BFSI Vision CRM Survey – Are they Growth Ready?

The challenge for Indian Capital Market players is to be able to tap into the potential growth that India offers. This can be achieved only if the players are geared to make the customer experience a compelling pull. The goals of this study are to evaluate the status of CRM activities among the Indian Capital Market players; to identify their view of CRM as a business tool and to identify future trends and developments in this area. We chose to understand the drivers of customer satisfaction and customer loyalty as the focus topic of this study. The goals here are to identify the status of customer care initiatives within the Capital Market players and to answer the question, whether the concept of CRM can live up to its expectations. In all 110 capital market intermediaries were surveyed across the country. We produce below the excerpts from the survey

   
 

Choice for the following CRM System related queries

Since the players in the market are overwhelmingly in favor of a CRM solution, the next level of inquiry is due. If the players are so in favor of it, how have they performed on a few counts? The respondents were asked to show their agreement or disagreement to seven parameters that affect their CRM strategy. Tracking and measuring customer satisfaction is important to us – the question was designed to check the relative importance of measuring customer satisfaction – the core of growth. Nearly all -107 respondents – agreed to this. Moreover, 69 respondents – 62.7% - agree that their managements are open to fresh investment in tracking systems, with only 10 respondents stating their managements were not open to fresh investments.

   
 

The top three challenges in developing new business

This question was an attempt to find out the significant challenges in developing new business. Quite surprisingly, acquiring new customers was cited by 60 respondents (representing 54.5% of the sample size) as one of the top three challenges in developing new business. The dispersion here is fairly even, with "Lack of awareness among customers" listed by 49 respondents (44.5% of the respondents) and "regulatory restrictions" cited by 40 respondents (36% of the responses) bringing up the top three. Significantly, out of the top three challenges in developing new business, two are beyond the control of the players. Any industry that feels that its major challenges to growth are outside their control, does not make for a happy scenario.

   
 

The top three customer contact methods

The respondents were asked to list the top three methods by which the firm contacts its customers from among eight options. The results are in line with the evolving trend in the Indian financial services sector. There are clearly four options that are very close to each other - 65 respondents (59% of the responses) listed e-mail as among the top three customer contact methods in their firm. This was closely followed by telephonic contact – 64 respondents (58% of the responses) and one to one meeting with the customer by 63 respondents (57% of the responses) and direct mail at 56 respondents (51% of the responses) make the top four.

   
 

The top three hurdles in servicing customers quickly contact methods

The respondents were given ten potential challenges to pick from. The survey results reveal an interesting story. Clearly there is no consensus on the challenges to customer servicing among the Indian capital market players. The top two issues were:

  • 01 Lack of clarity about the problem
  • 02 Lack of trained resources.

A total of 80 respondents (73% of the responses) listed lack of clarity on the problem as a top hurdle in servicing the customer and 58 respondents chose "lack of trained resources."

 

   
 

Challenges in growing the customer base

While assessing the challenges in developing new business, the factor that caused the most concern was the inability or challenge in acquiring new customers. This is a serious issue that needs to be looked into. Growth and thereby sustainability are tied to the ability of a firm to acquire new customers, keep old customers and upsell to the existing customers. Of these the last two are more of a business as usual challenge. However, the challenge of acquiring new customers, specifically when India will see an upsurge in the number of potential customers is daunting. Understanding the challenges is the first step to overcoming them.

   
 

Importance of CRM strategy to growing business

Indian Capital market players are right on top of this one. 88 respondents – 80% of the respondents believe that having a CRM strategy in place is a important for them. 80% of the respondents have a CRM solution implemented. Only 5 respondents feel they do not need it and 8 respondents feel it is nice to have, but can do without it. Another 9 feel it does not have any influence on their growth. No one feels it does not add value.

 

Top three contributors to Customer Satisfaction

ustomer service, Competitive Pricing and On time execution bagged the top three spots according to the respondents
It was more interesting to see the bottom rank. The research reports that the players routinely send out were the clear laggard, with only six respondents (5%) placing it among the top three. Clearly there is something amiss here. All capital market players spend considerable time and money in nurturing a research team, but do not consider it very relevant for customer satisfaction. Probably time for a re-look at the research desk!

   
 

Top three parameters for choosing a CRM Solution

According to the respondents, the top three factors they look at while they buy a CRM solution are:

  • 01 Ease of use – 81 respondents (74%) listed this in the top three.
  • 02 Low total cost of operations – 54 respondents (49%) listed this in thetop three
  • 03 Price – 51 respondents (46%) listed this in the top three
Clearly, we are a price sensitive nation. Two of the top three factors relate to price. This show s the trend of stretching the IT budget to accommodate as far as possible. However, further research on the price Vs. Performance need to be undertaken.

 
 
 

Which of the following do you track regularly wrt to customer engagement?

A customer engagement is a complex process, with many layers. For a meaningful customer engagement, the firm should be able to measure and track multiple parameters. The survey asked respondents to select the parameters that they track, measure and monitor during the course of their customer engagement. The survey reveals that

  • 01 74 respondents (67.27% measure over all customer satisfaction.
  • 02. 44 respondents (40%) measure product level satisfaction
  • 03. 55 respondents 50%) measure on time delivery

   
 

The top three criteria for measuring customer worth

The top three picks were:
  • 1. Does the customer belong to the right demographic segment – 60 respondents (55% of the responses) listed this as a top three parameter.

  • 2. The turn over realization from the customer – 55 respondents (50% of the responses) listed this as a top three parameter.

  • 3. Annual fees collected from the customer – 50 respondents (45% of the responses) have listed this. The responses indicate that the Indian capital market player is doing the right things – but needs to keep an eye out for the wrong customer.