Segmentation of bank customer
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This internship report summarizes Shailesh Kumar's internship at HDFC Bank focusing on segmentation and penetration strategies. It provides background on HDFC Bank, describing its founding, leadership, products/services, network, mission, strategy and achievements. The report then details HDFC Bank's segmentation of customers into non-customers, low/medium/high-value customers and ex-customers. It also outlines targeting strategies for different markets. Recommendations include increasing focus on basic savings customers and improving follow-up and after-sales service.
Segmentation of bank customer
- 1. Summer Internship Report On “Segmentation and Penetration” at HDFC Bank BY – SHAILESH KUMAR ROLL NO. – IUU18MBA007
- 2. Banking In India Banking in India originated in the last decades of the 18th century. The first banks were THE GENERAL BANK OF INDIA, which started in 1786, and BANK OF HINDUSTAN, both of which are now defunct. The oldest bank in existence in India is the STATE BANK OF INDIA, which originated in the BANK OF CALCUTTA in June 1806. The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865. segmentation and penetration
- 3. Major Bank In India State Bank of India HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Punjab national Bank Yes Bank Allahabad Bank segmentation and penetration
- 4. Profile Of Hdfc Bank Housing Development Finance Corporation Founded in 1977 by Hasmukh Bhai Parakh HDFC Bank was incorporated in August 1994 Among the first in new generation commercial banks Registered office in Mumbai, India Promoted by HDFC, the parent company IPO in India in 1995 Listed in NSE, BSE, NYSE(ADR) segmentation and penetration
- 5. Conti….. Key People Aditya Puri (MD) Industry Banking, Financial Services Products Finance, Credit Cards, Banking Insurance, Investment Banking, Loans Net revenue Rs.95,461 crores Net income Rs.17,486 crores segmentation and penetration
- 6. Network 5103 branches 13160 ATM’s in the country 2748 cities in India All branches are OLRT connected 16 branches in Middle east 6 in Africa Representative offices in Hong Kong, New York, London & Singapore segmentation and penetration
- 7. Mission and Vision MISSION: Benchmarking against international standards To build sound customer franchises across distinct businesses. Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance VISION: HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team accomplish the vision of becoming a world-class Indian bank. segmentation and penetration
- 8. Business Strategy Increasing market share in India’s expanding banking. Delivering high quality customer service. Delivering more products to more customers. Maintaining current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector. segmentation and penetration
- 9. Product & Services Accounts And Deposits • Saving & Current Accounts • Salary Accounts • Recurring & Fixed Deposits Cards • Credit and Debit cards Insurance • Life & Health Insurance Loans • Personal & Home loans • Education loans • Vehicles & Business loans • Loans Against property Investments • Buy/sell mutual funds, equities and derivatives. Demat segmentation and penetration
- 10. Achievements HDFC Bank merged with TIMES BANK in 2000. In 2008, HDFC Bank acquired Centurion Bank of Punjab (CBoP). HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance. Best Bank in India 2019, by Global magazine FinanceAsia. Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brand. India’s Best Bank, Euromoney Awards for Excellence 2019. Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards. segmentation and penetration
- 11. Segmentation Strategy Non-customers • Customers of other banks Low-value customers • Limited income/financial needs Medium-value customers • Most business with one bank • Business spread over several bank High-value customers Ex-customers Inactive Closed Account segmentation and penetration
- 12. Targeting Strategy Target market Corporate Banking Market : This market target the industries & fulfill their financial needs. Capital Market : This segment is targeted on the long term needs of the individual as well as of industries. Retail Banking Market : This segment is for retail investors & provide them short term financial credit for their personal, house hold needs. segmentation and penetration
- 13. Objective Helps in better understanding of the customers’ needs and wants. Better targeting and position of the product. Maintaining effective relationship with the customers. Retaining the existing customers and attracting new ones. Penetration allows a product/services to be quickly accepted and adopted by customers. Improving banks marketing strategies & marketing plans. segmentation and penetration
- 14. Research Methodology Market research would help the banks in knowing the segments containing the most buyers or the most profitable buyers. It is most important that the most profitable segment should not be too large in size. Research Design Descriptive research is used to describe characteristics of a population or phenomenon being studied. This research includes survey and fact-finding inquiries of different kind. segmentation and penetration
- 15. Conti….. Sampling Technique For this project I have used convenient sampling method. Convenience sampling (availability sampling) is a specific type of non-probability sampling method that relies on data collection from population members who are conveniently available to participate in study. Data Sources and Collection Method Primary research involves finding out new information. Secondary research focuses on existing information. It uses published data that previous research has already discovered. For data collection I have used questionnaires. segmentation and penetration
- 16. Data Analysis and Tools It is a process to take the data then apply some mathematical and statistical algorithm or tool to build some model. This model will be predictive and exploratory which is having information that allow us to get insights and insights allow us to take action. The analysis was based on the questioner that were collected from the customer who were visited the bank and the customers whom I have personally meet and the result were interpreted to generated descriptive and inferential statistics. segmentation and penetration
- 17. Conti… Questioners 1. Since how many year you are dealing with bank? 2. How many times you visited bank in a month? 3. What is your annual income? 4. How much AMB you maintain in your HDFC bank account? 5. What type of job you have? 6. How much is your monthly income? 7. Are you aware of other services provided by HDFC bank? 8. What kind of additional service would like to have? 9. Are you aware of any other extra services? segmentation and penetration
- 18. Conti…. Here I have used pie chart, graph as data analysis tools to interpret data The statistical data is processed on a Personal Computer with the help of spreadsheet application software MS Excel to generate tables, charts and graphs. My sample size for this project is 115 respondents. segmentation and penetration
- 19. Recommendations & Suggestions The bank focused a lot on new customer acquisitions and retentions. Employees work under a constant pressure of achieving targets. Therefore, they require higher motivation in comparison of other industries. I observed over two months that all the employees gave lesser importance to BSBDA customers. However, if these customers are tapped then they can also give business to the bank. Kiosk Machines: These are the automated machines for the balance enquiry, passbook printing and statement generation. This will avoid counter rush and provide a common platform for all the users to self-service themselves. segmentation and penetration
- 20. Conti….. Follow-up: Most of the times, the customer will not agree for the investment in one go. Regular follow-ups need to be taken. This is the time to build strong relations with the potential customer. Closing the call: After regular follow-ups, when the customer finally agrees, no time should be wasted and the sales should be closed as soon as possible. After sales service: After the investment scheme starts, the employee should still keep in touch with the customer. This strengthens the customer’s relations with the bank and portrays a good image of the bank. The role of after sales service is also to keep in touch with the customer such that he/she remembers you. segmentation and penetration
- 21. Bibliography segmentation and penetration https://www.hdfcbank.com/ https://www.slideshare.net/xmanjd/hdfc-banks-strategies https://www.slideshare.net/harsharyan/strategic-analysis-of-hdfc- bank https://www.marketing91.com/swot-analysis-hdfc/ https://www.mbaskool.com/brandguide/banking-and-financial- services/704-hdfc.html http://fernfortuniversity.com/term-papers/porter5/analysis/987- hdfc-bank-limited.php https://www.thehindubusinessline.com/money-and- banking/largest-opportunity-for-growth-is-still-in-india-hdfc- bank-deputy-md/article9974028.ece www.en.wikipedia.org
- 22. THANK YOU