Customer Relationship Management at Union Bank of India

The Union Bank of India was built up in twentieth century and declared open by the Father of the Nation, Mahatma Gandhi. The bank with its efficient alue! added ser ices, sustained "rowth, consistent profitability and de elopment of new technolo"ies bank has ensured complete customer deli"ht, li in" up to its ima"e of, #G$$% &'$&(' T$ B)N* +IT,-. Bank is offerin" credit cards, home loan, union demat, *isan )TM, International debit card, online ta. payment facility, /ailway e!ticketin" kiosk, etc., ser ices to its customers throu"h core bankin" solution. The Union Bank of India has 0012 branches out which 2342 branches are under 5B6. &resently 747 )TMs spread out across India both $nsite and $ffsite. )ll the )TMs are inter!connected throu"h the Bank8s )TM 6witch, thus facilitatin" on!line operations in case of 5B6 customers. The Bank is a member of 5ash Tree consortium and also has bilateral arran"ement with 6tate Bank of India, enablin" the Bank8s )TM cardholder access to o er 03333 )TMs across the country. UBI Net connects 19 $ffices and 7:; branches located in 404 centres, facilitatin" speedier transmission of MI6 data <Network Map=. The network also facilitates the implementation of 5ore Bankin" 6olution, apart from %'M)T ser ices, 5ash Mana"ement ser ices, fund transfers, messa"in" system, etc.The Bank is usin" >6)T network for connectin" branches and )TMs where er leased line connecti ity is not feasible. +e ha e 973 >6)Ts operational,connectin" 27; branches?e.tension counters and 421 )TMs. ) successful 5/M strate"y aims at understandin" the needs of the customer and inte"ratin" them with the or"ani@ation8s strate"y, people, and technolo"y and business process Therefore, one of the best ways of launchin" a 5/M initiati e is to start with what the or"ani@ation is doin" now and workin" out what should be done to impro e its interface with its customers. Then and only then, should it link to an IT solution.+hile this may sound Auite strai"htforward, for lar"e or"ani@ations it can be a mammoth task unless a "radual step!by!step process is adopted. It does not happen simply by buyin" the software and installin" it. For 5/M to be truly effecti e, it reAuires a well!thou"ht!out initiati e in ol in" strate"y, people, technolo"y, and processes. )bo e all, it reAuires the reali@ation that the 5/M philosophy of doin" business should be adopted incrementally with an iterati e approach to learn at e ery sta"e of de elopment. $nly time will tell how Indian banks embrace the 5/M philosophy and take on the competition from forei"n entities

Need of CRM in Banks

5/M primarily caters to all interactions with the customers or potential customers, across multiple touch points includin" the Internet, bank branch, call centre, field or"ani@ation and other distribution channels.

CRM can help banks in following ways

1. Customer Information Consolidation ! Instead of customer information bein" stored in product centric silos, <for e.". separate databases of sa in"s account B credit card customers=, with 5/M the information is stored in a customer centric manner co erin" all the products of the bank. 5/M inte"rates . . !ersonali"ed sales home page C 5/M can pro ide a sin"le iew where 6ales Man"ers and a"ents can "et all the most up!to!date information in one place, includin" opportunity, account, news, and e.pense report information. This would make sales decision fast and consistent. #. $ead and %pportunity Management & These enable or"ani@ations to effecti ely mana"e leads and opportunities and track the leads throu"h deal 5losure, the reAuired follow!up and interaction with the prospects. arious channels to deli er a host of ser ices to customers, while aidin" the functionin" of the bank.

'. (cti)ity Management * It helps mana"ers to assi"n and track the acti ities of arious
members. Thus impro ed transparency leads to impro ed efficiency. +. Contact Centre C It enables customer ser ice a"ent to pro ide uniform ser ice across multiple channels such as phone, Internet, email, Fa.. ,. %perational Inefficiency Remo)e C 5/M can help in 6trate"y Formulation to eliminate current operational inefficiencies. )n effecti e 5/M solution supports all channels of customer interaction includin" telephone, fa., e!mail, the online portals, wireless de ices, )TMs, and face!to! face contacts with bank personnel. It also links these customer touch points to an operations centre and connects the operations centre with the rele ant internal and e.ternal business partners. -. .nhanced producti)ity * 5/M can help in enhanced producti ity of customers, partners and employees.

%b/ecti)e of the CRM in Bank

5/M, in its broadest sense, means mana"in" all interactions and business with customers. This includes, but is not limited to, impro in" customer ser ice. ) "ood 5/M pro"ram will allow a business to acAuire customers, ser ice the customer, increase the 5/M pro"ram can impro e customer ser ice by. 0acilitating communication in se)eral ways1 &ro ide product information, product use information, and technical assistance on web sites that are accessible 0; hours a day, D days a week Identify how each indi idual customer defines Auality, and then desi"n a ser ice strate"y for each customer based on these indi idual reAuirements and e.pectations. &ro ide a fast mechanism for mana"in" and schedulin" follow!up sales calls to assess post! purchase co"niti e dissonance, repurchase probabilities, repurchase times, and repurchase freAuencies. ,elp to identify potential problems Auickly, before customer occur alue of the customer to the company, retain "ood customers, and determine which customers can be retained or "i en a hi"her le el of ser ice. ) "ood

E 2eeping .3isting Customers! Gradin" customers from ery satisfied to ery disappointed should help the or"ani@ation in impro in" its customer satisfaction le els and scores. )s the satisfaction le el for each customer impro es, so shall the customer retention with the or"ani@ation. E Ma3imi"ing $ife time )alue& '.ploit up!sellin" and cross!sellin" potential. By identifyin" life sta"e and life e ent tri""er points by customer, marketers can ma.imi@e share of purchase potential . Thus the sin"le adults shall reAuire a new car stereo and as he "rows into a married couple his needs "row into appliances. 4 Increase $oyalty& (oyal customers are more profitable. )ny company will like its mindshare status to impro e from bein" a suspect to bein" an ad ocate. 5ompany has to in est in terms of its product and ser ice $fferin"s to its customers. It has to inno ate and meet the ery needs of its customers so that they remain as ad ocates on the loyalty cur e. /eferral sales in ariably are low cost hi"h mar"in sales.

The push towards better 5/M technolo"ies is natural result of the search by business of "reater producti ity and efficiency in customer facin" operations like sales, marketin", customer ser ice and support. '.". in sales, companies need IT system t h a t pro ides "reater control and efficienc y . This means impro ed forecastin" and to capability, "reater isibility into sales performance across a

ariety of channels increased producti ity by e.ternal sales forces and reduced sales costs, mean

while, companies must meet customer demands for betterFuality timeless and customi@ation in the ser ice they deli er. 5ompanies also need technolo"ies that help them approach customers in a rational way. '.". remember a customer address from one transaction to another and carefully choreo"raph contact between its, sales force and customers. In addition to bein" wasteful and inefficient pitchin" a new product to a customer who has Gust bou"ht the same item makes the company look incompetent to the customer. The internet dramatically accelerate the focus on 5/M by makin" customer interactions more cost!efficiency. In addition, the web has established a more direct sales channel that supports rapid customer interaction and short sales cycles. Usin" Internet technolo"ies, customer can interact with information from a wide ariety of 6ources without special trainin". The idea of 5/M is that it helps businesses use technolo"y and human resources "ain insi"ht into the beha ior of customers and the alue of those customers. If it works as hoped, a business canH pro ide better customer ser ice, make call centers more efficient, cross sell products more effecti ely, help sales staff close deals faster, simplify marketin" and sales processes, disco er new customers, and increase 5ustomer re enues. It doesnIt happen by simply buyin" software and installin" it. For 5/M to be truly effecti e an or"ani@ation must first decide what kind of customer information it is lookin" for and it must decide what it intends to do with that information. For e.ample, many financial institutions keep track of customersI life 6ta"es in order to market appropriate bankin" products like mort"a"es or I/)s to them at the ri"ht time to fit their needs. Ne.t, the or"ani@ation must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used.

5here are three parts of application architecture of CRM1 Use in Union Bank
2. %perational ! automation to the basic business processes <marketin", sales, ser ice= 0. (nalytical ! support to analy@e customer beha ior, implements business intelli"ence alike technolo"y 4. Collaborati)e ! ensures the contact with customers <phone, email, fa., web, 6M6, post, in person=

2. %perational CRM
$perational 5/M means supportin" the Jfront officeJ business processes, which include customer contact <sales, marketin" and ser ice=. Tasks resultin" from these processes are forwarded to resources responsible for them, as well as the information necessary for carryin" out the tasks and interfaces to back!end applications are bein" pro ided and acti ities with customers are bein" documented for further reference. 6ales force automation 760(8

6F) automates some of the companyIs critical sales and sales force mana"ement functions, for e.ample, lead?account mana"ement, contact mana"ement, Auote mana"ement, forecastin", 6ales administration, keepin" track of customer preferences, buyin" mana"ement. 6F) habits, and demo"raphics, as well as performance tools are desi"ned to impro e field sales producti ity. *ey infrastructure

reAuirements of 6F) are mobile synchroni@ation and inte"rated product confi"uration. Customer ser)ice and support 7C668 returns, and information reAuests.

566 automates some ser ice reAuests, complaints, product

Traditional internal help desk and traditional inbound call!center support for customer inAuiries are now e ol ed into the Jcustomer interaction centerJ <5I5=, usin" multiple channels <+eb, phone?fa., face!to! face, kiosk, etc=. *ey infrastructure reAuirements of 566 include computer telephony inte"ration <5TI= which pro ides hi"h olume processin" capability, and reliability.

0. (nalytical CRM
In analytical 5/M, data "athered within operational 5/M lead to tar"eted campai"ns to increase share of customerIs wallet. .3amples of Campaigns directed towards customers are1 E )cAuisitionH 5ross!sell, up!sell E /etentionH /etainin" customers who lea e due to maturity or attrition. and?or other sources are analy@ed to

se"ment customers or to identify potential to enhance client relationship. 5ustomer analysis typically can

E InformationH &ro idin" timely and re"ular information to customers. E ModificationH )lterin" details of the transactional nature of the customers8 relationship.

4. Collaborati)e CRM
5ollaborati e 5/M facilitates interactions with customers throu"h all channels <personal, letter, fa., phone, web, e!mail= and supports co!ordination of employee teams and channels. It is a solution that brin"s people, processes and data to"ether so companies can better ser e and retain their customers. The data?acti ities can be structured, unstructured, con ersational and?or transactional in nature. 5ollaborati e 5/M pro ides the followin" benefitsH E 'nable efficient producti e customer interactions across all communications channels E 'nables web collaboration to reduce customer ser ice costs E Inte"rates call centers enablin" multi!channel personal customer interaction

E Inte"rates iew of the customer while interaction at the transaction le el

Benefits

of a Customer Relationship Management

si"nificant b e n e f i t s t o or"ani@ations. But when

) properly implemented 5/M system can brin"

I talk about a system, I mean the 4 &Is, the complete consortium of people <employees, culture=, procedures <way of doin" business= and pro"rams <supportin" applications=, not Gust an application runnin" on a computer. 5/M is more than Gust the ne.t wa e of computer!aided marketin"K itIs a way of doin" business. (et8s take a look at the ad anta"es that a 5/M or 5ustomer /elationship Mana"ement system can brin".

1. 6hared or distributed data

)s companies reali@e that customer relationships are happenin" on many le els <not Gust throu"h customer ser ice or a web presence=, they start to understand the need for sharin" all a ailable data throu"hout the or"ani@ation. ) 5/M system is an enabler for makin" informed decisions and follow! up, on all the different le els.

. Cost reduction

) stron" point in 5ustomer /elationship Mana"ement is that it is makin" the customer a partner in your business, not Gust a subGect. )s customers are doin" their own order entry, and are empowered to find the info they need to come to a buy decision, less order entry and customer support staff is needed.

#. Better Customer 6er)ice

)ll data concernin" interactions with customers is centrali@ed. The customer ser ice department can "reatly benefit from this, because they ha e all the information they need at their fin"ertips. No need to "uess, no need to ask the customer for the n!th time. )nd throu"h the use of push!technolo"y, customer ser ice reps can lead the customer towards the information they need. )nd, most of the time, the customer can do this on their own, as the 5/M system <remember, the 4 &Is= is more and more able to anticipate the need of the customer. The customer e.perience is "reatly enhanced.

'. Increased Customer 6atisfaction

The customer feels that he is more Jpart of the teamJ instead of Gust a subGect for sales and marketin" <the pro erbial number=, customer ser ice is better, his needs are anticipated. There is no doubt that customer satisfaction will "o up. If the products sold e.ceed the customers e.pectation, of course, no 5/M system can help you with shoddy products. In my opinion, the term satisfaction is a contaminated. Many companies think that if customers are satisfied that this is a "ood predictor for repeat business. ,owe er, this is not the case. $nly delighted customers ha e a "reat le el of loyalty.

+. Better Customer Retention

If a 5/M system can help to enchant customers, this will increase customer loyalty, and they will keep comin" back to buy a"ain and a"ain, hence customer retention.

1. More repeat business

The repeat business is comin" from the deli"hted customers, who are turned from doubtin" clients into loyal ad ocates.

D. More new business

If you are deli erin" the ultimate customer e.perience, this will seed the word! of!mouth bu@@, which will spawn more new business. 9. More !rofit: More business at lower cost eAuals more profit.

. *CRM in banks
;hat is .&CRM<
)s the internet is becomin" more and more important in business life, many companies consider it as an opportunity to reduce customer!ser ice costs, ti"hten customer relationships and most important, further personali@e marketin" messa"es and enable mass customi@ation To"ether with the creation of 6ales force automation <6F)=, where electronic methods were used to "ather data and analy@e customer information, the trend of the upcomin" Internet can be seen as the foundation of what we know as e5/M today. We can define eCRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challen"e hereby is to offer communication and information on the ri"ht topic, in the ri"ht amount, and at the ri"ht time that fits the customer8s specific needs. 5hannels, throu"h which companies can communicate with its customers, are "rowin" by the day, and as a result, "ettin" their time and attention has turned into a maGor challen"e. $ne of the reasons e5/M is so popular nowadays is that di"ital channels can create uniAue and positi e e.periences C not Gust transactions C for customers. )n e.treme, but e er "rowin" in popularity, e.ample of the creation of e.periences in order to establish customer ser ice is the use of >irtual +orlds, such as second life. Throu"h this so!called e5/M, companies are able to create syner"ies between irtual and physical channels and reachin" a ery wide consumer base. ,owe er, "i en the newness of the technolo"y, most companies are still stru""lin" to identify effecti e entries in >irtual +orlds.

6uggestions
Bank should increase staff. Bank transaction should be fully computeri@ed. 5ustomer care ser ice of the bank should be impro ed for con enience of the customers. 5ustomer care ser ice of the bank should be fast and responsi e. )TM8s should be increase.

C%NC$U6I%N
&ro idin" e.cellent customer ser ice is no easy task. This aspect of business is a maGor force that can make or break profits. ,owe er, customer ser ice is rarely mentioned in an or"ani@ationIs mission statement nor is it the top of the discussion list for staff meetin"s or trainin" sessions. &ro idin" the type of customer ser ice that is e.pected by customers take a lot of thou"ht and fle.ibility on the part of mana"ement as well as staff members. The challen"es faced by banks and their customers are many but the trick lies in de!mystifyin" comple. financial relationships. Technical solutions deployed by banks today are fle.ible, user friendly and meant to facilitate specific workflow and reAuirements in implementation processes. In order to simplify li es, banks ha e be"un to implement end!to!end technolo"y throu"h all departments with the intention of remo in" human error from processes pre iously e.istin" manual en ironments could not ha e been adeAuate for future isions, "rowth plans and strate"ies. In this day and a"e, customers enGoy complete lu.ury in terms of customi@ed technical solutions and banks us the same for lon" term, mutually beneficial relationships.

ASIAN SCHOOL OF BUSINESS MANAGEMENT HYDERABAD

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