1. Assessing e-CRM through KM
in ICICI BANK

2. The Purpose for CRM
Measurement
Three main uses for CRM measurement
systems are:
• To influence or validate decision making
• To guide ongoing activities or tactics
• To predict future states

3. Companies implement e-CRM
measurement very differently based on
their internal decision making styles. As
companies make decisions about
customer strategies, they look to customer
measurement to help influence specific
decision makers or the decision making
process or validate initial ideas about how
to manage online customer relationships.
Influencing or validating decision making

4. Readiness Factors organized by Categories within
Dimensions
Intellectual Dimension
• Strategy
• • Orientation
• • Leadership
• • Mgmt. support
• • Champion
• Structure
• • Organizational Structure
• • Business Processes
• • Incentives and Rewards
• Planning
• • Corporate
• • Business Units
• • Information Technology

5. Social Dimension
• Culture
• • Cultural Perspective
• • Attitudes toward change, technology, Sharing
• Stakeholder Interactions
• • Dynamics
• • Involvement
• • Technological Savvy
• Domain Knowledge
• • Within Business Unit
• • Across Business Units
• • Sharing

6. Technology Dimension
• CRM Application
• • Scope
• • Complexity
• • Customization
• IT Capability
• • Project Management
• • Skilled Team
• • Similar Implementations
• Knowledge Management
• • Integration
• • Data Warehouse
• • Infrastructure

7. Properties of Complementary Factors expected to enhance Readiness
INTELLECTUAL DIMENSION
Strategy
Orientation Customer-centric; market oriented
Leadership Visible commitment of top echelon
Mgmt Support
Commitment of resources for employee educatoin and training; assignment
of
key employees throughout CRM process; money for technology and multi-
year
implementation effort
Champion
Use the same high-level person throughout the project and dedicated
him/her
full-time
Structure
Organizational Structure Centralized structure to implement; CRM compatability with org'l design,
authority hierarchy & reporting relationships
Business Processes
Logical integration of customer-related knowledge; processes re-
engineered to
mirror CRM application 'best practices'
Incentives & Rewards Reward employees that bear the cost of CRM (i.e. Updating knowledge

8. Planning
Corporate, Business Units, and IT Integrated, connected and established planning process
SOCIAL DIMENSION
Culture
Perspective Integrated (shared values and behaviors), cooperative,
and trust-based
Attitudes Open to change, positive attitude towards technology
Empowerment Employee empowerment is the norm
Stakeholder
Interactions
Dynamics Identification and awareness of CRM stakeholder
dynamics
Involvement Inclusion of stakeholders in CRM planning efforts
Technology experience Technologically savvy stakeholders
Domain Knowledge
Within business units Enhanced depth of knowledge
Across business units Enhanced breadth of knowledge
Sharing Willingness to share knowledge

9. TECHNOLOGY DIMENSION
CRM Application
Scope and complexity Reduced functionality; phased
implementation
Customization Reduced or eliminated
IT Capability
Expertise Project management experience; balanced
team of experts; experience with
similar installations (e.g. ERP, SFA)
Knowledge Management
Integration Global view of customer
Data Warehouse Pre-existing data structures, standards, and
models built into corporate
Knowledgebase
Infrastructure Communication networks, data
warehouses, computing platforms, web
servers

10. Banking Industry addresses the key CRM challenges that is faced
by them today, including how to:
• Identify customers that have the most assets and would be the most
profitable
• Identify the most profitable products
• Cross-sell and up-sell products that are most relevant to a
customer’s life stage and financial needs
• Improve customer service while reducing service costs in basic
areas, such as account inquiry, transfers, the trading of financial
instruments, and cash management
• Find strategies to eliminate current operational inefficiencies
• Implement technology that leads to enhanced productivity of
customers, partners, and employees
Assessing CRM Readiness
in Banks

11. Facilities offered at Banks
• Internet Banking’
• Tele Banking
• Remote login for corporate customers
• Electronic reconciliation
• SWIFT – Society for World wide International Financial
Transaction
• Structured financial marketing structure
• Video conferencing
• Single window service
• WAN
• Core banking solution
• ePay

12. • ECS – Electronic clearing services
• Digital Signature
• e Cheque
• Truncated Cheque
• Online Banking
• Electronic Channels
• Paper money replaced by plastic money

13. Assessing readiness at ICICI Bank
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

14. ICICI Bank - The journey so far
• Established as a Financial Institution in
1955 specialising in Project &
Development Finance.
• Retail foray in 1995
– Largest private sector bank in India,
– Catering to over 11 million customers.
– Total assets over INR 1 trillion
– Retail deposits grew last year by 50% compared to an
industry growth rate of 17%
– Leadership in retail credit
• Twice as large as nearest competitor in the vehicle loans
market
• Fastest growing credit card base in the country.

15. ICICI Bank - The journey so far
• Wide Range of Products
– Bank accounts, credit cards, loans, bonds,
insurance etc.
– Products across income and age groups
• Distribution Network & Reach
– Branches: Largest private network in India
– ATMs: Largest network in India
– Phone: Largest call centre in India*
– Internet: Maximum functionality in India
* Compared to any other Bank

16. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

17. Key Drivers
• Transition to Universal Banking
– Necessity to have a single view of the customer.
– Integration of customer knowledge across businesses.
• Liberalisation of the Financial sector
– Growing commoditisation
– End of the ‘passive’ customer
– Customer knowledge and increased focus would be the
key
• Organisation specific issues
– Information Silos
– Use of OLTP systems for reporting
– No single version of the truth

18. Objectives
• To resolve disparate relationships across
multiple products
• To understand the behavioral and financial
profile of customers
• To leverage this understanding to effectively
target specific customer segments with
relevant offers and communications; and
• To frame strategies from a customer
perspective rather than the predominant
account-centered perspective
• To create an analytic infrastructure which
would be the single source of the ‘truth’

19. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

20. Building Blocks
Single View of the Customer
Knowing & Understanding
the Customer
Transforming
Knowledge into
Action
Phase 1.0
Phase 2.0
Phase 3.0

21. Building Blocks
Single View of the CustomerPhase 1.0

22. Solution Overview
• Phase 1.0: Jan 2000- July 2000
– Base infrastructure set
– Integrated a Customer matching tool
with the warehouse The result was a
single view of the customer and their
banking habits.
– Data extraction from 6 source systems.
The warehouse consolidated
information about customer
• Demographics
• Product holdings and balances
• Transactions and channel usage

23. Building Blocks
Single View of the Customer
Knowing & Understanding
the Customer
Phase 1.0
Phase 2.0

24. Solution Overview
• Phase 2.0: October 2000- July 2001
– Expansion of primary data warehouse
to include 2 new source systems
– Implementation of Behavior Explorer - a
front end for OLAP analysis -
Segmentation,profiling etc.
• PowerPlay: Easy to use, multi-dimensional
data views for the end user
• Impromptu: Drag-and-drop queries for ad-
hoc reporting
– Resulted in reduced dependence on IT
and OLTP systems for regular reporting

25. Building Blocks
Single View of the Customer
Knowing & Understanding
the Customer
Transforming
Knowledge into
Action
Phase 1.0
Phase 2.0
Phase 3.0

26. Solution Overview
• Phase 3.0: Under Implementation
– Redesign of the logical data model to
suit changing business requirements,
and incorporate new businesses with a
focus on channel integration.
– Implementation of ETL tool to ensure
more efficient extraction of data from
the source system
– Improvement in the customer matching
logic
– Implementation of campaign automation
tool

27. What we intend to achieve Till 2012
• Bring in better quality, profitable customers
through targeted campaigns.
• Execute a rule-based customer contact strategy
• Improve campaign efficiencies in terms of cost,
planning and roll out time and response rates .
• Expand capacity and improve performance of
existing infrastructure.
• Analytical framework based on current and
projected information requirements.
• Reduce load on production systems by moving
time and resource intensive processing to the
Warehouse.

28. Teradata
Warehouse
Credit Cards
Asset Products
Bonds & FDs
Demat
Retail Banking
ICICI Direct
Customer
Matching
ATM Web
Financial transaction
data from channels
Consolidated
customer and
product information
from the various
source systemsStand alone systems
for each business
E
n
d
U
s
e
r
s
Cognos
Current Architecture

29. Teradata
Warehouse
Credit Cards
Asset Products
Bonds & FDs
Demat
Retail Banking
ICICI Direct
Customer
Matching
ATM Web
Financial transaction
data from channels
Consolidated customer
information from the
various source systems
Third Party Products
Stand alone systems
for each business
E
n
d
U
s
e
r
s
Cognos
Call-Center
E
T
L
Future Architecture
RO
Leads sent to
channels
Campaign
Calculator
Branch
SIEBEL

30. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

31. Key Challenges
• Lack of role models
– ICICI Bank was the first in India to attempt a
comprehensive EDW and CRM platform
implementation.
• Disparate platforms
– Each company in the group had built its own
customer databases and operating platforms. A
complex integration task was necessary.
• Data integrity
– Issues of accuracy and completeness of data,
particularly in a developing economy like India where
there is no universal customer identifier such as a
Social Security Number.
– A customised data matching algorithm was
developed taking into account the specific
characteristics of data available

32. Key Challenges
• Lack of a data driven culture
– Historical issues in getting getting reliable data.
– Only data that was necessary to ease operational
processes was captured.
– Structured, data-driven decision-making has not been
very prevalent.
– The CRM team has had to demonstrate the value of
collecting additional information.
• Market conditions
– The Indian market moves very rapidly and often
unpredictably, so the bank needed to retain flexibility
while developing better predictive powers

33. Key Challenges
• Managing Vendors
– Co-ordinating with multiple vendors who
each handle different parts of the overall
solution
– Expectation management by vendors
– Global best practices are available but
implementation in the local context requires
the agility to adapt.

34. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

35. Critical Success Factors
• Technology Orientation
– As an organisation, ICICI Bank has always been an
early adopter of technology solutions and therefore
employees are open to new ideas and technology
driven solutions
– Senior management has played a key role in driving
use of the datawarehouse
• Organisation structure
– The datawarehouse team is managed by a business
team and is not driven by IT
– The team is not housed with any particular channel
or product group so it can assume a truly enterprise-
wide perspective
• Phased approach
– The EDW solution was implemented in phases to
ensure rapid ROI and immediate value delivery

36. Critical Success Factors
• Designed for change
– The LDM is in the third normal form to
increase flexibility for adding to or modifying
the structure to accommodate new
businesses, products and channels
– The ETL solution being implemented will
ensure flexibility and reduce the time taken to
add new data sources. With this touch-and-
take approach, increased data volumes
should be easily handled
• Scalability
– The Hardware platform of choice is designed
for augmentation and planned scalability

37. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

38. Business Benefits
• Revenue enhancement
– Over 150 large tailored marketing campaigns have been run,
generating 2.6 million leads, with response rates ranging
from 8-36%.
• Significant savings in customer acquisition costs
• Reduced time-to-market for campaign execution
from an average of 10 days to 3 days.
• Strategic decisions across the business groups are
being aided through analysis like channel usage
patterns, value migration, product basket analysis
etc.

39. Outline
– ICICI Bank - The journey so far
– Key Drivers
– Solution Overview
– Challenges
– Critical Success Factors
– Business Benefits
– The Road Ahead

40. Roadmap
• Analytical applications
– Implementation of applications, which would
allow business users to have almost real-time
information on key performance indicators,
balance scorecards etc.
– Delivery of this information through multiple
channels such as
• Internet
• Mobile
• Wireless

41. Roadmap
• Campaign automation and shift towards a
technology-enabled, rule-driven marketing
environment. This would include:
– Integration of the data warehouse solution with the
front-office solution
– Customer-level profitability models enabling service
differentiation
– Predictive models that will enable the bank to touch
customers at the right time with the right offer
– Integration with a marketing ROI and scenario
planning solution, which will aid key decision makers
to have a one view of their marketing investment.

42. Roadmap
• Campaign automation and shift towards a
technology-enabled, rule-driven marketing
environment. This would include:
– Integration of the data warehouse solution with the
front-office solution
– Customer-level profitability models enabling service
differentiation
– Predictive models that will enable the bank to touch
customers at the right time with the right offer
– Integration with a marketing ROI and scenario
planning solution, which will aid key decision makers
to have a one view of their marketing investment.

43. 4. ) Balanced scorecards
- Introduced by Robert S. Kaplan and David P. Norton in 1992,
The balanced scorecard is broken down into four sections, called perspectives:
The financial
perspective
The strategy for growth, profitability and risk from the
shareholder’s perspective.
The customer
perspective
The strategy for creating value and differentiation from the
perspective of the customer.
The internal business
perspective
The strategic priorities for various business processes that
create customer and shareholder satisfaction.
The learning and
growth perspective
The priorities to create a climate that supports
organizational change, innovation and growth.

44. CRM measurement metrics

45. CRM Balanced Scorecard metrics
• Developing successful business build good relationship with
customers. But not all clients are equally desirable for the
business. You really need only those customers that will help
the company become strong, flourishing and prosperous.
Customer Relationship Balanced Scorecard Metrics is created
to estimate customers.
• But, even having got right clients you can not be sure that
success will constantly follow the steps of your business. If
something goes wrong, customers can change their attitude
toward the company, demonstrate dissatisfaction and
indifference. To prove efficiency and turn clients back recovery
tools are to be used. And the global task of the policy is to find
the reason for displeasure, extirpate it and build favorable
relationship with the customers again.

46. Customer Relationship Evaluation Balanced
Scorecard Metrics details
• . This is the actual scorecard with Customer
Relationship Performance Indicators and
performance indicators. The performance
indicators include: customer relationship
scorecard, customer quality, customer long-term
value, customer life span, customer
segmentation, satisfied customers, dissatisfied
customers, customer potential, damage and
recovery manager ,dissatisfaction management.

47. Measure performance and benchmark with Balanced Scorecard
How to use Balanced Scorecard concept to measure a business
performance? It's actually easy. You will need to pass tree simple
steps.
• First, you will need to design a set of proper metrics, which will
describe your business well. It is very important step, as it will affect
all your future estimations,
• Second, the metrics should be grouped. There should not be too
many metrics and groups of metrics. It would be great if you will
have four or five metric groups and about 3-5 metrics in each group.
You will need to set the importance values for every metrics, you will
need to describe the way, how do you measure the metric value,
you will need to set a target values for metrics.
• The final step is calculating the performance, using your estimation
of metric values, their weights and weights of their groups. The total
values will tell you how the business is performing within the certain
viewpoint.