Successes, Existences and Causes of CRM Policy at Bidv Ha Long

Priority - VIP customers. Because the credit growth limit is considered the gold value of the bank, instead of lending indiscriminately, BIDV Ha Long determines a methodical direction of operation, clearly indicating the priority of the target customer group. More importantly, the bank aims at the ability to collect debt, not the growth target by quantity. Selecting target customers to increase relationships and maintain customer loyalty is becoming increasingly necessary in the credit market conditions among banks in the province. As of July 2018, the province currently has 47 commercial bank branches (excluding 17 type III branches with limited operations under 3 branches of the Bank for Agriculture and Rural Development). Including: 19 branches of state-owned commercial banks, state-owned joint stock commercial banks; 28 branches of 25 joint stock commercial banks; 1 branch of the Bank for Social Policies; 1 branch of Financial Leasing Company I - Vietnam Bank for Agriculture and Rural Development; 2 People's Credit Funds and 2 branches of M7 Microfinance Organization Limited; 204 transaction offices, 408 ATMs,... Group of State-owned Commercial Banks and State-owned Joint Stock Banks

>51%: Branches of these banks in Quang Ninh all bring the strengths and weaknesses of the parent bank, creating competitive advantages in some areas with BIDV Ha Long.

- Group of non-state banks: These banks also have advantages in card activities, money transfer services, and remittance payments, making them significant competitors to BIDV.

- Group of foreign and joint venture banks: The strengths of this banking group are high service quality, global reputation, international standard technology, superior management skills, and low operating costs.

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2.4. Successes, problems and causes of CRM policy at BIDV Ha Long

2.4.1. Successes

Customer interaction activities at BIDV Ha Long have been analyzed and researched.

customers, meeting customer requirements with the current conditions of the bank.

The activity of creating a difference for customers at the Bank is assessed as the unit has known about providing related products and services but still does not have a strategy to create a difference for each customer.

The Bank may collect additional information about the customer to supplement and modify the customer profile during the transaction process, ensuring close follow-up with the customer.

2.4.2. Existing problems

- Information collection is not completely accurate. The Bank's customer database is still sketchy and general, most of the information obtained about customers is provided by customers themselves, currently the branch does not have a policy or method to proactively learn about customers.

- Most customers (especially VIP customers) think that they are not recognized and therefore do not enjoy the same privileges as in places where customers regularly transact.

- Identifying target customers based only on average balance ignores a very important point: customer "loyalty".

- BIDV Ha Long's main interaction channels with customers are concentrated at 3 locations: Head office, Le Thanh Tong transaction office, Hon Gai transaction office, accounting for a small proportion compared to a large area like Quang Ninh province.

- Customer consulting and support is still passive and short-term. Service quality assessment is still quite subjective...

2.4.3. Causes

+ Firstly, the strategy and model for customer relationship management have not been developed: the branch has not yet developed a customer relationship management strategy, communication with customers is mainly done at transaction counters, making the connection between customers and the bank not high, and there is no policy.

professional customer care, leading to many customers complaining or stopping transactions, affecting the image and business operations of the branch.

+ Second, the customer relationship management policy is still limited, specifically the branch has not yet built a system of documents on customer relationship management, making customer relationship management not really systematic; has not yet provided criteria to classify customers from which to have separate care policies for each customer group; the functional departments when taking care of customers still have overlaps with each other, even members in the same department have not clearly distinguished their functions and tasks. Therefore, the Bank has not yet integrated and linked information internally, specifically has not identified customer groups (normal, middle class, rich and super rich).

Third, banking products and services are still monotonous, without many differentiated products: compared to many other commercial banks, especially foreign commercial banks, banking products and services at BIDV Ha Long are still modest, without many unique products and services to compete with other commercial banks, so many customers, although wanting to transact with the bank, still hesitate when choosing a bank to transact with.

Fourth, banking technology has not yet met the requirements: although being one of the pioneering branches applying modern banking technology consulted by the World Bank, compared to commercial banks in other developed countries, BIDV's banking technology system still has certain gaps, so the application of products and services based on modern technology platforms has not yet met the needs of customers, the speed of processing transactions is still slow, sometimes there is a situation of network congestion that significantly affects customers' transactions.

Fifth, advertising and propaganda activities are still modest: in reality, the image of BIDV Ha Long is rarely conveyed to customers on mass media, so many customers in the area do not know the name and address of the branch and do not know what products and services the branch is providing, and what the service prices are.

Sixth, the assignment of business targets is not really reasonable. The assignment of targets is still equal, without considering the position of each officer; there is no connection between the interests and responsibilities of each department and each officer, leading to the failure to fully exploit the potential and strengths of each department, as well as each officer's position.

Seventh, the staff's qualifications have not yet met the requirements: although compared to the general level of commercial bank branches in the area, BIDV Ha Long's human resources are of good quality, however, many staff at the branch have graduated for quite a long time, have not self-studied to grasp new knowledge, have not learned knowledge about communication skills and customer relationship management, so the skills of approaching, caring for and managing customers still have certain limitations, which are the main reasons why customer relationship management at BIDV Ha Long has not achieved the expected results.

Thus, it can be seen that the current state of CRM application in general is still very spontaneous, lacking professionalism. Although CRM activities have made certain marks, initially bringing efficiency to the business activities of banks. However, CRM application has not really received attention, but is only spontaneous, individual activities, and cannot be considered an official and complete CRM system.

CHAPTER 3:

PERFECT SOLUTION FOR CUSTOMER RELATIONSHIP MANAGEMENT AT BIDV HA LONG

3.1. Development trends of Vietnam's banking sector and business development strategy of BIDV Ha Long Bank

3.1.1. The necessity of designing a Customer Relationship Management system at BIDV Ha Long

Today's business environment is changing rapidly, shifting from a product-oriented perspective to a customer-oriented one, especially establishing relationships with customers to retain them. Banks themselves must set out reasonable, rich and diverse customer policies for their customers so that they realize that it is difficult to have such incentives from other banks. In customer relationship management, knowing customers' reactions to their products/services is something that banks need to know.

Competition is increasingly fierce in the banking sector, with more and more banks appearing in the Vietnamese market, especially joint venture banks. In order to survive and improve operational efficiency, banks must constantly apply new technological processes, improve product quality and enhance customer relationship activities. Implementing CRM helps banks maintain current customers and develop future relationships. Faced with the above requirements, BIDV Ha Long Bank needs to differentiate itself by providing a better customer experience at transaction points. The bank needs to establish a customer relationship management strategy to increase customer value and be suitable in the context of current international economic integration.

3.1.2. Business development orientation of BIDV Ha Long Bank in the coming time

In order to achieve its development goals, BIDV Ha Long Bank will aim to develop customers as follows:

- Expand and develop service structure on the basis of providing a system of comprehensive, high-quality and competitive financial products and services for corporate customers, especially small and medium enterprises.

- Promote the development of retail banking service structure.

- Act as one of the prestigious centers providing monetary and capital market services to expand services to domestic banks, insurance and investment through a system of highly professional and technological products and services.

- Promote diversified non-credit financial services.

- Competition takes service quality and customer efficiency as the top goal, taking the human factor as the basic factor of competition.

- Ensure maximum satisfaction of the requirements of the most valuable customers, not all customers are the same.

- Technology development strategy as the foundation for expanding customer base and improving the quality of banking services creates a difference in competitive advantage with a focus on modernizing information and computing systems to serve management and business development (such as card payment, non-document electronic payment, home banking services...).

3.1.3. Objectives of Customer Relationship Management at the branch

- Complete customer database system completely and accurately.

- Perfecting information collection process and information management technology to identify customer groups and best meet their needs.

- Retain old customers, mainly economic organizations because this is the source of customers that brings large revenue to the bank.

- Further enhance customer satisfaction with branch services.

- Promote the value of existing customers, especially VIP customers. At the same time, exploit the value of potential and traditional customers.

- Find the highest value customers and customer groups.

- Develop new customers, diversify customer segments.

- Make a difference.

- Create value in customer relationships.

- Create multi-product relationships.

- Loyalty incentive programs.

- Create a good reputation to gain customers' trust.

- Improve customer service quality.

- Consulting products suitable to customer needs.

3.2. Solution to improve customer relationship management activities at BIDV Ha Long bank

3.2.1. Building a customer relationship management strategy

In order for customer relationship management to be truly effective, BIDV Ha Long needs to build a customer relationship management strategy that puts customers at the center of all activities. To do that, first of all, the branch needs to strengthen the organizational structure, improve management and operation, innovate transaction style; link the responsibilities and benefits of staff with customer relationship management, and have a reward and incentive policy for staff who build good relationships with customers. Establish a process for collecting and

Effective information processing, building a system of synchronous interactive channels, standardizing communication with customers and improving accompanying services to increase the relationship between customers and the bank. In order to have a basis for building a customer relationship management strategy, the branch needs to build standards for each specific customer according to customer class, this standard is based on information such as: deposit balance, loan amount, deposit term, transaction history... to build a specific score for each indicator and the total score of the indicators, on that basis, classify customers according to priority rankings, thereby providing separate care policies for each customer group. Customer care is carried out on the basis that customers with higher ranks will have more preferential policies and vice versa; depending on the business strategy of the branch in each period, there will be appropriate customer care policies so that the bank and customers are increasingly connected. In addition, the branch needs to build a customer relationship management model; with existing conditions and capabilities, the branch can build a customer relationship management model as follows.

At the same time, build a system of documents on customer relationship management: to have a good relationship with customers, the immediate task is to immediately build a system of documents on customer relationship management at the branch, the content of the document needs to clearly define the responsibilities and authorities of the functional departments at the branch, avoiding overlap between departments. To do so, it is necessary to set out specific regulations on the tasks of each department, thereby having coordination between the above departments to serve customers in the best way... Clearly defining the responsibilities of each department like this will help the bank serve customers better and better.

Need to assign more reasonable business targets: based on the business plan in each period, the branch management board needs to assign business targets to each department in a reasonable and scientific manner. The assignment of targets must consider the factors of each staff's position, and targets should not be assigned in an equal manner. Furthermore, the assignment of targets must be closely linked to the rights and responsibilities of each department and each specific staff member, from