CRM - Database and customer Relationship marketing

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DATABASE & CUSTOMER RELATIONSHIP MARKETING

Word Count: 2, 366

CONTENTS PAGE

1. Introduction…………………………………………………….Pg 3

2. Research Methods………………………………………………Pg 3

3. HSBC Banking Services……………………………………….Pgs 4 - 5

4. HSBC Internet Banking………………………………………..Pgs 6 - 8

5. Egg On-line……………………………………………………..Pgs 9 - 10

6. Conclusion………………………………………………………Pg 11

7. Recommendations………………………………………………Pg 12

8. Bibliography…………………………………………………….Pg 13

9. Appendix……………………………………………………….. Pgs 14 – 19

        

Appendix 1 – Touchpoint Analysis………………………Pg 14 - 15

        

Appendix 2 – Article about Egg online banking………...Pg 16 - 19

1. INTRODUCTION

In this report an investigation will be carried out into the application of database and CRM strategies in the banking and financial sector. The banks under investigation are HSBC and Egg; HSBC has been reviewed according to its branch banking and on-line banking as two individual financial services, and it has therefore been chosen for this reason. In order to compare HSBC’s online services to another bank Egg was chosen as its banking capabilities are only via the Internet.

2. Research Methods

2.1 Data collection from secondary sources

Extensive secondary research will be undertaken using websites, academic books and databases such as GMID/ Euromonitor. Such sources will be the foundation of this report.

2.2 Data collection from primary sources

Telephone interview will be conducted with senior employee dealing with CRM in the marketing department at HSBC and Egg.  Focus group will be carried out to analyse how HSBC and Egg are satisfying customer requirements by using CRM strategies.

3. HSBC BANKING SERVICES

3.1 Background

HSBC is one of the largest banking and financial services organisations in the world.  HSBC state that they are ‘the world's local bank’ by promising to get personal and local by offering a wide range of services designed specifically to meet customer demands.  (source:http://www.hsbc.com)

3.2 CRM and Database Activities

HSBC are practising CRM strategies supported by technology to retain existing customers by understanding their needs and having the correct information available to acquire potential new customers.

HSBC has acted strategically by investing in a new infrastructure and new data warehouses.

(Source:

HSBC are using CRM to  

 

  • develop better communication channels
  • collect vital data from customers
  • create segmentation of customers according to profiles  
  • deliver services instantly
  • identify new selling opportunities

3.3. Data Mining Techniques

As stated in a CRM study 2004, HSBC is reviewing its data mining capabilities and looking at various tools that can be applied across its entire range of branches.  HSBC are not pushing products and services at customers at random now.   But now when a real need has been identified, the message is directly communicated to customers at the right time of a particular purchasing decision.  HSBC uses data based marketing techniques to deliver the message to each segment of customers discretely and independently.

(source:http://www-5.ibm.com/services/de/pdf/bczee01063-4.pdf)

The data mining techniques that HSBC are using with SPSS as part of a customer relationship management (CRM) strategy are helping to obtain more knowledge and improving their understanding of customers.  Since HSBC has been mining their data, they have increased sales across their product lines by uncovering cross-selling opportunities and retaining more customers.

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(source:http://www.dmreview.com)

The utilisation of SPSS helps to uncover ‘relationships hidden in HSBC’s 35GB customer database to determine how strong a particular statistical relationship is and do "what-if" scenarios to find out what that means in terms of a business opportunity’.

(source:http://www.dmreview.com)

Using SPSS, HSBC can mine their sales data for the specific characteristics of customers.  For example, customers who in the past bought a new car once their auto loan matured.  Then looking at current auto loans that are about to be paid off.  HSBC can predict which customers will soon be shopping for a new car, a new ...

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