CRM Impact on Banking Performance

This assignment delves into the relationship between Customer Relationship Management (CRM) systems and banking performance. It requires students to investigate how CRM implementations influence various aspects of bank operations, such as cost and profit efficiencies, customer satisfaction, and overall organizational success. The analysis should draw upon relevant research and case studies within the banking industry.

Running head: CUSTOMER RELATIONSHIP MANAGEMENT PLAN
National Australian Bank (NAB)
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction of the company...............................................................................................2
2. Current state analysis of the company................................................................................3
3. CRM program/project objective.........................................................................................4
4. CRM Solutions and its advantages.....................................................................................5
5. Determine Infrastructure Requirements..............................................................................6
6. Training...............................................................................................................................7
7. Establish a timeline.............................................................................................................8
8. Establish a Budget..............................................................................................................9
9. References.........................................................................................................................11

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1. Introduction of the company
Australian banks highly value their communities in which they have established
themselves. They are very much committed towards attracting with their stakeholders.
Stakeholders can be the bank’s customers, employees, suppliers, community partners and
the wider community or their surroundings. In Australia, most banks are found providing
free discounts as well as exceptions to senior citizens, students and individuals with
disabilities. There are other facilities also that guides their customers by offering them
financial education, literacy and additional programs and activities. National Australia
Bank (NAB) is among the boss who supplies banking services to the businesses in
Australia (Shamsuddin and Xiang 2012). It however, has expertise who is specialist in the
agribusiness, health, government, education and lastly community banking. NAB group
in United Kingdom, New Zealand, Asia and United States of America accompanies all
the fields. The one and only vision of this company is to become the most admirable bank
in Australia and New Zealand. National Australia was founded in 1858 and named
National Bank of Australasia. Currently, they are having 35000 employees who are
helping banking of 10million along with wealth management customers who are spread
across 10 worldwide authorizations (Wilson 2012). In 1864, they were successful in
opening their first office internationally in London due to their colonial links. As they
develop themselves, they started opening more offices internationally. Presently, more
than 500 employees across Asia are serving around 20,000 people, business and
institutional customers. NAB also follows CRM practices so that they can have better
understanding of their customers for a advancing in better enhancement of the products,
segmentation, proper targeting, managing campaigns and sustaining the long-term profit
and mutually benefited relationship with their customers.

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2. Current state analysis of the company
Strength and weakness
The strengths of CRM is that it helps in managing the customer data and helps the
staff to get more effective in handling their customers, it manages the developing database
and centralizes all the data. It further helps building long-term relationship with customers.
On the other hand, the weaknesses are the difficulty that is faced in the changeover from the
manual to automatic process and the possibility of the software of CRM being hacked
(Vasiliu 2013).
Improvisation of the weaknesses
To protect the CRM data from the hacker’s basic security processes needed to be
carefully practiced, update the antivirus systems so that it can block or detect the logged
signatures. Big data analytics should be used so that there is network security visibility and
recognition to deaf the rivals (Desai and Kulkarni 2013).
Administrative activities
For National Australia Bank the administrative activities that are hampering their
productivity is business realignment that is National bank which is a traditional bank must
choose to shift into nontraditional businesses like payment processing, specialty financing.
Another problem is Channel optimization. It is to evaluate the different ways in which
customers interact with the banks so that a cost effective combination is created to the bank’s
customer base (Bowe, Briguglio and Dean 2014).
Opportunities and threats

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The opportunities are the application technology in the core activities of the bank, the
“one commbank’ initiative helps in customer relationships for sustained development and
lastly, expanding the activities in Asia and other evolving markets can also guide the bank for
long lasting growth. The threats are on the other hand, investor confidence in the foreign
economy that is if the economic outlook is weak, it can make the growth stagnant and risk
due to modifications in foreign currencies (Wongsansukcharoen, Trimetsoontorn and
Fongsuwan 2015).
Competition
Commonwealth Bank, Westpac and ANZ
3. CRM program/project objective
The objectives of the CRM program of NAB include increasing customer loyalty. This
means that in the present day’s situation it has become very important to properly handle the
customers and retain them. This is not only cost effective but also profitable retaining an old
customer than getting a new customer (Harorimana 2012). Bank can lose their customers in
two ways that is by either voluntary attrition or involuntary attrition. Customers have various
relationships with a particular bank and thus, they built up an expectation to get the same
treatment across the various business lines. NAB enhanced their customer’s loyalty by
putting emphasis in certain areas like customer feedbacks, their needs, pricing based on the
relationship, staff motivation and rewards management (Kaur and Kiran 2015). CRM along
with HR (human resources) of the banks allows the bank to evaluate their customer’s
behaviors and values. The main project objectives to execute CRM in the business strategy of
NAB are to untangle marketing and sales related processes, to make the call centers more
systematic, to impart better services to their customers, to find new customers, enhance the
customer revenue, and lastly, effectively cross sell their products. However, customer life

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cycles should be fully supported by CRM processes and they have few basic steps which are-
alluring existing customers as well as new customers, obtaining new customers, serving them
and finally preserving them. However, to run the process engine of CRM project few data
should be collected beforehand like responses to the campaigns, dates of fulfillment and
shipping, data of sales and purchase and demographic, information of accounts and web
registration, service and support records and lastly, web sales data (Nambiar, Joseph and
Raman Nair 2015).
4. CRM Solutions and its advantages
CRM software solutions in an important tool for any bank for managing its business as
customer management are an essential factor that can bring huge modification to a bank.
However, Saga CRM can be used as a solution that can help the bank to get appropriately
with the requirements of the customers and increase the retention of the customers (Laudon
and Laudon 2016). This solution has the following features to reach the goals of customer
management-
 Customer retainer- to keep customer’s satisfied and loyal, thus taking a step ahead
in the competitive banking sector in Australia.
 Information database- this software can add up to the quickness while supplying
the deduced data processes, delivering auto responders and bestowing a top-notch
customer management.
 Privilege management- this is completely hassling free and helps in managing and
recording all the data and thus, helps to manage your customers better.
 Financing service management- not only helps to work quicker but also track the
mails/SMSs for the customers for the deadlines and overdue that is coming up.
 One for all- this is just one solution to all the troubles by the customers.

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The vendor providing the software is Microsoft. The Microsoft dynamics CRM is
distinctive in the increasingly crowded software of CRM in the market. However, it gives the
customers more options in hosting delivery by assisting numerous public clouds for SaaS
delivery (Wolenik 2013).
The reason behind selecting this type of CRM software is its advantages, which are
strengthening better services to the customer, encourages origination of new customers,
enhancing customer’s revenue, assisting the sales teams so that they can close their deals
quicker and increases customers loyalty.
5. Determine Infrastructure Requirements
Current data base architecture
Implementing Microsoft dynamics CRM demands several applications of software
and those components that can together work to produce a system that is effective. Maximum
of the system however, requires for a organized Microsoft CRM environment are very much
similar to the on-premise distribution of Microsoft dynamics CRM. Before installing the
Microsoft dynamics CRM, the guides should be referred so that the system requirements are
verified and met. Therefore, the essential software components must also be accessible.
Microsoft Dynamics CRM server requires both hardware and software requirement along
with Microsoft Dynamics CRM email router, which is a differentiated email routing service
that directs CRM-based email, messages to and from the organizations of Microsoft
dynamics also requires both hardware and software. Lastly, there is a need for Microsoft SQL
Server that only needs Hardware Server (Chiang, Goes and Stohr 2012).
Silos structure

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CRM becomes a silo that is catching information so that they cannot interchange with
any other application like the customer services, analysis and forecasting systems. Thus, to
integrate the database so that a 360 degree view of the customer is achieves the focus must be
on the following point-
 Concentrate on the customer information
 Automates marketing interactions
 Supply the bank with business intelligence
 Encourage communication
 Follow the sales opportunities
 Scrutinize data
 Permit receptive customer service
Organizations can use various tools that can enhance this 360-degree view that may
involve social media listening tools, predictive analytics tools, customer-relationship
management suites and lastly marketing automation software. Apart from all these, the focus
must also be on data quality and data clearing practices that is also helpful in gaining an
appropriate picture of the customers.
6. Training
For a successful CRM plan, implication training the employees is very much
important because of the following reasons-
 It enhances the adoption rate- proper training will help the employees to
increase the rate of adoption for the CRM within the employees by assisting
them feel more pleasant using the implemented CRM solution.

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 It improves the employees knowledge about the features of the newly
implemented CRM- training always gives the employees a clear idea of the
usefulness of the new solution in spite of the employees being tech savvy.
 Guides the staffs to combine the CRM into the everyday routine- the main
goal of any organization would be to implement the CRM practices to every
employee’s daily routine and policies so a proper training will help employees
to do that.
 If training is provided properly then various questions will be raised- training
for a new practice will definitely raise questions, and if employees will not get
the chance to ask questions then they may bypass important aspects of the
CRM or may even to use it properly.
 Discover different problems- the more employees are exploring the CRM and
thinking about its practices that how in a better and simpler way they can
implement it in their everyday routine, the more they will come up with
problems.
 This will also help in displaying the big picture- only right training can help
the employees to visualize the picture clearly and help them improve their
adoption rates and widen their employee knowledge and skill of the CRM
(Elnaga and Imran 2013).
7. Establish a timeline
The length of the planning process ranges from 20 days to one month. This will include
the training of the following products-
 Microsoft dynamics GP
 Microsoft dynamics NAV

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 Microsoft dynamics AX
 Microsoft dynamics CRM
 Tableau
 Prophix
Training will be of new implementation and new user training. The first training that is
the new implementation training is deeply focusing on the project methodology. Thus, the
training is transferred through a project so that there is no confusion among the employees.
Then the employees are observed and if needed follow up training are provided to confirm
the success rate among the staff members. Then following this is the new user training where
those employees can be trained where they are going to use the software for the very first
time. This training will guide the employees with the necessary information that are needed
for navigating the product. The training methods that are to be applied can be on-site training
or training the trainer. Train the trainer method focus on any one employee in the
organization who will be the expert in handling the software. Then he may train others in
how they can also use the knowledge in a practical manner. However, training will help in
adopting the new CRM practice easily, it makes CRM to be more than just a tool and thus
raise productivity and lastly, it becomes a part of the employees increasing their satisfaction
(Talet 2012).
8. Establish a Budget
Budgeting the CRM is the practice, which is most productive to ensure the theta the
investment can supply a positive financial return, or not. Moreover, it is a easy practice to cut
out the costs or avoiding any kind of unnecessary spending of money on any external
resources that can lead to the failure in the implementation as the needs of the business are
not fitting with the system that is underfunded.

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Implementation costs
Costs that are intricate in the implementation of the options of mitigation are called
implementation costs (Krasnikov, Jayachandran and Kumar 2013). However, these costs are
associated with the important changes in the institution, informational requirements, the size
of the market, chances for gain in technology and learning along with economic incentives
that might be needed that includes the grants, subsidies and taxes. This cost is the amount that
is spends for implementing the initial system (Ryals 2013).
Annual Costs
Microsoft dynamics for sale costs, customer service, field costs and project service
automation may cost around $95/user/month. However, for any sales user if they want to
access to the customer service operations then they it will cost additional $10 per user each
month. Apart from these, the full cross functional read/ write may access to any existing user
type may cost around $115 per month by each user. Annual costs are mainly the ongoing
costs that are related with the preservation and support of the CRM system (Awasthi and
Sangle 2013).
However, typical middle market CRM solution implementation can costs from $1000 to
$4000 per user. Moreover, Microsoft dynamics CRM that is the professional one will cost
around $65 per user in a monthly basis, the basic one will cost $30 per person every month
and essential will cost $15 per month by each user (Kurawa and Garba 2014).

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9. References
Awasthi, P. and S. Sangle, P., 2013. The importance of value and context for mobile CRM
services in banking. Business Process Management Journal, 19(6), pp.864-891.
Bowe, M., Briguglio, L. and Dean, J.W. eds., 2014. Banking and finance in islands and small
states. Routledge.
Chiang, R.H., Goes, P. and Stohr, E.A., 2012. Business intelligence and analytics education,
and program development: A unique opportunity for the information systems discipline.
ACM Transactions on Management Information Systems (TMIS), 3(3), p.12.
Desai, D.B. and Kulkarni, R.V., 2013. A Review: Application of data mining tools in CRM
for selected banks. IJCSIT Vol. 4 (2), pp.199-201.
Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European
Journal of Business and Management, 5(4), pp.137-147.
Harorimana, D., 2012. Impact of CRM Systems on Organizational Performance: A case study
of ANZ Bank.
Kaur, N. and Kiran, R., 2015. E-banking service quality and customer loyalty: Changing
dynamics of public, private and foreign bank consumers in India. Global Business and
Management Research, 7(1), p.74.
Krasnikov, A., Jayachandran, S. and Kumar, V., 2013, May. The impact of customer
relationship management implementation on cost and profit efficiencies: evidence from the
US commercial banking industry. American Marketing Association.

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Kurawa, J.M. and Garba, S., 2014. An evaluation of the effect of credit risk management
(CRM) on the profitability of Nigerian banks. Journal of Modern Accounting and Auditing,
10(1), p.104.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Nambiar, B.K., Joseph, A.I. and Raman Nair, V., 2015. Adoption of CRM Initiatives:
Reshaping the Customer Centric Model with Special Reference to Banks in Kerala.
International Journal of Management and Social Science Research Review, 1(12), pp.15-25.
Ryals, L., 2013, May. Making customer relationship management work: the measurement
and profitable management of customer relationships. American Marketing Association.
Shamsuddin, A. and Xiang, D., 2012. Does bank efficiency matter? Market value relevance
of bank efficiency in Australia. Applied Economics, 44(27), pp.3563-3572.
Talet, A.N., 2012, February. KM process and CRM to manage customer knowledge
relationship management. In International Conference on Economics, Business and
Marketing Management (Vol. 29).
Vasiliu, D.M., 2013. Approach to Customer Relationship Management (CRM)-the new key
sales success. The USV Annals of Economics and Public Administration, 12(1 (15)), pp.144-
153.
Wilson, J.S.G., 2012. Banking policy and structure: A comparative analysis (Vol. 34).
Routledge.
Wolenik, M., 2014. Microsoft Dynamics CRM 2013 Unleashed. Sams Publishing.

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Wongsansukcharoen, J., Trimetsoontorn, J. and Fongsuwan, W., 2015. Social CRM, RMO
and business strategies affecting banking performance effectiveness in B2B context. Journal
of Business & Industrial Marketing, 30(6), pp.742-760.