MKT5CRM Customer Relationship : National Australia Bank
Students are strictly forbidden to contact either the organisation or any of its employees for the purpose of this assignment, whether formally or informally. Furthermore, no student should be employed by the organisation selected in a management role.
Students are required to provide a CRM implementation plan. For this you required to select one of the 3 automations- Sales Force Automation, Services Automation or Marketing Automation based on the company business case. The report should mainly cover what automation to implement. Student to identify which suite vendor is most suitable for the business.
Answer:
Introduction
Customer Relationship management is the most essential strategy for the organization to survive in overcrowded brand arena, it is the strategy which unites information technology with marketing (Zamil, 2011). All the organizations have different CRM strategy based on their different goals including customer attraction, customer satisfaction (Hosseini, 2009). This report aims to study the problems faced by national bank of Australia and to propose the required CRM solution to them to enhance the value of their brand.
Company Background
National Australia Bank has the legacy of 150 years, with more than 10 million customers at more than 800 locations around the world. National bank of Australia works with sole aim to understand and support customers, it is the largest liquidity provider in the Australia, with flexible and customized financial products for the multi region customers in order to help them in managing their working capital requirements (NAB, 2017).
National Australia bank works on the sole aim to understand and support customers in their financial needs, company has strong CRM management in order to serve the large pool of customers, and the company has got global recognition in customer relationship management.
This report is an attempt to study the CRM practice of National Australia Bank, and it aims to propose the CRM plan to help NAB in customer retention practices.
SWOT Analysis
National bank of Australia is the leading financial institution with branches at 800 locations all over the world with customer base of 10 million who are served by 35,000 esteemed employees of the organization. Bank offers basket of fina
ncial products based on the needs and requirements of the customers.
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Strengths |
Weakness |
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· National Australia or NAB has the old legacy of 150 years, with strong liquidity and funding position. · Company has the strong brand image hold the position in top 4 banks of Australia. · Bank has recently launched virtual Google assistant for NBA banking queries this will save the time of both banking operation staff and people, bank carries the basket of customized financial product for the customer of the various regions. · Bank has the global fame for its type of CRM as the same has strong expertise in handling large pool of customers (Computerworld, 2003) · National bank of Australia always strive to give technologically upgraded services to the customers bank has started special biometrics technology to make customer use their account by their voice in order to reduce frauds (Bender, 2012) |
· There are various issues in which NAB lacks as it face serious issues in operational risk management practices. · As per its recent audit report, and bank is also facing disruption in its internet or online services from long time. · Currently customers are facing serious issues of duplicate credit entry and down internet problems which brings the thought of outdated technology infrastructure of NBA and it also affects the brand image of the company (NCR, 2005).
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Opportunities |
Threats |
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· Potential for NAB for expansion in untouched major countries, although setting up business in different country is difficult because each and every country have different culture, different economic environment and it is very essential to create country specific product to gain the market share in that market. · Nab has huge potential to leverage the untouched markets and serve the customers with their basket of financial products. |
· Increasing problem of internet from time to time can force customers switch the brand. · Other competitor bank can leverage the opportunity which can create the problem for national bank of Australia. |
CRM Project Objectives
Background Information
The biggest problem National bank of Australia facing right now is the fear of customer switching due to its frequent internet problems and duplicate credit entry in the account statement (Aussieoutages, 2017). Thus the main objective of this project is to introduce the CRM tool for retaining the customer. Retention of the customer is very important for the profitability of any organization (Rosenberg & Czepiel, 1984). In the words of Gartner 80% of the average company’s revenue comes from just 20% of its existing customer as result 5% of increase in customer retention rate will increase profit up to 125% (Gartner, 2012).
Overreaching Objective
The main overreaching objective is to increase the customer retention rate in the national bank of Australia due to frequent internet slow down and the increasing frustration of customers for problem in logging into internet and mobile banking (Weakness)
If the customer retention did not worked out other competitive banks can take the leverage the problem faced by the bank (Threat)
Project objectives detailed
Objective is to implement Marketing Automation for following reason for increasing the customer retention
- Creating good customer database and customer portfolio in order to recognize the purchase pattern and to keep eye on reasons which can lead to departure of the customer, and on the urgent basis same should be avoided.
- Build strong relationship with the customers, and to look forward for crating the customer lifetime value.
- Marketing Automation will help in generating the purchase patterns of the customers based on that customized offers can be offered to the customers
Selected CRM Suite and analytical capabilities
National bank of Australia can acquire Cloud CX of Oracle as,
- Oracle is the world leader in CRM software, and it provides complete solution that helps organization in increasing sales, marketing and customer service solution with the fulfillment of the customized requirement of the organization.
- Another main reason of choosing Oracle is National bank of Australia is using CRM software’s of Oracle from long time and is the trusted vendor.
Cloud CX analytical capabilities
- Newly launched oracle cloud CX has the features which oracle Siebel don’t have and it do provide modern SFA and Marketing Automation solution.
- Oracle Cloud CX can help in increasing customer retention through its special feature of social media, which will help in giving anytime anywhere service to the customer.
- Oracle Cloud CX can integrate with Oracle Siebel and the investment done on Oracle Siebel do not go waste as National bank of Australia is using Siebel right now introducing Oracle cloud CX will not let the investment done on Siebel go in waste.
- Customer service always demands more, so National bank of Australia can plan to go for next generation CRM suite i.e. Oracle Cloud CX suite. This could help organization in giving great customer experience with great level of technological up gradation.
- Cloud CX guarantees the acquisition+ Retention+ operational efficiency and it results into sustainable growth and profit.
- By adopting Cloud CX National bank of Australia can create fort of differentiation which cannot be crossed by any competitor, and this suite can help bank in transforming into next generation technology bank and can also help in continuing the legacy of global CRM fame (Oracle, 2017).
Advantages of CRM Suit
- Cloud CX connects bond between organizational units and it supports customers in the various touch points with the organization.
- Cloud CX is the complete integrated solution of sales, marketing and customer service it helps the organization in generating the CLV i.e. customer lifetime value.
- CLV is the most important concept for any organization to concentrate on as under CLV organization do not concentrate on the little benefit or cash flow received from the organization whereas company concentrate on maintaining the lifetime relationship based on the present value of the projected future cash flows main purpose of calculating the CLV is to access the “financial value” of each customer (Bejou et.al, 2006).
Oracle Cloud CX is the product which concentrate on the challenges of customer lifecycle experiences rather than concentrating on the single point interaction.
- Oracle CX connects the customer journey from question till every engagements,
- Can be operated in any device and can be accessed anywhere.
- Helps in taking fast decisions with its feature of social media insights help to analyze things fast.
- Brings modernization in business.
Oracle CX is the integrated cloud based solution for National bank of Australia which supports in entire customer journey. (Oracle, 2013)
Infrastructure Requirements:
Pre and Post Implementation
Post Implementatio
Post implementation of cloud CX will help bank to connect customers of the bank anytime anywhere and can help in decreasing the problem or challenges arriving at fast level, and would help in the identification of customer retention opportunities, flexibly address the new data or any new requirement.
Post Cloud CX implementation will bring 360 degree view of customer which is most required in banking industry
Source: www.linkedin.com/pulse/customer-insight-analysis-oluwafemi-olorunmaye/
The most important task of any CRM tool is to get 360o customer view without creating any silos Cloud X do help in getting integrated customer view in order to understand each and every customer and can provide customization service or special offers based on their portfolios.
Training:
Key point 1
“This research identifies organizational cultural dimensions that underpin successful relationship management practice, and that lead to relationship outcomes of equality, satisfaction and performance” organizational culture is very important and plays pivot role in increasing the performance of the employee (Jaratt & Neill 2002).
Key Point 2
The most essential part of any training plan is to pre decide about the things to be included in the training and what is the goal of the training and the proposed outcome of the training (Llorens, Salvano and Grau, 2003).
Training Implementation
Training is the most important part in implementation of any CRM Suite in the organization as it is very important to make the employ familiar with new techniques included in the organization to ensure smooth functioning the most required training skills for Cloud CX is the employees should be given understanding of HTML/ PHP, CRM concepts and related technologies such as Siebel, fusion CRM (oracle, 2012).
For training purpose it is very necessary to ensure technical training programme which is interactive and the employee should be made clear that proper training for the software is very essential to ensure the growth of organization and employees growth they should be prepare for the change because change is very essential to ensure growth in the organization. For implementation of Cloud CX training is most required in order to make employees acquainted about the software they are supposed to be work on.
Timeline:
Time to implement any CRM software is approximately 2 months because for installation of software lots of tasks are involved for example licensing process, Training of the users, installation process, data transfer, annual maintenance support finalization by third party if required
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S.NO |
Process |
Time |
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1 |
Licensing Process |
2 days |
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2 |
Process Mapping |
5 days |
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3 |
Infrastructure Readiness |
5 days |
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4 |
Data Transfer |
5 days |
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5 |
Configuration (Creating Users profile) |
5 days |
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6 |
Software Training & Deployment |
3 days |
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7 |
Deployment |
5 Days |
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8 |
Total Time |
30 days |
Above data are hypothetical based on
Time of implementation of software in national bank of Australia will take approximately 30 days as organization is already working on CRM tools Oracle Siebel customer hub and the Oracle Cloud CX can be integrated into the same. Another advantage is the organization culture of national bank of Australia is very adaptive and are ready to change in order to impart better services to customers of the organization.
National bank of Australia has global fame in the Customer relationship management and the awards and accolades received cannot be achieved till the employees working in the organization are adaptive and are ready to put extra efforts in order to achieve the mission of the organization.
Budget:
Price of Oracle Cloud CX for the different cloud services sales, Marketing, service and CPQ (Configure price and quote) is different and the organization can purchase any of the cloud services and it is not necessary to purchase all (Oracle Cloud, 2017)
The main objective of this CRM project is of SFA thus the costing will be based on the price of the Sales cloud price of the sale cloud is $100/ per month per user
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1 |
Installation Cost o Consulting (analysis and project management) o Customization, Integration and Data Conversion o System Implementation o User and Administrator Training o Technical and User Support
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2 |
Annual Maintenance Cost |
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Total 1200 *12 users |
$ 1200 per year per user $ 14400 per year |
Above cost are hypothetical cost, integration and data conversion cost of this will be low as the software can be integrated into the current software used by National bank of Australia. But the return on investment of this will be high as this CRM software will support in all the challenges occur in the whole cycle.
Conclusion:
National bank of Australia should plan to introduce Cloud CX in order to enhance the level of customer service and ensure the retention in order to increase the profitability. As it takes huge investment to acquire new customer but it takes less to retain the old one and as per the many marketing researchers it is very essential to create long-time relationship with the customers and company should always try to create height CLV.
National Bank of Australia after introducing Oracle Cloud CX will definitely be able to defend itself against weakness and threat, and would be able to develop high retention growth rate in the future.
References
Bejou, D, et.al. 2006, Customer lifetime value – reshaping the way we manage to maximize profits, Journal of relationship marketing, Vol. 5, no. 2.
Bender, A, 2012, NAB uses voice recognition to authenticate banking customers, Available fromhttps://www.techworld.com.au/article/442526/nab_uses_voice_recognition_authenticate_banking_customers/. [10 October 2017]
Coltman, T 2007, ‘Can superior CRM capabilities improve performance in banking, Journal of financial services marketing, Vol. 12, no 2, PP. 102-114.
Computerworld, 2003, National Australia bank receives global recognition in customer in relationship management Available from https://www.computerworld.com.au/article/77942/national_australia_bank_receives_global_recognition_customer_relationship_management/ [10 October 2017]
Coyne.A , 2015 NAB completes Oracle customer master rollout, Available from https://www.itnews.com.au/news/nab-completes-oracle-customer-master-rollout-404446. [11 October 2017]
Delimiter,2011 Dealy hit NAB’S core banking project Available from https://delimiter.com.au/2011/10/28/delays-hit-nabs-core-banking-project/. [10 October 2011]
Oracle, 2013, Oracle Customer Experience: Connect Every Engagement with Your Brand, Available from https://www.oracle.com/us/solutions/customer-experience/cx-datasheet-1849884.pdf. [11 October 2011]
Laketa, M, Sander, D, Laketa, L & Misic, Z, 2015, Customer relationship management concept and importance for banking sector, Journal of economics, Vol. 6, no. 2, PP. 241-254.
Mishra, A & Mishra, D. 2009 Customer relationship management implementation process perspective, Acta Polytechnica Hungarica Vol.6, 4 pp. 83-99
Nab, 2017, National bank of Australia, Available from https://www.nab.com.au/. [10 October 2017]
Oracle, 2013 Oracle CRM-CX Cloud Suite Available from https://www.oracle.com/applications/customer-experience/crm/index.html [10 October 2017]
Oracle, 2017 Oracle’s Siebel CRM and Oracle Cloud CX Suite FAQ Available from https://www.oracle.com/us/products/applications/siebel/siebel-crm-cloud-faq-2673858.pdf [11 October 2017]
Sharma, M. 2013, NAB pools data to save power, The Sydney morning herald Available from https://www.smh.com.au/it-pro/cloud/nab-pools-data-to-save-power-20130211-2e8d2.html. [10 October 2011]
Zamil, A, 2011, Customer relationship management – a strategy to sustain the organization’s name and products in the customer’s mind, European journal of social sciences, Vol. 22, no. 3
Jaratt, D & Neill, G, 2002, The effect of organizational culture on business to business relationship management practice and performance, Australian marketing journal, Vol.10, no.3Rosenberg, L, J john & Czepiel, A 1984, A marketing approach for customer retention, journal of consumer marketing, Vol.1 no. 2, PP.45-51
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