Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped banks to understand the customer’s current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et al., 2002). Even though most of the banks in the developing countries such as: India have realized the importance of CRM and implemented its applications, but the initial investigations of the current research have shown that quite users say that CRM has damaged customer relationships. Therefore, this paper is based on highlighting the problems and challenges in the banking sector of India using CRM. Also some of the major problems in the banking sector of India are identified using the qualitative interviews from different bank employees and customers and their findings are presented in this paper. INTRODUCTION : Today, banking institutions face many challenges including global competition for deposits, loans, underwriting fees, increasing customer demands, shrinking profit margins and the need to keep up with the new technologies (SAP AG, 2002). According to Onut et al., (2006), banks and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquiring new customers, retain existing ones, and maximize their lifetime value. Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped bankls to understand the customer’s current needs, what they have done in the customer’s current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et, al., 2002). According to Crosby (2002), the intelligent use of information about customer needs will create long-term two way relationship with the customers. This will bring many advantages to the banking sector since long term customers are less costly to serve and smooth running relationships are less resource demanding. In general, CRM for any organization consists of two tasks i.e. customer acquisition and increased sales to existing customers. It is often justified by the phrase, “ Make the right offer at the right time to the right customer”. In a web article by Bhaduri (2005) in which the author discuss about the use of CRM for banking sector in developing countries ; the author describe that CRM is variously misunderstood as a fancy sales strategy, an expensive software product, or even a new method of data collection. It is none of these. CRM is a simple philosophy that places the customer at the heart of a business organisation’s processes, activities and culture to improve his/her satisfaction of service and in turn it will maximize the profits for the organiusation. Bhaduri (2005) further argues that CRM made bankers realize that the purpose of their business is to “create and keep a customer”.

1. Global Architecture
Customer Relationship Management
Christopher Williams - General Manager, Global Marketing Services - June 2000

2. 2
The material that follows is a presentation of general
background information about the Bank’s activities
current at the date of the presentation, 28th June
2000. It is information given in a summary form and
does not purport to be complete. It is not intended to
be relied upon as advice to investors or potential
investors and does not take into account the
investment objectives, financial situation or needs of
any particular investor. These should be considered,
with or without professional advice when deciding if
an investment is appropriate.
Disclaimer

3. 3
Extract from an in-house presentation to a major
Financial Services Group
“ There are only two banks in the world who are truly pushing the
frontiers of customer understanding - one is yourselves and the other
is National Australia Group”
The Business Banking Board (US)

4. 4
CRM Best Practices
CRM “best practices” are comprised of three groups of interrelated processes

5. 5
How CRM is being delivered at The National
Business Architecture
The CRM architecture consolidates all customer information for consistent marketing, sales and
service processes independent of channel … ensuring closed loop customer processes, which
elevate the customer experience.
Customer
Touch Points
Channel
Services
CRM/Siebel
Cross
Channel
Architecture
Interaction
Management System
Contact Management
Physical
Outlet
Mobile
Customer
Response Centre
Internet
ATM
Kiosks
Mail
Facsimile
National Leads
NCR/Relationship
Optimiser*
Leads
Third
Party
eg. Mail House
Campaign Performance
Operational
Master Customer
Database
Prod Admin
Systems
Transaction
Systems
Gateways
Insight
Engines
CRM
Front End
Customer
Interface
Fulfilment
Personal
Banker
Analytical
Data
Warehouse
(SUN/Oracle)
Data Mining
* Campaign
Management
Channel
Services
Architecture

6. 6
CRM Best Practice - Customer Insight
 Dataware House Development/CIF
 Customer Insights
Segmentation
 Customer profitability
 Behaviour, needs,
and attitudes

7. 7
Global Data Warehouse
Australia
New Zealand
Tailoring Financial Solutions - Our journey from Data to
Customer Knowledge and Excellence in Customer
Relationship Management
Late 80’s, early 90’s 1994 - 1998 1998 - 1999 1999-2000
Customer Information File
MASDA
Market Vision National
Leads
Underway
Global Data Warehouse (Europe)
Banker Desktop
Globalisation of Leads
Customer Management
Project

8. 8
Data Warehouse - The Big Picture
DATA
WAREHOUSE
(Storage)
B
A
S
E
Customer Initiated
Transactions,
Genesis Sources
& GRIPPS
Productivity data
FIC
GIN
General
Insurance
Cards
CHANNEL
CRMS
Portfolio
Risk
Costing
CARD
Wholesale
Other Trans
Data
Fees
Full Costing & Profitability of Relationship
External
Industry
Data
Sales &
Service
Non-Customer
Bank Losses
External
Competitor and
Environmental
Data
Statutory &
Financial Reporting
PRODUCT
External Market
Research Data
MARKET
RESEARCH
RISK
Funds
Management
Complete Customer Portfolio
Balance
Sheet
FAST
Source
Systems
AWSO
Bills Trading
CAMS
CA/SB
Cards
Fees
GA
Leasing
L.C.
Market Entity
Other
Non-Genesis
Sources
(e.g. Other Products)
Includes
FAST &
External
Industry Data
Relationship

9. 9
Global Data Warehouse
These capabilities underpin our CRM platform
Data
Warehouse
Data
Warehouse
Relationship
Datamart
Channel
Datamart
Credit Risk
Datamart
Product Datamart
Global HR
Cards Direct Marketing
Marketing
Information
Extermal
& Internal
Databases
• Research
Methodologies
• Market
Intelligence
Market
Opportunities
Segment
Identification
Campaign
Requirements
Individual
Prospects
Brand Management
& Communication
Effectiveness Tools
Database Marketing -
Intelligent/Predictive Marketing Algorithms
Statistical &
Optimisation Models
Sales Program
Management
Distribution
and micro market
analysis
Pricing
Methodologies Segmentation
methodology
& standards
Life event
identification
Predictive
Marketing
Information Management
Leads, cross sell opportunities, behaviour enhancement campaigns, value proposition refinement and
new business opportunities
Direct Marketing

10. 10
Profiler
Banker Portfolio
Relationship Group
Kendall Furniture Group
Customer List Profit Contribution
$
Products/Services
£
¥
Customer Relationship Group Summary
Profit
Contribution
$
John Kendall (CEO)
Needs
Met
= 1
Asset Quality and
Early Warning
Transactional
Behaviour
Products/Services
¥
Peer Group
Comparison
£
Risk
Reward
%
X
X
Gap
Customer
Summary
* *
*
yet to be implemented
refer examples attached
Business / Personal
Banker
$
ROE
Profiler is available on the Banker’s Desk top

11. 11
How CRM is being delivered at The National
Business Architecture
The CRM architecture consolidates all customer information for consistent marketing, sales and
service processes independent of channel … ensuring closed loop customer processes, which
elevate the customer experience.
Customer
Touch Points
Channel
Services
CRM/Siebel
Cross
Channel
Architecture
Interaction
Management System
Contact Management
Physical
Outlet
Mobile
Customer
Response Centre
Internet
ATM
Kiosks
Mail
Facsimile
National Leads
NCR/Relationship
Optimiser*
Leads
Third
Party
eg. Mail House
Campaign Performance
Operational
Master Customer
Database
Prod Admin
Systems
Transaction
Systems
Gateways
Insight
Engines
CRM
Front End
Customer
Interface
Fulfilment
Personal
Banker
Analytical
Data
Warehouse
(SUN/Oracle)
Data Mining
* Campaign
Management
Channel
Services
Architecture

12. 12
Campaign/Contact Management
Campaign/Contact Management
 Targeting high-potential/value
customers
 Customer event detection
 Delivering the opportunity to the
sales force
 Fulfillment
 Capturing feedback
 Tracking result, holding best
outcome results
 Updating models

13. 13
• …delivering high quality sales & service leads across all
channels, every day to all sales staff.
• …having “campaigns” for all segments and all financial
needs
• …where each campaign is multi channel, multi offer,
multi target - continuous learning loop
• …alignment of sales activities with retailing and marketing
objectives (“customer management and contact”)
Best Practice Customer Relationship Management Is

14. 14
Where is the National? Where are we going?
Knowledge Competency
Management
of complexity:
multi segment,
multi channel,
multi offer
The
National
Bank of
Americ
a
CIBC
AME
X
Wells
Farg
o
Schwab
The National is ahead of major
Australian competitors and has
global best practice in Australia
for integrated event driven
campaign management but we
still have lots to achieve
Our
Target
Australia

15. 15
Integrated Relationship Management Capability
Customer
Contact/
Interview
Relationship
Management
Opportunity
Analysis
National
Leads
Sales &
Fulfilment
Needs Analysis
& Capture
Customer
Satisfaction
Retention &
Profitability
Plan
Preparation
Customer
wealth care
plan

16. 16
Customer Needs Record (FINAP)
Bankers consult with
customers to gather
financial profile
information, using
standard mini-FiNAP/
FiNAP process
Other Bankers,
eg.Call Centre/
MFP/MMM can
access Customer
Needs Record for
background information
and can update data
Bankers update
Needs Record
as new data is
gathered.
Data is
available
to Sales
Coaches
by BUId
Bankers key collected
data into Customer
Needs Record in
Customer Notes
Customer
Notes
Database
Analytical Marketing utilise data to
generate
marketing
activities
that arise
from customer needs
Sales
Customer Needs Record
6

17. 17
The National Leads System
Campaign
Management
Software
(NCR/Teradata
Relationship
Optimiser)
Personal
Bankers
Branches
Package Business
Bankers
Customers
Call Mail or
Combination
Leads
Feedback: Responses captured and measured
Scoring &
Event
Detection
NCR/Teradata
Relationship
Optimiser
Mail
Call Centres
DWH
SUN/
Oracle
E-mail
ATM
Relationship Optimiser, National’s Integrated Campaign Management Software was developed jointly by the National and NCR (97-99)

18. 18
• Daily Activities (eg. deposits, home loans repayment
enquiries) are recorded in source (transaction) systems
• A continuous (historical) transaction pattern/profile for each
customer is kept in a database
• Queries “trawl” this database every night to search for any
unusual changes (which is of interest to us)
• Any significant changes in a customers transaction pattern is
detected (eg. a very large deposit today relative to the
average over the previous six months). This is an “event”.
• Best events (prioritised) are sent daily (every morning) to
bankers for action managed by Relationship Optimiser)
Event Detection

19. 19
National Leads Event Based Campaigns
Examples of Customer Initiated Events
Event Type Event Event Description
Significant
Balance
Change
Investment
Needs
 Customers account holdings increased by large
or significant amount (20K-to$50K, $50K+).
 Lead delivered to banker next day who contacts
customer with offer eg. Financial Planning
appointment
Large
Transactions
Withdrawals
Deposits
 A transaction out of the ordinary for that
customer eg. greater than average for last 3
months.
 Lead delivered to banker next day who contacts
customer to identify and fulfil changed needs
Home Loans Redraw
request
Payout
request
 Call Centre receives request for redraw or
payout.
 Lead delivered to banker next day who contacts
customer to identify and fulfil changed needs

20. 20
National Leads Event Based Campaigns
Examples of Account Initiated Events
Event Type Event Event Description
Term
Deposits
Renewal
Upgrades
 Maturing lead delivered to banker.
 Banker contacts customer to renew Deposit,
increase deposit amount, offer Financial
Planning referral.
Home Loans Fixed rate
Rollovers
Maturity
 Maturing lead delivered to banker.
 Banker contacts customers to renew loan, fulfil
future needs eg. Financial Planning referrals.

21. 21
• Summarised data (up to 1600 variables) on
customers is stored in Predictive Modelling
Datamarts and updated monthly
• Statistical models (or rules) to profile customer
behaviour/needs for various financial services
and products are developed from these files.
• Best leads (ie. highest propensity, highest strike
rates) are selected and sent to bankers by
Relationship Optimiser for action.
Propensity Scoring

22. 22
• Relationship Optimiser manages:
• how often we communicate with a customer
• what channel we use and what we offer
• when we communicate with customers
• what is the best opportunity to be offered to
the customer (ie. prioritisation of leads)
Relationship/Campaign Managment

23. 23
The “cube”, a concept developed at the National, is now used in every Database CRM
campaign. The performance of each cell is the basis of selection for the “next round”.
Over time the best combination of channel, offer and target market is identified and future
campaigns will use only these cells. With this process the “cube” effectively acts as a
continuous improvement process.
World class database
marketing is:
• leads across all channels
• campaigns for all needs
and segments
• multi channel,
multi offer, multi target
• alignment of sales activities
with marketing and
marketing objectives
Target
segments Reticents
Rule 1
Rule 2
Mail
–
no
follow
up
call
Telephone
with
mail
confirmation
(NFM
call
centre)
PB
call
(PFS
customers
only)
Mail
first
–
PB
follow
up
(PFS
customers
only)
Mail
first
–
CSA
follow
up
(RFS
customers
only)
MFP appointment
More information
(Booklet)
Seminar
Propensity model
Directives
Control groups
Channel
Mail
with
follow
up
of
non
respondents
by
NFM
call
centre
 











 Offer

24. 24
For the six month period ending April 2000, both AFS and NFM
drawdowns continue to increase reaching a combined total of almost
$3 billion. NFM drawdowns have doubled since August 1999.
$2,413
$2,548
$2,684
$2,783 $2,786
$2,736
$2,915
$2,989 $2,999
$2,000
$2,200
$2,400
$2,600
$2,800
$3,000
Aug-1999 Sep-1999 Oct-1999 Nov-1999 Dec-1999 Jan-2000 Feb-2000 Mar-2000 Apr-2000
Six Month Period Ending Aug - 999 Sep - 1999 Oct - 1999 Nov - 1999 Dec - 1999 Jan - 2000 Feb - 2000 Mar - 2000 Apr - 2000
NFM Drawdowns ($ million) $26.2 $32.5 $38.5 $42.7 $44.0 $46.5 $49.2 $51.0 $52.3
Bank Drawdowns ($ million) $2,386.4 $2,515.3 $2,645.4 $2,741.8 $2,741.4 $2,689.0 $2,866.0 $2,938.3 $2,946.6
Six month period ending
Total Drawdowns from National Leads Campaigns (inclusive of NFM drawdowns)
Six monthly rolling reporting period
($ million)

25. 25
$27.54
$44.33
$217.56
$168.80
$17.70
$19.21
$345.83
$263.87
$2.13
$59.37
$391.32
$109.81
$175.82
$242.09
$5.72
$3.14
$55.31
$15.72
$145.23
$13.17
$48.81
$22.83
$115.24
$16.98
$99.01
$4.57
$6.19
$73.46
$80.72
$1.89
$0.58
$0.04
$0.27
$135.11
$0
$50
$100
$150
$200
$250
$300
$350
$400
Drawdowns by Campaign for November 1999 to April 2000
All figures shown in Millions
See next page
The National Leads Sales/Events campaign schedule
covered 34 different integrated (bank and NFM
products) campaigns

26. 26
The Investment Needs program produced an outstanding sales result. By
providing bankers with details of significant increase in customers deposit
holdings they were able to make proactive contact. That contact resulted in
the following product drawdown profile.
November 1999 - April 2000
$ By
Campaign
from
previous
page
$391.32
$103.76
$32.84
$12.48
$4.62 $4.24 $1.50 $0.30 $0.05
$231.53
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
TERM
DEPOSITS
HOME
LOANS
PERSONAL
DEPOSITS
OTHER PERSONAL
LENDING
BUSINESS
LENDING
PERSONAL
LOANS
CARDS RURAL
BUSINESS
$
Million

27. 27
0%
10%
20%
30%
40%
November 1999 December 1999 January 2000 February 2000 March 2000 April 2000
17%
18%
19%
20%
21%
Term Deposit Drawdowns (LHS) Market Share 2000 (RHS) Market Share 1999 (RHS)
Market Share 2000
Market Share 1999
Selected National Leads campaigns generating
Term Deposit Drawdowns :
Campaign Start Date
Leads
Contacted
TD increase to next tier 26-11-1999 12843
TD bonus rate 3-12-1999 12870
Retirement Retention 1-1-2000 1853
Deposits -Y2K 4-1-2000 1542
Results of Term Deposit Program

28. 28
Drawdowns for 6 months to April 2000
430,872 294,762 $2,946.6
No. of Leads No. of Customers
Total Drawdowns
($ Million)

29. 29
External Customers
• Accessing external
data sources
• Dev’t capacity to
target offers to
non-customers
Non-Customer
Target
• USA
• GB
Global
National
Leads
• BNZ
• UK/Europe
• MNB
Expand
National Leads
Channels to:
• E-mail
• ATM
• Voice
• Internet
2000
National Leads: Next Steps in Journey

30. 30
Email Format
Response held in National
Leads Campaign Management
System. Next action triggered
automatically
National Leads sends
offer to customer, via email
National Leads sends
confirmation of customer
response, via email

31. 31
Needs Features
NATIONAL’S FLEXIPLUS FACILITY
Funding - Home Loan other secured lending
Payments/transaction - Deposits, withdrawals, transfers
Savings - Savings tax effective, at lending rate
Channel - Accessible via Web, ATM, Branch
Information - One statement
One National Product meets five needs, while still one single product.
Product Design/Flexibility Embraces a Tailored
Financial Solution

32. 32
Products/Arrangements per Customer
0
2
4
6
8 Custom
Package
Retail
Agri
Private
Premium
Retail
Total
Total
Product & Arrangement Per Customer

33. 33
National Integrated Marketing Activities Are Centred
Around Customer Needs
Needs
Home
Loan
Non
Home
Loan
Other
Bank
Deposits
Non
Bank
Deposits
Non
Bank
Retirement
Superannuation
House
and
Contents
Life
General
Other
Internet
Banker/
Online
Banker
Branch
Various
Channel
Migration
Other
Total
Private 5 1 1 7
Premium 3 1 12 5 2 2 1 1 1 1 1 1 1 1 1 34
Retail 5 2 1 11 3 2 1 1 1 1 1 1 1 1 1 3 36
Package 2 1 4 2 1 1 1 1 1 14
Custom 2 2 4
Rural 1 1
Total 8 6 4 32 11 5 4 2 3 2 5 2 3 2 3 4 96
Funding Investment Risk Management Payments Information
Campaigns as of June 2000

34. 34
CRM Best Practices
Excellence in Service Delivery
Excellence in Service Delivery
 Easy enrollment through customer
choice of touchpoints
 Tiered service
 Contact management provides
knowledge of relationship, transaction
history, and transaction status
 Seamless cross channels

35. 35
How CRM is being delivered at The National
Business Architecture
The CRM architecture consolidates all customer information for consistent marketing, sales and
service processes independent of channel … ensuring closed loop customer processes, which
elevate the customer experience.
Customer
Touch Points
Channel
Services
CRM/Siebel
Cross
Channel
Architecture
Interaction
Management System
Contact Management
Physical
Outlet
Mobile
Customer
Response Centre
Internet
ATM
Kiosks
Mail
Facsimile
National Leads
NCR/Relationship
Optimiser*
Leads
Third
Party
eg. Mail House
Campaign Performance
Operational
Master Customer
Database
Prod Admin
Systems
Transaction
Systems
Gateways
Insight
Engines
CRM
Front End
Customer
Interface
Fulfilment
Personal
Banker
Analytical
Data
Warehouse
(SUN/Oracle)
Data Mining
* Campaign
Management
Channel
Services
Architecture

36. 36
CRM provides a true multi channel proposition
Technology is now allowing customers to choose where, when and how their
financial services are delivered… “anywhere, anytime, anyway”

37. 37
CRM Customer Experience Vision
1. Anytime, anywhere access and navigation to
2. friendly, capable, proactive resources which have
3. organisational memory and can execute a
4. streamlined, personalised, secure process to create a
5. consistent and totally satisfactory customer experience
while demonstrating a track record of
6. continuous improvement and
7. superior profitability.
Customer focused marketing, sales and service, and the
following seven themes

38. 38
CRM Vision
 “Clicks and Mortar”
Customer Centricity
 360 degree View of the
Customer
 Customer Process
Excellence
 Consistent Interaction
Handling
 Common Technical
Architecture
 Alternative
Interaction Methods
 24 hour Customer
Relationship
 Anytime / Anywhere
Access

39. 39
How CRM is being delivered at The National
CRM Centre of Excellence
Program Management
Technology
Enablement
Operational
Support
Help Desk
Global Consistent
Customer
Experience
Organisation and
Human
Performance
Partnership Global Best Practice Regional Needs
The National have brought together Siebel as the technology platform provider and Andersen
Consulting as the system integrator partner to enable the realisation of the CRM Vision. The CRM
Centre of Excellence has been established to ensure integration of Regional needs with Global Best
Practice.

40. 40
How CRM is being delivered at The National -
Business Architecture
The CRM architecture consolidates all customer information for consistent marketing, sales and
service processes independent of channel … ensuring closed loop customer processes, which
elevate the customer experience.
Internet
Customer
Contact Centre
Sales
Force
National
Leads/Relationship
Optimiser
Customers
Siebel
Back Office
Outlets
Data
warehouse
Middleware

41. 41
How CRM is being delivered at The National
• Achieve a consistent global customer experience
• Deliver consistent best practice business solutions
across each regional bank
• Utilise common technology platform - Siebel
• Maximise leverage of scare resources
• Responsiveness to each regional bank
• Support regional implementations
Criteria
Centralised Distributed Federal
Assessment of Approach
Legend
Excellent
Good
Fair
AFS
MNC
BNZ
Europe
Total
Estimated Days
21,735
16,632
8,904
14,784
62,055 days
AFS
– GR1
– GR2
– GR3
MNC
– GR1
– GR2
– GR3
BNZ
– GR3
Europe
– GR2
– GR3
COE
Total
Estimated Days
8,379
5,019
1,722
1,638
6,804
3,738
1,722
1,344
3,213
3,213
6,006
4,704
1,302
23,320
47,722 days
Four Separate projects Global Centre of Excellence
  
Business Case
† †
† Draft Business Case pending approval, March 2000
The centralised approach reduces the overall labour costs compared to four separate regional
projects due to reduced overlapping tasks. It also ensures CRM delivers one Global Solution
which achieves a consistent global customer experience.

42. 42
How CRM is being delivered at The National
Sept Oct Nov Dec
1999
Jan June Dec Jan
2000 2001
Siebel Selected
MNC Release
Global Design
AFS Deployment
Global Release 1
Global Release 2
Release 1 Feb
Release Q2
Confirmation of region/
timing for 2001 releases
Live in MNC Call
Centre 31May
The approach is to develop a global solution based on the MNC Siebel implementation; deploy to
AFS in Feb 2001 and deliver two global releases in 2001 which provide increased functionality

43. 43
Customer Response Centre
Mobile Planner
Internet
Banker
A Single View of the Customer

44. 44
Global Release One
The scope of CRM is Sales and Service across each Retailer in three global releases.
In Scope -18 Months
Sales/Service Channels
• Financial Services Centre/Suites
• Full Service Branch (non teller)
• Call Centre
• Private Banking Suites
• Business Banking Centre
• Mobile Bankers (remote
connectivity)
• External Referral Partners
• Products & Services
• Internet Front End
Sales/Service Channels
• Sales - Order Taking
• Sales - Needs Based
• Service - Enquiry
• Service - Aftercare
• Marketing - Customer Insight at
Point of Interaction
• Marketing - Campaign
Management
• Cross Sell / Up Sell
• Referral Management

45. 45
Global Release One
The scope of CRM is Sales and Service across each Retailer in three global releases.
Products
• Personal Loans
• Credit Cards
• Mortgages
• Overdrafts
• Business Lending
• Cheque
• Savings
• Term Deposits
• Financial Planning (initial & record only)
• Leasing
• Insurance
• Investments
In Scope -18 Months

46. 46
CRM Benefits
A fully implemented CRM solution will give the National the ability to maximise
the life time value of its customers. It coordinates all customer access
channels together to produce products and services that are worth far more
than the sum of their parts.
This is achieved by:
 Being able to easily cross sell products and services to customers that those
products are relevant to.
 Providing a single, consistent view of the customer across the enterprise.
 Enabling National staff to see all communications, contact and interaction history
across all channels with the bank.
 The integration of front end systems to a single/ fewer front ends for users.
 Providing a consistent message, brand and experience to customers across all
channels.
 Enabling better understanding of customers hence better retention rates.
 Reducing marketing costs by only targeting those customers with a propensity to
buy.

47. 47
CRM benefits have been quantified
 Increase customer base 6% per year
 Average balance per client increased 9% per year
 ROA remain 40-50 basis points above industry
 Net Interest margin outperforms industry by 150-140
BP
 Productivity/employee growing 2 times industry
 Grew rate of loans and deposits twice as fast as industry
 10% increase in customer base (206,000 new customers)
 ROI 100-200 basis points higher than industry average
 Minimal headcount increase
European
 Created a virtual bank subsidiary (no branches)
 Grew to 25,000 customers and assets of $780 M in
first 9 months of operation
 93% of customers satisfied with service quality
 8% increase in retention
 Increase probability of meeting service levels by 96%
European
European
American
Customer
Insight
Customer
Interaction
Manage
Customer Value
Value Lever Benefit
Core Capabilities
AC Banking
Client
© Andersen Consulting 2000
Andersen Consulting banking client experiences demonstrates
outstanding results

48. 48
CRM benefits have been quantified
Results from Siebel’s independently conducted customer satisfaction surveys
further support the benefits derived through its implementation

49. 49
CRM benefits supporting the implementation
Customer
Retention
+2.5%
Sales
+5%
5 Year Discounted Benefits $328m
The National is focusing in on two core benefit streams resulting form the CRM
implementation:

50. 50
How CRM is being delivered at The National
Business Architecture
The CRM architecture consolidates all customer information for consistent marketing, sales and
service processes independent of channel … ensuring closed loop customer processes, which
elevate the customer experience.
Customer
Touch Points
Channel
Services
CRM/Siebel
Cross
Channel
Architecture
Interaction
Management System
Contact Management
Physical
Outlet
Mobile
Customer
Response Centre
Internet
ATM
Kiosks
Mail
Facsimile
National Leads
NCR/Relationship
Optimiser*
Leads
Third
Party
eg. Mail House
Campaign Performance
Operational
Master Customer
Database
Prod Admin
Systems
Transaction
Systems
Gateways
Insight
Engines
CRM
Front End
Customer
Interface
Fulfilment
Personal
Banker
Analytical
Data
Warehouse
(SUN/Oracle)
Data Mining
* Campaign
Management
Channel
Services
Architecture

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