Overview of CRM Practices in Banking Industry

In the present Indian Banking Industry, two most important phenomena are emerging as most
important crm practices. These are ‘Technology’ and ‘Relationship Marketing’. The use of
technology has drastically changed the banking services and practices. ‘Relationship Marketing’
is seen as the most important differentiating factor among the banks. Further, we can say the
importance of Technology and Relationship marketing is the main Core Banking Solution (CBS)
nowadays.

Broadly, three types of CRM are adopted by banks:

1)Operation CRM – These includes various software packages which are used to track and
organise various inbound and outbound interactions with customers and also it includes the
marketing campaigns management.It supports various frontline processes in sales, marketing
and customer service, and also it helps to automate various communciation process with
customers. They record customer contact history and also stores various valuable customer
information so that they can ensure a consistent picture of customer’s relationship with the bank.

The major benefits of operational CRM to banks are

a)Sales Force Automation benfites

 It gives a 360-Degree View of every Customer in the bank.A Salesforce CRM in banks is
a merged framework model that can coordinate in parellel with your other financial
software projects to give a efficient single view of each and every customer account.
From the point deposit at an ATM to the point of mentioning data about a particular type
of loan, each move a client makes is recorded in your CRM products to their money
related objectives. This makes the customer experience more delightful.
 It Improves Customer Retention by improving customer fulfillment and dedication
 Better Customer Service and Experience-Salesforce CRM gives deeper details into
customer information, therefore empowering more efficient customer support services. It
gives more better customer services by means of variautomated response to various
users’ inquiries, facilitating services pertinent to them.
 Use Insights to Improve Sales and Marketing Efforts-From that information you can
recognize various trends, effective marketing campaigns, and regions for development
that will help to achieve various marketing targets. We can use information for various
upsellig of products.
 Boosted Sales-Salesforce Software Implementation helps banks recognizes the leads and
convert the leads into potential customers which helps in procurement of new clients with
the help of past data.
 Expanded Productivity- Salesforce helps in cutting various expenses by limiting tedious
managerial tasks, streamlining process and keeping your sales team insider savvy with
only a couple of clicks.

(b)  Customer Service and Support

 Bank Tellers-These are the first point to contact for various customers. Tellers who are
the people who are knowledgeable and friendly.Many customers makes decision whether
to select this bank or not based on the communication with them.Training is usually
offered for various bank tellers, including lot of emphasis on customer service skills.
 Call Centers
 Many banks, especially large banks, employ call center representatives which may try to
solve various problems of customers or they are responsible for directing various calls
 to specialists in that particular areas within the banking organization. Call center
representatives must have good communication skills, good listening skills and problem-
solving abilities.
 Other services in Banking-There are many other staff members who offer customer
service in banking like able to perform various complex transactions like opening
accounts. Various loan officers offer various customer service to customers who wantss
to borrow money

2)Analytical CRM –It involves analysis of customer information so that to get better customer
relationship practices.

The major benefits of Analytical CRM to banks are:

 Retention of customers in banks

 Detection of frauds in banks
  Optimising various marketing efforts accordingly
 Credit Risk Analysis- Credit risk analysis is a type of analysis which is performed by a
credit analyst to determine a borrower’s ability to meet their debt obligations.
 It helps in segmentation and targeting means development of various customised
products to match the specific prefernece and priority of customers.

3)Collaborative CRM –

In this type of CRM is also well-known as strategic. It’s is more focused on the efficient
collaboration of various different departments of a bank to share information. It brings people
process and data together and enables channelling of data and information appropriately to bank
staff for proactive decision making and enhanced informed customer service and support
activities. It provides a means of information sharing to all concerned in timely manner and
includes customer as a creator of service. The major benefits of collaborative CRM to banks are

a)Providing efficient and well organized customer communication across different and variety
of channels

(b)  Offereing of various online services to reduce cost.

CRM Practices at SBI BANK

SBI practice segmentation and targeting for different sets of people to enhance customer
relationship

SBI divides its clients into following categories

• P-segment (personnel banking)-It is the personal banking segment.They are given the option
to open any of the saving account like a)Bank account with a facility of cheque book b) Ordinary
bank account

• Agriculture segment –In this segment various agriculture loans are granted.

• Corporate/govt segment

• Financial Inclusion and Micro Market (FI&MM) –This vertical will focus on rural and semi
urban areas to improve their experience.Under this vertical, the bank will offer various loans
which focuses mainly for agriculture as well as allied activities, and micro and small
enterprises.Separate meeting for the different segment are called and their needs are asked for

Providing various alternate channels for communciation to enhance customer relationship

 A T M CUM
DEBIT CARD /
SME DEBIT
CARD

• CONTACT INTERNET
CENTRE BANKING

channels

SELF SERVICE MOBILE

KIOSK BANKING

GREEN REMIT
CARDS /
INSTA
DEPOSIT
CARDS

Customer services and support at sbi to enhance customer relationship management.

• Availability of 24*7 service-SBI Credit Card Customer care Department is available 24 *7.

Quicker and convenient transactions

SBI Quick is a faamous and well known missed call banking service which gives access to all
the information related to account and other transactions
 

Providing more secure customer experiences with its latest yono app

For the elimination of skimming and cloning with the ATM cards,the country’s largest bank
introduced yono cash to give facility of cardless cash withdrawal through the yono app can be
accessed through mobile phone and web providing omini-channel customer experience.
.

Decongestion of branches to enhance customer relationship

Merging of state bank of india with large no of associate banks enhance the customer experience
before the merger the customer of a particular associate bank has access to some thousand
branches and after merger the customer will access to 24000 branches this is the benfit derive by
customer for sbi.They can login with same old id and password after merger also.

90-10 rule of sbi to enhance customer relationship

Ten percent of what life happens to you and 90% how you react to them.Employees of sbi use
this technique to response to customers queries in a better way.