APROJECT REPORT ON “A STUDY REPORT ON CRM IN AXIS BANK” SUBMITTED IN FULFILMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF COMMERCE IN BANKING AND FINANCE SUBMITTED BY MS. SAILEE TUSHAR BHOLE ROLL NO. 03 MCOM (BANKING & FINANCE) PART 2 PROJECT GUIDE PROF. DR.Mrs.SMITA BHIDE SUBMITTED TO UNIVERSITY OF MUMBAI (2016-17) VPM’S K. G.JOSHI COLLEGE OF ARTS &N.G. BEDEKAR COLLEGE OF COMMERCE DECLARATION I, Sailee Tushar Bhole a student of K.G. Joshi College of Arts & N.G. Bedekar College of M.Com in Banking and FINANCE (PART 2) hereby declare that I have completed this project on ‘A STUDY REPORT ON CRM IN AXIS BANK’ in the academic year 2016-17.The information submitted in this project by me is true & original to my best knowledge. SIGNATURE PLACE: M/S. Sailee Tushar Bhole DATE: (M.Com Banking and Finance) ACKNOWLEDGEMET 2 It is a matter of prestige to be able to submit the project on ‘A STUDY REPORT ON CRM IN AXIS BANK’In the academic year 2015-16.The project is required to be done for the partial fulfillment of the course of studies. I would take this opportunity to thank my guide at Joshi-Bedekar College of Arts and Commerce, Prof. DR.MRS SMITA BHIDE for offering me with the necessary guidance required for the project. I am grateful to the Principal Dr. Mrs. SUCHTIRA NAIK & the co-ordinator Prof D. M. Murdeshwar for their support. I would also like to thank the library staff of the college for providing me with the necessary books & references for the completion of the project. TABLE OF CONTENT. Chapter 1 INTRODUCTION TO BANKING. 3 CHAPTER 2 INTRODUCTION TO CRM. 2.1 Introduction to CRM 2.2Characteristics of CRM 2.3CRM Focus on the Relationship 2.4CRM and Communication 2.5Benefit of Effective CRM 2.6Types of CRM CHAPTER 3 AXIS BANK 3.1Introduction 3.2History 3.3Operation 3.4Service 3.5Initiatives 3.6AWARDS AND RECOGNITIONS 3.7BRAND AMBASSARDOR 3.8LISTING AND SHAREHOLDING 3.9EMPLOYEES 3.10BUSINESS OVERVIEW CHAPTER 4 CRM IN AXIS BANK. 4.1 INTRODUCTION 4.2 CRM STRATEGIES AT AXIS 4.3 IMPLEMENTING CRM AT AXIS CHAPTER 5.REASEARCH METHODOLOGY 5.1INTRODUCTION 5,2OBJECTIVE OF THE STUDY 5.3SCOPE OF THE STUDY 5.4LIMITATIONS OF THE STUDY 5.5COLLECTION OF THE DATA EXECUTIVE SUMMARY 4 It accepts deposits from the public and grants loan and advances to those who are in need of fund for various purpose. MEANING: Bank is an institute which deals in money and credit. and the Rothschilds —have played a central role over many centuries. the Fuggers. Due to their importance in the financial system and influence on national economies. Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had its roots in the ancient world. A bank links together customers that have capital deficits and customers with capital surpluses.CHAPTER: 1 INTRODUCTION TO BANKING INTRODUCTION: A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. In the history of banking. the Welsers. banks are highly regulated in most countries. known as the Basel Accords. Most nations have institutionalized a system known as fractional reserve banking. Banks also help’s in 5 . a number of banking dynasties—notably the Medicis. while the oldest existing merchant bank is Berenberg Bank. In addition to other regulations intended to ensure liquidity. banks are generally subject to minimum capital requirements based on an international set of capital standards. either directly by loaning or indirectly through capital markets. under which banks hold liquid assets equal to only a portion of their current liabilities. The oldest existing retail bank is Monte deiPaschi di Siena. Banks encourage savings habit among individuals and thereby makes fund available for their use as and when require. the Berenbergs. etc. 6 . trading and business activities cannot be carried on smoothly.nation development by providing credit to farmers. houses. small scale industry and self employee people as well as to large business houses which lead to balanced economic development of the country. Efficient administration of the banking system helps in the economic growth of the nation. cars. FUNCTIONS OF BANKS. for a businessman it is a financial institution and for a day to day customer it is an institution where the cash deposit his savings. Without banking services. Banks are the distributors and protectors of liquid capital which is vital significance to a developing country. Banking activities are considered to be the life blood of the national economy. It also helps to standard of living of people in general by providing loans for purchase of consumer durable goods. Different people understand the meaning of a bank in different way. For a common man bank means a storehouse where money is stored. CHAPTER: 2 INTRODUCTION TO CRM Contents: 7 . Introduction to CRM Characteristics of CRM CRM Focus on the Relationship CRM and Communication Benefit of Effective CRM Types of CRM 8 . CHAPTER 2.” The goal of CRM is to optimize Customer satisfaction and revenue through relationship built with potential current customer across the business functions. procedure technology and competencies fit to analyze and satisfy customer knowing their needs and preferences. Customers are the lifeblood of any organization be it a global corporation with 9 . Customer Relationship Management concerns the relationship between the organization and its customers. With rapid globalization of business and product or service differentiation becoming less relevant and competitive customer relationship now is key enabler for moving business ahead. automate and synchronize sales. It often involves using technology to organize.” In simple words: “CRM is a comprehensive approach for creating maintaining and expanding customer relationship. INTRODUCTION: CRM is the abbreviation for customer relationship management. Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. Customer relationship has become a factor of competitive advantage.1 INTRODUCTION. and technical support. customer service.” “Customer relationship management (CRM) is a combination of process. processes and technology to optimize the relation of an organization with all types customer. marketing. DEFINATION OF CRM: “CRM is business strategies that integrate people. call-centers. Opportunity management. to merge the information with CRM solutions. marketing. direct online communications with customer and customer service centers that help customers solve their questions. This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history with sales projections TODAY'S CRM SOFTWARE: CRM software is designed to help businesses meet the overall 10 .thousands of employees and a multi-billion turnover. 4. This function can implement sales promotion analysis. or a sole trader with a handful of regular customers. and also co-ordinate sales. Sales force automation. and retail outlets in order to realize the sales force automation. CHAPTER 2. automate tracking of a client’s account history for repeated sales or future sales. Customer Relationship Management is the same in principle for these two examples . 3. It applies data warehouse technology in order to aggregate transaction information. This feature is about following the technology trend and skills of value delivering using technology to make “up-to-the-second” customer data available. one-to- one solutions to customers’ requirements. Relationship management is a customer-oriented feature with service response based on customer input. and to provide KPI (key performance indicators). 2.it is the scope of CRM which can vary drastically.2 CHARACTERISTICS OF CRM Well-designed CRM includes the following characteristics: 1. Use of technology. allowing businesses to gain actionable customer insights with back-end analytical. streamline operations and personalize customer service based on the customer's known history and prior interactions with your business. Today's CRM software is highly scalable and customizable.goals of customer relationship management. contract wins and sales leads. view business opportunities with predictive analytics. CRM software is commonly used to manage a business- customer relationship. clients. CRM Focuses on the Relationship: Successful organizations use three steps to build customer relationships: determine mutually satisfying goals between organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers 11 . however CRM software systems are also used in the same way to manage business contacts. as determined by: on time focused 12 . communication needs to be consistent and high quality. In terms of Customer Relationship Management. CREATE A DATA BASE ANALYSIS CUSTOMER SELECTION CUSTOMER TARGETING RELATIONSHIIP MARKETING PRIVACY ISSUESH METRICS Customer Relationship Management Model CRM and COMMUNICATION: Communication is central to any successful relationship. These characteristics include demographic as well as economic attributes which drives their purchasing power. The information contained in a CRM system allows communication to be directed at the correct audience. Customer Segmentation Strategy: Effective business development strategies most often begin with customer segmentation. Feedback from customers -especially complaints -is essential for good organizational performance and ongoing development. in the correct way. discourage and hide from complaints. Communications must be judged most vitally by the reaction of the receiver. 13 .when your strength in a customer segment is strong and the segment is attractive. The communication system must also encourage and facilitate honest and actionable feedback. for effective communications it's the message and meaning that is received that counts.when your strength is strong but the attractiveness of the segment is low. relevant reliable coherent Importantly also. Typically for developing customer segmentation. Don't. irrespective of what the communicator thinks they've said. Most organizations avoid. and free opportunities to increase customer loyalty. or written. Complaints are free guidance for improving your quality. Building blocks of an effective customer segmentation strategy: The strategy grid will help you in making strategic decisions for each of your customer segments: Go . If the reaction is not good then the communication is poor. profitable customers and non-customers with similar characteristics are grouped. Keep . Drop . Messaging: Creating unique messaging. Effective segmentation drives revenue growth through increased ability to meet customers' demands. However. Up-sell/Cross-Sell: Understanding which offerings are most likely to drive follow on purchase and expand share of wallet. marketing/ sales channels and contact cadence for each unique customer segment. Different customer segments respond to different value propositions and require different strategic approaches. segmentation helps you allocate resources throughout all levels of your organization to create a value proposition that uniquely serves your target customer groups. Investigate . organizations must figure out the most relevant characteristics for their growth.if both segment attractiveness and your strength are low.if the segment is attractive but your strength is low.and establishing timed campaigns to intercept that purchase. growing 14 . Loyalty & Retention: Focusing on your most loyal customers and the drivers of customer retention and renewal by customer segment. Key Benefits Targeting: Identifying those customers most likely to purchase and become your most profitable accounts. Its greatest impact is on the top line. Next Logical Purchase: Predicting both what and when customers will purchase next . When properly used. There are significant business benefits which accrue from an effective.e.3 BENEFIT OF EFFECTIVE CRM.the number of customers. effective and efficient operation) increased customer satisfaction. w whichh ic h lloyalty.. integrated Customer Relationship Management approach. service. p r o d u c ti producti c lo s e close iintegr n te g r v vityity && r a te rate a atedte d p ro fita b profitab C Custou s to iility lity m mer e r D is c o v e Discove R educe Reduce R e la t i Relati r in g ring E xpens Expens o Mnaskh onship i ni p g n new ew Making M aa n e ess Mana c call l la c u s to m e custome g geme C een m t ee r r rss Center m n nto tr e more e af fpi cpi e appro ro nt efficient a ach. CHAPTER 2. because the right things are being done (i. e . These include: B e n e fit Benefit T h e re There a are re s i g n i fi signifi c canta n t b nu busine I cr Increase sei anse e s ssds d I m p ro v Improv I n c re a se b benefi m ean market r keefi t e edd Increase c u s to m e custome s ht sharesas ts re s s e rv ic e .. exceeding expectations) ensuring that the focus of the organization is external 15 . because they are getting exactly what they want (i. T h e se These iinclud n c lu d e e: : of of C CRM R M reduced costs. the amount of sales per customer and lifetime value of the customer.c h . o y a lty . r r a c c ru accru a andnd r evenue revenue e e from fro m r e te n tio retentio a an n n n I m p ro v Improv e ff e c t i effecti e e H ig h e r Higher v ve.e. As with any ICT project. There are many others. referrals. etc. CRM Software Solutions and ICT (information and communications technology): Software and ICT play a significant part in enabling an effective CRM capability. growth in numbers of customers Maximization of opportunities (e. since any software solution. and very many more ICT service providers through whom distribution and support is normally arranged. There are many and various systems available. and it is important to have a clear idea of your requirements during the software solution selection process. with access to cost-effective proven solutions. training and maintenance. which can help you to build and implement an 16 .g. for all but very small companies. which for most organizations will also involve the selection of ICT service provider too. especially in large organizations.) increased access to a source of market and competitor information highlighting poor operational processes long term profitability and sustainability Forward thinking organizations understand the vital need to maintain a strategic focus on CRM and to resource and manage it appropriately. implementation. ensure you work with reliable and knowledgeable advisors. Siebel. generally requires support for specifying. Sage (who now provide the well-known Accpac and ACT! CRM solutions). increased services. and Front Range (whose product is Goldmine) are all significant and proven CRM software products companies. effective CRM software and ICT capability. CHAPTER 2. Operational CRM: Operational CRM Provides support to “front office” business processes.4 TYPES OF CRM There are various types of CRM applicable as per sector needs : SALES CAMPAIGN INTELLIGENC MANAGEMEN E CRM T ANALYTICAL COLLABORATI CRM VE CRM TYPES OPERATIONAL CRM OF GEOGRAPHIC CRM CRM 1. The 17 . eliminating the need to individually obtain this information directly from the customer. For this purpose various tools are used. The sole aim of analytical CRM towards the organization is developing. 18 . operational application of CRM enables effective interaction with customers. 2. the demographics and anything else relating to the customers.). Here. prior support calls etc. This type is made in a mode to analyze critically the information. the sales are not done directly to the customers. Analytical CRM: This is a CRM type that maintains the analysis and operations of an organizational back-office. It establishes the powerful patterns and forecasts in the clients’ information and data collected from different operational CRM systems. The contact history provides staff members with immediate access to important information on the customer (product owned. supporting and enhancing the decision-making in the organization. and marketing. Campaign management functions support development of efficient marketing Campaigns. integration. and enhance relationships and customer interaction. Geographic data can be analysed to provide a snapshot of potential customer in a region or to plan routes for customer visits. prospect data and drive business. and presentation of information to help salespeople keep up to date with clients. but is intended as a more direct sales tool. Interaction can take place through web pages. 6. Getting the entire important customer’s information from different channels and sources.5 The Seven Steps to CRM Success 19 . Geographic CRM: Geographic CRM (GCRM)combines geographic information system and traditional CRM. applications and practices for the collection. 4. Campaign management: Campaign management combines element of operational and analytical CRM. analysis. share any information they collect from interactions with customers. Analyzing. It is oriented to sales staff. such as sales.Collaborative CRM is an approach to customer relationship management (CRM) in which the various departments of a company. Collaborative CRM: Another form of CRM is called Collaborative CRM. Features of analytical CRM Deploying and implementing the outcome to improve the effectiveness of CRM systems and processes. 5. determining and developing comprehensive rules and methods to level and optimize the customer relationship. 3. technical support. Sales intelligence CRM is similar to Analytical CRM. a highly effective method of communication as it covers direct interaction with customers including feedback and issue reporting. Chapter 2. email and Automated Voice Response. Sales Intelligence CRM: Sales intelligence (SI) refers to technologies. mandatory information and reporting requirements from middle and senior level management will ensure credibility for customer information. An information overload should be avoided initially.Identify "CRM captains" in every department to collate information and do not ignore their feedback. To ensure user friendliness and real-time data. different roles will be required to guarantee coordination. The consistent flow of information also ensures this for new members in the organization. Most experienced consultants recommend the Core Team should consist of six members. Create a 'Core Team' Members from across functional roles should share inputs from all customer touch points and customer facing teams. integration and data migration for a 'true' customer view. What works for the top management is not always relevant for other users and should be incorporated after careful thought. Organizations must use multiple channels to ensure this message is clearly understood. interfaces that are time consuming to upload or access information will frustrate users and customers put on hold. ensures that everyone know the value derived from CRM solution. Electing a member of the top management as part of the core team will ensure the correct business goals are incorporated and encourage others to contribute their opinions. Inputs related to inter-departmental coordination.Communicate the vision of CRM The CRM vision dictates what should be done to generate a unique CRM experience and be deeply engraved in the culture of delivering it at all touch points. Understand the stakeholders' motivations 20 . 'phantom strategies' will lead to inefficienct use of productive time. consistently. Configure the system correctly Involve all stakeholders in the requirement study and keep them in the loop for related decisions and configurations. Field level staff who will be using the CRM need to be represented. dashboards and analytics. this will assist in creating user friendly interfaces to capture all relevant customer information. Also. Management team must consistently drive the communication instead of individual teams. Communicating the vision of CRM effectively. Enlisting the correct person from each functional role will ensure accountability and accuracy of relevant information. Interfaces with terminology that is not understood by various users will lead to low user adoption. CRM solutions are efficiency tools instead of 'monitoring' tool. hence. CHAPTER: 3 INTRODUCTION TO AXIS BANK Contents: Introduction History Operation Service Initiatives AWARDS AND RECOGNITIONS BRAND AMBASSARDOR LISTING AND SHAREHOLDING EMPLOYEES BUSINESS OVERVIEW 21 .Clearly explain the benefits of the CRM implementation in relation to each role and specific teams. Motivated users are more prone to using the system than those who are forced. . Financial Services Founded 1994 (as UTI Bank) Headquarters Mumbai. Private banking. mortgage loans. consumer banking. Finance and Products insurance. The Unit Trust of India holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. Life Insurance Corporation of India (LIC). Agriculture and Retail Businesses. Maharashtra. Private equity. MSME. after the Government of India allowed new private banks to be established. SanjivMisra (chiarman) Key people Shikha Sharma (MD & CEO) Credit cards.INTRODUCTION Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. India Dr. Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. Maharashtra. The New India Assurance Company. corporate banking. investment banking. Axis Bank has its headquarters in Mumbai. National Insurance Company Ltd. the then Finance Minister of India. The Bank was promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I). The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr. Manmohan Singh. HISTORY: Axis Bank began its operations in 1994. General Insurance Corporation Ltd. BSE: 532215 Traded as LSE:AXBC NSE: AXISBANK Industry Banking. Wealth management 22 . The Oriental Insurance Corporation and United India Insurance Company.. It offers financial services to customer segments covering Large and Mid-Corporate. In addition to the above. Corporate/Wholesale banking and other banking business. the bank offers services such as lending to individuals/small businesses subject to the orientation. 23 . SERVICE: Axis Bank operates in four segments: Treasury operations. which focus on corporate lending. Treasury operations: The Bank’s treasury operation services include investments in sovereign and corporate debt.Revenue 340 billion (US $5. depository.420(On 31stMarch 2014) OPERATIONS. investment banking and liability businesses. and Non-resident Indian (NRI) services. the Bank had a network of 2402 branches and extension counters and 12922 ATMs.6 billion)(2012) Net Income 52 billion (US $860 million)(2012) Total Assets 3.200 ft) above sea level. automated teller machines (ATM) services. Axis Bank has the largest ATM network among private banks in Indiaand it operates an ATM at one of the world’s highest sites at Thegu. Indian Business: As on 31-Mar-2014. the Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited. Retail banking. equity and mutual funds. Sikkim at a height of 4. and for customers and central funding.4 trillion (US $56 billion)(2012) Employees 42. product and granularity criterion. Dubai (at the DIFC). derivative trading and foreign exchange operations on the account. trade finance. trading operations. Retail banking: In the retail banking category. Internet banking. Shanghai and Colombo and representative offices at Dubai and Abu Dhabi. financial advisory services. International Business: The Bank has seven international offices with branchesatSingapore.6 billion) (2012) Operating Income 94 billion (US $1. syndication. HongKong.023 meters (13. along with liability products. card services. Mergers and Acquisitions and Private Equity Advisory. As on 31 March 2013. and Rights issues etc. to farmers. Axis Bank set up 6 SME centers and SME cells each across the country. capital market related services and cash management services. constituting 7. Lending to small and medium enterprises: Axis Bank SME business is segmented in three groups: Small Enterprises. taking the total number to 32 SME Centers. including agricultural loans. Under the Small Business Group a subgroup for financing micro enterprises is also set up. Investment banking: Bank’s Investment Banking business comprises activities related to Equity Capital Markets. management of public issues. Business banking: The Bank accepts income and other direct taxes through its 214 authorized branches at 137 locations and central excise and service taxes (including e-Payments) through 56 authorized branches at 14 locations. QIPs. project appraisals. Agriculture banking: 759 branches of the Bank provide banking services.5% of its total advances. Medium Enterprises and Supply Chain Finance. Corporate/wholesale banking: The Bank offers to corporate and other organizations services including corporate relationship not included under retail banking. the Bank’s outstanding loans in the agricultural sector was INR 148 billion. Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers. The Bank also organized the 'Business 24 . corporate advisory services.Axis bank is the first Indian Bank having TCDC cards in 11 currencies. During the financial year ended 31 March 2012. INITIATIVES: The Business Gaurav SME Awards: In 2011–12. placements and syndication. NRI services: Products and services for NRIs that facilitate investments in India. The bank is a SEBI-registered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs. It can be used across 34 million merchant locations and at over 2 million MasterCard ATMs globally. The App has been launched in partnership with Tagit.4 million No Frills accounts in over 7607 villages through a network of 15 Business Correspondents and nearly 6000 customer service points. a leading Singapore mobile solutions company. 'Axis Bank . Euro. Axis Bank has partnered with Visa to launch 'eKYC' (electronic Know your customer) facility. Financial inclusion: Till March 2012. is the first photo Travel Currency Card available in USD. which offers a high level of personalization.7 million beneficiaries. Industry First Initiatives: Axis Bank launched Mobile Banking App 2. Gaurav SME Awards' in association with Dun & Bradstreet to recognize and award achievements in the SME space. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states till date with over 3. offering convenience. AWARDS AND RECOGNITIONS: Bank of the Year Money Today FPCIL Awards 2012–13 Best Bank CNBC-TV18 India’s Best Bank and Financial Institution Awards 2012 Best Bank Runner-up – Outlook Money Awards 2012 25 .ISIC Forex Card' for students. the Bank had opened over 4. The new application uses Tagit's mobility solution platform that enables Banking on-the-go.0 for its retail resident Indian customers the first of its kind in India. first organization in India to introduce Biometrics based KYC. speed and ease to Aadhaar-registered individuals to open bank accounts. GBP and AUD currencies. 26 . the promoters UTI. LIC and GIC held approx. a well-known Bollywood Actress was appointed as the brand ambassador for Axis Bank LISTING AND SHAREHOLDING: Axis Banks equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India. 'Consistent Performer' in 'India’s Best Banks – 2012 survey' by Business Today and KPMG Fastest Growing Large Bank Dun & Bradstreet – Polaris Financial Technology Banking Awards 2012 Fastest Growing Large Bank Business world Best Banks Survey 2012 Best Domestic Bond House The Asset Triple A Country Awards 2012 India Bond House of the year IFR ASIA – Country Awards 2012 Deal Maker of the Year in Rupee Bonds Business world Magna Awards – India's Best Deal Makers 2012 The Best Emerging Bullion Dealing Bank 9th India International Gold Convention-2011-12 Best Acquiring Institution in South Asia Visa LEADER Award at Visa’s 2012 APCEMEA Security Summit. As on 31 December 2013. Bali Gold Shield for Excellence in Financial Reporting in the Private Banks category – 2011–12 from Institute of Chartered Accountants of India BRAND AMBASSARDOR: Deepika Padukone. The company's global depository receipts (GDRs) are listed on the London Stock Exchange. The Bonds issued by the Bank under the MTN programmed are listed on the Singapore Stock Exchange. Green Banking: The recycling initiative under the Green Banking banner has helped the bank productively use around 21572 kilograms of dry waste during the year. The overseas operations of the Bank are spread over its seven international offices with branches at Singapore. China to a branch to 27 . The attrition rate in Axis Bank is approx.The average age of an Axis Bank employee is 29 years.901 employees. MSME. Axis Bank had 37. Axis Bank contributes up to 1 percent of its net profit annually to various social initiatives undertaken by this foundation. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporate.117 employees were women (19%). Corporate social responsibility Axis Bank Foundation: Axis bank has set up this trust in 2006 and supports supplementary education. the foundation has partnered with 36 NGOs for educating over a lakh underprivileged and special kids in 13 states. Agriculture and Retail Businesses. During the year 2011–12. The Bank has a large footprint of 2402 domestic branches (including extension counters) and 12. 43% of the shares. Hong Kong.922 ATMs spread across the country as on 31st March 2014. DIFC (Dubai International Financial Centre). Remaining 23% of the shares are held by others. the Bank has upgraded its representative office in Shanghai. EMPLOYEES: As on 31 March 2013. Foreign Institutional investors (FII) held approx. 34% of the shares in Axis Bank. During the year. The bank incurred INR 26. Colombo and Shanghai and representative offices at Dubai and Abu Dhabi. The Axis Bank's corporate office in Mumbai is designed and constructed as a Platinum LEED-Certified Green Building.7 billion on employee benefits during the FY 2012- 13. 9% per year. CORPORATE PROFIL: Axis Bank is the third largest private sector bank in India. out of which 7. leveraging upon the Bank’s network and technology. 27. The Bank offers a complete suite of products across deposits. the Bank’s overseas subsidiary namely Axis Bank UK Ltd. BUSINESS OVERVIEW: An overview of various business segments RETAIL BANKING The Bank aims to increase its share in the financial services sector by continuing to build a strong retail franchise.698 crores compared to Rs. investment solutions.754 crores last year. loans. On a daily average basis.55% and stood at Rs. Cross-sell of transactional banking products. During the year. payments and cards and is committed to developing long-term relationships with its customers by providing high-quality services. 39. 48. BUSINESS BANKING Business Banking offers transactional banking services.73% to Rs. product innovation and a customer-centric approach have succeeded in growing current account balances and realization of transaction banking fees. Product offerings of this business segment aim at providing customized transactional banking solutions to fulfill customer’s business requirement. 28 . 28. current accounts balances grew by 4. As on 31st March 2013. balances in current accounts increased by 21.403 crores last year. encompassing a wide range of products delivered through multiple channels to customers. institutions. The segment continues to be one of the key drivers of the Bank’s growth strategy. Its initiatives focus on procurement of low-cost funds by offering a range of current account products and cash management solutions across all business segments covering corporate. become the first Indian private sector bank to set up a branch in China. commenced banking operations.322 crores compared to Rs. central and state government ministries and undertakings as well as small and retail business customers. AGRICULTURE: The Bank has identified agricultural lending as an area of potential growth and offers a diverse range of lending solutions to the farming clientele and other stakeholders in the agriculture value chain. Activity and geography specific products and product variants were introduced to effectively reach out to the various value-chain participants and to meet their credit requirements. The representative offices and strategic alliances with banks and exchange houses in the GCC countries cater to the large Indian Diaspora and promote the Bank’s NRI products. the Bank also offers retail liability products from its branches at Hong Kong and Colombo. With management of liquidity being a major challenge in the present global markets. the Bank has adopted a cluster-centric approach for agricultural lending in areas where the Bank 29 . treasury and risk management solutions.INTERNATIONAL BANKING: The international operations of the Bank have generally catered to Indian corporate who have expanded their business overseas. trade finance. and three representative offices at Shanghai. The Bank now has a foreign network of four branches at Singapore. DIFC-Dubai and Colombo (Sri Lanka). The overseas network of the Bank currently spans the major financial hubs in Asia.84 billion as at 31st March 2013 vis-à-vis USD 6. besides strategic alliances with banks and exchange houses in the Gulf Co-operation Council (GCC) countries. While branches at Singapore. Dubai and Abu Dhabi. the Bank consciously restrained its asset growth at the overseas centers to report an asset size of USD 6. In order to provide a strategic focus to agricultural lending. interactions are also in progress with China Banking Regulatory Commission (CBRC) for upgrade of the Shanghai Representative Office into a branch. Further. Hong Kong. DIFC-Dubai and Colombo enable the Bank to partner with Indian corporate doing business globally and primarily offer corporate banking. Hong Kong.35 billion as at 31st March 2012. tailor-made fixed deposits and recurring deposit products to meet the savings requirements of customers. The financial inclusion initiatives of the Bank are aimed at enabling customers in rural markets to use formal banking channels for their banking needs such as savings. credit and insurance. consistent growth of portfolio and maintaining quality of assets. The branches and agriculture clusters follow a hub-and-spoke model with branches being the sole touch point for farmers. To increase the focus on unbanked and under banked areas. The Bank offers no-frills accounts. To achieve the objectives of increasing the business reach.believes agriculture is intensive and where a potential market exists. payments are the major requirement of such customers due to migration of workforce. 3 new ABCs were formed during the year at Guwahati (Assam). The Bank is also a leading player in the remittance market.338 villages.61 lakh no-frills accounts covering 42. Apart from savings. credit. As on 31st March 2013. Bhubaneswar (Odisha) and Patna (Bihar). FINANCIAL INCLUSION: The Bank regards financial inclusion not merely as a corporate social responsibility initiative but as an integral component of its rural strategy. business. The Bank has been in the forefront of several innovations in this space. which are controlled by 20 ABCs. The business architecture for agriculture business is decentralized with Agriculture Business Centers (ABCs) at various locations across the country spearheading the business. It has tied-up with leading telecom companies to provide savings and remittance facilities using the mobile phone and their distribution outlets in key domestic payment corridors. the agriculture business is operated through 759 branches attached to 93 agricultural clusters. enabling migrant workers in urban areas remit money to their 30 . operations and collections functions in this business are handled independently. payments. As of 31st March 2013. the Bank had opened 61. The Bank endeavours to meet the entire set of financial needs of its customers. The Bank has made significant investments in technology. including micro- lending. Talent Management with particular focus on grooming future leaders. ‘Chhota-deposits’ and micro-insurance (under life and general insurance categories). The Learning Maps aligned to the overall development plan of employees are designed to facilitate learning process across all levels through a blended learning approach of classroom programmer. and is integrated with the Aadhar platform through NPCI to enable transfer of Aadhar based social welfare benefits. The Bank also creates alternate talent pipelines by entering into arrangements with Training and Education Institutes and continues to maintain a strong employer brand in the financial services sector especially on 31 . The Bank has launched several programmers to deliver micro- loans to rural customers through its business correspondents in Tamil Nadu. Bihar and Madhya Pradesh. learning and development and employee engagement have been the key focus areas in the Bank’s HR objectives. It has also tied up with leading corporate to deliver credit to their end consumers through their rural supply chain partners.families in the hinterland. The Bank also actively participates in electronic/direct benefit transfer for disbursal of benefits under various government schemes using smart cards and biometric authentication technology. The Bank has built a learning infrastructure to ensure availability of skilled and empowered workforce. HUMAN RESOURCES: The Human Resources (HR) function is instrumental in creating and developing human capital in alignment with the Bank’s vision. certification programmer as well as e- learning modules. external programmer. The strength of the workforce was 37.738 last year. the Bank is aware of its corporate 32 . the Bank has partnered with Teach for India for promoting the noble objective of providing education to underprivileged children. Apart from housing its own NGO ‘Axis Bank Foundation’. irrespective of gender. The Bank has partnered with the best in class leadership trainers of the country to provide key position holders and unit heads the fundamentals of managing self and team leadership though a series of ‘Inspired Leadership’ workshops. CORPORATE SOCIAL RESPONSIBILITY (CSR): As an integral part of society. Performance Management System. Axis Leadership Practices (ALPs) are defined for employees at different levels of the hierarchy to promote desired behavior and to facilitate an objective assessment. The Bank continues to strive towards realization of its vision of being the preferred financial service provider excelling in customer delivery through insight. The ALPs form a framework for all the people processes in the Bank. Talent Appreciation. Apart from having a strong presence in the talent market. and this echoes in all HR initiatives undertaken. empowered employees and smart use of technology.the campuses of the premier business schools of the country. The Bank is also a socially responsible employer.901 at the end of the year as compared to 31. The Bank inspires everyone to excel and contribute to. Leadership Development and Feedback. The Bank has also launched an in-house multi-rater feedback tool ‘ALP Compass’ based on the Axis Leadership Practices. A young workforce with an average age of 29 years and the Bank’s policy of being an equal opportunity employer continues to significantly contribute towards emergence of the Axis Bank brand. the Bank also believes in maintaining a strong image internally by keeping its workforce engaged at all levels. These are an integral part of processes like Talent Acquisition. race or age. Promotion. healthcare etc. Maharashtra. education for the mentally/physically challenged. Jharkhand. education of the underprivileged. The Bank has decided to contribute up to one percent of its net profit annually to the Foundation under its CSR initiatives. The Foundation has been providing support to various initiatives in education. the Foundation is running 40 programs across 163 districts in 19 states. Kerala. the Bank has set up a Trust – the Axis Bank Foundation (ABF) to channel its philanthropic initiatives. Odisha. Bihar. Tamil Nadu.social responsibilities and has been engaged in community and social investments.23 crores for various education programs. The Foundation is constantly engaged in identifying the right target group and ensuring that support reaches the ultimate beneficiary. The Foundation also works for providing highway trauma care and rural medical relief. Uttar Pradesh and Madhya Pradesh. For this purpose. 50% of the beneficiaries being women. visually challenged etc. 27. The Foundation has so far partnered with 17 NGOs to provide sustainable livelihoods and has launched projects in partnership with these NGOs in the states of West Bengal. hearing impaired. targeting underprivileged children. Chhattisgarh. The Foundation has committed itself to participate in various socially relevant endeavours with a special focus on providing sustainable livelihoods. The Foundation aims to provide one million livelihoods to the underprivileged in some of the most backward regions of the country by 2017. It has provided aid to around 7. Presently. These programs aim at alleviating poverty and help in providing sustainable livelihood 33 .059 beneficiaries. Presently.500 critical accident victims and more than 15. poverty alleviation. Gujarat and Rajasthan. the Foundation has disbursed Rs 6. targeting 7.000 minor accident victims. During the year. 23 programs are running in the field of education covering 33 districts in 13 states promoting supplementary education. The Foundation has been working with Lifeline Foundation since 2007 for supporting the highway rescue projects in the states of Maharashtra. 934 units of blood has been collected. In line with the Bank’s initiative in Green Banking with the theme of ‘Reduce.09 crores was disbursed towards various livelihood programs. 27 blood donation drives have been organized across the country. 56 such exhibitions have been organized which has helped these NGOs to generate sales over Rs. Presently. Exhibitions of various NGOs are held at the Corporate Office and other offices of the Bank. Reuse and Recycle’. the Foundation organizes collection drives for clothes. This initiative was launched in August 2011. 34 . Conducting the exhibitions has also promoted volunteering among our officers with NGO partners. the Foundation has initiated the process of collecting all the dry waste. The funds collected under this initiative are utilized for the programs of the Foundation and the details of utilization are shared with the officers every month. The Foundation also has an Officer Engagement Program. During the year. Under the aegis of ‘Basket of Hope’.206 kilograms since inception. generated in the Corporate Office and seventeen offices of the Bank in Mumbai and recycles it into notebooks.40 lakh.524 officers of the Bank have enrolled for Axis Cares with a monthly collection of Rs. notepads and envelopes.64 lakh. to provide a platform to these NGOs for exhibiting their products and popularize their work. The Foundation has also launched a new initiative titled ‘Gift of Life’. The Bank launched an employee payroll program titled ‘Axis Cares’. 17 programs are running in the field of livelihood covering 136 districts in 17 states. During the financial year. 14. During the year. As on 31st March 2013. 7. The Foundation is also actively involved in implementing several initiatives in Green Banking. has helped recycle around 87. which encourages officers of the Bank to get involved in various volunteering activities. books and toys for distribution to the needy. an amount of Rs 31. through which 1.options. 14. CHAPTER: 4 CRM IN AXIS Contents: INTRODUCTION CRM STRATEGIES AT AXIS IMPLEMENTING CRM AT AXIS 35 . contract wins and sales leads. Customer relationship management entails all aspects of interaction that a company has with a customer. clients. CRM systems are also used to manage business contacts. While the phrase customer relationship management is most commonly used to describe a business-customer relationship. 36 . "CRM" is a term. Its philosophy focuses on each and every customer’s satisfaction. collectively used to refer to a combination of strategy & software CRM at Axis involves increased communication between the bank and its present and prospective customers. It also automated the process flow tracking in the product sales process and helped generate customized reports and promote cross-selling. CRM facilitated coordination of multiple business functions & multiple channel of communication with the customers to carry out customer management more efficiently.INTRODUCTION: CRM is the abbreviation for customer relationship management. whether it is sales or service-related. CRM STRATEGIES IN AXIS IN MULUND BRANCH (FINDINGS THROUGH EMPLOYEES OF THE BANK): 1. banking service: NRI / Other customers can access services of phone banking from outside India by dialing +91 22 27648000. 5. This department works in a 24x7 work environment so that the customers can contact the bank at any time in case of any problem. feedback and complaints if any. Axis Customer Care Phone Number: The customer care numbers of Axis can provide great help to the users as they can enquire about their problems from the customer care department. Blocking of debit cards: 37 . Bangalore. Customers can also find out all the newly introduced financial products and services by calling here. Ahmadabad. Hyderabad. suggestions. Axis Customer Care Toll Free Number: The 1-800-103-5577 This number remains a toll free number if contacted from anywhere in India from a MTNL or a BSNL landline phone. Gurgaon. etc. Also Axis ensures that there is availability of well qualified professionals in order to satisfy customers and give appropriate solutions to their queries. Kolkata. 3. NRI phone customer care toll free numbers of the Axis for Lost Credit Cards are: 1-800-233-5577 1-800-209-5577 4. 2. Pune. The Axis customer care centers are spread across the country in places like Delhi. Mumbai. Chennai. Customer care department or centers: The Axis customer care department is the department which handles all customer queries. com . The solution allows customer service agents to track all customer complaints and requests. For blocking of Debit cards or prepaid cards. A CRM solution from Siebel was implemented for the automation of customer handling in all key retail products of the Group. sales.com .com for NRI Related queries.com . 7. Axis Customer Care e-mail Service: Contact customer.for Debit Card Related queries Contact mobile.for Mobile Banking queries Contact nricell@axisbank. There are five interrelated areas that were taken care of before implementing CRM: - Business Focus Organizational Structure Business Metrics Marketing Focus and Technology Business Focus: There are various components of CRM like customer information. The solution went live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office. the 24 hour emergency number is +91 22 67987700 [email protected]@axisbank.services@axisbank. Axis customer care SMS Service: One can also send them an SMS on their number 5676782 or 9717000002. IMPLEMENTING CRM AT AXIS: The key to implementing CRM was in understanding organization and customers in a better way. The customer care executive of the bank would either call you up or reply your query.for Credit Card Related issues Contact debit. marketing trends and marketing efficacy that acted in tandem to improve relationship between AXIS and its consumers. AXIS captured customer data and analyzed them while dealing with customers at these very touch points. It also allows target setting and centralized tracking of turnaround times for request fulfillment. This central 38 . transformation. The Technology Management Group (TMG) is the focal point for the AXIS Group’s technology strategy and Group-wide technology initiatives.A key to AXIS’s success has been its ability to harness business information to CRM initiatives that have fueled growth and helped attract more than 30 million customers. and cost efficiency through optimal use of electronic channels.view of the total customer relationship is being used extensively for identifying opportunities to cross-sell new products and services to the existing customer base. (The Bank initially used Teradata as its data warehouse platform and migrated to Sybase IQ a year ago. in addition to the initial three sources of retail banking. The foundation for AXIS Bank’s wide-ranging CRM programs is a Sybase IQ-based data warehouse. With its growing customer base. Technology Focus: AXIS Bank continues to leverage ICT2 as a strategic tool for its business operations to gain competitive advantage. wider and focused market reach and opportunities for cross-selling. to implement the Informatics Power Center enterprise data integration platform. Developers had used a combination of PL/SQL and BTEQ scripting. for data extraction.) AXIS Bank deployed Power Center in 2003 as it embarked on the next phase of its warehouse. credit cards. a proprietary technology specific to the data warehouse. and loading (ETL). which provided systems integration support for the data warehouse. multi-channel banking and straight through processing. Its technology strategy emphasizes enhanced level of customer services through 24x7 availability. AXIS Bank officials agreed with are commendation from Teradata’s professional services division. To step up to the next level of data integration. and securities information. 39 . sophisticated data integration system to help ensure the warehouse lived up to its potential as an analytic CRM engine that delivered tangible bottom-line results. This group reports directly to the Managing Director & CEO. IT administrators recognized that the bank needed a more powerful. which would add data from five new sources. capture. processing and deployment of customer information Distribution and operations effectiveness at customer touch points.4 Chapter 5: RESEARCH METHODOLOGY Contents: INTRODUCTION OBJECTIVE OF THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY COLLECTION OF THE DATA 40 . sales and service practices – Collection.The next step in the CRM implementation process was gap analysis which essentially is assessing different loopholes in: - Marketing. e. In CRM the company tries to identify that small percentage of key account holders whose contribution to the company 41 . CRM identifies the present and future markets. maintenance and optimization of long term mutually valuable relationships between consumers and the organizations. Successful customer relationship management focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of the business by integrating them with the organization’s strategy. technology and business processes. Axis bank aims to make the customer climb up the ladder of loyalty. people. It is the establishment. selects the markets to serve and identifies the progress of existing and new services.INTRODUCTION: CRM is a managerial philosophy that seeks to build long term relationships with customers. CRM can be defined as the development and maintenance of mutually beneficial long-term relationships with strategically significant customers. The CRM is a new technique in marketing where the Axis bank tries to develop long term relationship with the customers to develop them as lifetime customers. The bank hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into Repeat customers. The bank first tries to determine who is likely prospects i. Thus in CRM the key performance figure is not just current market share but share of life time value by converting customers into partners. development. The people who have a strong potential interest in the product / service and ability to pay for it. To understand the customer acquisition and retention strategies followed by Axis Bank. These data are basically observed and collected by the researcher for the first time. OBJECTIVE OF THE STUDY: To examine the importance of CRM in banking sector. An advantage of using primary data is that researchers are collecting information for the specific purposes of their study. So from this point of view. While methods vary by discipline. 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. the emphasis on ensuring accurate and honest collection remains the same. To evaluate the service quality offered by Axis Bank To offer pertinent suggestions based on the findings of the study. the researchers were able to determine which factors predicted a shorter work absence among injured workers. etc. There are two types of data. To analyze the perception of customer as well as employee on CRM as a tool of Axis Bank. CRM is also known as KEY ACCOUNTMANAGEMENT. and evaluate outcomes. COLLECTION OF THE DATA: Data collection is the process of gathering and measuring information on variables of interest. Researchers collect the data themselves. This information was shared with return-to- 42 . Carry out customer satisfaction survey to find out prospective of the customer towards the financial services. Secondary data tends to be readily available and inexpensive to obtain. In addition. humanities. secondary data can be examined over a longer period of time. test hypotheses. interviews and direct observations (such as observing safety practices on a shop floor). Researcher used primary data for my project work. using surveys. In essence. the questions the researchers ask are tailored to elicit the data that will help them with their study. To understand the use of CRM in Axis Bank. The data collection component of research is common to all fields of study including physical and social sciences. in an established systematic fashion that enables one to answer stated research questions. Primary data: Primary data is that data which is collected for the first time. With a combination of these two data sources. business.revenues is high. work professionals to help improve return to work for other injured workers. ANALYSIS AND INTERPRETATION: a) SATISFACTION WITH AXIS BANK SERVICES: YES 27 NO 03 B-SATISFACTION FOR PROBLEM SOLVING ATTITUDE OF BANK : YES 23 NO 04 CAN NOT SAY 03 C -BEST SERVICE PROVIDED BY AXIS BANK : ATM 30 DEBIT AND CREDIT CARD 21 LOAN PROCESS 12 E-BANKING TECHNOLOGY 30 SERVICES MOBILE BANKING SERVICES 23 D-TIME TO GET JOB DONE AT AXIS BANK : Within 5 minute 16 5-10 minute 08 43 . low cost and efficient banking services. including consumer loans as well as investment products. India’s financial services sector is expected enjoy generally strong growth during coming years. Banks are the Financial Institution which satisfies the individual & 44 . even a small investor is able to invest in such products. credit-oriented culture. This is expected to lead to increasing demand for financial products. 10-20 minute 04 20 and More than 02 E-BEHAVIOUR OF STAFF : FRIENDLY 18 CORDIAL 04 OK 05 NOT GOOD 03 F-Axis bank have Core Banking Facility: Yes 25 No 00 Don’t know 05 EXECUTIVE SUMMARY The aim of the banks is to provide state-of-the-art. financial sector liberalization and the growth of a more consumer oriented. New innovative products are been offered. driven by rising personal incomes. with a focus on increasing fee-based income. To achieve the goals and objectives the main component of the banks are the customers. working capital finance etc.group goals with proper systems of rules. 45 . private equity. venture capital. services. procedures& strategies. regulations. Banks are the diversified financial services company that provides a range of services to customer including retail banking. policies.