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Huddersfield University Business School An Assignment Submitted: By Adnan yaqoob (student id B0416662) DISSERTATION PROPOSAL On

Crm in financial institution especially in uk

Course Tutor: chris leigh Course Module:BMO 0082.

Submitted at 10th of October 2006

TABLE OF CONTENTS
INDEX 1: 2: 3: 4: 5: Topic introduction 1.1: Reason to select the topic area Aims of dissertation Objectives of dissertation Research questions Literature review 5.1: 5.2: 5.3: Organizational prospective of CRM (financial inst.) CRM value chain Theories related to CRM 5.3(a) SWOT analysis 5.3(b) Corporate Social Responsibilities 5.3(c) Marketing 5.3(d) Identifying customer Needs 5.4: 6: 6.1 6.2 6.3 7: 8: 9: Findings Primary data Secondary data Qualitative and Quantitative research Collection of data (Methodology) PAGE 04 06 06 06 07 08 10 11 12 13 14 14 14 14 15 15 16 17 19 20 21

Significance and limitation Gantt chart References

They may forget what you said, but they will never forget How you made them feel Carl W. Buechner

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TOPIC INTRODUCTION:
One common definition of CRM is that which helps you manage and improve your relationships with customers. Or it can also be stated
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that, CRM is everything you do to improve your relationships with customers and, thereby, your profitability gets improved. Monday memo (2006) CRM (customer relationship management) is a type of concept which is extremely customers orientated however it is true that there is no existence of any business without potential customers. Nowadays, businesses are more challenging in customers prospects as it was before, that is why organizations are getting more intact in getting more customers which is ultimately headed towards higher profitability. Organizations use to have concepts like Enterprise Resource Planning (ERP) and Sales Force Automation (SFA) idea by: www.mondaymemo.net(2006) which is very similar to the one like CRM. Although CRM is a moderated form of getting more information from the customers experience and implementing it to make the organization towards optimum profitability. CRM is a kind of attitude which relates to the trustworthiness of the customer towards the business and getting the advantage of competitive edge on different other services provider. Financial institutions are a highquality example of having well intact with customers although it is not an easy task to implement the whole idea because it could me highly expensive and required to take more initiatives.

Alexander, H. Kracklauer, D. Quinn Mills and Seifert(2003) The main objectives of CRM is to manage how to focus on customers, higher the customers will be reliable to the organization more will be the profitability in lieu. Customers plays vital role in getting the desired targets of the organization and if one can manage to get their customer intact with the business then the set targets are very easy to achieve. The following is a concise and very comprehensive definition related to the topic found in a website stated that CRM is a kind of managing performance: Interactive approach that achieves an optimum balance between corporate investments and the satisfaction of customer needs to generate maximum profit. Reichold, A. Kolbe, L. Brenner, W.(nodate)

1.1: REASON TO SELECT THE TOPIC AREA:


The reason why I choose this specific topic is because initially it is very much customer focused which is related to what we have studied in our academic session and due to this research I would be able to explore more what I have learnt until yet. One more reason to choose this topic is because I intend to join any financial institutions in my future prospects and with out being familiar with what customers want I wont be able to give them any remarkable services.

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AIMS:

The aim of this topic is to find out what are the ways we can come through to the weaknesses while performing CRM in any organization or how CRM can be improved in any financial organization keeping in mind that these institutions have the extreme relations with the customers.

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OBJECTIVES:

In order to be more precise and customer focused it is necessary to set some specific objectives otherwise strategies failed to be implemented. i. Try to find new customers and intact with existing. ii. How to increase service and satisfaction additionally.
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iii. Ways to get compete with the existing competitors. iv. To find out ways how to involve the staff to get more out of what is being implementing.

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RESEARCH QUESTIONS:

What are the techniques by which CRM could be improved in organizations? Could CRM be backed up by the personal and professional development if yes how?

What strategies would be considered in order to manage CRM? Within conventions and laws how moral issues could be tackled? In organizations do they determine under the prospective of customer satisfaction and moral values?

What are the key factors that could make impact on both the organization and customers both?

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LITERATURE REVIEW:

Literature review is a piece of work which gives more curiosity to the researcher to think interestingly and towards the topic area. It helps to gather more data respectively to which point it will have to focus. CRM fundamentally focuses on customer satisfaction according to their needs. In the current era customers are the centre of focus in all financial organizations which can be improved by identifying the short falls and finding its resolutions accordingly. The reformation of financial sector in UK has changed very much in the recent past years and due to this there is a good need of enhancement of customers services to retain and get more market place. Philip Kotler & P.L. Keller discussed CRM as the process which manages the information of individuals to maximize customers loyalties referred as Touch points. a customer touch point is any occasion on which a customer encounters the brand and product from actual experience to personal or mass communications to casual observations( Philip Kotler & P.L. Keller, 2006 pp.152). In the financial institutions CRM plays a key role to satisfy the customers need for e.g. Centralized data base of customers accounts in banks (any customer can check their account detail by calling in any branch within the UK and Northern Ireland, telephonic banking (which connects the customer to their branch or any other located point hassle free instead of calling into bank personally), Nationwide started a new service for
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their customers only that they can obtain the money without paying any extra charges while they are abroad). As discussed by Peter Drucker The purpose of a business is to create customers. In the light of his definition of business customers are very important for business. Research by Frederick Reich hold and earl Sasser of Harvard business school shows most customers gives you profit in the second year of the business they do with you. Keeping those customers and make depth relationship with the help of customer relationship management will not only make business profitable but also give a lot of growth to the business. This is very much clear in the diagram below:

Kotler, P. and Keller, L.(2006)pp 157

According to Anderson, Kristin Customer Relationship Management is a comprehensive approach for creating, maintaining and expanding customer Relationships. Anderson, Kristin.(2001) Customers played key role in the growth of business and when we did the literature review from different books, articles, and from journals every bodies focus is on loyal customers, old customers and research show as well that loyal customers or old customers which gives profit to business and the best tools is to keep new customers and make them loyal. Its a strategy and tool to build a depth relationship with customers. .

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ORGANISATIONAL PROSPECTIVES OF CRM (FINANCIAL INSTITUTIONS):

Buttle, F.(2004),pp.20
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As we come to know that CRM is a business strategy to collect the information and which implements into process to generate profits. It is a systematic approach for managing customers information which aligns processes and technology (Federico Rajola, 2003)pp.26. as described by the author: CRM is a business strategy aiming to understand and to anticipate the needs of existing customers and to seek new ones who might potentially be interested in products or services offered by the financial institutions. Fedrico Rajola (crm )pp 25 Sometimes organizations ignore a very important factor which is organizational components while forming fundamentals of CRM systems. Schneider, (2001). That is why when reviewing deeply to the book context of the Author Thompson, where he states that, in banking markets and financial environments CRM concepts is judged as Organizational Buffer which has the ability to protect by taken off the unsteadiness. Thompson, (1967)pp. 30

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CRM VALUE CHAIN:

It is very much known fact that CRM is a very vital part not only for any financial institution but for any organization as according to Francis Buttle CRM is the core business strategy that integrates internal processes and functions and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer data and enabled by information technology.(Francis Buttle, 2004) So by going through this definition we can analyze that CRM is a value chain process as
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it needs integration of process i.e. internal and external it also tells us about the process and techniques which enable us of achieving good CRM, by reviewing this topic we can analyze that the goal of the CRM is to make a strategy which will in result help us to make a more long-lasting and profitable relationship with our customers then it further tells us as how by applying different tools and techniques we can achieve our goal in any financial organization.

Buttle, F.(2004),pp.40

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THEORIES RELATED TO CUSTOMER RELATIONSHIP MANAGEMENT:

The fundamental objective of this dissertation report is to come up with a topic of interest and implement the theories we have studied so far. It provides us a chance to express our views in the light of the knowledge and skills we developed to understand the current circumstances of the organizations and how it can be improved? One of the suggested methods is
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to implement the proposed theories to make some changes according to the need in order to exist in this competitive era. Most of the module we studied during our academic year would be very useful in making this dissertation but the module which would be helpful for me to make this dissertation (Customer Relationship Management in the Financial Institutions) are as follows: Strategic Management SWOT Analysis Corporate Social Responsibilities Management Style Marketing and Innovation Consumer Behavior Identification of customers need Managing and Developing Activities Continuous Improvement (Tools & Techniques) Strategic Management Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. Arikah,(2006)

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5.3 (a)

SWOT Analysis

It is a procedure of identifying Strengths, Weaknesses, Opportunities, and Threats of the current position in order to plan ahead to achieve the set strategic goals.

5.3 (b)

Corporate Social Responsibilities

Organizations mainly uses all our natural resources but CSR provides them a chance to do some thing for our community for e.g. white collar crime is exceptionally high in all around the world therefore organization should be working ethically and provide better working opportunities to the society.

5.3 (c)

Marketing

This module helped us to gather our skills for the services which is totally new and does not exist. CRM allows the way to get more enhanced form of data which will help to get good customer services in lieu. 5.3 (d)

Identification of customers need

The basic idea behind it is to satisfy the customers according to their needs. In financial institutions it is important to know what customer requirements are in order to get more satisfied customer services.

5.4: FINDINGS:
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Through this literature research I come to a conclusion that there are certain points which are still to be discovered and which I will wrap in my dissertation paper. In some instances there are views and concepts that are about to be explored and will be my distinctive point of learning. 6:

COLLECTION OF DATA (METHODOLOGY):

In this part methodology we look on the data and by specific research we make some decisions depending upon those datas. These data tell us what needs to be done and what was done before so it is a utter importance that we should know each and every aspects of datas which are available to us the reason why, depending of these datas organisations will take there decisions initiatives. Therefore any error in reading these datas can lead to an organisation to a disaster. The data can be collected in the following ways:

Primary data (primary research). Secondary data (secondary research).

6.1: PRIMARY DATA (PRIMARY RESEARCH):


By doing this kind of research a person has to collect all the information across the topic by himself. There are various ways of collecting these information some of them are
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Interviewing personal and individual both in organisation and with the customers. By analysis of the organisation behaviour to get the desire knowledge. Primary research can be very hectic as we have to get the knowledge from the people who are indirect concern with the organisation so this can take time and can be tiring, that is the reason why I choose the method of secondary research because I have chosen CRM as organisation perspectives and not the one by customers perspectives. it is very important that we should give very keen interest in collecting the data for secondary research, because here the data we are collecting is off quantitative nature and is should be very precisely sampled, if the layout or the structure of the collective data is not understandable then it can be very difficult to get the desire results and ultimately impossible for the analysis to make the decision.

6.2: SECONDARY DATA (SECONDARY RESEARCH):


Secondary research means in collecting this kind of data a person has to involve himself in collecting all the datas by doing desk based research and I found it easy as this kind of research suits me. I can gather the relevant information through: Books and e-books. Internet.
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Journal and e-journals. Magazines and newspapers. Financial reports etc. As it is a desk based research it mainly depends upon reading the material which will lead me to the desired information which I am looking for. Therefore I have to go through quite a lot of books, newspapers, magazines, journal and e-journals and any other informational and educational material available concerning organisations and customers prospective.

6.3: QUALITATIVE AND QUANTITATIVE RESEARCH:


As from the term itself I come to know that the qualitative research is the one which depends more on quality stuff and less on statistical figures and numerical. Though it is a way to get the research done and on behalf of that the decision could be made. Qualitative methodologies James, P.Key,(1997) As on other hand there is way called as, quantitative research that is known by its terminology itself, the way of getting data that comprises mostly on figures and numerical that targets possible outcomes. research is a generic as term for investigative naturalistic, described ethnographic,

anthropological, field, or participant observer research

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Use of advanced econometric and mathematical valuation models to identify the firms with the best possible prospective. Antithesis of qualitative research. ADVFN, (2006) It is very easy to get the difference from the table below which shows the qualitative and quantitative research ways of getting data:

Web Source: https://bbv6.hud.ac.uk/webapps/portal/frameset.jsp? tab=courses&url=/bin/common/course.pl?course_id=_21219_1

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SIGNIFICANCE AND LIMITATIONS:

When a person is working on his dissertation several actions must be taken in order to collect the relevant data and then finally implementing the relevant strategies on the collected datas. These action plans can be of different natures for example: meeting individually with the customers and to the personal working in an organisation, one can contact them via email or by making a phone call to them, but in case of customers this can be very difficult. Personally I will be meeting the manager of the organisation of my choice in order to get the most relevant and precise data which will be very much beneficial for me in making my dissertation. This will also help me to get first hand experience as I have already mentioned that I wont to join a reputable financial institution after the completion of my MBA, although I know that there will be some difficulties in contacting some potential customers as people tends to avoid descriptive answers which can be meaningless to them but are of great importance to someone else.

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GANTT CHART:

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REFERENCE:

Kotler, P. and Keller, L, K. (2006), Marketing Management, 12 ed.

New Jersey: Pearson Prentice Hall


Buttle, F. (2004), Customer Relationship Management, 1st ed. Oxford:

Elsevier
Naylor, J. (1999), Management, 1st ed. Financial times Pitman

Publishing
Rajola, F. (2003), Customer Relationship Management, 1st ed.

Springer
Schneider M. (2001): Dirty Secret of CRM: Its 20% Strategy, 80%,

Grunt Work, American Banker, 24 August, Vol. 166, Issue 164

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Thompson J.D. (1967): organizations in action, McGraw-Hill, New

york.
Arikah, (Apr, 2006), Strategic Management [online] Available at:

http://www.arikah.com/encyclopedia/Business_strategy [Accessed October 1st, 2006]


James P. Key, (1997), Qualitative Research, [online] Available at:

http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/new page21.htm [Accessed 3rd October, 2006]


ADVFN, (2006), Qualitative and quantitative research, [online]

Available at: http://www.advfn.com/moneyords_term_8831_Quantitative_research.html, [Accessed 5th October, 2006]


Anderson, Kristin, (2001), Customer Relationship Management.

Black lick, OH, USA: McGraw-Hill Education Group, 2001. p 2 [online], Available at: http://site.ebrary.com/lib/uoh/Doc? id=5003094&ppg=15, [Accessed 6th October, 2006]
Alexander H, Kracklauer, D. Quinn Mills, and Seifert, (Oct 2003)

Collaborative Customer Relationship: The customer management concept, [online] Available at: http://books.google.com/books? vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots =aDpPZNjzjr&dq=diagram+of+customer+relationship+management
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&sig=hGqQpJEoap_88kSdm5WK9J3uJPo , [Accessed 3rd October, 2006]


Reichold A, Kolbe L, Brenner W, (no date), PERFORMANCE

MEASUREMENT OF CRM IN FINANCIAL SERVICES, [online] Available at: http://66.102.9.104/search? q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPu blRecentGer/30FE4CBAD9E0A387C1256EF300791D44/%24file/P M%2520in%2520CRM%2520of %2520FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en &gl=uk&ct=clnk&cd=13, [Accessed 4th October, 2006]
Monday Memo, (2003), Customer Relationship Management, [online]

Available at: http://www.mondaymemo.net/010507eature.htm, [Accessed 4th October, 2006]

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