CHAPTER -1

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Introduction
Traditionally, few people changed their banks unless serious problems occurred. Today, financial institutions can no longer rely on these committed relationships or established marketing techniques to attract and retain customers.

The current study explores the association between deployment of customer relationship management (CRM) best practices and loyalty of profitable customers in scheduled commercial banks of India with respect to retail banking segment. This is important because a strong positive association will act as a significant motivator to organizations for making larger investments towards deployment of CRM best practices. On the other hand, a weak association will fail to provide necessary encouragement to the same organizations for CRM deployment In response to the growing trend towards Customer Relationship Management (CRM) this research will focuses on the development and implementation of CRM strategies, and the effect these strategies on related banks. CRM is a core issue for any organisation wishing to better understand and retain their customers, sustain profitability and maximise new business opportunities.

Retail Banking Retail banking refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet (Gopinath, 2005b). Similarly, Sood (2003) defines retail banking as catering to the multiple banking requirements of individuals relating to deposits, advances and associated services

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About The Topic

What is Customer Relationship Management (CRM)?

CRM is a business, marketing and communications maxim currently revolutionising the companycustomer relationship. It is a concept for managing customer relationships across the different points of customer contact. In essence, CRM is about retaining customers and customer lifetime value, maximising new business opportunities, and sustaining profitability. It is a business philosophy that is successfully implemented by installing and utilising CRM technology and by developing a customer relationship strategy and executing it.

What is CRM Strategy?

A company employing CRM manages the 'relationship' with the customers of the company through the manipulation of information about them. The information is shared and transformed into knowledge. Knowledge enables the company to understand the customer, and this information in turn is used to align the organisations capabilities in order to deliver better value to customers. Effective CRM strategy has a multi-channel focus. Companies will have to effectively manage all customer communication channels including traditional letters, fax, and branch/retail outlets through to call centres including IVR and speech recognition and the emerging channels including email, the Internet, Video Kiosks and in the near future Interactive TV.

CRM IN BANKING SECTOR CRM in banking industry entirely different from other sectors, because banking industry purely related to financial services, which needs to create the trust among the people. Establishing customer care support during on and off official hours, making timely information about interest payments, maturity of time deposit, issuing credit and debit cum ATM card, creating awareness regarding online and e-banking, adopting mobile request etc are required to keep regular relationship with customers.

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The present day CRM includes developing customer base. The bank has to pay adequate attention to increase customer base by all means, it is possible if the performance is at satisfactory level, the existing clients can recommend others to have banking connection with the bank he is operating. Hence asking reference from the existing customers can develop their client base. If the base increased, the profitability is also increase. Hence the bank has to implement lot of innovative CRM to capture and retain the customers.

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Key Points

Banks today are market driven and market responsive. CRM helps in customer retention. Helps in achieving customer focus and improves customer service-related processes. Helps in achieving bottom line business benefits by retaining the most profitable customers Indian banks no longer have a transaction based operating model. There is a need to develop a relationship oriented model of operations focusing on customer centric services. Data warehousing and data mining can help in improving service levels and finding new business opportunities. CRM helps in ACQUIRE ENHANCE RETAIN the customers.

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Scope of the study

The current study focuses exclusively on the retail banking segment of scheduled commercial banks. However, within scheduled commercial banks, the regional rural banks are not being covered. These banks are expected to mobilize resources from rural areas and play a significant role in developing agriculture and rural economy . As it is understood today, retail banking is largely an urban phenomenon with a clear objective of increasing the banks bottom line. It is very apparent that the regional rural banks are outside the ambit of retail banking. Geographical Scope For matters of convenience, the study was restricted to Agra and Mathura city, where the researcher was based.

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OBJECTIVES OF THE STUDY

To understand the role of effectiveness of CRM tool in banking sector.

To explore various tools for CRM and measure their effectiveness as a tool for CRM.

To analyze various contemporary requirements for customer retention in banking sector.

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CHAPTER-2

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Overview of Banking:

History
Banks in India were started on the British pattern in the beginning of the 19thcentury. The first half of the 19thcentury, The East India Company established 3 banks The Bank of Bengal, The Bank of Bombay and The Bank of Madras. These three banks were known as Presidency Banks. In 1920 these three banks were amalgamated and The Imperial Bank of India was formed. In those days, all the banks were joint stock banks and a large number of them were small and weak. At the time of the 2nd world war about 1500 joint stock banks were operating in Indiaout of which 1400 were nonscheduled banks. Bad and dishonest management managed quiet a quiet a few of them and there were a number of bank failures. Hence the government had to step in and the Banking Companys Act (subsequently named as the Banking Regulation Act) was enacted which led to the elimination of the weak banks that were not in a position to fulfil the various requirements of the Act. In order to strengthen their weak units and review public confidence in the banking system, a new section 45 was enacted in the Banking Regulation Act in the year 1960, empowering the Government of India to compulsory amalgamate weak units with the stronger ones on the recommendation of the RBI. Today banks are broadly classified into 2 groups namely
(a) Scheduled banks. (b) Non-Scheduled banks

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Major players in India

PUBLIC BANKS PRIVATE BANKS

Bank of India Bank of Maharashtra Canara Bank IDBI BANK Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Syndicate Bank Union Bank of India UCO Bank United Bank of India State Bank Of India Allahabad Bank

Axis Bank (Formerly UTI Bank) Citibank_India Federal Bank Ltd. HDFC Bank ICICI Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank IndusInd Bank ING Vysya Bank Lakshmi Vilas Bank South Indian Bank The Nainital Bank Ltd. Yes Bank

This research is focused upon State Bank Of India and ICICI Bank which are good in CRM practices respectively Public Sector And Private Sector.

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ICICI BANK

PROFILE:
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,529 branches and 6,102 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

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CRM AT ICICI

CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. Its philosophy focuses on each and every customers satisfaction. CRM facilitated coordination of multiple business functions & multiple channel of communication with the customers to carry out customer management more efficiently. It also automated the process flow tracking in the product sales process and helped generate customized reports and promote crossselling.

The typical components of a CRM strategy at ICICI are as follows

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The key to implementing CRM was in understanding organization and customers in a better way. There are four interrelated areas that were taken care of before implementing CRM:
-Business Focus -Organizational Structure - Business Metrics - Marketing Focus and Technology Business Focus: There are various components of CRM like customer information, sales, marketing trends and marketing efficacy that acted in tandem to improve relationship between ICICI and its consumers. ICICI captured customer data and analyzed them while dealing with customers at these very touch points. A CRM solution from Siebel was implemented for the automation of customer handling in all key retail products of the Group. The solution allows customer service agents to track all customer complaints and requests. It also allows target setting and centralized tracking of turnaround times for request fulfillment. The solution went live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office. This central view of the total customer relationship is being used extensively for identifying opportunities to cross-sell new products and services to the existing customer base. Technology Focus: ICICI Bank continues to leverage ICT2 as a strategic tool for its business operations to gain competitive advantage. Its technology strategy emphasizes enhanced level of customer services through 24x7 availability, multi-channel banking and straight through processing, and cost efficiency through optimal use of electronic channels, wider and focused market reach and opportunities for cross-selling. The Technology Management Group (TMG) is the focal point for the ICICI Groups technology strategy and Group-wide technology initiatives. This group reports directly to the Managing Director & CEO.

A key to ICICIs success has been its ability to harness business information to CRM initiatives that have fuelled growth and helped attract more than 30 million customers. The foundation for ICICI Banks wide-ranging CRM programs is a Sybase IQ-based data warehouse. Developers had used a combination of PL/SQL and BTEQ scripting, a proprietary technology specific to the data warehouse, for data extraction, transformation, and loading (ETL). With its growing customer base, IT administrators recognized that the bank needed a more powerful, sophisticated data integration system to help ensure the warehouse lived up to its potential as an analytic CRM engine that delivered tangible bottom-line results. To step up to the next level of data integration, ICICI Bank officials agreed with a recommendation from professional services division, which provided systems integration support for the data warehouse, to implement the Information Power Centre enterprise data integration platform. (The Bank initially used Teradata as its data warehouse platform and migrated to Sybase IQ a year ago.)

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ICICI Bank deployed Power Centre in 2003 as it embarked on the next phase of its warehouse, which would add data from five new sources, in addition to the initial three sources of retail banking, credit cards, and securities information. The next step in the CRM implementation process was gap analysis which essentially is assessing different loopholes in: - Marketing, sales and service practices - Collection, capture, processing and deployment of customer information - Distribution and operations effectiveness at customer touch points.

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State Bank of India Profile:

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever jointstock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a statepartnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the takeover of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank.
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Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

Branches The corporate centre of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate centre. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.

ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.

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The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Products And Services

Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail

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SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques

Contact
State Bank Of India Corporate Centre Madam Cama Road Mumbai 400 021 India Website: www.statebankofindia.com

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CRM Practices at SBI

SBI Customer Care - SBI Customer Care is a dedicated customer service by India's largest bank. SBI provides a 24 - hour help line where you can dial up and enquire about any of the State Bank of India products and banking services. SBI Grievance Cell - Another channel of customer care is the public grievance cell facility available at all State Bank of India branches and also online on SBI website. Besides this, on 15th of every month (3:00 p.m. to 5:00 p.m.), SBI customers can meet the senior officials and executives without any prior appointments.

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Customer Complaint Form They issue a complaint form if a customer faces any problem while encountering the service with SBI. This form contains following points-

Customer Type Existing SBI Customer/ Not a SBI Customer NAME ACCOUNT NO BRANCH NAME ADDRESS Email Telephone No/ Mobile No Product / Service (about which you have complaint) Nature of Complaint Please give brief details of your complaint -

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Other than this, SBI has taken following initiative towards CRM which was mainly started from 2007, when they started hiring MBAs for Customer relationship executives post Internet banking Personal Banking Branches (PBB) for special customers SME branch for small and medium enterprises Industrial branches for big companies Special housing branch Discounts during festivals Good Customer care facility Complaints through websites Assistance for advances, investments, loans Loyalty Reward Program Bill payments

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CHAPTER-3

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Review Of Literature

Authors like Rowley(2004) , Xu et al (2002) and Bose (2002) have focused on a requirement of capabilities in CRM systems beyond basic levels. Xu et al (2002) links CRM system allowing the organization to gain an insight into the behaviour of individual customers and this helps o target and customize marketing communication & messages. The tools embedded in the CRM system support the calculation of customer lifetime value for the segment of one that is individual customers. Rowley (2004) evaluates CRM systems in their capabilities to include online order, e-mail, and knowledge bases and the use of these to generate customer profiles and finally to customize service. However both Xu et al (2002) and Rowley (2004).However the above mention authors neither give the key components of the CRM system nor do they mention a blueprint for the development of such a system. Bose (2002) has outlined a CRM development plan based on the development life cycle approach involving acquisition, analysis and use of knowledge about customers so as to sell more goods and services and to do it more efficiently. An integration of technologies, working together, such as data warehouse. website internet/extranet, phone support systems, accounting ,sales marketing and sales has been called for by the author. The analytic functions desired have been proposed to be fulfilled by separate systems such as decision support systems and expert systems. This approach is vague on how customer knowledge might be created, because it is not clear as to what technology in practice actually turns customer data into knowledge. A similar approach is suggested by Lee and Hong (2002) to create an organization-wide KM infrastructure. In the model, database, data warehouse, digital library, data mining and online analytical process (OLAP) are suggested as being the tools to capture and develop knowledge. The model, however, is general to organisational KM rather than specific to customer knowledge creation. Ahn et al. (2003) proposes that data mining/analysis tools and a knowledge base should be the function of a CRM system, but did not go further to illustrate how such a system can be developed. Although how to develop an analytical CRM is far from clear, some explorative research may benefit developing such a system. For example, Choy et al. (2003) reports to use case-based reasoning to evaluate and select suppliers in order to fulfill the requirements of the key customers so as to retain a good relationship. Bose (2002) based on Wells et aL's (1999) argument to suggest that expanding customer data needs to include non-transactional information, which is equally, if not more, valuable than
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the transactional data. Such data may include general inquiries, support calls, suggestions, employee/management comments, registration cards and complaints. The implementation of CRM systems has been widely reported by both CRM software vendors and academic researchers. The popular CRM systems appear to be: call centre, contact management, data warehousing, portals, workflow and business process management for the purposes of retaining existing customers and developing new customers. Xu et al. (2002) suggest that contact centers have been playing a major role within the CRM picture. Taylor and Hunter (2002) report that the European customer support and service market is still largely focused on call centers, particularly in the UK. Very few practitioners are making optimum use of their client database, because they are failing to update, quantify and qualify the information collated about the clients (Dyer, 1998). A few reports even suggest that CRM systems fail to have the transformational impact widely promised by the software industry and expected by the business community. For example, Harvey (2001) cited Gartner's report by saying that 65 per cent of CRM implementations result in failure. Most CRM systems are used to improve customer-facing operations. Rowley (2002) argues in line with Harvey that 80 per cent of CRM implementations fail, and academics express scepticism about the viability of interpreting customer data in such a way that it generates useful insights into customer and user behaviour. Bolton (2004) agrees to these arguments by stating that many of the early CRM implementations seem to have failed. Sweet (2001, 2002, 2003, 2004) reported four survey results related to CRM applications in UK companies. The surveys were conducted by PMP Research from 2001 to 2004. A range of CRM-related issues are investigated including the success level of CRM, reasons for implementing CRM applications, degree of customizing CRM solutions, current spending and future investment in CRM, degree of using analytical tools, and the perception of gaining competitive advantage from CRM. There is limited research for the analytical CRM for Indian retail banking sector. The perception of this sector about analytical CRM systems needs to be further researched along with benefits which this sector hopes to achieve through analytical CRM. This constitutes a research gap and has been the focus of this paper.

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CONCLUSION OF LITREATURE REVIEW

Analytical CRM systems are yet to make a mark in most Indian banking companies. There is strong recognition of its benefits for the long term organizational survival at both top and middle levels of management amongst Indian banking companies. However neither the time frame nor a road map is clear to them. The paper has demonstrated the critical capabilities which the companies seek to have in their future CRM systems. The road map towards acquisition of analytical CRM capabilities provides a conceptual framework for its implementation .Issues like business process changes, organizational cultural transformations ,top management involvement and clear implementation benefits measures have to be worked out in the long run to make a strong for analytical CRM to be implemented in the Indian banking sector.

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RESEARCH METHODOLOGY
This research involved a study, which was qualitative in nature. This study mainly focuses upon the Plans and CRM Strategies using by ICICI and SBI and to know what is the attitude of their customers.

Sample Size: The sample size is 70. Sampling Procedure Judgemental sampling procedure has followed.

Sampling Method: Data was collected through customer survey. The consumers are directly contacted and interviewed.

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Methods of Data Collection:

There are mainly two types of data: Primary Data Secondary Data

1. Primary Data Collection:-

Primary data can be collected by these methods: Observation Surveys

But here, only survey method of data collection is preferred which is very suitable to reach the researchers motto.

Research Instrument:

Printed questionnaire is used as the research instrument to collect the required information. I used this questionnaire for my research work to know the effectiveness of CRM strategy in the mind of account holders
Area of Survey:

I did survey in different location of Mathura and Agra. This survey was done on one to one and as a survey tool questionnaire was used.

Sampling Plan:
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Sampling plan consists of:

Sampling Unit:
The client/customers of SBI and ICICI bank who have accounts in these banks and availing the services of these banks.

2. Secondary Data Collection:These were collected from different books, bank journals, other magazines and websites.

QUESTIONNAIRE DESIGN
The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions- written or oral. Special attention was paid to make sure the questionnaire was easy to read and understandable to all spectrums of people in the sample. It was also important as researchers; to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 7-8 minutes. These questionnaires were personally administered.

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LIMITATIONS

1) The study was restricted to Agra and Mathura city, so it is difficult to generalize the interpretation made out of the findings.

2) This research is dependent on the information provided by the respondents and sometimes the respondents are very reluctant in providing right information and often provide it carelessly and the result drawn out by only this information, so sometimes all efforts might not find direction and results.

3) This conclusion and recommendations made are based on a very less experience of researcher in this field.

4) Time was the biggest constraints as the study was limited for a period of 45 days only as per the curriculum of researcher, which means that any relevant market phenomenon before and after this duration of time might have been skipped in the study.

5) Many respondents did not reply and didnt give accurate answer.

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CHAPTER- 4

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DATA ANALYSIS & INTERPRETATION

1- Are you aware of CRM practices?

15%

Yes No

85%

It shows that in the present scenario most of the persons are aware with the Customer Relationship Program in banking sector.85% marked Yes and rest 15% marked No.

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2- Do you think CRM is important strategic tool to retain the customer in todays

competitive scenario?

12, 17%

Yes No 58, 83%

Not even banks only but their customers as well think same that it is a good strategic tool to retain the customer. 83% chosen yes and rest 17% with no.

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3- Do you look for CRM practices of a bank before become a client of a bank?

24, 34% Yes No 46, 66%

Its an important criterion while any go enjoying the service of any bank. 66% said yes and rest 34% said no .

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4- If a bank is not good at CRM practices will you switch from the bank?

33, 47% 37, 53%

Yes No

53% said yes and 47% said no means to retain the customers CRM practices are necessary.

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Note- From 5th question to last question categories Highly Satisfied, Satisfied, Average , Dissatisfied and
Highly Dissatisfied having weight respectively 5, 4, 3, 2 and 1.

5- Behaviour of frontline employees

35 30 25 20 15 10 5 0 Highly satisfied 17

32

13 7 1 Satisfied Average Dissatisfied Highly Dissatisfied

70% of the respondents are looking the frontline employees behaviour with the customers as a good CRM tool.

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6- Transaction processing time

25

23

20 16 15

18

10

0 Highly satisfied Satisfied Average Dissatisfied Highly Dissatisfied

33% respondents looking transaction process time of the banks is an effective CRM tool.

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7 - Grievances redressed time

25 21 20 18 18

15 11 10

0 Highly satisfied Satisfied Average Dissatisfied Highly Dissatisfied

Respondents are taking the grievances redressed time as a good CRM tool because more than 55% are

in favour of this.

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8 - Advisory function

20 20 18 16 14 12 10 8 6 4 2 0 Highly satisfied Satisfied Average 12 13

20

Dissatisfied

Highly Dissatisfied

Respondents having various views towards Advisory function of the bank. Almost same percentage is lying in all three categories positive, neutral and negative. So its tough to interpret but can say that sometimes it works and sometimes does not.

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9- Occasional Greetings

35 30 25 20 15 10 4 5 0 Highly satisfied Satisfied 22

32

7 5

Average

Dissatisfied

Highly Dissatisfied

Only 17 % respondents did not agree that occasional greetings help to maintain good relationship with the customer.

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10 - Good ambience of the branch

30 26 25 20 15 10 6 5 0 Highly satisfied Satisfied Average Dissatisfied Highly Dissatisfied 13 14 11 Series 1 Column1 Column2

A good no. of responses is in favour of good ambience of the bank. According to them it works as a CRM tool.

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11 - Provision of innovative and advanced tech. based services

29 30 25 20 14 15 9 10 5 0 Highly satisfied Satisfied Average Dissatisfied Highly Dissatisfied 17

41% of the respondents are highly satisfied. 20% are satisfied and next 25% are in average category. But 14% didnt think that innovative and advanced technology based services is good CRM tool.

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To analysing the various cotemporary requirements to retain the customer. 12- Less fee and charges for various services

0, 0% 13, 19% 28, 40% Highly Satisfied Satisfied 17, 24% Moderate Dissatisfied 12, 17% Highly Dissatisfied

When the respondent were asked about Less Fee or Charges for various services as a CRM tool then almost 40% of respondent were highly satisfied, almost 17% satisfied, 24% moderate , 19% dissatisfied and no one was dissatisfied.

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13- Promotional Schemes

4, 6%

2, 3%

20, 29%

29, 41%

Highly Satisfied Satisfied Moderate Dissatisfied

15, 21%

Highly Dissatisfied

When the respondent were asked about Promotional Schemes as a CRM tool then almost 41% of respondent were highly satisfied, almost 21% satisfied, 29% highly dissatisfied. moderate , 6% dissatisfied and 3%

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14-Loyalty Bonus

5, 7% 8, 12%

15, 21% Highly satisfied Satisfied

25, 36%

17, 24%

Average Dissatisfied Highly Dissatisfied

When the respondent were asked about Loyalty Bonus as a CRM tool then almost 21% of respondent were highly satisfied, almost 24% satisfied, 36% moderate , 12% dissatisfied and 7% highly

dissatisfied. Means Respondents are not highly agreeing with loyalty bonus as a CRM tool in retail banking.

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Continuous feedback system

0, 0% 0, 0% 5, 7% 19, 28% Highly satisfied Satisfied 45, 65% Average Dissatisfied Highly Dissatisfied

When the respondent were asked about Continuous Feedback System as a CRM tool then almost 65% of respondent were highly satisfied, almost 28% satisfied, 7% moderate and no one was dissatisfied.

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Availability of branches

7, 10% 6, 9% 24, 34% Highly satisfied 14, 20% Satisfied Average Dissatisfied 19, 27% Highly Dissatisfied

When the respondent were asked about Availability Of Branches as a CRM tool then almost 34% of respondent were highly satisfied, almost 27% satisfied, 20% moderate , 9% dissatisfied and 10% highly dissatisfied.

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CHAPTER-5

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Findings

In the present scenario most of the persons are aware with the Customer Relationship Program in banking sector. Not even banks but their customers as well think same that it is a good strategic tool to retain the customer. Its an important criterion while any one wishes to enjoy the service of the bank. 53% people will switch from the bank if they found the bank is not good in CRM. CRM is very effective tool to retain the customer in retail banking. 70% of the respondents are looking the frontline employees behaviour with the customers as a good CRM tool. Respondents are taking the grievances redressed time as a good CRM tool because more than 55% are

in favour of this.
Respondents having various views towards Advisory function of the bank. Almost same percentage is lies in all three categories positive, neutral and negative. So its tough to interpret but can say that sometimes it works and sometimes does not. Only 17 % respondents did not agree that occasional greetings help to maintain good relationship with the customer. A good no. of responses is in favour of good ambience of the bank.

41% of the respondents are highly satisfied. 20% are satisfied and next 25% are in average category. But 14% didnt think that innovative and advanced technology based services is good CRM tool. ATTRIBUTES Behaviour of frontline employees Transaction processing time Grievances redressed time Advisory function Occasional Greetings
Good ambience of the branch

SCORE 267 210 255 217 221 252 271

Provision of innovative and advanced tech. based services

Note : (HS = 5; S = 4; A = 3; DS = 2; HDS = 1) X No. Of Respondents

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This table shows that provision of innovative and advanced tech. based services is the most effective tool for CRM Practices in Banks. CONTEMPORARY REQUIREMENT FOR CUSTOMER RETANTION ATTRIBUTES Less fee and charges for various services Promotional Schemes Loyalty Bonus Continuous feedback system Availability of branches SCORE 265 275 239 316 238

Note : (HS = 5; S = 4; A = 3; DS = 2; HDS = 1) X No. Of Respondents This table shows that Continuous feedback system is the contemporary requirement for customer retention which is followed by promotional schemes, less fees and charges for various services, loyalty bonus and availability of branches.

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SUGGESTION
Automate team based and role based processes. Banks need to make faster their transaction time. Banks need to open Personalized Boutiques which provide all the required financial needs of a customer. Banks need to work upon continuous feedback system which creates sense of belongingness among the customers. Banks need to work upon their advisory function in order to make their customers satisfy. Promotional schemes of the banks should have a wide reach. So that it cover maximum no. Of customers. There should be transparency in their rules and regulations. Like hidden charges

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CONCLUSION

Customer Relationship Management is concerned with attracting, maintaining and enhancing customer relationship in multi service organizations. CRM goes beyond the transactional exchange and enables the marketer to estimate the customers sentiments and buying intentions so that the customer can be provided with products and services before the starts demanding. Customers are the backbone of any kind of business activities, maintaining relationship with them yield better result.
Bank call centers use CRM solutions for various purposes. Cost-driven call centers use CRM to track call transactions and troubleshooting techniques to fine-tune the service resolution process. Metrics like average handle time and customer feedback ratings help bank call centers improve their customer support for retention. Profit-driven call centers also leverage CRM customer account records for add-on selling opportunities.

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Books:
Research Methodology Kothari Marketing Management 12 e Philip Kotler

Websites:
www.google.com

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