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CRM Best Practices: A Case Study ofBank of Baroda
Bank of Baroda : Facts Founded by Maharaja Sayajirao
Gaekwad III Established in Vadodara in the year
1908 and is headquartered in Mumbai Nationalized in the year 1969 Network of around 2,897 branches. Employs over 38,000 personnel across
25 countries
Summary
Presentation studies the deployment of CRM Best Practices and how effectively they have been deployed in the Bank of Baroda
MethodologyObservations: EvaluationLessons: What was learned
MethodologyCase Study Research Design
Methodology Researcher developed 140 statements,
each representing a CRM practice A panel of five experts classified these
as relevant CRM practice and CRM best practice
Practices with complete consensus amongst the judges selected
29 strategies studied as standard CRM practice
CRMWhat is organization approach?
Organizational Approach Mission and Vision statement strives to
achieve customer delight through integration of products, technology and quality service of global standards.
Business Process Reengineering (BPR) exercise aimed at transformation into a sales-and service organization
CMD and top management send communiqués via meetings, letters, internal circulars, in-house magazine and e-mails
Investing TimeAn Evaluation of Bank’s initiatives
Develop high return customer Provide wealth management services to
cater to high net worth individual (HNI) customers
Manned by dedicated Financial Advisors, who act as single contact point for HNI customers
Customers given various special privileges
Customer segmentationBank Of Baroda approach
Extend umbrella to all No formal method of customer
segmentation being implemented in the bank
Only designated branches offer HNI services
Branches that provide wealth management services target savings account customers who maintain Rs. 0.1 million as average quarterly balance
DistributionchannelsBank Of Baroda approach
Customer reach Retail Loan Factories for centralized
loan processing and related customer service in 11cities
Strong branch network New initiatives like phone banking and
mobile banking services
Customer dataBank Of Baroda approach
Innovation – in line with customer aspirations New products designed in line with data e.g.
education loans in response to the increasing demand
Identified needs that are currently not satisfied by other banks
Innovative products, namely, loans for pensioners, women, financing foreign tours, marriages, CNG kits
Providing 12- hour banking across all Core Banking Solution branches
Customer FeedbackBank Of Baroda approach
Feedback Each complaint replied within 15 days Employees told to resolve complaints
within 48 hours of registration Customer gives written letter of
satisfaction with the resolution Customer Cell in each city supervised by
a executive of the rank of assistant general manager
Customer Recovery StrategiesBank Of Baroda approach
Conflict resolution Bank is a member of Banking Codes and
Standards Board of India (BCSBI) Compensation policy in place to
compensate customers for financial losses incurred due to service failures
Resources Philosophy & Legal:
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Bonding with the Customer Bank Of Baroda approach
Customer Association Bank maintains an updated records of their
Customers who have had a long association with the Bank and they are sent greetings on Festive Occasions like Diwali , they are also gifted with Merchandise such as Bags, Diaries and Desk Calendars.
However unlike most of their competitors they do not have a system of tracking Birthdays and sending cards to key customers , which can be an area of improvement.
Increasing the Customer Share Bank Of Baroda approach
Cross Selling Products / Services The Managers & Officers are required to
actively cross sell products like Loans, Mutual Funds and Credit Cards to existing Branch Customers, besides bringing new Customers.
The Marketing Executive at each retail loan factory target the branch customers of a local area with an AQB of Rs.0.1 million or more in their Savings Account.
Customer Centric Information Systems Bank Of Baroda approach
Relevant MIS at the Bank The Banks IS is designed to provide the
balance status of its products tagged to a Single Customer Id , it also provides details like Name, Age, Gender, Marital Status, Residential and Office Address etc.
By using same the End-User can log in to a Web Interface and do most of the day to day banking operations.
Use of Information Systems The Bank has implemented the ‘Financial
CBS’ across the Organization to put all of their business channels on a common network.
This reduces rework and save more time than ever before.
This enables the Financial Analyst to single unified view of the Customer, covering all deposits and loan products across all CBS Branches.
Use of Information Systems(contd.) The Bank is still to implement a
relatively new Technology ‘Data Mining’ for Lead Tracking that helps banks to reach out to existing / engage new customers based on the analysis done by the Tool itself.
Monitoring PerformanceBank Of Baroda approach
Assessment The Performance standards are assessed on the
basis of Asset and Service Quality.
The important parameters to Judge Service Quality :
No. of Complaints Received Time Taken to Resolve it. Steps to Prevent the Re-occurrence. Monitor the TAT for processing big ticket loans.
Assessment The Performance standards are assessed on the
basis of Asset and Service Quality.
The important parameters to judge Service Quality :
No. of Complaints Received Time Taken to Resolve it. Steps to Prevent the Re-occurrence. Monitor the TAT for processing big ticket loans.
Assessment (contd.) The Performance standards are assessed on the basis of Asset
and Service Quality.
The important parameters to Judge Asset Quality : Senior Managers pay a surprise visit to banches one on 6
months to check the Services and Facilities at the Branch for the Customers.
Regular checks if the current Infrastructure like ATM’s, Kiosks, for Loan Information , Serial Token vending machine and the ‘May I help You’ Desks are working as per the specified Norms.
