1.1 INTRODUCTION TO PRIVATE SECTOR BANKSPrivate Banks have
played a major role in the development of Indian banking industry.
They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and
forced them to become more competitive.Axis Bank began its
operations in1994, after theGovernment of Indiaallowed new private
banks to be established. The Bank was promoted in1993jointly by the
Administrator of theUnit Trust of India(UTI-I),Life Insurance
Corporation of India(LIC), General Insurance Corporation Ltd.,
National Insurance Company Ltd.,The New India Assurance Company,
The Oriental Insurance Corporation andUnited India Insurance
Company. The Unit Trust of India holds a special position in the
Indian capital markets and has promoted many leading financial
institutions in the country.Axis Bank (erstwhile UTI Bank) opened
its registered office in Ahmedabad and corporate office in Mumbai
in December 1993. The first branch was inaugurated on 2 April 1994
in Ahmedabadby Dr.Manmohan Singh, then Finance Minister of India.In
2001 UTI Bank agreed to merge with and amalgamateGlobal Trust Bank,
but theReserve Bank of India(RBI) withheld approval and nothing
came of this. In 2004 the RBI put Global Trust into moratorium and
supervised its merger intoOriental Bank of Commerce.UTI Bank opened
its first overseas branch in 2006 Singapore. That same year it
opened a representative office inShanghai, China.UTI Bank opened a
branch in theDubai International Financial Centrein 2007. That same
year it began branch operations in Hong Kong. The next year it
opened a representative office in Dubai.Axis Bank opened a branch
in Colombo in October 2011, as a Licensed Commercial Bank
supervised by the Central Bank of Sri Lanka. Also in 2011, Axis
Bank opened a representative offices in Abu Dhabi.In 2013, Axis
Bank's subsidiary, Axis Bank UK commenced banking operations. Axis
Bank UK has a branch in London.In 2014, Axis Bank upgraded
itsrepresentative office in Shanghai to a branch.
Introduction of IDBI Bank:
The Industrial Development Bank of India Limited, now more
popularly known IDBI Bank, was established as a wholly-owned
subsidiary of Reserve Bank of India. The foundation of the bank was
laid down under an Act of Parliament, in July1964. The main aim
behind the setting up of IDBI was to provide credit and other
facilities for the Indian industry, which was still in the initial
stages of growth and development. In February 1976, the ownership
of IDBI was transferred to Government of India. After the transfer
of its ownership, IDBI became the main institution, through which
the institutes engaged in financing, promoting and developing
industry were to be coordinated. In January 1992, IDBI accessed
domestic retail debt market for the first time, with innovative
Deep Discount Bonds, and registered path-breaking success. The
following year, it set up the IDBI Capital Market Services Ltd., as
its wholly-owned subsidiary, to offer a broad range of financial
services, including Bond Trading, Equity Broking, Client Asset
Management and Depository Services. In September 1994, in response
to RBI's policy of opening up domestic banking sector to private
participation, IDBI set up IDBI Bank Ltd., in association with
SIDBI. In July 1995, public issue of the bank was taken out, after
which the Government's shareholding came down (though it still
retains majority of the shareholding in the bank). In September
2003, IDBI took over Tata Home Finance Ltd, renamed IDBI Home
finance Limited, thus diversifying its business domain and entering
the arena of retail finance sector The year 2005 witnessed the
merger of IDBI Bank with the Industrial Development Bank of India
Ltd. The new entity continued to its development finance role,
while providing an array of wholesale and retail banking products
(and does so till date). The following year, IDBI Bank acquired
United Western Bank (which, at that time, had 230 branches spread
over 47 districts, in 9 states). In the financial year of 2008,
IDBI Bank had a net income of Rs 9415.9 crores and total assets of
Rs120,601 crores.The PresentToday, IDBI Bank is counted amongst the
leading public sector banks of India, apart from claiming the
distinction of being the 4th largest bank, in overall ratings. It
is presently regarded as the tenth largest development bank in the
world, mainly in terms of reach. This is because of its wide
network of 509 branches, 900 ATMs and319 centers. Apart from being
involved in banking services, IDBI has set up
Yes Bank, incorporated in 2004 by Rana Kapoor and Late Ashok
Kapur, is a new age private sector bank. Since inception Yes Bank
has fructified into a Full Service Commercial Bank that has
steadily built Corporate and Institutional Banking, Financial
Markets, Investment Banking, Corporate Finance, Branch Banking,
Business and Transaction Banking, and Wealth Management business
lines across the country, and is well equipped to offer a range of
products and services to corporate and retail customers.YES BANK
offers a fullrange of clientfocused corporate banking services,
including working capital finance, specialized corporate finance,
trade and transactional services, treasury risk management
services, investment banking solutions and liquidity management
solutions among others to a highly focused client base.The bank is
part of global thought leadership forums like the Clinton Global
Initiative (CGI), Triple Bottom Line Investing (TBLI) and Tallberg
Forum. Recently, it became the first Indian Bank to become a
signatory with the United Nations Environment Programme (Financial
Initiative).As part of the differentiated strategy, Yes Bank has
had a strong focus on Development Banking, as is evident from the
cuttingedge work that the Bank has done in the area of Food &
Agribusiness, Infrastructure, Microfinance, and Sustainability
which in most cases has been firstofits kind in IndiaYes Bank has
partnered with various companies for delivering quality products
and services namely Cash Tech, Cisco Systems, Gartner, Intel,
iflex, Reuters, VSNL, Wipro, De La Rue, Murex, Wincor Nixdorf and
Sanovi.The bank also has a widespread branch network of over 331
branches across 200 cities, with over 420 ATM's and 2 National
Operating Centres in Mumbai and Gurgaon.Business AreasCorporate and
Institutional Banking The bank offers a broad range of financial
and risk management solutions to clients such as large Indian
corporates and groups, multinational companies, central and state
governments, government bodies and public sector
enterprises.Business Banking Yes Bank offers a range of products,
services and resources to small and medium businesses.Corporate
Finance It offers corporate finance solutions to various clients
such as local corporates, multinational companies, financial
institutions and public sector undertakings.Retail Banking Under
this, the bank offers wide range of products and services such as
saving account, current account, fixed deposit, retail loan,
depository services and many more.Investment Banking Yes Bank
offers investment banking services in area of mergers and
acquisitions, divestitures, private equity syndication and IPO
advisory.Awards & Recognitions :In March 2014 The Bank was
awarded the Ramkrishna Bajaj National Quality (RBNQ) Business
Excellence Award 2013 in the Services Category. Organized by Indian
Merchants Chamber, YES BANK is the only bank to win this
prestigious award in the history of the RBNQ Award.Outstanding
Business Sustainability Achievement Karlsruhe Sustainable Finance
Awards Germany, 2013Jamnalal Bajaj Uchit Vyavahar Puraskar (Service
EnterprisesLarge) Council for Fair Business Practices (CFBP)
2012Financial Institutions Syndicated Deal of the Year, Asia
Pacific Region Asia Pacific Loan Market Association (APLMA)
2012Global Business Excellence Award, Dubai, 2013Sustainability
Award, London, 2012 Golden PeacockInstitutional Excellence YES BANK
receives the 'Fastest Growing Bank' Award third year in a row at
the Business world Best BankAwards 2011 YES BANK receives the Best
Private Sector Bank Award at Dun & Bradstreet Polaris Software
Banking Awards 2011 YES BANK receives Sustainable Bank of the Year
(Asia/Pacific) Award at FT/IFC Sustainable Finance Awards 2011,
LondonBusiness Excellence1) YES BANK won seven awards at Asias Best
Employer Brand Awards and the CMO Asia Awards for Excellence in
Branding and Marketing that were held on July 22, 2011 in
Singapore. The bank received awards in the following categories:
Continuous Innovation in HR Strategy at Work Talent Management Best
HR Strategy in Line with Business Excellence in HR through
Technology CEO of the Year Award to Mr. Rana Kapoor Brand
Excellence in Banking, Financial Services & Insurance Best
Corporate Social Responsibility Practice (Overall)2) YES BANK
received 'The Asian Banker Technology Implementation Awards 2011'
Won the Best Multichannel Capability Project Award for increasing
its distribution and optimizing its mobile banking services Won the
Best Financial Supply Chain Project Award for streamlining a
clients business processes into a single work flow, automating
remittances and allowing for faster and more accurate
reconciliation3) YES BANKs Chief Information Security Officer
ranked as one of the Top 100 CISOs at the TOP 100 CISO Awards
2011.4) YES BANK receives significant recognition at The Banker
Technology Awards 2011 Wonthe Commercial Banking Project of the
Year Award Innovation in Cash and Treasury Technology1.2
INTRODUCTION TO CUSTOMER RELATIONSHIP MANAGEMENTCustomer
Relationship Management has been with us over the ages, for as long
as people traded with each other. In those days, the physical
closeness in location between the customer and the supplier led to
the relationship. Even in less developed countries and traditional
societies such business models currently still exist. People
congregated on market days and the customers usually buy from
people they know, have bought from before. The supplier also knew
his customers well, what they liked, how they liked it, what they
did not want, and was able to deliver the customer's needs and
wants. And based on their knowledge of the customer, they could
also add sweeteners to ensure customer loyalty, and bring in
related samples to introduce their existing customers to new
things. Their loyal customers then spread the word and introduced
other customers to them. And gradually they became well known for
what they sold or provided.As countries developed and urbanization
took place, the physical distance between the supplier and the
customer increased. Intermediaries and merchants developed to
transport the product from the producer to the customer. To pay for
their efforts they added their margins on top of the supplier's
price.With increasing urbanization and industrialization, suppliers
could no longer deal with their customers directly. They could no
longer know their customers' needs, wants, preferences, habits, and
other characteristics that helped them to compete. The problem then
arose of how to compete with products that are not tailored to
customers' needs. So they started building brands, and using
advertising and mass marketing to persuade remote customers and
compete for a greater share of the market. The flavor of the times
was mass production, standardization, strong universal brand, and a
deep penetration of the market. However this involved a lot of
guess work, and some big mistakes were sometimes made. The
disconnection with the customer also meant that direct-feedback
from the individual customer was not available.Over the years,
competition became so fierce that mass marketing became inadequate
in ensuring the brand, as customers could easily move to a
competitor at any time. Relying on customers to remain with a
business without bothering to interact with them is risky. It also
became clear that not all customers are equally valuable to a
business, and the focus moved to finding out what made a customer
valuable. The way a customer interacts with the business can have
significant impact on their loyalty and retention, so customer
service gained prominence. Costs of acquiring and retaining a
customer became really important, and it became clear that selling
to an existing customer is cheaper than acquiring and selling to a
new customer. Reducing the cost of selling and improving profits
required more precise marketing, and this required the firm to be
able to gather, retain, analyze and interpret customer data.
However, this information gathering, analysis, and interpretation
was very complex, expensive and could not be easily done
manually.And then computerization came, followed by the Internet.
And it became possible again for suppliers to reach individual
customers, connect with them and understand their needs and wants.
This enabled the firm to build a relationship with the individual
customer, similar to that seen in the old days, and the field of
Customer Relationship Management (CRM) was born. The aims of CRM
for the supplier/firm is to deliver value to the customer at a
profit, and to deliver that value so well that the customer
remained loyal, and the supplier became a first choice for the
product/service, with an enhancement of the supplier's reputation
and brand. For the customer, the value of CRM is to have a supplier
who understands the customer's needs and wants so well, that value
was delivered at every interaction, with fewer mistakes. Since
technology is very essential for delivery of the supplier's CRM
aims, for some people CRM became synonymous with the technological
tools. And some CRM technology vendors and practitioners insisted
that their interpretation of CRM was the truth. These differing
views affected the implementation and use of CRM technology.
Companies and suppliers using these different CRM technologies also
judged and defined them by their experience of how it met their
business needs.CRM stands for Customer Relationship Management. It
is a strategy used to learn more about customers' needs and
behaviors in order to develop stronger relationships with them.
Good customer relationships are at the heart of business success.
There are many technological components to CRM, but thinking about
CRM in primarily technological terms is a mistake. The more useful
way to think about CRM is as a strategic process that will help you
better understand your customers needs and how you can meet those
needs and enhance your bottom line at the same time. This strategy
depends on bringing together lots of pieces of information about
customers and market trends so you can sell and market your
products and services more effectively.Customer relationship
management (CRM) is a broad term that covers concepts used by
companies to manage their relationships with customers, including
the capture, storage and analysis of customer, vendor, partner, and
internal process information.
1.3 What is the goal of CRM?The idea of CRM is that it helps
businesses use technology and human resources to gain insight into
the behavior of customers and the value of those customers. With an
effective CRM strategy, a business can increase revenues by:
providing services and products that are exactly what your
customers want offering better customer service cross selling
products more effectively helping sales staff close deals faster
Retaining existing customers and discovering new ones.
1.4Three Key Phases in CRM:1. Customer Acquisition2. Customer
Retention3. Customer Extension1. Customer Acquisition - This is the
process of attracting our customer for the first their first
purchase. We have acquired our customer.Growth - Through market
orientation, innovative IT and value creation we aim to increase
the number of customers that purchase from us for the first time.2.
Customer Retention - Our customer returns to us and buys for a
second time. We keep them as a customer. This is most likely to be
the purchase of a similar product or service, or the next level of
product or service.Growth - Through market orientation, innovative
IT and value creation we aim to increase the number of customers
that purchase from us regularly.3. Customer Extension - Our
customers are regularly returning to purchase from us. We introduce
products and services to our loyal customers that may not wholly
relate to their original purchase. These are additional,
supplementary purchases. Of course once our loyal customers have
purchased them, our goal is to retain them as customers for the
extended products or services.Growth - Through market orientation,
innovative IT and value creation we aim to increase the number of
customers that purchase additional or supplementary products and
services.
2.1REVIEW OF LITERATURENumber of researches has been conducted
on role of customer relationship management. This section covers
few of the studies conducted by different researchers at different
times.Ryals et al. (2001) studied that there was a major change in
the way companies organize themselves as firms switch from
product-based to customer-based structures. A key driver of this
change was the advent of Customer Relationship Management which,
underpinned by information systems convergence and the development
of supporting software, promises to significantly improve the
implementation of Relationship Marketing principles. It was found
that the three main issues that can enable (or hinder) the
development of Customer Relationship Management in the service
sector are the organizational issues of culture and communication,
management metrics and cross-functional integration especially
between marketing and information technology.Chen et al. (2003)
analyzed that Customer relationship management (CRM) is a
combination of people, processes and technology that seeks to
understand a company's customers. It is an integrated approach to
managing relationships by focusing on customer retention and
relationship development. CRM has evolved from advances in
information technology and organizational changes in
customer-centric processes. Companies that successfully implement
CRM will reap the rewards in customer loyalty and long run
profitability. However, successful implementation is elusive to
many companies, mostly because they do not understand that CRM
requires company-wide, cross-functional, customer-focused business
process re-engineering. Although a large portion of CRM is
technology, viewing CRM as a technology-only solution is likely to
fail. Managing a successful CRM implementation requires an
integrated and balanced approach to technology, process, and
people.
Zineldin (2005) examined the product and service quality and
customer relationship factors that influence the customer selection
and image of the principal banks. The purpose of the study was to
theoretically and empirically develop a better understanding of
quality and customer relationship management (CRM) impact on
banking competitiveness. It was suggested that a bank has to create
customer relationships that deliver value beyond that provided by
the core product. This involves added tangible and intangible
elements to the core products, thus creating and enhancing the
product surrounding. One necessary condition for the realisation of
quality and the creation of value added is quality measurement and
control which is an important function to ensure the fulfillment of
given customer requirements. The key ways to building a strong
competitive position are through CRM, product/service quality and
differentiation.
Geib et al. (2006) identified key issues and successful patterns
of collaborative customer relationship management (CRM) in
financial services networks. The study took the form of a
multi-case analysis. It was found that key issues of CRM in
financial services networks are redundant competencies of
partnering companies, privacy constraints, CRM process integration,
customer information exchange, and CRM systems integration. To
address these issues, partnering companies have to agree on clear
responsibilities in collaborative processes. Data privacy
protection laws require that customer data transfer between
partnering companies has the explicit approval of customers. For
process integration, companies have to agree on process standards
and ajoint integration architecture. Web services and
internet-based standards can be used for inter-organizational
systems integration. Data integration requires the development of a
joint data model. Either a unique customer identification number or
a matching algorithm must be used to consolidate customer data
records of partnering companies.
Bennani et al. (2007) aimed to provide insights on the core
components of CRM and the implementation of CRM strategy. A case
study of CRM implementation at a large Swedish firm was carried out
using open-ended, face-to-face and telephone interview methods to
collect data from key informants at both strategic and operative
levels. The empirical studies focused on technical and cognitive
aspects necessary for successful implementation of a sustainable
CRM strategy. It was found that relationships were not only a
tactical weapon, but represent a different, strategic approach to
buyer-seller exchange. It was also found that implementing
sustainable CRM strategy requires the endorsement by and commitment
from top management, systematic cross-functional communication, and
mandatory customer loyalty training programmes for all
employees.
Rangone et al. (2007) aimed to estimate the size of the Italian
market for mobile customer relationship management (mCRM) services
and tried to evaluate some benefits that could be obtained through
the use of mCRM applications by companies. The research involved a
census of mCRM applications in order to construct a typology of
mCRM applications being used and the analysis of some case studies
to assess the impact of such applications on the perspective
adopted by the company. The second phase involved interviews with
managers of the companies. It was found that in 2005, 1,077 mCRM
services were used by 405 companies in Italy. The main benefits
found were the improvement of customer satisfaction, an increase in
the efficiency of internal processes and an increase in revenue.Top
of Form
Sinisalo et al. (2007) presented a conceptualization of mobile
CRM delineating its unique characteristics. Second, the authors
developed the empirically grounded framework of the underlying
issues in the initiation of mobile CRM. A single-case-study method
was used for the empirical component of the study. Semi-structured
interviews of the key informants of the company formed the main
data source through which the issues were identified and the
proposed framework was built. The proposed framework identified
issues that could be divided into three categories (exogenous,
endogenous and mobile CRM-specific) the company had to take into
account when moving towards mobile CRM.
Bellou et al. (2008) examined the internal service quality has
on employees' prosocial customer behavior displayed, which is
crucial for customers' perception of service quality. This effect
was examined both for publicly and for privately held banks. Out of
19 banks that operated in a major Greek city, 16 agreed to
cooperate. The researchers personally administered 10
questionnaires to front-line employees of every branch, on a random
basis, and gathered 113 usable questionnaires. It was found that
employees were more likely to improve their general performance and
were more cooperative when internal service quality existed.
Despite the fact that employees in both sectors agreed to the fact
that reliability and access were critical for displaying
role-prescribed customer behavior, there was significant difference
with regards to cooperation and extra-role customer behavior.
Khan et al. (2008) explored the satisfaction variables within
the banking industry. The key findings of an empirical research
were based on the data collected from 555 customers. Systematic
methodology, including design and validation of questionnaire,
factor analysis and regression analysis were utilized to enhance
reliability of the findings. The study reinforced that customer
satisfaction is linked with performance of the banks. The authors
demonstrated how adaptation of satisfaction variables can lead to
better performance.
Top of FormKevork et al. (2009) studied the customer
relationship management (CRM) to obtain a comprehensive framework
of mutually exclusive CRM research areas and sub-areas free of all
potentially disruptive factors. The keywords reported in 396 CRM
articles published during the period 2000-2006 were used to uncover
first a great number of detailed keyword sub-groups and, by subject
summation, the CRM-related research areas. This classification
scheme was considered unbiased, in contrast with any direct
classification of articles alone among CRM research areas fixed in
advance. It was found that an up-to-date conceptual and functional
CRM framework emerged, consisting of a total of nine distinct
research areas having their own weights, importance and popularity
among the research community. Newly emerging CRM research areas
were self-identified as attracting the interest of the researchers
and managers.
Previous studies revealed that majority of the researchers have
focused on the impact of customer relationship management, the
previous studies provide insights on the core components of CRM and
the implementation of CRM strategy but they had not covered the
role of customer relationship management in private banks.
3.1NEED OF THE STUDYThe researches conducted earlier focused on
the impact of customer relationship management on banks
competitiveness. They aimed to provide insights on the core
components of CRM and the implementation of CRM strategy.
Considering the ample importance of CRM, the need was felt to know
its effectiveness in private sector banks. So, the study was
conducted to know the concept of customer relationship management
and its role in the private sector banks. This study also covered
the satisfaction that customers derived from the services and
facilities provided by banks.3.2SCOPE OF THE STUDYThe scope of the
study was limited to the role of customer relationship management
in private banks carried out in Jalandhar.3.3OBJECTIVES OF THE
STUDYEvery study is conducted with a view to fulfill our objective
and each study has some objective to achieve. Whenever we do study
a particular topic or conduct a research, we have reasons for it
that why we our conducting that research. The current study has
been undertaken in order to achieve the following objectives:1. To
analyze the opinion of the customers for the various services and
benefits provided by bank with a view to promote customer
relationship management.2. To judge the satisfaction level of
customers from services and facilities provided by banks.3. To know
the various shortcomings/problems felt by customers while dealing
with their respective banks.4. To know the future expectations of
customers regarding services of the private banks.
4. RESEARCH METHODOLOGYResearch is a procedure of logical and
systematic application of the fundamentals of science to the
general and overall questions of a study and scientific technique,
which provide precise tools, specific procedures, and technical
rather philosophical means for getting and ordering the data prior
to their logical analysis and manipulation different type of
research designs is available depending upon the nature of research
project, availability of manpower and circumstances.4.1RESEARCH
DESIGN:The research design for the present study was descriptive
because it was based on the facts and findings of different kinds.
4.2SAMPLING DESIGN:4.2.1Sample Universe: The Universe for the
current study were the various customers of private
banks.4.2.2Sample Size: It was of 100 respondents from Jalandhar
city.4.2.3Sample unit: Customers of Private Banks who belongs to
Jalandhar City from the following category: students, businessmen,
professionals and service class people.4.2.4Sampling Technique:
Convenience sampling had been used for this study. 4.3SOURCES OF
DATA COLLECTION:i) Secondary data: Secondary data are those which
have already been collected by someone else and which have already
been passed through the statistical process. Secondary data is
collected from govt. publications, journals, magazines, financial
records, web sites and annual publications of the company. In this
study secondary source used was websites and journals.
ii) Primary data: Primary data are those, which are collected
afresh and for the first time, and thus happen to be original in
character. It is the backbone of any study. Primary data has been
collected by conducting surveys through questionnaire. Survey
questionnaire was self-administered and was distributed personally.
The respondents were debriefed for the objectives of the research
and were informed that the returned questionnaires would be treated
confidentially.The questionnaire was distributed to 100
respondents. It was divided into two sections. Section A consisted
of the demographic profile of the respondents and Section B
consisted of the major portion covering the entire questions to
know people views regarding Customer Relationship Management in
private banks. The questionnaire consisted of rank questions, 5
point liker scale etc. had been used which consisted of a number of
statements which consists of various factors affecting customer
relationship. The respondent responded to in terms of several
degrees of interest and experience.
Table 5.1: Demographic Profile of Customers
DEMOGRAPHIC FACTORSCATEGORIESNUMBERPERCENTAGE
AGEBelow 25 years65 65.00%
25-40 years2525.00%
41-55 years77.00%
Above 55 years33.00%
Total100100
QUALIFICATIONUnder Graduate88.00%
Graduate2525.00%
Post Graduate6565.00%
Diploma00.00%
Other Discipline22.00%
Total100100
OCCUPATIONStudent6565.00%
Business2020.00%
Professional1010.00%
Others55.00%
Total100100
AVERAGE ANNUAL INCOME (Rs.)Below Rs. 50,0004040.00%
Rs. 50,001 to1,00,0003030.00%
Rs. 1,00,001 to 3,00,0002020.00%
Rs. 3,00,001 to 5,00,00088.00%
Above 5,00,00022.00%
Total100100
1. Private Sector bank that is largely availed by
respondents.
Table 5.2: Customer Preference for Private Sector Bank Private
Banks No. of Respondents Percentage
HDFC Bank3030.00%
ICICI Bank4040.00%
Axis Bank1515.00%
Standard Chartered Bank22.00%
IDBI Bank88.00%
YES Bank55.00%
Total100100%
Figure 5.1: Customer Preference for Private Sector Bank
Analysis and Interpretation: The above table and graph depict
that out of 100 respondents, 30.00% of respondents prefer HDFC
bank, followed by 40.00% in ICICI Bank, 15.00% in AXIS Bank, 2% in
Standard Chartered Bank, 8.00% in IDBI Bank and 5% in YES Bank
Therefore majority of customers of private banks prefer ICICI among
others.
2. Types of account operated by respondents.
Table 5.3: Types of Account Operated by Respondents
Type of AccountNo. of RespondentsPercentage
Savings Account8585.00%
Current Account1010.00%
Term Deposits Account55.00%
Total100100%
Figure 5.2: Types of Account Operated by Respondents
Analysis and Interpretation: On the basis of the above graph
& table it can be analyzed that majority of the respondents
i.e. 85.00% are operating savings account, followed by 10.00%
respondents who are operating current account and 5.00% operating
term deposits account. Therefore, savings account is operated most
by respondents
Number of respondents differs because multiple choices were
invited.
3. Type(s) of service encounters provided by specified bank.
Table 5.4: Type(S) of Service Encounter Provided
Service Encounters No. of Respondents Percentage
Personal encounter4040.00%
Mail encounter3030.00%
Telephonic encounter2020.00%
Home delivery1010.00%
Total100100%
Figure 5.3: Type(S) of Service Encounter Provided
Analysis and Interpretation: It is clear from the above graph
and table that when asked for type of service encounter used by
them, most of the respondents i.e. 40.00% respondents replied that
they were using personal encounter to get the details of their
account followed by telephonic encounter, mail encounter and home
delivery. Therefore, most of the respondents are provided with
service of personal encounter by banks.
Number of respondents differs because multiple choices were
invited.4. Helped by customer service representative in financial
planning.
Table 5.5: Help Provided by Customer Service Representative or
Not
Customer Service Representative Help No. of Respondents
Percentage
Yes8080.00%
No2020.00%
Total100100%
Figure 5.4: Help Provided by Customer Service Representative or
Not
Analysis and Interpretation: From the above table and graph it
is clear that 80.00% respondents are helped by customer service
representative in financial planning and 20.00% respondents are not
at all helped. Therefore, it is clear that customer service
representatives are helping the customers in financial
planning.
5. Timely guidance and knowledge about new schemes and services
provided by Customer service representative.
Table 5.8: Timely Guidance and Knowledge Provided to
Customers
Guidance About New Services No. of Respondents Percentage
Yes9090%
No1010%
Total100100%
Figure 5.5: Timely Guidance and Knowledge Provided to
Customers
Analysis and Interpretation: It is clear from the graph and
table that 90% respondents agreed and 10% respondents didnt agreed
that timely guidance and knowledge is provided to them by customer
service representative. Therefore, it is clear that customer
service representatives are guiding the customers about new
services.
6. Ratings given by the customers to the customer service
representative they speak to generally.
Table 5.7: Satisfaction Level Regarding Customer Service
Representative
Sr. no.Attributes5Strongly agree4Agree3Neutral2Disagree1Strongly
disagreeSummated score
8.1The CSR is very courteous403020100440
8.2The CSR is very knowledgeable452515150400
8.3The CSR attend me quickly254015200370
Score=100*5=500(Strongly
Agree)Score=100*3=300(Neutral)Score=100*1=100(Strongly Agree)
Analysis and Interpretation
8.1Majority of the respondents agreed that the customer service
representatives they speak are very courteous.8.2The customers
agreed that the CSR with whom they speak are
knowledgeable.8.3Majority of the respondents agreed that the CSR
attended their call quickly.
Majority of the respondents agreed that the Customer service
representative they speak to is courteous (Summated score 125),
knowledgeable (Summated score 124) as well as attend them quickly
(Summated score 113). 7. Problems faced in the bank out of the
following.
Table 5.8: Types of Problems Faced by Respondents
Problems faced in bankNo. of RespondentsPercentage
Slow Service1515.00%
Long waiting time/ lines3030.00%
More guarantee requirements2020.00%
Unfriendly Staff1010.00%
Difficulty in accessing account1515.00%
No timely solution1010.00%
Total100*100%
Figure 5.6: Types of Problems Faced by Respondents
Analysis and Interpretation: The above table and graph shows
that majority i.e. 43.47% respondents have faced problem regarding
long waiting lines, 33.17% respondents think that requirements of
guarantees is the major problem, followed by difficulty in
accessing the account, slow service and unfriendly behavior of
staff. Therefore, it is clear that most of the respondents have
faced the problem of long waiting lines.
Number of respondents differs because multiple choices were
invited.8. Level of satisfaction among customers.
Table 5.9: Satisfaction Level of Customers
Sr. No.Attributes5Highly
Satisfied4Satisfied3Neutral2Dissatisfied1Highly
dissatisfiedSummated score
10.1Quick and Fast service204010300350
10.2Ease in accessing the account403015105390
10.3Good Staff3030201010360
10.4Guarantee requirement204025105360
10.5Transfer facility of your account in any other
branch352025100350
10.6Renewing the account20403082368
10.7Loan Facility152550105350
10.8Reliability40302055395
Score=100*5=500(Strongly Agree)Score=100*3=300
(Neutral)Score=100*1=100(Strongly Agree)
Analysis and Interpretation10.1The respondents are satisfied
with the service of private banks.10.2As regard ease in accessing
the account respondents are falling in agree side.10.3Majority of
the respondents are satisfied with the services of staff.10.4
Respondents are not satisfied with the guarantee requirements
demanded by Banks.10.5Most of the respondents are satisfied with
the facility of transfer of account in any other
branch.10.6Respondents are satisfied with the facility of renewal
of account.10.7The respondents are not satisfied with the loan
facilities provided by bank.10.8As far as attribute of reliability
is concerned the respondents think that private banks are not at
all reliable.
9. Future expectations of Customers regarding services of
bank.Table 5.10: Future Expectations of Customers from BankFuture
expectations of customers from bankNo. of RespondentsPercentage
Quick and quality Service2525.00%
Ease in accessing the account 1515.00%
Less guarantee requirements1010.00%
True representation of all charges3535.00%
Timely solution to the problem1515.00%
Total100*100%
Figure 5.7: Future Expectations of Customers from Bank
Analysis and interpretation: From the above graph and table it
is clear that 35% of the respondents expect true representation of
all charges from the bank, 25% of the respondents want quick and
quality service, 10% want there should be less guarantee
requirements followed by timely solution to the problem and ease in
accessing the account. Therefore, true representation of all
charges is expected mostly by the customers from the bank. Number
of respondents differs because multiple choices were invited.
6. FINDINGS OF THE STUDYAfter a detailed study of role of
customer relationship management in private banks, the above
analysis revealed the following findings: Among various private
sector banks, ICICI bank is largely availed bank, followed by HDFC
bank. Majority of the respondents are operating savings account,
followed by current account and Term deposit account. In case of
different types of service counters provided by banks, majority of
the respondents are provided with personal counter, followed by
respondents with mail counters. Majority of the respondents agreed
that they are being helped by customer service representative of
their bank in financial planning, Most of the respondents agreed
that the customer service representative of their bank guides them
and provide them knowledge about latest schemes and services
whereas some of them disagreed. Majority of the respondents agreed
that the customer service representatives they speak to are
courteous, knowledgeable and also they attend customers quickly.
Majority of the respondents said that long waiting time/lines is
the major problem, whereas some of respondents said that more
guarantee requirements of the banks is their major problem.
Majority of the respondents are expecting that the sales
representatives of banks should tell them about all the charges
i.e. no hidden charges should be there, and also people are
expecting quick and quality services from the banks. The
respondents said that there should be provided with true
representation of all the charges along with quick and quality
service for timely solution of their problems.
7.1CONCLUSION
Many researches were conducted earlier also on customer
relationship management, but the previous studies provide insights
on the core components of CRM and the implementation of CRM
strategy but they had not covered the role of customer relationship
management in private banks. So the study was conducted to know the
effectiveness of CRM in private sector banks. The study conducted
was descriptive in nature and it consisted of 100 respondents from
Jalandhar city.
The respondents were chosen by using non probability- judgmental
sampling technique and the information was collected by
interviewing them and by using well structured questionnaire. It
was found that with the advent of various Private Banks in India,
the competition among banks has increased very much. There are
number of facilities that are provided by the private banks to
their customers now days. CRM plays an important role behind the
success of every bank.
Sales representatives of the banks are influencing the people to
open their account in private banks. Customer service
representatives are helping people in financial planning and also
they are guiding and providing knowledge to the people regarding
new services. Therefore CRM is used by the banks for attracting new
customers, maintaining the existing customers and afterwards
extending their reach of customers by satisfying customers by
providing timely and quality services.
7.2RECOMMENDATIONSAfter conducting a detailed study on the role
of customer relationship management in private banks, the following
recommendations can be made:1. Most of the respondents are availing
services of ICICI and HDFC bank and the other banks are not
preferred much by customers. Therefore the other banks should also
provide quick and quality services to the customers.2. Many of the
respondents were not even aware of banks like AXIS bank so the less
preferred banks should increase their promotional activities so
that people become aware and start using its services.3. The
customers are facing the problem of long waiting time/lines.
Therefore, banks should focus more on promotion of net banking, so
that people get aware of the service and use it more, so that
problem of long waiting time/lines can be solved.4. Today the
customers mainly prefer a particular bank because of its better
services and friendly behavior of staff, and staff will behave well
only if they are properly satisfied and motivated. Therefore the
banks should keep their employees satisfied through monetary and
non-monetary benefits.5. Generally the customers complain about the
hidden charges charged from their account by banks. Therefore, the
banks should avoid this practice and they should make clear about
all the charges to the customers.6. In case the customer is facing
any problem the banks should take the steps to solve the problems
of customers timely, the problem should not be delayed. It will
help bank retaining its existing customers.
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