Executive SummaryThe projects main objective is to study the Customer Relationship Management. The other

objective is to study relation of satisfaction with various other parameters. The project consists of

the Broking industry profile, which gives you deep insight of the industry. There is a brief study

of Edelweiss Broking Limited and what are the products they offer.

The research was done with existing clients. The questionnaire was conducted via telephonic

interview. The analysis is done based on the answers given. Graphical report of each and every

question is generated with the valid interpretation given by the RMs of Edelweiss Broking

Limited, Dadar Branch. The analysis focuses mainly on how to manage relationship with

customer and what really affects the satisfaction of the customer. The findings are based on the

analysis done and the results generated. The findings came out with various limitations. Proper

suggestions based on the limitations are provided related to relationship building with the

customers.

This research would be beneficial for the company to improve their relations with the customer

and help them to overcome various limitations. The focus on the satisfaction in the project with

relation to various parameters will help the company to know the area of improvement.

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1. IntroductionCustomer Relationship Management (CRM) is a business approach which recognizes the

importance of customers as the driving force behind the success of failure of any business. It

enables the business organization to maintain, analyze and act upon the information which the

business identifies as relevant to improve its relationships with the customer, and thus enhance

its chances of success.

Customer Relationship Management (CRM) helps companies improve the profitability of their

interactions with customers while at the same time making the interactions appear friendly

through individualization and personalization of services. This management includes Data

Mining with the help of which Customer Life Cycle can be managed well in Acquiring new

customers, increasing value of the customers, retaining good customers.

The basic steps of Data Mining for effective CRM are:

1. Define Business Problem

2. Build Marketing Database

3. Explore Data

4. Prepare data for modeling

5. Build Model

6. Deploy model and results

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The company can then use the information to learn about the behavior of its customers and

improve the way it does a business. It can look at recurring complaints from multiple customers

to solve a problem which would otherwise go unchecked with a normal formats and management

system of the company.

The main objective of my project is to find effective solution for the Customer Relationship

Management and accordingly increase the credibility and profitability of the company. This

study is more related to consumer behavior and perception about the facilities and convenience

provided by the company, Customer Satisfaction is emphasized in this management.

Helping an enterprise to enable its marketing departments to identify and target their best

customers, manage marketing campaigns with clear goals and objectives, and generate

quality leads for the sales team.

Assisting the organization to improve telesales, account, and sales management by

optimizing information shared by multiple employees, and streamlining existing

processes (for example, taking orders using mobile devices)

Allowing the formation of individualized relationships with customers, with the aim of

improving customer satisfaction and maximizing profits; identifying the most profitable

customers and providing them the highest level of service.

Providing employees with the information and processes necessary to know their

customers, understand their needs, and effectively build relationships between the

company, its customer base, and distribution partners.

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2. OBJECTIVES OF THE PROJECT

A. Title of the project:

Customer Relationship Management (CRM) with Edelweiss Broking Limited.

B. Objective of the Study:

The objective of the project was to analyze Effective Customer Relationship Management‟ for

Edelweiss Broking Ltd, for that we have to understand current CRM System and Services

provided from the company and its effect on Customer Needs, Satisfaction Level, their response

and emotions. The objective of this study to analyze existing customer satisfaction as those

customers are the key sources to new customers with respect to the performance, sales efforts

and sales service. The other objective was to study the correlation of satisfaction with various

parameters.

As the company stands in the top five, it’s clear that it has very strong Customer Relationship

Management System and perfect people to handle it properly for the benefit of customers and

company as well. Actual and personal meeting with existing customers and employees has

brought me to the reality of the effectiveness of the system and their success. For analyzing the

same factor I worked as a Jr. HNI in the company during my internship period, acquired a client

on subscription and serviced him, to do a deep study on CRM. I also interviewed all the

Relationship Manager to get a clear insight of the Edelweiss CRM system.

Questionnaire is based on the existing services and the satisfaction level of the existing

customers which includes questions like Name, Age, Gender, Income, Investment Frequency,

feedback about services which they are provided like conformation, calls, suggestions, solutions

on stuck money like dead investment and all. On an average all the customers are happy with the

company and look forward to the growth of it.

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C. Scope of the study:

Scope of this study is it will assist Edelweiss Broking Ltd. to get its own Customer Relationship

Management system mirror well and it will get all the important things before eyes to apply all

the possible ways to provide a superb service to the customers and accordingly make them loyal

and retain them long lasting and also to get new customers to be served. Scopes can be stated in

few points as follows.

Maintain current / existing customers.

Achieve new potential customers.

Retain all the customers.

Profitability Increment

Reputation and credibility Increment, etc.

The heart of CRM is not being customer centric but rather to use customer profitability as a

driver for decision making and action. Before exploring this assertion, it is useful to review the

process of resource allocation as it is practiced in most organizations. The budget process largely

consists of an extrapolation of the past. Resource constraints pit function against function with

back room deals that are based on internal politics versus the marketplace. This decision process

has little insight as to what is working and what is not working (as it applies to the marketplace)

or for that matter why? Without insight relative to cause and effect, the organization has no

choice but to follow intuition and anecdote. It is analogous to the story about the marketing VP

who admitted that half the advertising budget was wasted; the problem was he did not know

which half.

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3. Company Profile

Edelweiss, a rare flower found in Switzerland. You will discover in our identity: A graphic

flower that represents ideas. Around it, the protective arms of the letter ‘e’: We believe ideas

create wealth, but values protect it.

It is the practice of this core thought that has led to Edelweiss becoming one of the leading

financial services company in India. Its current businesses include investment banking, securities

broking, and investment management. We provide a wide range of services to corporations,

institutional investors and high net-worth individuals.

The core inspiring thought of ‘ideas creating wealth and values protect it’ is translated into an

approach that is led by intrapreneurship and creativity and protected by intellectual

rigor, research and analysis. 

Approach

Client Focus

Edelweiss is driven by the emphasis we place on building long-term relationships with our

clients. We work closely with our clients to equip them with the ability to address large, fast

growing market opportunities. Our emphasis on long-term relationships also means that we have

a significant ongoing involvement with almost all of the clients that we work with. 

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Execution Orientation

We focus obsessively on delivering high quality execution through our experienced team of

professionals. Each team is led by senior personnel and is highly research and ideas driven. We

place strong emphasis on confidentiality and integrity in a sensitive business environment. 

Culture

Edelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizes

teamwork and intellectual rigor. Our team is encouraged to display higher levels of initiative,

drive, and hunger for learning and taking on additional responsibility. 

Professional Integrity

We place a strong emphasis on confidentiality, honesty and integrity in our business dealings.

We expect our people to maintain high ethical standards, both in their professional and personal

lives. We strive to be fair in all our dealings. We respect our competitors. 

Research Driven

All our businesses are built on a research and analytics foundation. Our understanding of

underlying market trends and strong analytical expertise has resulted in a demonstrated ability to

identify emerging trends and themes early. We seek to provide the highest quality research and

investment opinions to our clients

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Board of director

‘Ideas create, values protect’ is how we define what Edelweiss believes in. But when we say

‘values protect’ what do we mean? Here’s a handy guide to the values and principles we will live

by and live up to.

We will be a Thinking Organization. We will constantly bring ‘thought’ to everything we do.

Our clients’ and our own success depends on our ability to use greater ideation and more

imagination in our approach. 

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We will be Fair to our clients, our employees and all stake holders. We want our clients and our

employees to be ‘richer’ for their relationship with us. 

We will take care of our People seriously. Our policies – in spirit and in letter – will ensure

transparency and equal opportunity for all. We will go beyond the normal goals of attracting,

recruiting, retaining and rewarding fine talent: We will ensure that every individual in Edelweiss

has an opportunity to achieve their fullest potential. 

We will operate as a Partnership, internally and externally. Though individuals are very often

brilliant, we believe teamwork and collaboration will always ensure a better and more balanced

organization. We will also treat our clients as partners and show them the same respect and

consideration that we would toward our internal team members. 

We will focus on the Long Term. Though the world will change a lot in the coming years and

our assumptions for the future may not hold up, we will reflect on the long-term implications of

our actions. Even when making short-term decisions we will be aware of the long-term

implications. 

We will focus on Growth for our clients, employees and shareholders. 

Our Reputation and image is more important than any financial reward. Reputation is hard to

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build and even harder to rebuild. Reputation will be impacted by our ability to think for our

clients, maintain confidentiality and by our adherence to our value system. 

We will Obey and Comply with the rules of the land. We will maintain the highest standard of

integrity and honesty. When we are unclear we will seek clarifications. 

We will respect Risk. Our business is going to be a constant challenge of balancing risk and

reward. Our ability to constantly keep one eye on risk will guide us through this fine balance. 

Our Financial Capital is a critical resource for growth. We will endeavor to grow, protect, and

use our financial capital wisely.

The following is the product profile of the company.

Equity Broking - BSE and NSE

Derivatives Futures and Options

Internet Broking- Online Trading

Commodities Trading - NCDEX & MCX

Institutional Broking

Depository Services - NSDL & CDSL

Portfolio Management Services

NRI Investments

Initial Public Offerings (IPO)

Mutual Fund Investment

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Investment Banking

Overview

Our Investment Banking business is dedicated to providing corporations, entrepreneurs and

investors, the highest quality independent financial advice and transaction execution. Our

professionals offer a full range of services and transaction expertise, including private

placements of equity, capital raising services in public markets, mezzanine and convertible debt,

mergers and acquisition and restructuring advisory services. We have a track record of

successfully closing more than 100 transactions to date.

Our focused effort and research-driven approach enable our professionals to be among the most

knowledgeable and best in the business. Our business has been built on strong relationships,

innovation, and uncompromising ethical standards. We aim to create significant value for

entrepreneurs and mature companies by helping them execute the right capitalization strategy

Private Equity Advisory

A pioneer in Private Equity advisory since its inception 11 years ago with an established

leadership position in today's context. We have been a leading Private Equity advisor for over a

decade and have developed a strong expertise across industries which enable us to recognize

emerging industry themes and position transactions within the context. Our strength in Private

Equity advisory stems from:

Long standing relationships with marquee PE funds - Access to key decision makers at PE funds

gives us an unparalleled edge in optimal structuring and efficient closure of transactions. High

quality execution - An experienced team of professionals ensures complete confidentiality,

strong focus on implementation and quick turnaround time. Focus on long term relationships - In

addition to handholding the client across the entire transaction process, we provide continued

support post-transaction and have the capability to cater to investment banking needs of the

client throughout his business lifecycle. Having achieved a leadership position in the Private

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Equity advisory market, we believe that we are ideally placed to advise promoters and

companies on the key considerations in a PE fund raising exercise.

Structured Finance Advisory

Over the years, we have built up significant expertise in structuring appropriate financing

solutions for client specific situations and identifying and placing the transaction with

institutional investors. Our portfolio of solutions comprise the following-

Promoters Funding

Acquisition Financing

Promoter Funding

Promoter financing is mostly done to enable promoters to raise their stake in the company. The

financing is usually against collateral of shares or other securities held by the promoter in any of

the group company. The transaction helps in unlocking the value of promoter shareholding by

raising additional funds. It can also be structured to refinance a loan raised against the same

shares by the client earlier.

Acquisition Financing

There has been a significant increase in the number of acquisitions by Indian companies, both

domestic as well as overseas. Acquisition financing plays a critical role in the success of

inorganic growth planned by the acquirer. Based on each client’s unique requirements, we have

advised on acquisition financing through appropriate stacked financing structures which

comprise foreign currency senior secured debt with recourse to parent companies, rupee senior

secured debt with recourse to parent companies, equity investment by the promoters, non-

recourse debt, guaranteed mezzanine debt with equity upside.

Mergers and Acquisitions Advisory

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Edelweiss’ M&A team provides insights into how companies can grow and enhance their value. 

The M&A team is engaged in turnkey transaction management and advises a diverse range of

clients in medium to large transactions.  Our key strengths include independent advice, deep

sector knowledge backed by professionals with a range of training and experience that spans

across multiple cross-border deals and our relationships with large corporate.

Edelweiss advises companies in the entire transaction process – this range from target

identification to deal closure.  We provides both buy-side and sell-side advisory services as part

of our M&A advisory offering. Our services include identification and short listing of target

universe, strategic planning of an acquisition and arranging finance for the transaction, if

required.

Real Estate Advisory

Ever since the easing up of FDI into real estate development in India, Edelweiss has a dedicated

team offering Real Estate Advisory Solutions to property developers and investors seeking to

invest into the Indian Real Estate markets. Our advisory solutions are primarily focused on

capital rising and cover the optimal financing mix, project valuation, investment structuring and

accomplishing capital raising at either the enterprise level or the asset level.

We manage Real Estate IPOs, QIPs, advise enterprise level private equity financings, and

enterprise level mezzanine financing and structured debt. We have completed over $ 700 million

in capital rising in the last 18 months across multiple formats.

Edelweiss’ key value proposition to our clients include an excellent understanding and access to

both public and private capital markets combined with structuring capabilities and a strong

knowledge of underlying real estate markets in India through our in-house research. 

Equity Capital Markets

We are in the vanguard of equity capital markets having brought to the market a large number of

successful and path breaking transactions. We advise leading Indian companies, banks,

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institutions and businesses which are seeking to mobilize capital from investors in India and

overseas.

Edelweiss has a record of several marquee foreign and domestic issuances over the last 2 years.

Within the practice, we provide opportunities for clients to raise funds through the following – 

Initial Public Offering (IPOs)

Follow-on Public Offerings( FPOs)

Qualified Institutional Placements(QIP)

Rights Issues

Preferential Allotments

Foreign Currency Convertible Bonds(FCCBs)

Global Depository Receipts(GDRs)

Besides, our Equity Capital Markets practice also caters to the entire spectrum of capital market

needs through other services such as managing takeovers, delisting and buyback.We assist

innovative and exciting companies in accessing the equity capital market. We believe that our

strength lies in identifying present and future market leaders, working with them closely in

understanding and fine tuning their business model, and showcasing the investment opportunity

to the right set of investors. Our equity capital markets team has successfully managed/are

managing transactions for clients across numerous industry sectors including:

Aviation

Chemicals

FMCG

Hospitality

Infrastructure

Media and entertainment

Metals

Real estate

Technology

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Telecom

Textiles

We bring to the table our various strengths including industry insights and experience, expertise

in transaction structuring, grasp of the regulatory environment, understanding of market

dynamics, networking with domestic and foreign institutional investors and wide retail

distribution network. We work closely with our clients to develop and maintain the rapport and

dialogue with investors and thereby receive investor support in the primary as well as the

secondary markets.

We lay emphasis on developing a long-term relationship with our clients and escorting them in

their future endeavors. Keeping in mind this philosophy, Edelweiss Capital Limited offers clients

a bouquet of products encompassing primary offerings, secondary equity offerings, buybacks,

open offers and delisting, with the objective of continuously creating and maximizing value for

all stakeholders including companies and investors. We have the merchant banking and

underwriting licenses from the Indian securities market regulator, the Securities and Exchange

Board of India.

Infrastructure Advisory

A critical ingredient for sustainable development in India is the pressing need for Infrastructure

creation on a commercially viable basis. This signifies immense opportunities and challenges for

the sector. Recognizing this, Edelweiss’ new Infrastructure practice has been formed to provide

innovative solutions tailored to the unique financing and advisory requirements of Indian

infrastructure projects and developers.

Our team has a dedicated focus on the infrastructure sector, with considerable experience, a deep

understanding and a vast network of key relationships. We provide Infrastructure project

companies and developers the full range of capital and advisory services. 

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Our offerings include – 

Capital Raising

Private Equity 

Project Equity 

Structured Finance  

Project and ECB Debt 

Advisory Services

Mergers & Acquisitions – both Sell side and Buy side Divestitures, Corporate Restructuring and

Spin offs

Debt Restructuring Advisory

Businesses can get affected by more than just normal industry cycles. With expansion in

operations, businesses face increasing challenges that are more complex in nature than a simple

domestic demand slowdown or operational bottlenecks, particularly in the globalised

environment. A combination of adverse global and local factors can push profitable businesses

into a spiraling debt trap very rapidly. While several companies are able to steer through these

adverse economic conditions, some companies get caught in a financial quagmire leading to

severe liquidity constraints. An expert team with in-depth understanding of the debt restructuring

processes is required to help a company steer through the strain.

A successful restructuring process involves the following essential elements

Assessment of sustainable debt in the given circumstances

Dealing with unsustainable debts innovatively

Approaching lenders and other stakeholders with definitive strategies

Devising strategies and instruments for raising additional funds for operations as well as

for refinancing existing debt

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At Edelweiss we have a very competent team offering comprehensive debt restructuring

solutions, both under the formal Corporate Debt Restructuring (CDR) mechanism as well as

negotiations with lender/consortium of lenders. Our team of senior ex-bankers and restructuring

specialists have unparalleled experience of restructuring debts worth over Rs. 75,000 crores, and

an ability to provide complete solutions and support to the Corporates. 

Institutional equities

Overview

Edelweiss Securities Ltd., a subsidiary of Edelweiss Capital Ltd., is the equities arm of the

Edelweiss Group. The company is a corporate member of both The Bombay Stock Exchange and

The National Stock Exchange of India Limited, providing equity broking and research services,

as well as marketing of equity related products, including IPOs/FCCBs, to domestic and foreign

institutional investors.

Institutional Equities – Insightful Research. Winning Strategies

In our approach lies our difference. In a short span of six years, Edelweiss Capital’s Institutional

Equities Business (IE) has become one of the top five domestic brokerage houses and top three

derivatives desks. We are the only brokerage on the Street with a quant desk that provides a wide

product range, servicing all investor categories. Our innovative mindset, unparalleled research,

agile sales teams, and intensive execution systems have enabled us to relentlessly service our

clients in newer and different ways.

We cater to a wide clientele comprising leading domestic and international institutional

investors, including Pension Funds, Hedge Funds, Mutual Funds, insurance companies, and

banks.

Asset Management

Overview

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Edelweiss Asset Management offers a range of investment products and advisory services across

the risk return spectrum to individual and institutional investors. Our close focus on client

requirements is our inspiration in designing products which offer the best opportunity for asset

growth with a constant focus on risk and preservation of capital. 

Over the past 7 years we have significantly strengthened our equity product offerings to cover

the entire gamut of products. We have developed significant expertise in providing advisory

services in the alternative investments space through a deep knowledge of non traditional asset

classes such as derivatives.

Our products are designed to provide our clients with superior performance through market

cycles by virtue of our deep understanding of the equities markets and our analytical approach to

risks and return. 

Wealth Management

Overview

At Edelweiss, Wealth Management is a Practice; it is a specialized profession where our

experts combine their efforts to meet the wealth planning, investment, and financial management

needs of individuals, families, family offices, or corporate. 

More than just Financial Services, Edelweiss Wealth Management takes one step closer to

you, by providing an "all-in-one approach”. 

Customized Financial Solutions, Advice on asset allocation and thereby creating customized

financial solutions for HNWIs, NRIs, Trusts and Corporate. 

Wide range of Innovative Advisory services, We offer advisory services on Structured

Products, Portfolio Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity,

IPOs, Real Estate Funds and Art Funds.

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Private Client Brokerage

Overview

The Private Client Services Group at Edelweiss is focused on providing products, strategies and

services to High Net worth Individuals and Corporate Clients. We have geographic reach

through our Branches, Channel Partners & Investment Consultants in over 19 locations in India.

The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESL

Equity Advisor proactively helps you take informed investment decisions and build a healthy

portfolio. We draw on our strong presence and industry leadership to develop a portfolio of

offerings designed to serve the spectrum of financial needs.

Our main objective is to provide clients with all the tools and services they need to reduce the

administrative burdens of managing money and focus on what you do best - maximizing your

trading performance, building your business, and attracting new sources of capital.

Our investment philosophy is rooted in the following :

Capital preservation is key - Capital gains follow from a well-thought out investment strategy.

Invest in stocks with a long term view. Use a combination of top-down and bottom-up approach

to arrive at a basket of investment worthy stock. Invest on the basis of fundamental analysis of

companies taking into account market sentiments. Maintain discipline in booking profits and use

index futures to manage short term volatility.

Financing

Overview

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Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under

the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies. 

EHFL has an array of loan solutions which can be tailored to your requirements. If you’re

looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.

Client advisory services

Overview

At Edelweiss Client Advisory Services, our team is driven not just by the quality of our ideas,

but also professional ethics and integrity. We take pride in our philosophy of offering advice

which is in the best interest of our clients. Our emphasis on building long term relationship

ensures that we work closely with our clients empowering them to gain from market

opportunities through our online portal www.edelweiss.in  is a product that offers a unique

online investment experience that is intuitive, information rich and a hassle-free way to trade

online. It defines the next level in online trading technology. It enables intelligent investing with

market strategies custom suited to the client’s investment profile and current portfolio. 

Our Contribution to the Company

Post Assigned: Jr. HNI

Task Assigned:

Client Acquisition

Portfolio Designing

Client Servicing

First of all we attended one week training sessions on products offered by Edelweiss and we also

learnt how to do pitching with the client. We had to do tele-calling and speak to customers for

meetings. In the meetings we discuss various subscription plans offered by the company. We

explain them about the fundamental and technical research done by analyst. We also explain

them the online and offline mode of training. I as a Jr. HNI did meetings with four clients out of

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which two converted. There is discussion done with clients over their current portfolio and how

to modify it. We not only went to our own meetings but also Then the client servicing is done by

the RMs assigned to them. We were also assigned task of meeting various corporate parks to

bring quotations for stall setup for Edelweiss marketing. A proper analysis of area was done

which would be getting highest exposure and would be profitable for the company. Then when

the company launched Commodity plans we also started pitching the existing client over

commodity.

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4. Industry ProfileWhile regulation and reforms have made major improvements in the quality of the equity

markets in India, its rapid growth and development are largely due to strong and efficient market

intermediation. The robustness of the Indian markets today is attributable to a healthy blend of

the quality of market Structure and efficient intermediation. Even as several countries are

instituting procedures to commence. Equity derivative markets, India ranks amongst the top five

countries globally in this segment, in less than five years of its introduction. This is an example

of the proactive and progressive nature of the Indian brokerage industry.

In the last decade, the Indian brokerage industry has undergone a dramatic transformation. From

being made of close groups, the broking industry today is one of the most transparent and

compliance oriented businesses. Long settlement cycles and large scale bad deliveries are a thing

of the past with the advent of T+2 (Trading day + 2 days) settlement cycle and dematerialization.

Large and fixed commissions have been replaced by wafer thin margins, with competition

driving down the brokerage fee, in some cases, to a few basis points.

There have also been major changes in the way business is conducted. Technology has emerged

as the key driver of business and investment advice has become research based. At the same

time, adherence to regulation and compliance has vastly increased. The scope of services have

enhanced from being equity products to a wide range of financial services. Investor protection

has assumed significance, and so has providing them with education and awareness. Greater

need for capitalization has induced several firms to access the capital market; foreign firms are

showing increasing interest in taking equity stakes in domestic broking firms.

Major developments in equity brokerage industry in India:

1. Corporate memberships

There is a growing surge of corporate memberships (92% in NSE and 75% in BSE), and the

scope of functioning of the brokerage firms has transformed from that of being a family run

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business to that of professional organized function that lays greater emphasis on observance of

market principles and best practices. With proliferation of new markets and products, corporate

nature of the memberships is enabling broking firms to expand the realm of their operations into

other exchanges as also other product offerings. Memberships range from cash market to

derivatives to commodities and a few broking firms are making forays into obtaining

memberships in exchanges outside the country subject to their availability and eligibility.

2. Wider product offerings

The product offerings of brokerage firms today go much beyond the traditional trading of

equities. A typical brokerage firm today offers trading in equities and derivatives, most probably

commodities futures, exchange traded funds, distributes mutual funds and insurance and also

offers personal loans for housing, consumptions and other related loans, offers portfolio

management services, and some even go to the extent of creating niche services such as a

brokerage firm offering art advisory services. In the background of growing opportunities for

investors to invest in India as also abroad, the range of products and services will widen further.

In the offing will be interesting opportunities that might arise in the exchange enabled corporate

bond trading, soon after its commencement and futures trading that might be introduced in the

near future in the areas of interest rates and Indian currency.

3. Greater reliance on research

Client advising in India has graduated from personal insights, market tips to becoming

extensively research oriented and governed by fundamentals and technical factors. Vast progress

has been made in developing company research and refining methods in technical and

fundamental analysis. The research and advice are made online giving ready and real time access

to market research for investors and clients, thus making research important brand equity for the

brokerage firms.

4. Accessing equity capital markets

Access to reliable financial resources has been one of the major constraints faced by the equity

brokerage industry in India since long. Since the banking system is not fully integrated with the

securities markets, brokerage firms face limitations in raising financial resources for business

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and expansion. With buoyancy of the stock markets and the rising prospects of several well

organized broking firms, important opportunity to access capital markets for resource

mobilization has become available. The recent past witnessed several leading brokerage firms

accessing capital markets for financial resources with success.

5. Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of them pursued growth

and development attracted foreign financial institutions and investment banks to buy stakes in

domestic brokerage firms, paving the way for stronger brokerage entities and possible scope for

consolidation in the future. Foreign firms picked up stake in some of the leading brokerage firms,

which might lead to creating of greater interest in investing in brokerage firms by entities in

India and abroad.

6. Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there are some which are

creating niche services that attract a particular client group such as day traders, arbitrage trading,

investing in small cap stocks etc, and providing complete range of research and other support to

back up this function.

7. Online broking

Several brokers are extending benefits of online trading through creation of separate windows.

Some others have dedicated online broking portals. Emergence of online broking enabled

reduction in transaction costs and costs of trading. Keen competition has emerged in online

broking services, with some of these offering trading services at the cost of a few basis points or

costs which are fixed in nature irrespective of the volume of trading conducted. A wide range of

incentives are being created and offered by online brokerage firms to attract larger number of

clients.

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8. Compliance oriented

With stringent regulatory norms in operation, broking industry is giving greater emphasis on

regulatory compliance and observance of market principles and codes of conduct. Many

brokerage firms are investing time, money and resources to create efficient and effective

compliance and reporting systems that will help them in avoiding costly mistakes and possible

market abuses. Brokerage firms now have a compliance officer who is responsible for all

compliance related aspects and for interacting with clients and other stake holders on aspects of

regulation and compliance.

9. Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as training on skill sets

that could prove to be beneficial in the long run. With the nature of markets and products

becoming more complex, it becomes imperative for the broking firms to keep their staff

continuously updated with latest development in practices and procedures. Moreover, it is

mandated for certain types of dealers/brokers to seek specific certification and examinations that

will make them eligible to carry business or trade. Greater emphasis on aspects such as research

and analysis is giving scope for in-depth training and skills sets on topics such as trading

programs, valuations, economic and financial forecasting and company research.

10. From owners to traders

A fundamental change that has taken place in the equity brokerage industry, which is a global

trend as well, is the transformation of broking from owners of the stock exchange to traders of

the stock market. Demutualization and corporatization of stock exchanges bifurcated the

ownership and trading rights with brokers vested only with the later and ownership being widely

distributed.

Demutualization is providing balanced welfare gains to both the stock exchanges and the

members with the former being able to run as corporations and the latter being able to avoid

conflict of interests that sometimes came as a major deterrent for the long term growth of the

industry.

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Emerging challenges and outlook for the brokerage industry .Brokerage firms in India made

much progress in pursuing growth and building professionalism in operations. Given the nature

of the brokerage industry being very dynamic, changes could be rapid and so as the challenges

that emerge from time to time. A brief description on some of the prospects and challenges of the

brokerage firms are discussed below.

11. Fragmentation

Indian brokerage industry is highly fragmented. Numerous small firms operate in this space.

Given the growing importance of technology in operations and increasing emphasis on

regulatory compliance, smaller firms might find it constrained to make right type of investments

that will help in business growth and promotion of investor interests.

12. Capital Adequacy

Capital adequacy has emerged as an important determinant that governs the scope of business in

the financial sector. Current requirements stipulation capital adequacy in regard to trading

exposure, but in future more tighter norms of capital adequacy might come into force as a part of

the prudential norms in the financial sector. In this background, it becomes imperative for the

brokerage firms to focus on raising capital resources that will enable to give continuous thrust

and focus on business growth.

13. Global Opportunities

Broking in the future will increasingly become international in character with the stock markets

being open for domestic and international investors including institutions and individuals, as also

opportunities for investing abroad. Keeping abreast with developments in international markets

as also familiarization with global standards in broking operations and assimilating major

practices and procedures will become relevant for the domestic brokerage firms.

14. Opportunities from regional finance

Regional economic integration such as that under the European Union and the ASEAN have

greatly benefited businesses in the individual countries with cross border opportunities that

26

helped to expand the scope and significance of the business. Initial measures to promote South

Asian economic integration is being made by governments in the region first at the political level

to be followed up in regard to financial markets. South Asian economic integration will provide

greater opportunities for broking firms in India to pursue cross border business. In view of

several of common features prevailing in the markets, it would be easier to make progress in this

regard.

15. Product Dynamics

As domestic finance matures and greater flow of cross border flows continue, new market

segments will come into force, which could benefit the domestic brokerage firms, if they are well

prepared. For instance, in the last three to four years, brokerage firms had newer opportunities in

the form of commodities futures, distribution of insurance products, wealth management, mutual

funds etc, and as the market momentum continues, broking firms will have an opportunity to

introduce a wider number of products.

16. Competition from foreign firms

Surging markets and growing opportunities will attract a number of international firms that will

increase the pace of competition. Global firms with higher levels of capital, expertise and market

experience will bring dramatic changes in the brokerage industry space which the local firms

should be able to absorb and compete. Domestic broking firms should always give due focus to

emerging trends in competition and prepare accordingly.

17. Investor Protection

Issues of investor interest and protection will assume centre stage. Firms found not having

suitable infrastructure and processes to ensure investor safety and protection will encounter

constraints from regulation as also class action suits that investors might bring against erring

firms. The nature of penalties and punitive damages would become more severe. It is important

for brokerage firms to establish strong and streamlined systems and procedures for ensuring

investor safety and protection.

27

Equities

What is equity?

Funds brought into a business by its shareholders are called equity. It is a measure of a stake of a

person or group of persons starting a business.

What does investing in equity mean?

When you buy a company's equity, you are in effect financing it, and being compensated with a

stake in the business. You become part-owner of the company, entitled to dividends and other

benefits that the company may announce, but without any guarantee of a return on your

investments.

Dematerialization

What is Demat?

Demat is a commonly used abbreviation of Dematerialization, which is a process whereby

securities like shares, debentures are converted from the "material" (paper documents) into

electronic data and stored in the computers of an electronic Depository.

You surrender material securities registered in your name to a Depository Participant (DP).

These are then sent to the respective companies who cancel them after dematerialization and

credit your Depository Account with the DP. The securities on dematerialization appear as

balances in the Depository Account. These balances are transferable like physical shares. If at a

later date you wish to have these "Demat" securities converted back into paper certificates, the

Depository can help to revive the paper shares.

What is the procedure for the dematerialization of securities?

Check with a DP as to whether the securities you hold can be dematerialized. Then open an

account with a DP and surrender the share certificates.

What is a Depository?

A Depository is a securities "bank," where dematerialized physical securities are held in custody,

and from where they can be traded. This facilitates faster, risk-free and low cost settlement. A

Depository is akin to a bank and performs activities similar in nature. At present, there are two

Depositories in India, National Securities Depository Limited (NSDL) and Central Depository

28

Services (CDS). NSDL was the first Indian Depository. It was inaugurated in November 1996.

NSDL was set up with an initial capital of Rs 124 crores, promoted by Industrial Development

Bank of India (IDBI), Unit Trust of India (UTI), National Stock Exchange of India Ltd. (NSEIL)

and the State Bank of India (SBI).

Who is a Depository Participant (DP)?

NSDL carries out its activities through business partners - Depository Participants (DPs), Issuing

Corporate and their Registrars and Transfer Agents, Clearing Corporations/Clearing Houses.

NSDL is electronically linked to each of these business partners via a satellite link through Very

Small Aperture Terminals (VSATS). The entire integrated system (including the VSAT linkups

and the software at NSDL and at each business partner's end) has been named the "NEST"

(National Electronic Settlement & Transfer) system. The investor interacts with the Depository

through a Depository Participant of NSDL. A DP can be a bank, financial institution, a custodian

or a broker.

29

5. Literature Review

Historical Background:

Customer relationship management (CRM), a concept that has been around since the mid 90s,

has its roots in the technology of sales automation and call center operations. At that time, it was

thought that merging the customer data from the field (sales) with the call center interactions

would result in more informed interactions with the customer. The concept resonated with user

organizations and soon mergers and acquisitions created a host of software vendors all claiming

to have an integrated set of capabilities that became known as CRM.

On a parallel track, Internet-based tools such as e-commerce, Internet marketing, personalization,

and self-help were evolving. These products competed outside of the CRM sphere due to the

newness of the technology, and they were referred to as e-business. When the concepts of CRM

and e-business melded together there was a short period of e-madness where vendors talked

about eCRM and e-everything. There are still vestiges of this transition in the industry such as

essentially using e-business to add value to vendors and referring to it as partner relationship

management (PRM) or providing tools for employees and referring to it as employee relationship

management (ERM).

Similarly, enterprise resource planning (ERP) vendors realized that the 360-degree view of the

customer has to include transaction data, so they have likewise developed an integrated package

with CRM capabilities. Thus from a technology perspective CRM consists of a set of

applications that address the needs of customer-facing functions that in turn feed a common

database that is supported by business analytics. Each vendor has variations on this theme.

On the other hands, CRM can be defined as a process or methodology used to learn more about

customers‟ needs and behaviors in order to manage and develop stronger relationships in an

organized way with them.

30

Components of CRM:

1. Contact an Account Management:

Relevant data for customer profile is captured with the help of the software. Necessary

information is captured from prospective customers. CRM system stores data in common

customer database. The database integrates customer account information and presents it in

desirable format to the company. The data is used for sales, marketing, services and other

applications.

2. Sales:

Sales process management follows a customized sales methodology with specific sales policies

and procedures. Sales activities include – Product information, Product configuration, sales

prospectus and sales quote generation. CRM also provide the history of customer account so that

the sales call can be scheduled accordingly.

3. Marketing and fulfillment:

CRM helps the professionals in product marketing, target marketing, relationship marketing and

campaign management. By analyzing customer and business value of direct marketing can be

estimated. CRM also helps in customer retention, behavior prediction, channel optimization,

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personalization. Customer response and requests can be quickly scheduled and hence sales

contacts.

4. Customer Service and support:

CRM system provides service representatives with adequate access to customer database. It also

helps to create, assign and manage the service requests by customers. Calling format is designed

to route customer calls to respective attendants as per the skills and authority to handle special

cases. Help desk system is developed to help customer service representative to help customers

who face problems with product or service to resolve it. Web-based Self Service means help

customer to access personalized information at company website.

5. Retention and loyalty programs:

The primary objective of CRM is to enhance and optimize customer retention and loyalty. CRM

systems are also useful in determining most loyal and profitable customers and reward.

The essential link between Marketing, Sales and Customer Service: Too often, the three key

functions that directly affect customers -Marketing, Sales and Customer Service – operate

independently of one another. This can create confusion and inconsistency in how you

communicate and service your customers. For examples, marketing staff may come up with a

price promotion. However, if that is not communicated to the sales team, the result could be

32

incorrect billing, which may take time or resources from the customer to rectify and could create

ill will and mistrust, making it seem like your company does not adhere to its word.

Similarly, if a salesperson makes a sale and gives certain guarantees to a customer but those are

not communicated to the customer service team or even to the other sales team members, then

the customer may fees as if the company is not standing behind its assurance. This can be

particularly problematic if there is employee turnover and poor communication between or even

departments. This silo effect – where information is between vertically in departments that may

or may not communicate with each other- could actually damage your business.

With comprehensive CRM system, however, customer communication is captured and housed in

an accessible database, making the most current information available to anyone who needs it

and has access to the system. By breaking through barriers between various business functions

and making communication transparent, your company can act in a more consistent and unified

fashion with its customers, instilling a greater level of trust and strengthening customer

relationships.

33

6. Research Methodology

Research Design:

Research design means adopting that type technique of research which is most suited for the

research and study of the problem. For the study and the research of the problem proper material

has to be selected and collected for the investigation. “A research design is the arrangement of

conditions for collection and analysis of data in a manner that aims to combine relevance to the

research purpose with economy in procedure.”

In order to know about effectiveness of Customer Relationship Management in Edelweiss

Broking Ltd., it was necessary to interact with the customer. The sample taken comprised of

respondents from Mumbai city. A questionnaire had to be designed to collect valuable

information from the different customer groups. The questionnaire was designed suitably to meet

the objective of research work.

Nature of Research:

In this project report I have undertaken quantitative type of study.

Type of the questions:

The questions in the questionnaire asked to the customers of Edelweiss Broking Ltd, Dadar, are

Straight Forward and Limited Probing.

Type of the Questionnaire:

The questionnaire in this project report is straight forward and formalized.

Type of Analysis:

The analysis done in this particular project report is statistical.

34

Sources of Data:

a. Primary Data:

The Primary data are those data which are collected fresh and for the first time and thus happen

to be original in character. The primary data that was collected through interview conducted in

Regional Branch with daily visiting customers. The primary data sources include copies of

questionnaire and data of their respective responses.

b. Secondary Data:

The secondary data are those which have already been collected by someone else and which

have been passed through the statistical process. Secondary data was collected through company

websites http://www.edelweiss.in/.

Primary Data Collection

Research Technique:

As the researcher, I adopted survey method as a research technique for this particular project

report.

Contact Method:

I as a researcher interviewed the respondents by interview on telephone. Approximately 200

people were called out of which 30 responded. The questionnaire is designed with lesser options

so that customers can answer quickly

Sampling Plan:

a) Population:

The population covered in this project report refers to the existing customers of Regional Office,

who have their trading and Demat A/c with Edelweiss Broking Limited.

b) Sample Size

The sample size undertaken by me for this particular project report is 100 respondents.

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c) Sample Element

The respondents contacted and interviewed in this project report are all from different domain

some of them were Businessmen, High Net-worth Investors, Proprietors, even Students also

invest in Share Market.

d) Sample Extent

As a researcher, I conducted this survey only for the customers in Edelweiss Broking Ltd, Dadar

Branch, who have opened their Demat account on various subscriptions.

e) Sample Duration

The survey was undertaken from the 13th June, 2011 to 25th June, 2011 i.e. for two weeks.

f) Research Instrument

Questionnaires containing both open ended and close ended questions were used as a research

instrument in this particular project report.

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Questionnaire

1. Name:__________________________________________

2. Contact Number:_________________________________

3. Occupation:______________________________________

4. Income Group (Annual): 10000- 1Lakh 1Lakh- 5Lakh

5Lakh- 10Lakh 10Lakh and above

5. How do you find Company Interaction via Email and Telephone calls?

Poor Fair Good Very Good

6. Do you find company’s research on the markets useful and beneficial?

Yes No Can’t Say

7. Where do you rate Edelweiss Broking Limited on the scale of 10 in terms of Services?

4 6 8 10

8. Where do you invest/ trade mostly?

Equity Commodity F&O Currency

9. Where do you trade mostly?

Intraday Trading Delivery Trading

37

10. Do you trade in any other broking firm?

Yes No

If Yes, name of the broking firm__________________________________

11. Are you satisfied with the services provided by Edelweiss Broking Ltd.?

Yes No

12. Will you be taking the subscription plan again?

Yes No

13. Since last how many years you are in field of trading?

Less than 1 Year More Than 1 Year More than 5 Year

14. What improvement do you want be done in company’s services?

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

15. Which service do you like most in Edelweiss Broking Ltd.?

________________________________________________________________

________________________________________________________________

________________________________________________________________

_________________________________________________________________

_________________________________________________________________

38

7. Data Analysis & InterpretationAll the data analysis and interpretation was done using Microsoft Excel, based on the

answers given by the customers via questionnaire.

Respondents

Respondents Business HNIs Individuals Proprietors

No of Individuals 9 3 15 3

30%

10%50%

10%

Business HNIs Individuals Proprietors

Interpretation:

Above pie chart represents that research contains 30 respondents which are Businessmen, HNIs,

Proprietors and Individuals and they are 9, 2, 15 and 3 respectively in numbers and percentages.

39

Income Group (Annual)

Income

Group 10000-1Lakh

1Lakh5Lak

h 5Lakh-10Lakh 10Lakh & above

No of

Individuals 14 10 3 3

47%

33%

10% 10%

10000-1Lakh 1Lakh-5Lakh5Lakh-10Lakh 10Lakh & above

Interpretation:

Above pie chart represents that the research contained 30 investors and customers of Edelweiss

Broking Ltd. All the people were from different Income group which are in numbers shown

above. We can clearly see sample includes more customers from first income group i.e. INR

10,000 – 1 Lakh and second income group i.e. 1 Lakh – 5 Lakh. The indication is simple people

with lesser income are more interested in investment and wealth creation rather than the high

income group. So basically there is requirement to concentrate on high income group, there is

need to educate them to invest for wealth expansion.

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1. Company Interaction via Email and Telephone Calls:

Interaction Poor Fair Good Very Good

Respondent

s 3 14 7 6

10%

47%23%

20%

Poor Fair Good Very Good

Interpretation:

From the above result of Company Interaction via Email and Telephone calls, we can imagine

the satisfaction level of customers and accordingly Customer Relationship is managed through

electronic media to maximize the wealth of customers. In Edelweiss mostly dealers and RMs are

in touch of regular traders and customers also get loyal to the company through this practice.

Every call is taped by default for the evidence of orders to buy or sell the stocks and Emails too.

The over all result is fairly good. But the following answer can also be based on the interaction

of the retail employees, where language barrier is an issue. They find it difficult to interact with

customers sometimes because of lack of knowledge of the language spoken on the customer side.

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2. Do you find company’s research on the markets useful and

beneficial?

Research Yes No Can't say

Respondents 25 4 1

83%

13% 3%

Yes No Can't say

Interpretation:

When it was asked sudden and on the time answer was the same of maximum people, it means

the credibility and trustworthiness of the company is on the height. It’s nothing but the result of

Relationship Management. It is said that Share Market means “Well of Loss”, nevertheless

Edelweiss’s Customer don’t have any tension in investing because they believe in Company’s

Researchers and Analysts and their research on the market too. Edelweiss has research done on

each company based on technical and fundamental aspects. They provide various research and

strategy based on the research done by the analysts of the company. These are the same research

which is done for various Foreign Institutional Investors (FII) clients, who have their investments

in crores.

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3. Where do you rate Edelweiss Broking Limited on the scale of 10 in

terms of Services?

Rating 4/10 6/10 8/10 10/10

Respondents 2 11 13 4

Implication Bad

Satisfacto

ry Good

Excelle

nt

7%

37%

43%

13%

Rate4 Rate6 Rate8 Rate10

Interpretation:

These scores are given out of 10 by the customers. From the above answers Customer

Relationship can be very well highlighted because out of 30, every customer has his own value

and consideration about Edelweiss because they invest their Hard Earned money and take risk to

earn more cause of Edelweiss’s Services and Attachment and it is all the output of Customer

Relationship Management. Many people have rated Edelweiss 8, which means they are happy

with the overall performance of the company. One of the person who gave rating 4 said that the

companies performance is poor. He was the one whose form processing took 1 month and in

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trading went into loss. One of the person who gave rating 10, got his account opened in very less

time and also made high returns on his investments. Here the luck factor also comes into picture.

4. Where do you invest/ trade mostly?

Investment Equity

Commodit

y F&O Currency

Respondents 20 3 4 3

67%

10%

13%10%

Equity Commodity F&O Currency

Interpretation:

One general question was asked in questionnaire to know the investment flow of customers

towards Edelweiss Services. When it was asked why they invest in specific area mostly then it

was answered by many people that liquidity market is easy to make money out of investment and

take money out whenever we feel not to put. And other reason many customers don’t want to

44

invest for long time. And about currency some people were not interested. There are less people

in commodity because Edelweiss launched it last month i.e. June 2011.

5. Where do you trade mostly?

Trading Options Intraday Delivery

Respondent 4 26

13%

87%

Intraday Delivery

Interpretation

From the above view of graph we come to know that minimum people, 13% customers

trade in Intraday Trading. On this customers say they like to trade in Intraday because of

Short term investment and high level of excitement and sometimes they feel their money

seems to sink. It’s like One Day Cricket play for many customers. The intraday research

is done on technical research which is not that strong and there is a fear of losing money.

In Delivery, people say here is ‘No / Low Risk, More Money’. The Delivery Trading is

done on Fundamental research of the company which is strong with proven reports. That

is why people invest more in Delivery.

45

Hence we find people hesitate to invest in Intraday and confident to trade in Delivery

trading. Eventually Edelweiss is the Broking firm which doesn’t lose its attention from

making money for its customers and lose its attention from Customer Relationship

Management.

6. Do you trade in any other broking firm?

Do you trade in other

broking firm? Yes No

Respondent 6 24

20%

80%

Yes No

Interpretation:

Above pie chart represents the minimum people have their Demat account and Trading account

somewhere else also nevertheless they say they trade from Edelweiss only and few of their other

account are put Non-Operating by them.

Here we get a fact that Edelweiss’ Customer Relationship Management really has something

very attractive and attachable to emotions cause of services.

46

Few of them were hesitating while answering this question, feeling that their relations may spoil

with Edelweiss and RM would not give good performance.

7. Are you satisfied with the services provided by Edelweiss Broking Ltd.?

Satisfied? Yes No

Respondents 24 6

80%

20%Yes No

Interpretation

Above chart represents us the output of Customer Relationship Management with the help of the

services and customers satisfaction can show a mirror of the efforts of the company towards

making their customers loyal to them.

Here 73% customers have selected and stated that they are fully satisfied with the services that

they are getting from Edelweiss Broking Ltd.

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8. Will you be taking the subscription plan again?

Buy Again Yes No

Respondents 22 8

73%

27% Yes No

Interpretation

The company sells subscription on yearly basis and makes business. If the company is able to

provide good service to the customers they are bound to come back after their subscription

expires. The company won’t find any difficulty in getting the business.

Here we can see 27% won’t buy subscription next time. The reason could be dissatisfaction.

Sometimes the RM leaves the company and leaves the clients under him in mess. That’s why

company should go into the reason of the dissatisfaction of the clients, to retain them.

48

9. Since last how many years you are in field of trading?

No. of Years Less than1 yearMore Than 1

YearMore than 5

YearRespondents 7 18 5

23%

60%

17%Less than1 year More Than 1 Year More than 5 Year

Interpretation:

This question was asked intentionally to know the loyalty of customers with Edelweiss Broking

Ltd., since how many years they have been investing. These figures show all things are the proud

of Edelweiss and its customers are also very proud to be in Edelweiss. Edelweiss is newer than

most of the broking firm hence there are very less clients in the ‘More than 5 year’ pie. And the

‘More than 1 year shows that most of them are satisfied with Edelweiss and have brought the

subscription once again after expiry.

49

7. Correlation

In statistics, dependence refers to any statistical relationship between two random variables or

two sets of data. Correlation refers to any of a broad class of statistical relationships involving

dependence.

Familiar examples of dependent phenomena include the correlation between the

physical statures of parents and their offspring, and the correlation between the demand for a

product and its price. Correlations are useful because they can indicate a predictive relationship

that can be exploited in practice.

Analysis of Correlation

In simple words, Correlation is a statistical measurement of the relationship between two

variables. Possible correlations range from +1 to –1. A zero correlation indicates that there is no

relationship between the variables. A correlation of –1 indicates a perfect negative correlation,

meaning that as one variable goes up, the other goes down. A correlation of +1 indicates a

perfect positive correlation, meaning that both variables move in the same direction together.

Customer Relationship Management

In CRM the most important parameter is satisfaction. Hence we need to check the correlation of

satisfaction with various parameters. Here the analysis will be done using Microsoft Excel, based

on the answers given by the customers via questionnaire.

Satisfaction & Interaction with customer: The satisfaction and interaction both show

positive correlation; this proves that the telephones and the emails which customers

50

receive are very much beneficial to them. The branch itself works on the tele-marketing

strategy.

Satisfaction & Companies research: The analysis gives the result that satisfaction and

the research provided by the company are correlated because the customers totally rely

on the research done by the analysts of Edelweiss Broking Limited. The Research helps

the customers to take investment decisions and the positivity of the investment done on

research leads to customer satisfaction.

Satisfaction & Trading in another broking firm: The analysis gives the result that they

(satisfaction and trading in another broking firm) are negatively correlated this shows that

if customers are dissatisfied with the services then there is possibility that they will

approach other broking firm for their investments.

Satisfaction & Re-buying Subscription: Here a positive correlation is observed

between satisfaction and re-buying subscription. If the customers are satisfied with the

product it contributes to customer retention. As a new branch if Edelweiss looks into

providing proper services then the customers will buy the subscription again when it

expires.

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9. Findings

Customer Relationship Management Business Drivers and Benefits

It empowers management with a real-time pipelines and forecasting so they can build and

focus on high profit, sustainable relationships.

It empowers staff with customer intelligence and best practices to increase their

likelihood of successful transactions.

It increases customer’s acquisition, retention, loyalty, and profitability by integrating

information across the enterprise.

It enables executive and management to gain customer insight.

Customer Relationship Management Risks

Effective internal controls must be in place to prevent customer information from

becoming scattered across databases and servers.

CRM can be associated with significant revenue cycle.

CRM should be kept and handled and carefully kept inside the company only otherwise

Customers Database can be misused by rivals.

Customer Common Findings while contacting:

Generally people whom I have contacted they were from different domains like Business,

Proprietors, High Net worth Income Group (HNIs) and students.

Their responses may not be proper because of lack of time dedication.

52

This data is called Primary Data, which is considered very genuine but in this case it

misrepresents the Reality and Credibility.

Some people, its felt that they gave fake response, with impression that this questionnaire

is from Edelweiss Broking Ltd. internal.

Some people did not take it serious because this was not important to them as they are

busy for trading at dealing Room.

Every data interpretation and statistics cannot be trustworthy from their results because

this study is for only two months altogether.

Company’s Limitations:

The language problem in the retails, which led to interaction problem.

The time involved to re-inward the form after rejection.

No service given to lower plan subscribers.

Too many rules leading to form rejection.

More concentration on client acquisition rather than client servicing.

More number of customers assigned to one RM.

53

10. Limitations

1. Many consultants, vendors, and analysts today define CRM in terms of being a customer-

centric business strategy that is enabled by a set of applications that support customer-facing

functions and management decision making. That may capture the essence of what CRM is, but

while it does not concentrate on the extra expenses occurring on Company’s A/c due to

increment in expenses in serving customers all the ways and Return on investment means

consideration may not be more than expected. Customer may not give that much business

transactions which is estimated or expected.

2. It may need specific staffs to handle all the tasks of Customer Relationship Management

because the data that is feed in system cannot be handled merely by Relationship Managers who

has to make new customers and take care of their dealings and also to accomplish their additional

responsibilities.

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10. Suggestions

1. Short Duration:

Project research duration was only for two weeks; in this tenure neither study nor

observation can be done properly. For example, we saw sample plan – in that only 30

customers could be contacted and now the problem is- from this samples we cannot think

of Macro Level Perception of customers. Many people may be from same point of view

and many may not and those 30 people may not contain these types of people. So

duration of Research Project should be more than two weeks.

2. Overcoming Limitations:

Language Barrier: The employees in Edelweiss at least need to know three basic

languages i.e. Hindi, English and Marathi, its very essential because at times the language

barrier of the customer leads to the call drop which is not at all desirable. So company

needs to hire employees having good communication skill and command over basic

languages.

Form Rejection: The forms which gets rejected needs to be worked on fast to avoid

delay because it always adds to dissatisfaction among the customers. Also the rules for

form rejection should be minimized to some extent, because it delays the account

opening.

Lower plan service: The customers who have lower plans should be given basic training

for how to invest, since they don’t have an RM.

Client servicing: there is requirement to do client servicing for retaining the customers

rather than client acquisition. The RM should be assigned a limited amount of customers

to service and he should not be given the assignment of client acquisition. Its better to

keep the department separate.

Consumer Complaints: There is a need of consumer complaint department, where

consumers can directly complaint, so that the problem can be worked out instantly.

55

3. Customer Category:

To find effective Customer Relationship Management, Broking firm can do one more

thing which will be very beneficial to them in finding Asset Customers from the bottom

level management to top level management. Edelweiss should adopt system of allotting

Customer Categories according to their transactions, due payments, exposure, loyalty,

frequency of trading and all.

In this system at all the level where CRM is handled and watched by Top class officials

of the company, they also get to know the list names and details of the loyal customers

and CEO or Board of Directors also get to know total customers and at last their turnover

of the total transaction.

4. Affiliated Awareness Programs:

Edelweiss should arrange affiliated programs within its own groups to come to the sense

of new people and accordingly to prospecting and acquiring new customers.

With the help of it companies CRM will help it to get height of success and dominate the

world of Services. Because CRM affects Marketing, Sales and profitability and these all

can be achieved by CRM.

For E.g., Edelweiss Broking Ltd. can play few awareness documentaries and

Advertisement, this will result in getting more and more customers to serve and

accordingly Edelweiss can become the first ranker in turnover very soon.

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References

By: Mithas, Sunil; Krishnan, M. S.; Fornell, Claes. Journal of Marketing, Oct2005, “Why Do Customer Relationship Management Applications Affect Customer Satisfaction?” Vol. 69 Issue 4, p201-209.

 Ryals, Lynette. Journal of Marketing, Oct2005, “Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships”, Vol. 69 Issue 4, p252-261.

Edelweiss Broking Limited, 2009, accessed 3rd July 2011, <www.edelweiss.in>.

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