DEPLOYING THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN RETAIL BANKING A Research Paper
Company: HDFC Retail Banking, India.
ANIL KUMAR DEVARAKONDA (111-00-2004)
DATE: August 21st, 2011
COURSE: MKTG 510 – Electronic Commerce
INSTRUCTOR: PROFESSOR GEORGE EDEH
UNIVERSITY OF NORTHERN VIRGINIA
7601 LITTLE RIVER TURNPIKE,
ANNANDALE, VA 22003
This research paper attempts to conduct a study of deployment of Customer Relationship Management (CRM) best practices in the context of retail banking, specific to HDFC private sector retail bank, one of the largest banks in India with presence in 14 other countries. The research objective involves describing how the selected bank is deploying the Customer Relationship Management (CRM).
Best Practices toward building relationships with their retail customers. The case study method is the recommended research method in such situations when we deliberately want to cover the contextual conditions because they may be highly pertinent to the phenomenon of study. The research study identifies some CRM Best Practices after extensive literature review.
Customer Relationship Management:
Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.
Benefits of CRM:
A CRM system may be chosen because it is thought to provide the following advantages * Quality and efficiency
* Decrease in overall costs
* Decision support
* Enterprise agility
* Customer Attention
Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often, there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained user.
Additionally, an interface that is difficult to navigate or understand can hinder the CRM’s effectiveness, causing users to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or harm in its use. Complexity:
Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure. Poor usability:
One of the largest challenges that customer relationship management systems face is poor usability. With a difficult...
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