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A.) Concept of CRM
According to (Kulpa,2018) customer relationship management (CRM) is defined as,
“All of the activities, strategies and technologies that companies use to manage their interactions with their current and potential customers.”
Effective customer relationship management is achieved by always believing that “customer is king.”
The concept of CRM in the credit origination process must entail the following as highlighted in the article of (Juneja:2018):
? Understand the needs, interest as well as budget of the customers. Don’t suggest anything which would negatively affect the client financial position in the short term and long- term.
? Be transparent at all times. Convey them only what your product offers.
? Ensure timeous feedback to the client. The client should not be kept waiting.
? Keeping the client’s view in mind. Don’t only be concerned about sales targets but ensure that the suggested product is what suites the client’s needs.
? Don’t oversell. Never irritate the customer by calling him to often for example more than twice in a single day.
? The client needs time to develop trust in you and your product. Allow the client a reasonable time to decide on whether they will take up the product.
? Treat the client with respect and dignity. Handle the customers with patience and care.
? After sales service. Always keep in touch with the customers even after the deal.
? Sufficient training must be provided within the company. This training must cover the tools which enable the bank officials to interact with the client’s correctly.
CRM is an holistic concept which involves multiple interlocking concepts, including market, strategic planning, business process improvement, product design, pricing analysis, technological advancement , human resource management and customer retention to name but only a few. Also mentioned by (Kupla,2018) the components of CRM are:
– Operational CRM usually has to do with one of the three types of operations: marketing, sales and service.
-Marketing is one of the most significant component of Customer Relationship Management and it refers to the promotional activities that are used by a company in order to promote their products. Customer Relationship Management assists in the marketing process by enhancing and improving the effectiveness of the strategies used for marketing and promotion.
– Customer Service. Almost all the major departments including the sales department, marketing team and the management personnel are required to take steps to develop their awareness and understanding of the customer needs as well as complaints. This undoubtedly makes the business or the company to deliver quick and perfect solutions and assistance to the customers as well as cater to their needs which increases the dependability and trust of the customers and people on the organization.
(Taylor:2018) also mentions Components of CRM: There are a number of different components of Customer Relationship Management that are essential to run an organization towards success. Every component is unique in itself and plays a major undeniable role in the process.
Human Resource Management
Human Resource Management involves the effective and correct use of human resource and skills at the specific moment and situation. This requires to be make sure that the skills and intellectual levels of the professionals match the tasks undertaken by them according to their job profiles. It is an essential component not only for the large scale corporations but the medium industries as well. It involves adopting an effective people strategy and studying the skills or the workforce and the growth being generated thereby designing and implementing the strategies needed accordingly with the aim of achieving development.
Technological advancement
The software and hardware as well as the nature of the improved technology we use to service the customer has a huge effect of the customer relationship management of the bank. This ultimately affects the customer overall satisfaction , when the technology is advance we also improve turnaround time for feedback to the client and ultimately makes the client’s banking experience seamless.
Overall, each of the discussed components of Customer Relationship Management is very essential to improve the work structure as well as the market response to the business and their products.
Benefits of CRM
According to (Juneja 2018:1) the benefits of CRM are Customer Relationship Management leads to satisfied customers and eventually higher business, in brief Juneja highlights that the benefit of CRM are:
1. Customer Relationship Management goes a long way in retaining existing customers.
2. Customer relationship management ensures customers return back home with a smile.
3. Customer relationship management improves the relationship between the organization and customers. Such activities strengthen the bond between the sales representatives and customers.
In addition, (Anusandhanika,2015) includes that CRM assists banks to provide a number of benefits to their customer, the key benefits are:
• “Service provisioning through the business client’s life-cycle, and to establish a long- term relationship with the client which includes the businesses future needs.”
• “Optimization of the use of bank resources, such as alternative channels of distribution( internet banking).”
• “Significant reductions in costs through use of the alternative channels.”
• “CRM permits business to leverage information from their databases to achieve customer retention and to cross sell other products and services to existing customers.”
• “Companies that implement CRM make better relationships with their customer. Achieve loyal customers and increased revenue and reduced costs.”
B.) Roles as a credit analyst in the credit origination value chain, effective implementation of CRM principles in Absa Business Bank and the benefits gained as results thereof.
The role of the credit analyst for effective implementation of CRM principles in the Absa business banking in the credit origination process, the implementation of my role as a credit analyst is two- fold and can be viewed in the short-term and long-term:
Short- term
• Review and prioritise lending deals with the banker.
• Manage and drive the deal forum process.
• Evaluation customer info and deals risk(according to Absa credit risk policy).
• Motivate the credit case/ first time approval.
• Engage credit valuation on submitted deals for approval/finalisation.
• Ensure efficient fulfilment of credit deals for example facility letters, fees recovery etc.
• Ensure timeous customer reviews.
• Access and manage portfolio and client credit risk daily) eg. problematic , high- risk clients
Long-term
• Stay abreast of internal and external environment and rends that influence the customer and portfolio risk.
• Proactively assess and manage risk in the credit portfolio on an ongoing basis.
• Effective customer solutioning and customer service fulfilment.
• Continuously keep abreast of and adhere to latest credit standards , policies, regulatory compliance.
• Ensure teamwork and collaboration in the value chain.
Benefits for of the effective implementation (Anusandhanika,2015):
• Customer Relationship Management goes a long way in retaining existing customers.
• Customer relationship management ensures customers return back home with a smile.
• Customer relationship management improves the relationship between the organization and customers. Such activities strengthen the bond between the sales representatives and customers.
• Service provisioning through the business client’s life-cycle, and to establish a long- term relationship with the client which includes the businesses future needs.
• Optimization of the use of bank resources, such as alternative channels of distribution( internet banking).
• Significant reductions in costs through use of the alternative channels.
• CRM permits business to leverage information from their databases to achieve customer retention and to cross sell other products and services to existing customers.
• Companies that implement CRM make better relationships with their customer. Achieve loyal customers and increased revenue and reduced costs
Collaboration and Relationship Management
“Works well with people and adapts with different stakeholders, consulting ad listening to others, and communicating proactively. Builds relationships and networks internally & externally , relates to people at all levels and manages conflict.”
• I building good relationships with the Banker and Transactional team so that we build on a conflict – free team.
• I have good working relationship with other product houses such as asset finance and commercial property finance.
• In the team and with other stakeholders I always listen before commenting in order to ascertain effective communication.
• Trio meeting are held frequently and arranged by me so that we proactively communicate all aspect within the team.
• I have internal and external relationships. By internal relationship I know all sales managers and provincial heads within and around the area I work in. Regarding external relationships I very frequently attend client visits with the banker, so that I know the clients and build a trust relationship with them.
• I manage conflict situations by setting a tone of transparency and honesty across all team member, other credit analyst and product houses. I also make it clear that of there are conflict issues we speak about it immediately and have a constructive conversation in which we can find a solution and way forward.
C.) Identify and describe the benefits of a software system that Absa Business banking uses to support the CRM process in the credit origination value chain.
I have identified Webica (Web- Based Integrated Credit Application) software system. This is the system the credit analyst uses to present applications to the credit sanctioner.
The benefits of a software system that Absa Business banking uses to support the CRM process in the credit origination value chain, are as follows:
• The first benefit of the Webica system is that, it allows the credit analyst to populate tabs by use of headings such as customer profile which includes client background, market, industry, and SWOT analysis etc. The most important heading are customer profile and financial analysis, which in depth discusses the clients capital, operational, liquidity and debt service ability. The term sheet which specifies facilities and securities of the client indicates a clear picture of what the exposure the client currently has and also shows the new facilities being requested. It also indicates the securities that the bank hold and whether the current exposure is sufficiently covered.
• The second benefit of Webica is that it allows the credit sanctioner to generate a credit report which synchronises all the information that the credit analyst populated as mentioned above. The credit sanctioner then indicates the decision to decline, approve or return the application to the credit analyst for additional information.
• Thirdly, The benefit of this within the CRM process is that webica allows Absa Business bank to understand the client’s business from all aspects . With credit origination the benefit is that we can now understand exactly what the background of the client is and how the need for a new facility arises.
• Over and above all, the Webica system will always retain the customer profile of the business client so that even if different credit analyst work on the client the profile will always be on record.
Analytical and problem-solving:
“Identifies key relationships in data and information; probes for further information or greater understanding; produces workable solutions with strong diagnostic capability.”
The only problem that i sometimes encounter is that the sanctioner returns the application without calling me or the banker to discuss before returning the application. By talking about teh application this slows down the feedback to the client. Suggestion is that the deal is discussed with the sanctioner before submission and then in the same discussion to mention to the sanctioner that he/she calls before returning or declining the application.