ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA KINH TẾ

BÙI VIỆT BẢO Những vấn đề khoa học và thực tiễn để hình
thành hệ thống bảo hiểm thất nghiệp ở Việt
Nam

LUẬN VĂN THẠC SĨ KINH TẾ CHÍNH TRỊ


1.6.2 Lower costs 18
1.6.3 Repeat customer often cost less to service 18
1.6.4 Opportunities for cross-selling 18
1.6.5 Defection less likely 19
1.6.6 Employee retention 19
1.6.7 Family influence 19
1.6.8 Word of mouth marketing 19
1.7 The reason why CRM fails: 21
CHAPTER 2: BACKGROUND ON VIETNAM BANKING MARKET AND VPBANK SITUATION
ANALYSIS 25
2.1 Overview of Vietnam Banking Market 25
2.1.1 Background 25
2.1.2 Commercial Banks' Market 27
2.2 Situation of VPbank 30
2.2.1 Vision 30
2.2.2 VPbank’s mission, strategy and performance results in 2001-2005… 31

v
2.2.3 SWOT analysis 42
2.2.4 Value chain analyis 48
CHAPTER 3: RECOMMENDATIONS TO BUILD A STRATEGIC PLAN FOR APPLYING CRM IN
VPBANK
3.1 VPBank competitive advantages and general strategy from 2006-2010…53
3.2 Application plan of CRM in VPBank: 57
3.2.1 The first phase: Build foundation for CRM 60
3.2.2 The second phase: Deploy CRM 65
3.2.3 The third phase: CRM development 77
3.2.4 Conclusion 79
-
Profit in the first six months of 2005
Chart 2.4
-
Mobilizing fund grow rate in 2003-2004
Chart 2.5
-
ROE comparison 1
INTRODUCTION
Competition in Vietnam business environment increases rapidly, especially
when opening the economy. By approval of operation of economic partners,
competition between industries and units of industry is significantly rising. Besides
that, expanding economic integration requires firms to improve quality of products and
services in order to create competitive advantages.
There is high competitiveness between commercial banks in inter-bank market.
Competitiveness is really carrying out between state banks and joint stock banks, two
biggest bank system in Vietnam. Moreover, joint venture banks and foreign banks are
emerging as potential competitors in the banking market.
Foreign banks will absolutely create high pressure on Vietnamese banks. When
foreign banks are free to operate in Vietnam, they will be big competitors of not only
state banks but also joint stock banks. This is reason why Vietnamese banks have to
apply modern technology in payment and management and diversify services in order
to create competitive advantages.
Vietnam joint stock commercial bank for private enterprises (VPBank) is entirely
businesses under high competitiveness pressure. It is difficult for VPBank to compete
against state banks because the government protects the state-owned banks. State banks
have many advantages under government‟s protection and they definitely drive

VPBank.
Questions
To achieve these objectives above, the dissertation will answer three key questions
follow:
1) What factors have significantly affected operations of VPBank?
2) What will be competitive strategy for VPBank in 2006 – 2010 and the
relationship between the new strategy and CRM?

3
3) How to apply CRM solution?
3. Methodology
To find a relevant strategy for VPBank, the thesis will analyze competitive
advantages based on analyzing SWOT and value chain.
Data is definitely collected from secondary data source. They are government‟s
reports, Central Bank‟s annual reports, legal documents related to banking system,
VPBank‟s Annual reports, VPBank‟s surveys and banking articles. Besides that, the
research uses data collected from other Joint Stock Banks and State-owned Banks.
The research also uses comparison and contrast methods in order to answer the
research questions.
4. Structure of the thesis
To regard to the research topic, the research is clearly divided into three
chapters including:
Chapter 1: Theorical framework
Chapter 2: Background on Vietnam banking market and VPBank situation analysis
Chapter 3: Recommendation on competitive Strategy of VPBank in 2006-2010, and
how to apply CRM solution as a competitive tool.


are met. This is achieved by mutual exchange and fulfillment of promises.”
In its earliest forms, relationship marketing focused simply on the development and
cultivation of long-term, profitable, and mutually beneficial relationships between an
organization and a defined customer group. However, the concept quickly broadened to

5
encompass internal marketing in acknowledgement that the successful management of
external relationships was largely dependent on the alignment of supporting internal
relationships.
1.1. The definition of customer relationship management (CRM):
1.1.1. Definition of customer relationship management:
As already stated, the change of the business environment and the evolution of
marketing to adapt to these changes have led to that the way companies organize
themselves has switched from product-based to customer-based structures. A key
driver of the change is the advent of customer relationship management-CRM, which
underpinned by information systems convergence and the development of support
software, promises to significantly improve the implementation of relationship
marketing principles.
From another perspective, CRM is a strategic view of how to handle customer
relations from a company perspective. The strategy deals with how to establish develop
and increase customer relations from a profitability perspective. Based upon
knowledge about the individual customer‟s need and potential, the company develops
customized strategies describing how different customers should be treated to become
long-term profitable customers. The basic philosophy underlying CRM is that the basic
of all marketing and management activities should be the establishment of mutually
beneficial partnership with customers and other partners in order to become successful
and profitable.
In order to more efficiently manage customer relationships, CRM focused on
effectively turning information into intelligent business knowledge. This information
can come from anywhere inside or outside the firm and this requires successful
7
1.1.2 Comparison between relationship and transactional marketing:

Relationship marketing
Objectives

Transactional
marketing
Relationship marketing

Customer base analysis
and Need perceptions

Customer management
strategies

Customer management
policies
Transactional marketing

Market and competitive
analysis segmentation

Marketing strategies

Mix offer development
tailored to individual
customer
- Care for the interaction with
customers to gain information
to build the relationship
- Always keep and develop
customer relationship
- High commitment
- The entire organization shares
a commitment to quality
Source: Transaction v relationship marketing (adapted from Christopher et al 1994)
Christopher M, Payne A & Ballantyne D 1993, relationship marketing,
ButterworthHeinemann.
The two comparison tables show that the transactional marketing focuses on the
capability of taking over new customers, attracting the potential customers from
competitors while relationship marketing focuses on the capability of protecting the
market share in the market, keeping close relationship with the current customers,
cross-selling and up-selling.
1.2 The principle of CRM
The principle of CRM is that all customers are not the right customers, so in CRM
each customer group will be treated in the different ways.
Given the many benefits of long-term customer relationships, it would appear foolish
for a company to refuse or terminate a relationship with a customer. This section
considers the view that not all customer relationships are beneficial.

9
A key step towards successful customer relationship management is to
distinguish the transaction buyer from the relationship buyer. The transaction buyer
tends to be interested in price and will easily shift to a competitor who offers a reduced
price, even when the service may be inferior. The relationship buyer is looking for a

relationship buyers as follows:
- The first group of buyers: Those customers who represent 10% of the
company‟s business and are the most profitable should be the first to be targeted
for CRM. The purpose of the CRM efforts will be retention. Even although it
may be difficult to make these customers more profitable, CRM should help
assure that none of them are lost to the competition.
- The middle group of buyers: The balance of the customers in top 40% or 50% as
ranked by sales and profit. It will be just as important to target this middle group
of buyers who are delivering good profit but may be capable of moving up to
the top of profit level. Customers in this group are probably giving some of their
business to your competitors. CRM activities for these customers should be
aimed directly at increasing your company‟s share of their business. CRM
marketing strategy developed for this middle group of buyer more than paid for
the company‟s significant investment in database software within a year.
- The final, less profitable, group of customers: The third group of customers
represents those who, while profitable, are only marginally so. While it is
possible that some in this group would move up the sales ladder as a result of
increased communications, it will probably not be worth the effort. Typically,
this group will represent almost half of the customer file. Hence this simple
analysis has greatly reduced the size of the challenge of implementing CRM.

11
1.3 The element of CRM:
CRM consist of three elements: People, Process and Technology, that help
companies to understand their customers. To gain the success in CRM project, the
company must coordinate all aspects.
People and Culture
The culture of an organization must be thoroughly understood before moving
forward with an implementation. Organizations must concentrate on overcoming
resistance. It is a strong reason why CRM projects often experience failure. Know your

with other departments and other divisions around the world (Arthur, 2002). This
means overcoming organizational and global cultural differences.
Clear communication, resources, awareness, and training must be integrated into
the culture or the transformation cannot occur. “Have a vision and passionately
communicate it” (Brendler, 2001). This means communication is key; it will reduce
resistance of employees. Employees want to know how they are expected to support
the business. The more educated employees are on their new role, the smoother the
transformation. In addition, providing a forum for employees to give input and give
feedback can ease the implementation. Implementation should have complete
involvement of those that know the business best. In order to have success, a complete
view of the organization and „buy in‟ should be ingrained into the culture.
Process
The current process requires evaluation to determine what changes in the
process must occur. "This is not just about investing in software; it is investing in a
new approach to relationships," says Ronald S. Swift, vice president of strategic
customer relationships with NCR Corp (Groves, 2002). Change the process before
making technology infrastructure changes. Technology is the enabler not the focus.

13
The process of implementation has fundamental steps of development,
implementation, and maintenance. There are also four key factors as the project
advances from development to maintenance. These project factors include teamwork,
resource commitment, consensus, and clear communications (Menon et. al., 1999).
Teamwork is pinnacle at the early stages in the implementation. Resource commitment
may seem obvious, but it still is an issue for organizations to resource adequately when
undertaking a large project. Consensus represents the strategic alignment of managers
and employees in the organization. Clear communication is important for the same
reasons mentioned in the discussion on culture. A project cannot be successful if it fails
to be methodical from development through maintenance while at the same time
incorporating the success factors.

what was exceptional service yesterday becomes the status quo today—and will be
going out of business strategy tomorrow (Thompson, 2001, p.64).
Technology
The success of CRM is not based on technology, but is described as the enabler of
the process integration. The technology must be strategic, cost effective, and
accessible. Strategic technology means there is flexibility and growth for the long-term
corporate strategy. The information technology manager must select a healthy
company that has a firm foundation in cutting edge software offerings. If the goal is to
have Internet access for customers to place and track orders, the software must be able
to provide or integrate with such systems. The system must also meet the needs defined
by the business for security. Failure to take the proper security precautions can be a
deadly experience for a business if intellectual property is lost or customer trust is
publicly destroyed.
The system should be cost effective. The technology should aim for configuration,
not customization. This allows companies to “break the habit of writing custom code to

15
accommodate unique business processes; it will be well worth the effort when it is time
to upgrade” (Bednarz, 2001). The more customization the harder it is to upgrade to the
next version of the software. In addition, from personal experience the more code
manipulations the less standardized the programming, and harder to proof out in
productive systems.
Managing the content of this information means ensuring customer information is
properly collected, analyzed, and documented so that each department within the
company has the customer data it needs to implement CRM functions (Groves, 2002).
Otherwise information can create a wealth of data without a positive means of applying
it properly in decision-making.
The financial community, the board, and senior management are mostly focused on
outcome indicators, especially those pertaining to the value created for investors. In
addition to conventional financial and share measures the CRM system affords a more

 Customer segmentation: CRM classifies customers into different segmentations
and measures the effectiveness of each segmentation.
 Marketing campaigns base on customer database: Use the database and
information of each segmentation to plan and implement marketing campaigns
 Analysis of customer‟s needs: Help to give personalized product or service to
each customer and find more new and potential needs from customers to
compete with competitors.
1.4.2 The challenges of CRM:
 Have to change the policies and process in the whole
 Need full support from the board of management and all staffs, for example: the
way they import the customer information to CRM system and dig this
database
 Need large initial cost to invest on software, machine, equipment and human
resource

17
1.5 Ideas support CRM:
1.5.1 The statistics of Harvard-Business review in December, 1995:
- Only 4% of dissatisfying customers complain, the other say nothing but they
will come to your competitors. In the banking industry, 65% of customer will
chose other suppliers if they are not satisfied.
- The average person with a problem eventually tells nine other people
- Satisfied customers tell 5 other people about their good treatment
- The cost of acquiring a new customer is 5 to 7 times greater than retaining
current ones
- The cost of recruitment a new employee is 10 times greater than retaining
current ones
1.5.2 Pareto's Principle - The 80-20 Rule:
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to
describe the unequal distribution of wealth in his country, observing that twenty

1.6.2 Lower costs
There is often substantial start-up cost associated with attracting new customer.
These include advertising, sales commissions and the operating costs of setting up
an account. Sometimes these costs can outweigh the revenue expected from the new
customer un the short term
1.6.3 Repeat customer often cost less to service
Repeat customers are more likely to be familiar with the company and its products
and may make fewer demands on the time of employees
1.6.4 Opportunities for cross-selling
Over time, business customer often grows larger and may need to purchase in larger
quantities. Individuals may purchase more products as their families grow or as
20%
80%

19
they become more affluent. Both types of customers may decide to consolidate their
purchase with a single supplier who provides high quality service.
Another advantage of an increase in cross-sale is the corresponding effect on the
organization‟s share of the customer‟s total consumption in the particular market.
This has been referred to as an increase in the share of wallet and is simply a
measure of the consumer‟s expenditure with the organization as a percentage of his
or her total expenditure in that market.
1.6.5 Defection less likely
Satisfied customers will be less susceptible to the pull of competition. Moreover
when customers trust a supplier, they may be more willing to pay higher prices in
return for the assurance of quality service (up-selling).
1.6.6 Employee retention
An indirect benefit of customer retention is employee retention. The stress
associated with dealing with customers who are unhappy with products and services
can lead to high employee turnover and poor quality. Conversely, customer

necessary nor advisable to treat every
customer in the exact same way.
More effective marketing
Having detailed customer satisfaction
from CRM system allows a company
to predict the kind of products that a
customer is likely to buy as well as the
timing of purchases.
CRM allows for more targeted
campaigns and tracking of campaign
effectiveness.
Customer data can be analyzed from
multiple perspectives to discover
which elements of a marketing

21
campaign had the greatest impact on
sales and therefore profitability.
Greater efficiency and costs
reduction
Integrating customer data into a single
database allows marketing teams,
sales force, and other departments
within a company share information
and work toward common corporate
objectives using the same underlying
statistics.
Source: Adapted from Scullin, S., Allotra, J., Lioyd, G.O. and Fjemestad.,J. (2002),
Electronic customer relationship management: benefit, consideration, pitfalls and
trend