Customer Relationship Management with Respect to Recurring Deposit Account of Sbi and Icici

INTRODUCTION OF TOPIC

TOPIC

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

* Reinforced customer

* Convenience

* Benefit and facility

* Increase in customer revenue

Customer-Product profitability analysis is to compare the most profitable segment for the bank.

INTRODUCTION OF CRM

INTRODUCTION

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

preferences.

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 madeÒ' 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