To make comparative analysis of Customer Relationship Management with respect to Recurring Deposit Account of SBI and ICICI. INTRODUCTION
Aim of Customer Relationship Management is to produce Customer Equity. Three major drivers of customer equity are: 1.Value Equity: This measures the customer perception about benefits relative to its cost. The sub drivers of value equity are quality, price and convenience. 2.Brand Equity: Customer's subjective and intangible assessment of the brand beyond the objectively perceived value. The sub drivers are customer brand awareness, customer attitude towards the brand, customer perception of brand ethics 3.Relationship Equity: Customers tendency to stick to the brand above and beyond the objective and subjective assessment of its worth .Sub drivers of relationship equity includes loyalty programs, community building programs and knowledge building program.
BASIS OF COMPARISONS
With the aim to make comparative analysis between the two Banks with respect to Recurring Deposit facilities, is done considering following factor: Dissatisfaction level of customer
Benefit and facility
Increase in customer revenue
Customer-Product profitability analysis is to compare the most profitable segment for the bank.
INTRODUCTION OF CRM
CRM is a set of strategies, processes, metrics, organizational culture and
technology solutions that enhance an organization's ability to see the
differences in its customers' and prospects' behavior and needs, track new
opportunities to better serve their customers and act, instantly and profitably,
on those differences and opportunities. Recently CRM has taken a center
stage in the business world with businesses concentrating on saving money
and increasing profits by redefining internal processes and procedures. It
costs a company dramatically less to retain and grow an existing client, than
it does to court new ones. It is said that "It is seven times more expensive to
acquire a new customer than to keep an existing one", therefore the value of
customer information and management should never be underestimated.
Customer relation management analysts says CRM is "a buzzword that's
really not so new. What's new is the technology is allowing us to do what we
could do at the turn of the century with the neighborhood grocer. He had few
enough customers and enough brainpower to keep track of everyone's
Technology has allowed us to go back to the future to this
model." The aim of CRM is optimize the use of technology and human
resources for the business to gain insight into the behavior of costumer.
Seeing the new market (CRM) emerge, the world's leading business
software vendors have reinvented themselves to focus on CRM, and there
has been a fierce competition for the dominance in this market. Technology
is now an essential part of CRM nowadays but buying technology before
defining CRM business goals, is a recipe for disaster. It is important to
remember that technology used for CRM should be tailor made´ depending
on the type of consumer base of the company and the business goals.
Companies need to understand CRM in relevance to customers and
customers only. Technology like call center services and software's will
prove helpful only if they improve the customer services and relation
, otherwise all fancy technology is useless if it fails to benefit the customer.
EVOLUTION OF CRM IN BANKING SECTOR
Regulation and technological improvements are responsible for the vast
majority of innovations in banking over the past quarter century
. The introduction of personal computers and the proliferation of ATMs
in the1970s captured bank management's attention. The regulatory changes
in the 1980s fueled much of the...