(Luận văn) crm activities at vietcombank ho chi minh city branch

MINISTRY OF EDUCATION AND TRAINING t to UNIVERSITY OF ECONOMICS HOCHIMINH CITY ng - hi ep w n lo ad Trần Quốc Ánh ju y th yi pl n ua al n va CRM ACTIVITIES AT VIETCOMBANK ll fu HO CHI MINH CITY BRANCH oi m at nh z z MASTER THESIS k jm ht vb om l.c gm an Lu n va ey t re Ho Chi Minh City, 2011 MINISTRY OF EDUCATION AND TRAINING t to UNIVERSITY OF ECONOMICS HOCHIMINH CITY ng - hi ep w n Trần Quốc Ánh lo ad ju y th yi pl ua al CRM ACTIVITIES AT VIETCOMBANK n HO CHI MINH CITY BRANCH n va ll fu m oi Major: Business Administration nh at Code: 60.34.05 z z k jm ht vb om l.c gm MASTER THESIS an Lu Supervisor: Trần Hà Minh Quân n va ey t re Ho Chi Minh City, 2011 Abstract t to Globalization and technology improvements have exposed companies to a situation ng hi with tough competition In this new era, companies are focusing on managing ep customer relationships in order to efficiently maximize revenues Today marketing is not just developing, delivering and selling, it is moving towards developing and w n maintaining long-term relationships with customers Relationship marketing is lo ad becoming important in financial services Managers really need to look at areas y th where opportunities lie, because industry consolidation, virtual delivery channels ju yi and the ability to move money around with a click of a mouse are making it easier pl for customers to leave one bank for another In this situation CRM is an opportunity al n ua that banks can avail to rise above minor advantages by developing actual va relationships with their customers (Rahman, 2005) The purpose of this study was to n investigate CRM activities (view of CRM, CRM processes, CRM technology and fu ll CRM structure and people) that are already exist at one of the biggest Vietnamese m oi Commercial Banks in the South of Vietnam_Vietcombank Ho Chi Minh City nh at Branch The results revealed that the Bank is already adopting CRM The Bank has z implemented CRM processes which is considered necessary for a customer centric z good way and is organisating its structure towards CRM k jm ht vb organization The Bank has integrated technology with the business process in a gm So far, the Bank has achieved a certain rate of success in terms of customer l.c satisfaction and customer relationship management A descriptive approach with om exploratory and explanatory touches, therefore, would reveal important insights and an Lu draw some conclusions for management n va ey i t re Keywords: Customer relationship management (CRM), qualitative research Acknowledgement t to This thesis was written from April 2010 to June 2011 at Hanoi and Ho Chi Minh ng hi City During the entire process of this thesis, many people encouraged and helped ep me to make this work possible I would like to take this opportunity to show my sincere gratitude and appreciation to all people involved in this thesis work w n lo ad Firstly, I would like to express my sincere gratitude to my supervisor, Dr Tran Ha y th Minh Quan, Executive Associate Dean, International School of Business for his ju yi helpful guidance, support and contribution and for giving me the opportunity to pl work with him on this thesis Thanks for providing me with thoughtful supervision, al n ua invaluable guidance and constructive suggestions for this thesis va n I would also like to thank the respondents at Vietcombank Ho Chi Minh City fu ll Branch for their fruitful discussion and valuable information during my interview m oi and data collection process This study would not have been possible to be executed nh at without their helps z z ht vb On a personal level, my sincerely appreciation went to my parents, my brother, my k jm sisters, and my relativies for their great support whenever I got any problem gm Ho Chi Minh City, Vietnam l.c June 2011 om an Lu n va ey t re ii Table of Contents t to Abstract i ng hi Acknowledgement ii ep Table of Contents iii Chapter 1: Introduction 1.2 Objectives of the Research and Research Questions .2 1.3 Research Methodology 1.4 Limitation of the Study 1.5 Structure of the Thesis n Statement of Research Problem .1 lo w 1.1 ad ju y th yi pl ua al Summary of the Chapter Chapter 2: Literatue Review on Customer Relationship Management n Customer Relationship Management (CRM) va 2.1 Relationship Maketing (RM) 2.1.2 Customer Relationship Management (CRM) .9 n 2.1.1 ll fu m oi 2.2 CRM Process 14 nh Buyer-Seller Relationship .14 2.2.2 Seller’s CRM Process Cycle 16 at 2.2.1 z z CRM Technology 18 2.4 Organisational Structure and People for CRM .25 jm ht vb 2.3 Organisational Structure 25 2.4.2 People 26 k 2.4.1 gm Benefits of CRM 27 2.6 The Reasons to Apply CRM in the Financial Services Industry 29 2.7 CRM Activities in the Banking Sector 30 2.8 Research Questions and Frame of Reference .32 om l.c 2.5 an Lu 3.2 Investigating CRM Actitivies at Vietcombank Ho Chi Minh City Branch 39 iii ey Overview about Vietcombank 37 t re 3.1 n Chapter 3: CRM Activities at Vietcombank Ho Chi Minh City Branch 37 va Summary of the Chapter 36 t to ng 3.2.1 How people at VCB HCM view CRM? 39 3.2.2 How is the CRM Process at VCB HCM be described? 41 3.2.3 How the information technology being applied in CRM at VCB HCM? 45 3.2.4 How are the CRM organization structure and people at VCB HCM be hi ep described? .51 3.2.5 Conclusions .55 w Summary of the Chapter 57 n lo Chapter 4: Recommendation .58 ad 4.1 Implicated Recommendations for VCB HCM 58 y th ju a CRM Process 58 yi b CRM Technology 59 pl c CRM Organisational Structure .61 al n ua d CRM People 62 General Recommendation for VCB HCM 63 4.3 Recommendation for further research 64 n va 4.2 fu ll References 65 m oi Interview Guide 68 at nh z z k jm ht vb om l.c gm an Lu n va ey t re iv Chapter 1: Introduction t to 1.1 Statement of Research Problem ng hi ep In this Internet age, when the customer is having access to a variety of products and services it is becoming very difficult for banks to survive In this situation, when w n customer inquiries are not met easily or transactions are complicated, the customer lo ad will ask for new levels of services, and only chose those credit institutions who are y th making a real effort to provide a high level of quality, fast and efficient service ju yi through all the bank’s touch points, call centers, ATMs, voice response systems, pl internet and branches (Puccinelli, 1999) n ua al va Managers really need to look at areas where opportunities lie because industry n consolidation, virtual delivery channels and the ability to move money around at the fu ll click of a mouse are making it easier for customers to pack their bags and say bye to m oi the bank (Puccinelli, 1999) Of course, only depending on technological capabilities nh at can’t ensure customer service (Dyche, 2001) Researches suggest that customer z satisfaction, fundamental concept of relationship marketing, is important in z ht vb achieving and retaining competitive advantage Many banks today are racing to re- jm establish their connections to new as well as existing customers to boost long-term k customer loyalty Some banks are competing effectively and winning this race gm through the implementation of relationship marketing principles using strategic and l.c technology-based customer relationship management (CRM) applications om an Lu Banking in Vietnam has traditionally operated in a relatively stable environment for ey behaviour The net result of the recent competition and legislation is that local t re increasing competition from new market entrants, and customers’ changing n competition due to three fundamental factors: new technological opportunities, va decades However, today the industry is facing a dramatically aggressive banks have lost a substantial proportion of their domestic business to foreign banks and financial instutions Competition will undoubtedly continue to be a more t to significant factor Finding a place in this heating sun becomes vital to the long- ng hi range profitability and ultimate survival of the Vietnamese banks Those banks that ep are not considering the new atmosphere to build and protect their competitive position will likely become victims of that heating sun w n lo ad In this difficult situation CRM is an opportunity that banks can avail to rise above y th minor advantages by developing actual relationships with their customers Unlike ju yi manufacturing and some service industries, bankers are not only selling products pl and services First and foremost, they are selling their organization reputation with al n ua every “customer relationship” A bank has to create customer relationships that va deliver value beyond the provided by the core product This involves added tangible n and intangible elements to the core products thus creating and enhancing the fu ll “product surrounding” That is the nature of competition If there are many others m oi who can what you do, then you not have many added values This dynamic nh at erodes your added value To protect its added value, a bank needs to manage, create z and enhance long-term customer relationships z ht vb jm CRM is not a new terminology in Relationship Marketing in banking on the world k However, it is likely in the premature stage of the implementation at Vietnamese gm Commercial banks, eventhought at Vietcombank Ho Chi Minh City Branch (VCB l.c HCM), one of the biggest commercial banks in the South of Vietnam Based on this, om the research problem has been formed as “How are the customer relationship an Lu management activities at Vietcombank Ho Chi Minh City Branch described” n va Following the investigation, some recommendations are proposed to VCB HCM ey t re 1.2 Objectives of the Research and Research Questions Bearing in mind that the phenomenon of CRM in banking is quite recent in Vietnam, the purposes of this research is to investigate CRM activities that already exist at t to VCB HCM Afterward, some recommendations were proposed to improve CRM ng hi activities of the Bank ep From the research objectives above, some research questions have been designed to w n support different corners of the research The first question is “How people at lo ad VCB HCM view CRM?” This question is to evaluate their attitudes toward CRM y th activities ju yi pl Banks are realizing that customers have different economic value to them, and they al n ua are subsequently adapting their customer offerings and communications strategy va accordingly However, more than half of all companies investing in CRM consider n it a disappointment, according to several recent surveys (Anupam et al, 2004) Most fu ll show weaknesses in one or more of the following areas – market analysis, m oi marketing strategy, distribution channel management, program planning, people, nh at processes, data management, understanding the customer’s perspective, and z measurement (Anupam et al, 2004) Consequently, the second question will find out z jm ht vb “How is the CRM process at VCB HCM be described” k CRM technology is the information technology that is utilized for the specific gm purpose of better initiating, maintaining, and/or terminating customer relationships l.c (Werner et al, 2004) It plays a critical role in the CRM activities and contributes to om improved organizational performance in the market; also, it can be a powerful tool an Lu to help banks segment clients and provide targeted products and services (Calvelli, n ey t re use of custom-developed methodologies, software, and Internet capabilities va 2004) Banks can better understand their customers' needs and preferences by the The technological issue can offers a natural linkage between the internal environment and the interaction process Marketers and managers must be aware of t to new developments in technology and their possible effects because technologies, ng hi consumers and organizations are a function of a win-win interaction (Zineldin, ep 2000) Thus, it is necessary to investigate the third question: How is the information technology being applied in CRM at VCB HCM? w n lo ad The last question is “How are the CRM organizational structure and people in y th banks be described?” It is clear that managing customers better is supported by a ju yi broad supporter of the issue, cross-functional working at different levels of the pl organization So it is increasingly important to restructure the organization for CRM al n ua Building, modifying, or running a CRM solution involves a large numbers of roles va It can include systems experts; business analysts; backroom operations specialists, n managers, and frontline sales and service people who are responsible for inputting fu ll much of the data the CRM needs to create rich insights (Anupam et al, 2004) m oi Practitioners believe that the key to organizational effectiveness is to find the good nh at people and get them into positions of power (Galbraith.1997) All new ideas z originate from employees Identifying who is responsible for which results is z ht vb success requires Thus, this 4th question is to know how the banks structure their jm organizations and also to know how they trains and motivates employees who can k share the values of the bank and plan those values at every point of customer and gm consumer interaction an Lu RQ2: How is the CRM process at VCB HCM be described om l.c RQ1: How people at VCB HCM view CRM? ey t re described? n RQ4: How are the CRM organizational structure and peoplea at VCB HCM be va RQ3: How is the information technology being applied in CRM at VCB HCM?