ith the services, the
or"ani/ation, methods and !rocedures. This hel!s reduce o!eratin" cost and costs arisin" out

4. (ducate more customers a$out the various $an#in" services availa$le and ho% to use
them.
+. *an# has to ensure the security of ATM cards and credit cards etc.
((. Conclusion
This study stron"ly su!!orts the fact that CRM is need of an hour and no $usiness may $e it
is $an#in" $usinessD retailin" or somethin" else can ever survive %ithout !ro!er introduction
of CRM. This study stron"ly su!!orts the connection that consumer %ere more satisfied
%ith !rofessional service !rovider %ho en"a"ed in $oth courteous e)!ressions and !ersonal
connections forms of sociality. Moreover, findin" revealed that re"ardless of services conte)t
customers e)!ect service !rovider to $e courteous usually ,most conversation $e"in or end
%ith a courtesy e)!ression and includes some form of !ersonal connection content. The
im!ortant !oint is that sociality communication can !lay a !ivotal role in movin" the !rovider and
consumer for mere encounters to hi"her de"ree of relational develo!ment.

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