Luận văn customer relationship management in bank the case of vietinbank ’s hanoi branch

UNIVERSITE DE NANTES Cohort 2015-2017 Master’s Thesis Customer Relationship Management in Bank — The case of VIETINBANK ’s Hanoi Branch Author: Dang Trung Hieu Supervisor: Nguyen P

UNIVERSITE DE NANTES

Cohort 2015-2017 Master’s Thesis

Customer Relationship Management in Bank

— The case of VIETINBANK ’s Hanoi Branch

Author: Dang Trung Hieu

Supervisor: Nguyen Phu Hung

Hanoi, September 2017

CHAPTER 1 INTRODUCTION OF DISSERTATION

LL The rationals of the thesis -

1/2 Objectives of shHỦY on seocoee

1.3 Questions of study

1.4 §copz 0ÍTcseiHth ăcoeocsreererooee

1.5 Methodology and Data "_—

151 Methodalogy of the esearch 1.5.2 Description of Data, Population, and Sample

1.5.3 Tools of survey and analysis

1.6 Conclusions and Roadmap of Disscrlation

CHAPTER 2 BACKGROUNDS OF VIETINBANK

2 VIETIN BANK’s Hanoi braneh

2.3 General challenges facing VIEEINBANK in general, and Llanen Ja Branch in patioular¥?

CHAPTER 3 LITERATURE REVIEW

3.1 What is Customer Relationship Management?

3.3 Factors affeting the parformanee of the CRM „28

4.2.5 Whatis the credibility you perceive of VIETINBANK 42.6 Adequacy of CRM procedures

428 The necessity to create a separate speciatized ( CRM { department 38 42.1 Quality of the stalls working on CRM

43, Discussions of survey results

4.4 Conclusions

CHAPTERS RECOMMENDATIONS AND CONCLUSIONS

5.1 Summary of findings of the dissertation

5.2 The tolal approach to enhance building customer relationship that this thesis follows4!

3.3 Recommendations to Enhance Customer Relationship Management at Hanoi Branch42

5.3.1 Making strategic Investment program in CRM - - 43 5.3.2 Solutions fo erihunec the qualily of customer-care service 44 5.3.1 Solutions to enhanoe the adsguaey of CRM proeedtes 47

5.3.3 Create an environment promoting CRM practices 50

5.8 Conclusions

LIST OF REFERENCES

APPENDIX S4

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

FOREWORDS

‘Today, banks are facing an aggressive competition and they have to make efforts fo survive in

4 compelitive and uncertain market plac Many bariks have realized thal managing customer relationships is a very important factor for their success, Customer relationship management (CRM) is a strategy that can help a bank to build long-lasting relationships with their

customers and incrcase their profits through the righ! management system and the application

of customer-focused strategies CRM in the banking sector is of strategic importance In this thesis, a descriptive case study of VIETINBANK is presented, The aim of this thesis is to analyze the necessity, the design, and the implementation of CRM in VIRTINBANK , identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking compelitivenass as well as provide a greater understanding of what constitutes good CRM

practices for VIETINBANE

CHAPTER Z BACKGROUNDS OF VIETINBANK

Vision of VIETINBANK is to become the leading financial and banking corporation in

‘Victnam that operates in diverse arcas, as well as provides products and services that conform

to international standards, aiming to improve the values of life VIETINBANK focuses on

Core Values Customer-oriented operations

VIETINBANK has gone over 28 years of incorporation and development (VielinBank, 2017,

po

Phase 1 (1988 — 2000): stablished and transformed into a two-tier bank, officially put

Vietnam JSC Bank for Industry and Trade into operation

Phase IT (2001 — 2068): Snccessfully implemented the organizational restructuring project,

targcting debts handling, gencral policics & mechanisms and business operations

Phase IT (2009 to prosonl): Successful Taunched IPO and conducted a complete system innovation towards modemization and standardization in all aspects of banking activities;

‘This is the reason that this thesis will study the role of Customer Relationship Management in VIRTINBANK and the nzed for Customer Relationship Management 1o increase customer value by using some analytieal methods in CRM applications Under this VIETINBANK case study, 1 chose the topic: “Customer Kelatlenship Management — the case of

‘VIETINBANK’s Hanoi Branch”

1.2 Objectives of study

The objective of this thesis is to investigate and evaluate CRM situation of VIETINBANK , understand the perception of VILTINBANK staffs on how to improve the situation, and to

propose potential solutions or directions on building the capacity to meet with prowing

markel requircments and to improve the intemal performmanee

1.3 Questions of study

1 What are the status-quo of VIETINBANE and how CRM is critical to the survival of

VIETINBANK ?

2 How has the VIETINBANK managed CRM?

3 What are the focal points that the manager of VIETINBANK should consider to

Due to the difficulty of data, the thesis will collect data only for the year 2015 to now

1.5 Methodology and Data

1.5.1 Methodology of the research

Thesis

framework model to analyze drivers for CRM Using that model over primary data, I specity the challenges VIETINBANK is facing in managing CRM

will first do a lilcralure review of CRM Then, from the litcrature review, il ercates a

CHAPTER 1

INTRODUCTION OF DISSERTATION

1.1 The rationale of the thesis

In Vietnam, banking is a sector in fast development All commercial banks are conscious whether their existence and development depend on achieving customer, satisfying them, maintain their loyalty All commercial banks have regarded customers imuch like a top priotity at all times in all their activities VIETINBANK js in a hard time of competition to

retain customers from a number of newer banks VIETINBANK needs a strategic tool to

identify the bank's most profitable eustomcrs and prospects, devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision-making, and customized service-all delivered through the

nmicls that the bank

Today, many businesses such gs banks, insurance companies, and other service providers

realize the importance of Customer Relationslip Management (CRM) and its potential to help

them acquire new customers, retain existing ones and maximize their litetime value At this

point, close relationship with customers will require a strong coordination between sales and

marketing departments to provide a long-term retention of selected customers Being top state

bank in the past, VIETINBANK then did not have to struggle for acquiring new customers,

Devause most of ils customers are large slale-owned enterprises Just serving these SOT

customers could bring in enough revermes for VIETINBANK However, relative safe

customer sources lead to poor product and service quality as well as poor customer services

qualily In addition, the number of stale customers dectine quickly im the Tast 5 years, forcing

VIETINBANE to redircet to a new source of custormers that il docs not have cxpcricnee before the private sinall and medium enterprises and the individual/household customers VIETINBANK is behind other private banks in serving these customer groups, thus is losing

parts of ils customers lo compelilars

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

“rhe thesis expects to conduct survey using data mining tasks such as cluster profile analysis, concept descriplion, and deviation detection The surveys would target specific customer

populations segments, not all

1.5.2 Description of Data, Population, and Sample

The thesis also analyzes secondary data collected ftom academic journals, websites, and governmental offices to draw a comprehensive picture of the whole banking industry and assess the comparative competence of the VIETINBANK ’s CRM in this context Lessons drawn from literature will serve as basis for recommending solutions to enhance the CRM

performance for VIETINBANK

My targeted surveyees inchade:

1.5.3 Tools of survey and analysis

‘The dissertation is going to use the following tools for survey and analysis

* Google form for online questionnaire

© Survey in paper fonn

1.6 Conclusions and Roadmap of Dissertation

After the first chapter of introduction, we do an analytical review of the VIETINBANK in the

Chapter 2, the literature review on the CRM management in Chapter 3 The Chapter 4

describes data results from the survey, analyses and discusses the findings Finally, the

Chapter 5 recapitulates the findings and contributions of the dissartation

CHAPTER Z BACKGROUNDS OF VIETINBANK

Vision of VIETINBANK is to become the leading financial and banking corporation in

‘Victnam that operates in diverse arcas, as well as provides products and services that conform

to international standards, aiming to improve the values of life VIETINBANK focuses on

Core Values Customer-oriented operations

VIETINBANK has gone over 28 years of incorporation and development (VielinBank, 2017,

po

Phase 1 (1988 — 2000): stablished and transformed into a two-tier bank, officially put

Vietnam JSC Bank for Industry and Trade into operation

Phase IT (2001 — 2068): Snccessfully implemented the organizational restructuring project,

targcting debts handling, gencral policics & mechanisms and business operations

Phase IT (2009 to prosonl): Successful Taunched IPO and conducted a complete system innovation towards modemization and standardization in all aspects of banking activities;

'Tabls 2-2: Parfarnianee versus Obejeotives 2D

Table 2-5: Porforimames of the Hanoi Branch of Vietin Bank - 16 Table 3-I: Characteristics of e-CRM - 22

Table 3-2; Requirements and projected costs of a specialized CRM analytical unit 45 Table 5-3: Expected investments on CRM software .49

LIST OF FIGURES

Figure 2-1: Organizational strueture of the VIETINBANK - 6 Figure 3-1 CRM relationship (source: Kubi and Doku) - 24 Figure 3-2: Sfages to Implement CRM „.30

Figure 4-2: Overall quality rating of VIETINBANK services - 34

Figure 4-4: Rating quality of customer-care service of VIETINBANK 235 Vigure 4-5: Ths credibility you pereeive of VIETINBANK - 37

Figure 4-7: Necessity to create a separate specialized CRM department 2.38

Figure 5-1: Total approach to enhance CRM performance for the VIETINBANK’s Hanoi

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

‘This is the reason that this thesis will study the role of Customer Relationship Management in VIRTINBANK and the nzed for Customer Relationship Management 1o increase customer value by using some analytieal methods in CRM applications Under this VIETINBANK case study, 1 chose the topic: “Customer Kelatlenship Management — the case of

‘VIETINBANK’s Hanoi Branch”

1.2 Objectives of study

The objective of this thesis is to investigate and evaluate CRM situation of VIETINBANK , understand the perception of VILTINBANK staffs on how to improve the situation, and to

propose potential solutions or directions on building the capacity to meet with prowing

markel requircments and to improve the intemal performmanee

1.3 Questions of study

1 What are the status-quo of VIETINBANE and how CRM is critical to the survival of

VIETINBANK ?

2 How has the VIETINBANK managed CRM?

3 What are the focal points that the manager of VIETINBANK should consider to

Due to the difficulty of data, the thesis will collect data only for the year 2015 to now

1.5 Methodology and Data

1.5.1 Methodology of the research

Thesis

framework model to analyze drivers for CRM Using that model over primary data, I specity the challenges VIETINBANK is facing in managing CRM

will first do a lilcralure review of CRM Then, from the litcrature review, il ercates a

FOREWORDS

‘Today, banks are facing an aggressive competition and they have to make efforts fo survive in

4 compelitive and uncertain market plac Many bariks have realized thal managing customer relationships is a very important factor for their success, Customer relationship management (CRM) is a strategy that can help a bank to build long-lasting relationships with their

customers and incrcase their profits through the righ! management system and the application

of customer-focused strategies CRM in the banking sector is of strategic importance In this thesis, a descriptive case study of VIETINBANK is presented, The aim of this thesis is to analyze the necessity, the design, and the implementation of CRM in VIRTINBANK , identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking compelitivenass as well as provide a greater understanding of what constitutes good CRM

practices for VIETINBANE

‘This is the reason that this thesis will study the role of Customer Relationship Management in VIRTINBANK and the nzed for Customer Relationship Management 1o increase customer value by using some analytieal methods in CRM applications Under this VIETINBANK case study, 1 chose the topic: “Customer Kelatlenship Management — the case of

‘VIETINBANK’s Hanoi Branch”

1.2 Objectives of study

The objective of this thesis is to investigate and evaluate CRM situation of VIETINBANK , understand the perception of VILTINBANK staffs on how to improve the situation, and to

propose potential solutions or directions on building the capacity to meet with prowing

markel requircments and to improve the intemal performmanee

1.3 Questions of study

1 What are the status-quo of VIETINBANE and how CRM is critical to the survival of

VIETINBANK ?

2 How has the VIETINBANK managed CRM?

3 What are the focal points that the manager of VIETINBANK should consider to

Due to the difficulty of data, the thesis will collect data only for the year 2015 to now

1.5 Methodology and Data

1.5.1 Methodology of the research

Thesis

framework model to analyze drivers for CRM Using that model over primary data, I specity the challenges VIETINBANK is facing in managing CRM

will first do a lilcralure review of CRM Then, from the litcrature review, il ercates a

‘This is the reason that this thesis will study the role of Customer Relationship Management in VIRTINBANK and the nzed for Customer Relationship Management 1o increase customer value by using some analytieal methods in CRM applications Under this VIETINBANK case study, 1 chose the topic: “Customer Kelatlenship Management — the case of

‘VIETINBANK’s Hanoi Branch”

1.2 Objectives of study

The objective of this thesis is to investigate and evaluate CRM situation of VIETINBANK , understand the perception of VILTINBANK staffs on how to improve the situation, and to

propose potential solutions or directions on building the capacity to meet with prowing

markel requircments and to improve the intemal performmanee

1.3 Questions of study

1 What are the status-quo of VIETINBANE and how CRM is critical to the survival of

VIETINBANK ?

2 How has the VIETINBANK managed CRM?

3 What are the focal points that the manager of VIETINBANK should consider to

Due to the difficulty of data, the thesis will collect data only for the year 2015 to now

1.5 Methodology and Data

1.5.1 Methodology of the research

Thesis

framework model to analyze drivers for CRM Using that model over primary data, I specity the challenges VIETINBANK is facing in managing CRM

will first do a lilcralure review of CRM Then, from the litcrature review, il ercates a

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

CHAPTER 1

INTRODUCTION OF DISSERTATION

1.1 The rationale of the thesis

In Vietnam, banking is a sector in fast development All commercial banks are conscious whether their existence and development depend on achieving customer, satisfying them, maintain their loyalty All commercial banks have regarded customers imuch like a top priotity at all times in all their activities VIETINBANK js in a hard time of competition to

retain customers from a number of newer banks VIETINBANK needs a strategic tool to

identify the bank's most profitable eustomcrs and prospects, devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision-making, and customized service-all delivered through the

nmicls that the bank

Today, many businesses such gs banks, insurance companies, and other service providers

realize the importance of Customer Relationslip Management (CRM) and its potential to help

them acquire new customers, retain existing ones and maximize their litetime value At this

point, close relationship with customers will require a strong coordination between sales and

marketing departments to provide a long-term retention of selected customers Being top state

bank in the past, VIETINBANK then did not have to struggle for acquiring new customers,

Devause most of ils customers are large slale-owned enterprises Just serving these SOT

customers could bring in enough revermes for VIETINBANK However, relative safe

customer sources lead to poor product and service quality as well as poor customer services

qualily In addition, the number of stale customers dectine quickly im the Tast 5 years, forcing

VIETINBANE to redircet to a new source of custormers that il docs not have cxpcricnee before the private sinall and medium enterprises and the individual/household customers VIETINBANK is behind other private banks in serving these customer groups, thus is losing

parts of ils customers lo compelilars

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

“rhe thesis expects to conduct survey using data mining tasks such as cluster profile analysis, concept descriplion, and deviation detection The surveys would target specific customer

populations segments, not all

1.5.2 Description of Data, Population, and Sample

The thesis also analyzes secondary data collected ftom academic journals, websites, and governmental offices to draw a comprehensive picture of the whole banking industry and assess the comparative competence of the VIETINBANK ’s CRM in this context Lessons drawn from literature will serve as basis for recommending solutions to enhance the CRM

performance for VIETINBANK

My targeted surveyees inchade:

1.5.3 Tools of survey and analysis

‘The dissertation is going to use the following tools for survey and analysis

* Google form for online questionnaire

© Survey in paper fonn

1.6 Conclusions and Roadmap of Dissertation

After the first chapter of introduction, we do an analytical review of the VIETINBANK in the

Chapter 2, the literature review on the CRM management in Chapter 3 The Chapter 4

describes data results from the survey, analyses and discusses the findings Finally, the

Chapter 5 recapitulates the findings and contributions of the dissartation

“rhe thesis expects to conduct survey using data mining tasks such as cluster profile analysis, concept descriplion, and deviation detection The surveys would target specific customer

populations segments, not all

1.5.2 Description of Data, Population, and Sample

The thesis also analyzes secondary data collected ftom academic journals, websites, and governmental offices to draw a comprehensive picture of the whole banking industry and assess the comparative competence of the VIETINBANK ’s CRM in this context Lessons drawn from literature will serve as basis for recommending solutions to enhance the CRM

performance for VIETINBANK

My targeted surveyees inchade:

1.5.3 Tools of survey and analysis

‘The dissertation is going to use the following tools for survey and analysis

* Google form for online questionnaire

© Survey in paper fonn

1.6 Conclusions and Roadmap of Dissertation

After the first chapter of introduction, we do an analytical review of the VIETINBANK in the

Chapter 2, the literature review on the CRM management in Chapter 3 The Chapter 4

describes data results from the survey, analyses and discusses the findings Finally, the

Chapter 5 recapitulates the findings and contributions of the dissartation

FOREWORDS

‘Today, banks are facing an aggressive competition and they have to make efforts fo survive in

4 compelitive and uncertain market plac Many bariks have realized thal managing customer relationships is a very important factor for their success, Customer relationship management (CRM) is a strategy that can help a bank to build long-lasting relationships with their

customers and incrcase their profits through the righ! management system and the application

of customer-focused strategies CRM in the banking sector is of strategic importance In this thesis, a descriptive case study of VIETINBANK is presented, The aim of this thesis is to analyze the necessity, the design, and the implementation of CRM in VIRTINBANK , identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking compelitivenass as well as provide a greater understanding of what constitutes good CRM

practices for VIETINBANE

‘This is the reason that this thesis will study the role of Customer Relationship Management in VIRTINBANK and the nzed for Customer Relationship Management 1o increase customer value by using some analytieal methods in CRM applications Under this VIETINBANK case study, 1 chose the topic: “Customer Kelatlenship Management — the case of

‘VIETINBANK’s Hanoi Branch”

1.2 Objectives of study

The objective of this thesis is to investigate and evaluate CRM situation of VIETINBANK , understand the perception of VILTINBANK staffs on how to improve the situation, and to

propose potential solutions or directions on building the capacity to meet with prowing

markel requircments and to improve the intemal performmanee

1.3 Questions of study

1 What are the status-quo of VIETINBANE and how CRM is critical to the survival of

VIETINBANK ?

2 How has the VIETINBANK managed CRM?

3 What are the focal points that the manager of VIETINBANK should consider to

Due to the difficulty of data, the thesis will collect data only for the year 2015 to now

1.5 Methodology and Data

1.5.1 Methodology of the research

Thesis

framework model to analyze drivers for CRM Using that model over primary data, I specity the challenges VIETINBANK is facing in managing CRM

will first do a lilcralure review of CRM Then, from the litcrature review, il ercates a

CHAPTER 1

INTRODUCTION OF DISSERTATION

1.1 The rationale of the thesis

In Vietnam, banking is a sector in fast development All commercial banks are conscious whether their existence and development depend on achieving customer, satisfying them, maintain their loyalty All commercial banks have regarded customers imuch like a top priotity at all times in all their activities VIETINBANK js in a hard time of competition to

retain customers from a number of newer banks VIETINBANK needs a strategic tool to

identify the bank's most profitable eustomcrs and prospects, devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision-making, and customized service-all delivered through the

nmicls that the bank

Today, many businesses such gs banks, insurance companies, and other service providers

realize the importance of Customer Relationslip Management (CRM) and its potential to help

them acquire new customers, retain existing ones and maximize their litetime value At this

point, close relationship with customers will require a strong coordination between sales and

marketing departments to provide a long-term retention of selected customers Being top state

bank in the past, VIETINBANK then did not have to struggle for acquiring new customers,

Devause most of ils customers are large slale-owned enterprises Just serving these SOT

customers could bring in enough revermes for VIETINBANK However, relative safe

customer sources lead to poor product and service quality as well as poor customer services

qualily In addition, the number of stale customers dectine quickly im the Tast 5 years, forcing

VIETINBANE to redircet to a new source of custormers that il docs not have cxpcricnee before the private sinall and medium enterprises and the individual/household customers VIETINBANK is behind other private banks in serving these customer groups, thus is losing

parts of ils customers lo compelilars

'Tabls 2-2: Parfarnianee versus Obejeotives 2D

Table 2-5: Porforimames of the Hanoi Branch of Vietin Bank - 16 Table 3-I: Characteristics of e-CRM - 22

Table 3-2; Requirements and projected costs of a specialized CRM analytical unit 45 Table 5-3: Expected investments on CRM software .49

LIST OF FIGURES

Figure 2-1: Organizational strueture of the VIETINBANK - 6 Figure 3-1 CRM relationship (source: Kubi and Doku) - 24 Figure 3-2: Sfages to Implement CRM „.30

Figure 4-2: Overall quality rating of VIETINBANK services - 34

Figure 4-4: Rating quality of customer-care service of VIETINBANK 235 Vigure 4-5: Ths credibility you pereeive of VIETINBANK - 37

Figure 4-7: Necessity to create a separate specialized CRM department 2.38

Figure 5-1: Total approach to enhance CRM performance for the VIETINBANK’s Hanoi

FOREWORDS

‘Today, banks are facing an aggressive competition and they have to make efforts fo survive in

4 compelitive and uncertain market plac Many bariks have realized thal managing customer relationships is a very important factor for their success, Customer relationship management (CRM) is a strategy that can help a bank to build long-lasting relationships with their

customers and incrcase their profits through the righ! management system and the application

of customer-focused strategies CRM in the banking sector is of strategic importance In this thesis, a descriptive case study of VIETINBANK is presented, The aim of this thesis is to analyze the necessity, the design, and the implementation of CRM in VIRTINBANK , identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking compelitivenass as well as provide a greater understanding of what constitutes good CRM

practices for VIETINBANE

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

'Tabls 2-2: Parfarnianee versus Obejeotives 2D

Table 2-5: Porforimames of the Hanoi Branch of Vietin Bank - 16 Table 3-I: Characteristics of e-CRM - 22

Table 3-2; Requirements and projected costs of a specialized CRM analytical unit 45 Table 5-3: Expected investments on CRM software .49

LIST OF FIGURES

Figure 2-1: Organizational strueture of the VIETINBANK - 6 Figure 3-1 CRM relationship (source: Kubi and Doku) - 24 Figure 3-2: Sfages to Implement CRM „.30

Figure 4-2: Overall quality rating of VIETINBANK services - 34

Figure 4-4: Rating quality of customer-care service of VIETINBANK 235 Vigure 4-5: Ths credibility you pereeive of VIETINBANK - 37

Figure 4-7: Necessity to create a separate specialized CRM department 2.38

Figure 5-1: Total approach to enhance CRM performance for the VIETINBANK’s Hanoi

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

“rhe thesis expects to conduct survey using data mining tasks such as cluster profile analysis, concept descriplion, and deviation detection The surveys would target specific customer

populations segments, not all

1.5.2 Description of Data, Population, and Sample

The thesis also analyzes secondary data collected ftom academic journals, websites, and governmental offices to draw a comprehensive picture of the whole banking industry and assess the comparative competence of the VIETINBANK ’s CRM in this context Lessons drawn from literature will serve as basis for recommending solutions to enhance the CRM

performance for VIETINBANK

My targeted surveyees inchade:

1.5.3 Tools of survey and analysis

‘The dissertation is going to use the following tools for survey and analysis

* Google form for online questionnaire

© Survey in paper fonn

1.6 Conclusions and Roadmap of Dissertation

After the first chapter of introduction, we do an analytical review of the VIETINBANK in the

Chapter 2, the literature review on the CRM management in Chapter 3 The Chapter 4

describes data results from the survey, analyses and discusses the findings Finally, the

Chapter 5 recapitulates the findings and contributions of the dissartation

'Tabls 2-2: Parfarnianee versus Obejeotives 2D

Table 2-5: Porforimames of the Hanoi Branch of Vietin Bank - 16 Table 3-I: Characteristics of e-CRM - 22

Table 3-2; Requirements and projected costs of a specialized CRM analytical unit 45 Table 5-3: Expected investments on CRM software .49

LIST OF FIGURES

Figure 2-1: Organizational strueture of the VIETINBANK - 6 Figure 3-1 CRM relationship (source: Kubi and Doku) - 24 Figure 3-2: Sfages to Implement CRM „.30

Figure 4-2: Overall quality rating of VIETINBANK services - 34

Figure 4-4: Rating quality of customer-care service of VIETINBANK 235 Vigure 4-5: Ths credibility you pereeive of VIETINBANK - 37

Figure 4-7: Necessity to create a separate specialized CRM department 2.38

Figure 5-1: Total approach to enhance CRM performance for the VIETINBANK’s Hanoi

CHAPTER Z BACKGROUNDS OF VIETINBANK

Vision of VIETINBANK is to become the leading financial and banking corporation in

‘Victnam that operates in diverse arcas, as well as provides products and services that conform

to international standards, aiming to improve the values of life VIETINBANK focuses on

Core Values Customer-oriented operations

VIETINBANK has gone over 28 years of incorporation and development (VielinBank, 2017,

po

Phase 1 (1988 — 2000): stablished and transformed into a two-tier bank, officially put

Vietnam JSC Bank for Industry and Trade into operation

Phase IT (2001 — 2068): Snccessfully implemented the organizational restructuring project,

targcting debts handling, gencral policics & mechanisms and business operations

Phase IT (2009 to prosonl): Successful Taunched IPO and conducted a complete system innovation towards modemization and standardization in all aspects of banking activities;

CHAPTER 1

INTRODUCTION OF DISSERTATION

1.1 The rationale of the thesis

In Vietnam, banking is a sector in fast development All commercial banks are conscious whether their existence and development depend on achieving customer, satisfying them, maintain their loyalty All commercial banks have regarded customers imuch like a top priotity at all times in all their activities VIETINBANK js in a hard time of competition to

retain customers from a number of newer banks VIETINBANK needs a strategic tool to

identify the bank's most profitable eustomcrs and prospects, devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision-making, and customized service-all delivered through the

nmicls that the bank

Today, many businesses such gs banks, insurance companies, and other service providers

realize the importance of Customer Relationslip Management (CRM) and its potential to help

them acquire new customers, retain existing ones and maximize their litetime value At this

point, close relationship with customers will require a strong coordination between sales and

marketing departments to provide a long-term retention of selected customers Being top state

bank in the past, VIETINBANK then did not have to struggle for acquiring new customers,

Devause most of ils customers are large slale-owned enterprises Just serving these SOT

customers could bring in enough revermes for VIETINBANK However, relative safe

customer sources lead to poor product and service quality as well as poor customer services

qualily In addition, the number of stale customers dectine quickly im the Tast 5 years, forcing

VIETINBANE to redircet to a new source of custormers that il docs not have cxpcricnee before the private sinall and medium enterprises and the individual/household customers VIETINBANK is behind other private banks in serving these customer groups, thus is losing

parts of ils customers lo compelilars

CHAPTER 1

INTRODUCTION OF DISSERTATION

1.1 The rationale of the thesis

In Vietnam, banking is a sector in fast development All commercial banks are conscious whether their existence and development depend on achieving customer, satisfying them, maintain their loyalty All commercial banks have regarded customers imuch like a top priotity at all times in all their activities VIETINBANK js in a hard time of competition to

retain customers from a number of newer banks VIETINBANK needs a strategic tool to

identify the bank's most profitable eustomcrs and prospects, devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision-making, and customized service-all delivered through the

nmicls that the bank

Today, many businesses such gs banks, insurance companies, and other service providers

realize the importance of Customer Relationslip Management (CRM) and its potential to help

them acquire new customers, retain existing ones and maximize their litetime value At this

point, close relationship with customers will require a strong coordination between sales and

marketing departments to provide a long-term retention of selected customers Being top state

bank in the past, VIETINBANK then did not have to struggle for acquiring new customers,

Devause most of ils customers are large slale-owned enterprises Just serving these SOT

customers could bring in enough revermes for VIETINBANK However, relative safe

customer sources lead to poor product and service quality as well as poor customer services

qualily In addition, the number of stale customers dectine quickly im the Tast 5 years, forcing

VIETINBANE to redircet to a new source of custormers that il docs not have cxpcricnee before the private sinall and medium enterprises and the individual/household customers VIETINBANK is behind other private banks in serving these customer groups, thus is losing

parts of ils customers lo compelilars

converting organization model and corporate governance in accordance with international standards and practices,

VIETINBANK operates with the Busi

Phitasophy of

* Saft, offective and sustainable

= Loyal, dedicated, passionate & committed, wise and principled

¢ The prosperity of VIETINBANK customers is VIETINBANK ’s ultimate success

Tn addition, with the extension of VIETINBANK °s system and the developracnl of branch

also change about the structure annually such as tuming to widen out, having more departments, firing ot hiring new employees depend on the requirements of the job and the

ability of staff to mect the new demands and requirements Today, the structure of

VIETINBANK is described as diagram below

Accarding to the official websited of the bank, the VIETINBANK has 7 independent accounting subsidiaries, including VIETINBANK Leasing Company, VIETINBANK Securities Company, VIETINBANK Asset Management Company, VLETINBANK Insurance Company, VIETINBANK Fund Management Company, VIETINBANK Gold and Jewellery

5

FOREWORDS

‘Today, banks are facing an aggressive competition and they have to make efforts fo survive in

4 compelitive and uncertain market plac Many bariks have realized thal managing customer relationships is a very important factor for their success, Customer relationship management (CRM) is a strategy that can help a bank to build long-lasting relationships with their

customers and incrcase their profits through the righ! management system and the application

of customer-focused strategies CRM in the banking sector is of strategic importance In this thesis, a descriptive case study of VIETINBANK is presented, The aim of this thesis is to analyze the necessity, the design, and the implementation of CRM in VIRTINBANK , identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking compelitivenass as well as provide a greater understanding of what constitutes good CRM

practices for VIETINBANE