A SUMMER TRAINING REPORT On CUSTOMER RELATIONSHIP declare that the project report entitled “CUSTOMER RELATIONSHIP MANAGEMENT AT. A project report on customer relationship management in J&K Bank. 7 8 What is customer relationship management? Customer. This is to certify that the project work enititled, 'An Internship Report on the Customer Relationship Management of Vanguard Management Consultants, Ajman'.
To study the role of information technology in CRM. Research Methodology A research design is simply a plan for study in collecting and analyzing the data. It helps the researcher to conduct the study in an economical method and relevant to the problem.
Research methodology is a systematic way to solve a research problem. The methodology should combine economy with efficiency. Research design The study conducted here is exploratory cum descriptive. Scope of the study The scope of the study is confined to Company. Collection of the data There are two types of data. Primary data — primary data is that data which is collected for the first time.
These data are basically observed and collected by the researcher for the first time. I have used primary data for my project work. Secondary data — secondary data are those data which are primarily collected by the other person for his own purpose and now we use these for our purpose secondly.
Who are your customers? Do you conduct customer satisfaction surveys? Do you communicate results of your customer satisfaction surveys regularly throughout the company? Do you actively seek out customer comments and complaints? How do you get customer comments and complaints?
How do you get information about the customers?
Do you analyze channel effectiveness? In which channel is most effective in serving the customer? Do you provide credit facility to your customers? Do you give concessions to your regular customer?
Do you take feedback from your customers? Do you customize your product or services according to the customer? Do you communicate with your customers frequently? Do you regularly review the business process to eliminate non value- adding activities and improve customer satisfaction? Is the working environment is conducive to the well-being and morale of all employees? How much is the role of computers in serving the customers? Do you have centralized database for customer information?
Does the staff have access to the customer database? Is there commitment from top management to support the customer-focused service concept? Is there any improvement in average sale per customer?
Is there any improvement in customer response rate to the marketing activities? Is there any improvement in customer retention and loyalty? The needs of the customers are clearly defined and the products are customized according to the needs of the customers. Comments and complaints are taken through face to face interviews.
The company conducts customer satisfaction surveys. The company provides credit facility to its customers up to 90 days. Sales persons of the company maintain frequent and informative communication with the customers. Business process is regularly reviewed to eliminate non value-adding activities. Customer retention is also improving. The factors which have an impact on the CRM are — organization culture, support from top management, interpersonal skill of the sales personals and working environment of the company.
It is because for the decorative segment the number of retailers is very large as compared to the wholesalers. So it is not possible for the company to approach to the retailers. Therefore the company sells to the wholesalers and then wholesalers sell to the retailers.Introduction to CRM - Examples of CRM
Customers are encouraged to give suggestions and complaints so that the company can improve its working and services. Different customers have different requirements. This is one of the main reasons of India's growth process. The first bank in India, though conservative, was established in From till today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below: The General Bank of India was set up in the year Next came Bank of Hindustan and Bengal Bank. These three banks were amalgamated in and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders.
During the first phase the growth was very slow and banks also experienced periodic failures between and There were approximately banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, which was later changed to Banking Regulation Act as per amending Act of Act No.
Government took major steps in this Indian Banking Sector Reform after independence. Init nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector Reform was carried out in with seven more banks.
Enactment of Banking Regulation Act. Nationalization of State Bank of India.
Project Report on Customer Relationship Management (CRM)
Nationalization of SBI subsidiaries. Insurance cover extended to deposits. Nationalization of 14 major banks. Creation of credit guarantee corporation. Creation of regional rural banks. Nationalization of seven banks with deposits over crore.
Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Inunder the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.
Also with associates viz. National Insurance Company Ltd. Axis Bank in India today is capitalised with Rs. Axis Bank India commits to adopt the best industry practices internationally to achieve excellence. Axis Bank has strengths in retail as well as corporate banking.
By the end of DecemberAxis Bank in India had over 2. This is the first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank customers in all the places across the country where it has presence.
With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place. The ceiling per instrument is Rs. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
UTI was established in by an Act of Parliament; neither did the Government of India own it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit- holders.
The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each, and the rest was contributed by scheduled commercial banks which were not nationalized then. This kind of structure for a unit trust is not found anywhere else in the world.
Again, unlike other unit trusts and mutual funds, the UTI was not created to earn profits. In the course of nearly four decades of its existence, it the UTI has succeeded phenomenally in achieving its objective and has the largest share anywhere in the world of the domestic mutual fund industry.
The announcement by the then Finance Minister that the Government of India was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the then President of the World Bank. Woods took a great deal of interest in the Indian financial system, as he was one of the principal architects of the ICICI, in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Woods offered, through Mr. The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust proposals till the expert visited India.
The only point Mr. Sullivan made was that the provision to limit the ownership of units to individuals might result in unnecessarily restricting the market for units. While making this point, he had in mind the practice in the US, where small pension funds are an important class of customers for the unit trusts.
The Centre accepted the foreign expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the tax concession given by the government in the Budget. According to this concession, the dividends received by a company from investments in other companies, including the UTI, were completely exempt from corporate income tax, and provided the dividends declared by the investing company were higher than the dividends received.
Because of high liquidity the corporate sector used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby which perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its own benefits later. While finalizing the draft Bill, the Centre changed this stipulation. Although the appointment was to be made in consultation with the Reserve Bank, the Government could appoint a person of its choice as Chairman even if the Bank did not approve of him.
The Bank's principal activities are to provide commercial banking services which include merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.
Project Report on Customer Relationship Management (CRM)
The Bank has branches and extension counters throughout India. In April, the Bank open-end 1 overseas branch in Singapore. The Bank was set up with a capital of Rs. AS ON Sr. Name of the Shareholders No. Promoter Shareholding 1 Administrator of the Specified 7,72,45, Total Promoter Shareholding A 12,13,94, The Bank has 11 members on the Board. Nayak is the Chairman and Managing Director of the Bank. The members of the Board are: Singhal Director Shri A. PannirSelvam Director Shri J. Rama Bijapurkar Director Shri R.
Vaish Director Shri S. Mathur Director Shri M. It is the 5th largest bank in India and the largest private sector bank in India by market capitalization. CRM is an abbreviation for Customer Relationship Management, which is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise to manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth.
It is particularly critical in industries undergoing changes in traditional channel configuration. CRM is a means of addressing increasing competition, changing economic conditions and promotional dependence through the use of intimate customer knowledge; knowledge gained through relationship development and past marketing programs. CRM is increasing in prominence because it focuses on current users who are the source of the majority of business revenue and the best option for improving business in uncertain times.
There are number of working definitions for CRM. Each term represents the same process. CRM can be defined as a process that maximizes customer value through on-going marketing activity founded on intimate customer knowledge established through collection, management and leverage of customer information and contact history.
ERP forces all resources within a corporation to work within one business system. The results, however, have been mixed in terms of payout. What is indisputable is that information system processing skills acquired in implementing ERP programs enabled many organizations to support CRM and E-commerce programming; initiatives not in existence when ERP began.
CRM was developed, in large part, as a result of data mining, or segmentation and targeting research, made possible from the centralization of customer records.
Organizations began to realize that they could better serve customers since they better understood customers. CRM has benefited from advances in data management and middleware new software that allows disparate data resources to work as a single integrated database. CRM has also been supported by a new generation of promotional tools such as Spectra.
The development and popularity of electronic marketing as a tool has produced a rich source of consumer data for access by organizations in many industries. Focusing on the retail grocery industry in the U. They have produced consumer files that will be the key to more profitable grocery promotion for them in the future.
Companies like Safeway, Kroger and American stores are heavily invested in these programs.
Frequent shopper programs in the grocery industry developed as a loyalty program extensions. These programs are consumer card-based programs that track purchases based on the use of scanners and reward customers with discounts based on brands purchased. These programs were developed to provide customers with an additional reason to increase their share of purchase in a particular chain of stores.
The concept of customer lifetime value, the money value of a customer relationship over time, has evolved to enable savvy direct marketers the opportunity to differentiate the profit potential for each of the various market segments that they serve.
Loyalty marketing has always focused on the fact that retaining and improving business with current consumers 20 costs less than acquiring new customers. Customer retention, as a strategy, is founded on the ability to segment and differentially target current users to improve the value of the relationship for both seller and buyer.
Lifetime value is calculated by identifying the revenue stream over a period in time, applying a retention rate for each year, subtracting total cost and then applying a discount rate to gross profit in order to determine the net present value of a customer. The calculation is completed for a number of years using different retention rates. Midas Mufflers uses customer lifetime value as the backbone for their direct marketing efforts. The company first tries to determine who are likely prospects i.
The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers. The next challenge for the company is to convert these client into advocates. Advocates are those clients who praise the company and encourage others to buy from it. The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit.
Thus in CRM the key performance figure is not just current market share but share of life time value by converting customers into partners. Eight ways to keep customers for life 1. People want to do business with friendly people.
To have effective relations a friendly attitude must permeate in the organization. Information technology developments should be positively used to serve the customers. The company should communicate with its customers even when it is not trying to sell something. The company can communicate and develop stronger customer bonding by providing financial and social benefits. The company should try to know all its customers including their lifestyles, hobbies, likes and dislikes etc.
The company should make it a point to deliver more than what is promised.
CRM in the Textile industry In textile industry one company sell its product to another company. For example a yarn manufacturing company sell to fabric manufacturing company.
A fabric manufacturing company sell fabric to apparel company. The main customers of the companies in the textile industry are the wholesalers. And the final product is sold to the wholesalers and retailers. In this industry the customers are few and profit margins are high.
So CRM is very much necessary and relevant in this industry. There is a high degree of uncertainty on the part of the buyers, the likelihood of customers seeking a relationship is increased. If the firm loses its customer it would be major loss to the firm. The product in the textile industry is complex and quality is an important factor. One of the major values the customer expects from vendors is quality.
No customer will tolerate average quality. Moreover there is a scope of customization in the product. The seller has to customize the product according to the need of the customer. Customization is changing the product according to the need of the customer in order to satisfy him.
Identify your customers To launch a one to one initiative the company must be able to locate and contact a fair number of customers or at least a substantial portion of its valuable customers. It is crucial to know the customer details as much as possible, not just their names or address, but their habits, preferences and so forth. Differentiating your customers Customers are different in two principal ways, they represent different levels of value and have different needs.