Customer relationship management at vietnam prosperity joint stock commercial bank chương dương branch

BANKING ACADEMY ADVANCED PROGRAM -  GRADUATION THESIS CUSTOMER RELATIONSHIP MANAGEMENT FOR RETAIL BANKING AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK - CHƢƠNG DƢƠNG BRANCH Student name Dƣơng Thùy Linh Class K21CLCA Session 2018 - 2022 Student ID 21A4010840 Instructor PhD Vũ Thị Kim Oanh Hanoi, 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126023161000000 DECLARATION I understand Banking Academy‟s current ethics guidelines about plagiarism and I declare that this graduation thesis under the guidance of Ms Vu Thi Kim Oanh, named “CUSTOMER RELATIONSHIP MANAGEMENT FOR RETAIL BANKING AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK - CHƢƠNG DƢƠNG BRANCH” is my own work, which has not been previously included in any thesis or dissertation submitted to this or any other institutions for a degree, diploma degree or professional qualifications All of these data and results stated, all are truthful and derived from the internship unit's actual circumstances If any fraud is detected, I take full responsibility for the content of my thesis Ha Noi, May 2022 Student Duong Thuy Linh i ACKNOWLEDGEMENTS I would like to thank the lecturers of Banking Academy for the valuable knowledge that I have gained during years in the University roadmap My special thanks are to Vietnam International Joint-Stock Commercial Bank – Chương Dương Branch In Particular, the Branch manager has expedited me to go to the practice and enthusiastically supported me during the training period, providing the data At the same time, I would like to thank the staff working in the personal client department for enthusiastically helping and facilitating me during the training process at the branch and taking time to conduct the survey to help me collect the most honest opinions, thereby bringing efficiency and authenticity to this thesis Last but not least, I really appreciate family and friends for always supporting me on my side and motivating me throughout my studies and graduation Due to limited knowledge, in the process of completing my graduation thesis, it is hard to avoid any shortcomings I look forward to receiving suggestions from the teachers as well as the Bank, in order to improve myself and serve practical work in the future Thank you sincerely ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF ABBREVIATIONS vi LIST OF TABLES AND FIGURES vii INTRODUCTION 1 Rationale Literature review 2.1 Abroad Studies: 2.2 Domestic studies 3 Research purpose 4 Scope of the research 5 Research methodology Structure of the thesis CHAPTER 1: THEORETICAL BASIS ON CUSTOMER RELATIONSHIP MANAGEMENT OF COMMERCIAL BANKS 1.1 OVERVIEW OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) 1.1.1 Definition 1.1.2 Goal of CRM: 1.1.3 CRM Operation Process 1.2 CUSTOMER RELATIONSHIP MANAGEMENT IN COMMERCIAL BANKS 10 1.2.1 Commercial bank: 10 1.2.2 Commercial bank customer features : 10 1.2.3 CRM in Commercial Bank: 11 1.2.4 Criteria evaluating efficiency of CRM in banking 17 1.2.5 Factors affecting on customer relationship management in bank 21 1.3 EXPERIENCE FROM OTHER BANKS: 25 CHAPTER 2: THE CURRENT SITUATION OF CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES AT VP BANK - CHƢƠNG DƢƠNG BRANCH 27 2.1 OVERVIEW OF VIETNAM PROSPERITY COMMERCIAL BANK – CHƢƠNG DƢƠNG BRANCH: 27 2.1.1.The establishment and development of VPBank Chương Dương iii 27 2.1.3 Development Strategy and Core Value of VPBank Chương Dương 28 2.1.4 Business products and services of Retail Banking VPBank Chương Dương: 29 2.1.5 Business performance of VPBank Chương Dương during 2019-2021 30 2.2 CHARACTERISTICS OF VPBANK CHƢƠNG DƢƠNG AFFECTING CUSTOMER RELATIONSHIP MANAGEMENT 34 2.2.1 Personnel quality 34 2.2.2 VPBank corporate culture 36 2.2.3 Customer features of VPBank Chương Dương 37 2.2.4 Bank‟s Reputation 38 2.3 ASSESSMENT OF THE CURRENT SITUATION CUSTOMER RELATIONSHIP MANAGEMENT AT VP BANK - CHƢƠNG DƢƠNG 40 2.3.1 Collecting customer information 40 2.3.2 Building a customer database: 42 2.3.3 Grouping and selecting target customers: 43 2.3.4 Build interaction programs with target customers 47 2.3.5 Personalized Customer Experience 51 2.3.6 Evaluate Customer satisfaction of Vietnam Prosperity Commercial Joint Stock Bank – Chương Dương Branch 52 2.4 EVALUATING THE EFFECTIVENESS OF CUSTOMER RELATIONSHIP MANAGEMENT AT VPBANK CHƢƠNG DƢƠNG 56 2.4.1 Achievements: 56 2.4.2 Limitations and reasons: 57 CHAPTER 3: SOLUTIONS TO IMPROVE THE RETAIL BANKING CUSTOMER RELATIONSHIP MANAGEMENT AT VPBANK - CHƢƠNG DƢƠNG BRANCH60 3.1 FOUNDATION FOR PROPOSED SOLUTION IMPROVING CUSTOMER RELATIONSHIP MANAGEMENT AT RETAIL BANKING VPBANK CHƢƠNG DƢƠNG BRANCH 60 3.1.1 Development trends of Vietnam Prosperity Joint Stock Commercial Bank 60 3.1.2 Business goals of Vietnam Prosperity Joint Stock Commercial Bank 60 3.1.3 Customer Orientation: 62 3.2 RECOMMENDATIONS AND SUGGESTIONS FOR IMPROVING CRM AT RETAIL BANKING VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK 63 3.2.1 Setting goals Customer relationship management iv 63 3.2.2 Completing customer database at VPBank Chương Dương branch 63 3.2.3 Customer segmentation and target customer selection 64 3.2.4 Customer relationship programs and customer interaction 64 3.2.5 Customer satisfaction rating: 65 CONCLUSION 66 REFERENCES 67 APPENDIX: 69 v LIST OF ABBREVIATIONS Abbreviation CRM VPBank Meaning Customer Relationship Management Vietnam Prosperity Joint stock commercial bank SMS Short Message Service VIP Very Important Person VND Vietnam Dong CIF Customer information file SBV State Bank of Vietnam CES Customer Effort Score NPS Net Promoter Score VPO VPBANK NEO Spend account vi LIST OF TABLES AND FIGURES page Table 1.1 Five levels of relationship between bank and customers 11 Table 2.1 Business performance of VPBank Chương Dương 30 (2019-2021) Table 2.2 Credit performance of VPBank Chương Dương 32 (2019-2021) Table 2.3 Profit of VPBank Chương Dương branch 2019-2021 33 Table 2.4 Percentage of customers transacting with VPBank 37 Chương Dương from 2019 to 2021 Table 2.5 VPBank Diamond priority classification 45 Table 2.6 Structure of target customers of Retail Banking VPBank 46 Chương Dương Table 2.7 Description of interviewees are individual customers of VPBank branch vii 53 page Figure 1.1 CRM Operation Process Figure 1.2 NPS satisfaction measurement 20 Figure 1.3 CES satisfaction measurement 21 Figure 2.1 Contribution of Deposit at VPBank Chương Dương during 2019-2021 31 Figure 2.2 Credit performance by Loan types at branch 20192021 32 Figure 2.3 Proportion of loan portfolio at VPBank Chương Dương branch 2019-2021 33 Figure 2.4 Images of VPBank activities 35 Figure 2.5 VPBank’s shirt uniform 37 Figure 2.6 Retail banking channels used on CRM system 40 Figure 2.7 Structure of customer information sources 41 Figure 2.8 CRMone website 43 Figure 2.9 Level of concern about privileges of VPBank Diamond Class 45 Figure 2.10 Interaction platform with customers via Facebook 48 Figure 2.11 Structure of media marketing channels of VPBank answered by customers 50 Figure 2.12 Response about: “When you arrive at the counter, you are called by your name” 51 Figure 2.13 Response of customers: "Customers are taken care of and asked by about their health, work, personal life " 52 Figure 2.14 Average Customer satisfaction score at VPBank i 54 Chương Dương Figure 2.15 Waiting time of customers transacting at VPBank Chương Dương 54 Figure 2.16 Time customers use bank product and services 55 Figure 2.17 Growth of number of Retail banking customers 56 during 2019 – 2021 ii