A Study on Effectiveness of Customer Relationship Management w.r.t.

State bank of India, Visakhaptanam

A Minor Project Report Submitted in partial fulfillment For the award of the degree of INTEGRATED MASTER OF BUSINESS ADMINISTRATION Submitted by
K.Srinivas Teja

Regd No: 1234111108 Under the esteemed guidance:

Mrs T. Geetha Madhuri

Assistant Professor

GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY VISAKHAPATNAM

(2011-2016)

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DECLARATION

I K.Srinivas Teja, hereby declare that this project report entitled A study on Effectiveness of Customer Relationship Management w.r.t. State bank of India, Visakhaptanam is submitted in partial fulfillment for the award of the degree of Integrated Master of Business Administration. This is a bonafide work carried out by me under the guidance MrsT.Geetha Madhuri, Assistant professor and has not been submitted to any other University or Institute or published earlier.

DATE: STATION: Visakhapatnam

Signature

(K.Srinivas Teja)

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CERTIFICATE

This

is

to

certify

that

the

Project

Work

titled

A study on

Effectivness of Customer Relationship Management w.r.t. State Bank of India,Visakhapatnam is an original work of K.Srinivas Teja
Registered number: 1234111108 carried out in partial fulfil lment for the award of degree Integrated MBA under my guidance at GITAM Institute of Management, GIT AM Universit y.

Date: Station: Visakhapatnam

Signature (Mrs T.Geetha Madhuri)

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Prof.K. Siva Rama Krishna, Dean and Principal GITAM Institute of management, GITAM

UNIVERSITY, Visakhapatnam, for his encouragement throughout the academic period.

I am grateful to Prof. P.Sheela, Vice-principal, GITAM Institute of management, GITAM UNIVERSITY, Visakhapatnam, for giving opportunity to work in this project and for her valuable advice. me

I take this opportunity to record my everlasting thanks and hearty feelings of gratitude to my project guide Mrs.T.Geetha Madhuri , my Program Coordinator Mrs. K.Kusuma and my Class Co-ordinator Mrs. Gowri Laksmi for their constant encouragement and guidance for the successful completion the project work. I would like specially thank my external guide Mr.K..Sanyasi Raju , Branch manager Airport Branch ,State Bank Of INDIA for thoroughly guiding me in my research and consistently supporting me in this endeavor.

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CONTENTS

S.NO

Contents

Pg no.

CHAPTER 1

Executive summary Introduction

CHAPTER 2

Objectives of the study Research methodology Need for the Research

CHAPTER 3 CHAPTER 4

Topic profile Analysis Interpretation

CHAPTER 5

Findings Suggestions & Conclusion

CHAPTER 6

Bibliography & Annexure

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EXECUTIVE SUMMARY This project is to know about the effectiveness of customer relationship management in STATE BANK OF INDIA. Today Consumers largely selected their banks based on how convenient the location of bank's branches was to their homes or offices. With the advent of new technologies in the business of bank, such as Internet Banking and ATMs, now customers can freely chose any bank for their transactions. The pressures of competitive and dynamic markets have contributed to the growth of CUSTOMER RELATIONSHIP MANAGEMENT (CRM) in the Financial Services Sector. Here I have done survey in Visakhapatnam to know how today largest bank of India is catering the different need of the customers. Banks have abandoned traditional method of serving the customers. They are using newly method of fulfilling the need of the customers. These branches are providing every type of the facility to its customers like accounts, loans, mutual funds, insurance etc This project is based on the data collected by the personal interview, questionnaire method and other secondary sources, mostly and covered customer of all age group and I have covered 100 respondents, who have their accounts in banks which include students, businessmen and employees. And the SBI Bank is holding a strong customer base in Visakhapatnam despite the presence of other so many private and public banks. The bank is providing all the competitive products and services to the customers suit to their particular requirements. It has different types of Saving accounts, Current accounts, Loans, and Investment proposals etc., which are highly technical products to compete with other banks. People who are using the services of other banks are generally attracted with the highly efficient staff and services like InstaAlert etc. Majority of the people prefer to open their accounts in SBI Bank because of their wide network and tie up with other banks branches and companies. Though it is in the mind of the people that public sector banks dont give the best service but my project result is totally opposite to this. The survey shows that 68% customers are fully satisfied with the banks performance and their dealings. But the other side says that some customers are also not satisfied with the dealings of the bank because of some reasons and Bank has to take corrective measures.
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INTRODUCTION

Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the promise of CRM is becoming a reality The evolution of CRM was gradual. The concentration at the beginning was only on consumption. Human activities were confined to consuming whatever was available within their reach. Then the concentration slowly moved towards production. Production was though in beginning just for consumption later on it moved towards production for exchange. During the sales era, production was performed exclusively for sales and the attention was just on the product. Whatever was produced became saleable because of the limited supply. This made organization move towards marketing activities. It is at this stage the concentration shifted from products to customers. Understanding and meeting customers needs became imperative for any business survival. Thus the emergence of customer driven organizations, keeping customers as their focal point took place. However cut throat competition made it difficult and challenging to retain customers. CRM emerged as a new approach enabling marketers with brand new tool and techniques to reach, acquire, retain and expand customer base. Through CRM companies tried to re-personalize their customer relationships by installing sales technology - sales contact management, Web personalization of e-sales messages, and sophisticated segmenting and predictive modeling tools for more tailored sales messages.
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Objectives:

The main objectives of the study are: To find out the customers satisfaction level towards the services offered by SBI To identify the factors influencing customers to use SBI services. To find what are the measures to be taken by banks to improve customer satisfaction.

Scope of the Study: It helps to understand the needs of various customers using the services It helps in ascertaining the effectiveness of the customer relationship management program. It helps in identifying the various drawback involved in the services provided by banking industry,

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Need for the Study: Customer Relationship Management is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and the organizations. Successful customer relationship management focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of the business by integrating them with the organization's strategy, people, technology and business processes. For CRM to work, companies must bring together a number of disparate processes, systems and types of data, regardless of where they reside, to deliver an integrated, unified view of the customer that drives a consistent approach to interactions that is proactive as well as reactive. One of the most common tactical ways of overcoming this issue is to implement a centralized data warehouse. The key is strong business intelligence (BI) focusing on customer information. Once this exists, customer information, wherever it resides, will be available for analysis to provide insights and guide interactions across the enterprise. Further for any CRM initiative to be truly effective, an organization must convince its staff that change is good and that CRM will benefit them. Then it must analyze its business processes to decide which need to be reengineered and how best to go about it. A team of carefully selected executives must choose the right technology to automate what it is that needs to be automated. This process, depending upon the size of the company and the breadth of data, can take anywhere from a few weeks to a year or more.

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RESEARCH DESIGN & METHODOLOGY

Research Methodology
Research methodology is a way to systematically represent a research on any problem. It tends taken by the researcher in studying the research problem along with the logic behind them. It tends to define the methodology for the solution of the problem that has been undertaken for the purpose of the study. This chapter focuses on the methodology of the techniques used for the collection, classification and tabulation of data.

Data Source: Primary data

Secondary data In primary data collection, the data is collected using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. In this project the primary data has been collected through Questionnaires. Secondary data is data that has already been collected by someone else for a different purpose to yours. The secondary data has been collected from brochures, journals, books and websites.

Sample Size: the sample size of my project is 100.

GEOGRAPHICAL LOCATION: Visakhapatnam.
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STATE BANK OF INDIA State Bank of India (SBI) is a public sector bank and is the largest bank in India. If one measures by the number of branch offices, SBI is the second largest bank in the world. It traces its ancestry back to the Bank of Calcutta, which was established in 1806; this makes SBI the oldest commercial bank in the Indian subcontinent. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. In recent years the bank has focused on three priorities, first, reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, second, computerizing its operations and third, trying to change the attitude of its largely rude staff through a programme aptly named 'Parivartan' or 'change'. On the whole, the Bank has been successful in the first two initiatives but has failed in the third.

Associate banks
There are seven other associate banks that fall under SBI. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in 1959. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks with the State Bank of India to expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

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Growth
State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Minister of India. With 10000 branches and a further 4000+ associate bank branches, the SBI has extensive coverage. Following its arch-rival ICICI Bank, State Bank of India has electronically networked most of its metropolitan, urban and semiurban branches under its Core Banking System(CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM network in the country having more than 5600 ATMs[1]. The State Bank of India has had steady growth over its history, though the Harshad Mehta scam in 1992 marred its image. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops all Indian companies.

CUSTOMER CARE
Customers of the Bank can meet senior executives of the Bank on 15th of every month (between 3.00 p.m. and 5.00 p.m.) without any prior appointment and discuss issues relating to their accounts/banking transactions. In case 15th of month is a holiday, customer can meet on the next working day. In case, excessive delay in resolving their problems is experienced, customers can contact the helpline of the Local Head Office, under whose control the branch functions. \

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The State Bank of India has issued the following guidelines to its employees for the customers as well as its employees with regard to its customers: I. State Bank of India strongly believes that a satisfied customer is the most important factor for growth of its business. The Bank was the first in India to introduce a code of Fair Banking Practices in India called Towards Excellence. The code reflected the commitment of the Bank to provide Banking services of a high order to individual banking customers. The code came into effect from October 1997 as part of the Golden Jubilee Celebrations of Indian Independence. The Code was substantially revised in the year 2005 taking into consideration the transformation in banking practices and customer service standards that have since taken place. II. In February 2006, Reserve Bank of India set up the Banking Codes and Standards Board of India (BCSBI) as an independent autonomous watchdog to ensure that customers get fair treatment in their dealings with Banks. The BCSBI has published the Code of Banks Commitments to Customers (the Code) which sets minimum standards of banking practice and benchmarks in customer service for banks to follow. SBI is a member of the BCSBI and has therefore voluntarily adopted the Code as its Fair Practice Code in dealings with its customer. III. This document called the Citizens Charter of State Bank of India provides key information on various facilities/services provided to customers in ordinary branches of State Bank of India. The Code together with the Citizens Charter will thus ensure high standards of accountability, responsibility and transparency in the Banks dealings with customers. The Charter also provides comprehensive information on Banks Grievance redressal mechanism. It also specifies the obligations on the part of the customers for healthy banker-customer relationship. IV. This is not a legal document creating rights and liabilities. The information on general terms and conditions provided herein may not apply to special branches of the Bank like Personal Banking Branches etc. (The information on services provided by these branches can be obtained from the branches or the helplines of the respective Local Head office Centres). . However, all terms and conditions will comply with the principles and commitments undertaken by the Bank in the Code.

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V. Copies of the Code and Citizens Charter will be available on request to all our customers at our branches, administrative offices and at our web site. We will ensure that all our staff members are aware of the commitments contained in these documents and faithfully implement them. VI. The Charter provides essential information on transactions relating to savings, current and fixed deposit accounts, collections and remittances, grievance redressal etc. For further details and complete information on terms and conditions of service visit our branches or write to our Local Head Offices (addresses and contact nos. available on our website www.sbi.co.in). VII. Information given in the Charter is current as of March 31 2007. Information given is subject to change/revision. The Bank will endeavour to update the information on the website when changes are made but please contact the nearest branch/Zonal Office/Local Head Office for the latest changes, If any. VIII. We request all our customers to keep us informed of their experiences about the customer services rendered at our branches and feel free to comment on the Code and Citizens Charter. Your feedback will help us evaluate, improve and widen our range of services. Your comments and feedback may be sent to the address given in paragraph VI above.

Thus all the employees as well as the customers are requested to follow these guidelines and ensure good customer and care value

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MODEL OF CRM We now consider the Business Strategy Perspective on CRM. Here, we propose a model, which is a hybrid, and typical of many of the models and diagrams of CRM that you will find on The Internet and in popular books on the topic of eMarketing/eCommerce. The model has three key phases and three contextual factors:

Three key phases:

1. Customer Acquisition. 2. Customer Retention. 3. Customer Extension.

Three contextual factors:

4. Marketing Orientation. 5. Value Creation. 6. Innovative IT.

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1. 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. 4. Marketing Orientation - means that the wholes organisation is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organisations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not the same). 5. Value Creation - centres on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage.

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6. Innovative IT - is exactly that - Information Technology must be up-todate. It should be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are not the entire story for CRM, it is vital to its success. CRM software collects data on consumers and their transactions. Huge databases store data on individuals and groups of individuals. In some ways, CRM means that an organisation is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organisations will track individuals, and try to market products and services to them based upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells you that customers that viewed/bought the same product as you, also bought another product).

Building Customer Relationship Management Achieving the long-term value of customer relationship management (CRM) requires a strategy involving the whole business and should be approached at an enterprise level. Only a small, but growing, number of enterprises are tackling CRM at this level, with most CRM initiatives consisting of departmental projects or attempts to integrate the work of multiple projects. Executing CRM requires board-level vision and leadership to drive a relentless focus on the customer. It involves learning new customer management skills, culture and organization, and grappling with the technology challenges of multi-channel alignment and systems integration. Even if the top management accepts the need for enterprise-level CRM, the high reliance on meeting sales and profit targets often mean that, although CRM is the most important challenge facing an enterprise, it is not seen as the most urgent. Besides lack of leadership and support from top management, the main reason that enterprises are not approaching CRM at an enterprise level is inability to see the big picture, lack of a strategic framework to provide the support for the CRM journey.

Gartner created the Eight Building Blocks of CRM a framework to help enterprises see the big picture, make their business cases and plan their CRM implementation. The framework can be used to develop the CRM vision and strategies. It can also be the basis of an assessment of the enterprises existing and required CRM capabilities, to help understand its current position and future strategy.

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The framework emphasizes the need to create a balance between the requirements of the enterprise and the customer. The two central building blocks in Figure 1 (valued customer experience and organizational collaboration) are joined by a yin and yang motif to emphasize that this is where people meet, build relationships and provide value to each other. Too many CRM initiatives suffer from an inward focus on the enterprise, whereas the point of CRM is to achieve a balance between value to shareholders or stakeholders and value to customers for mutually beneficial relationships.

The Eight Building Blocks of CRM are 1. CRM Vision: Leadership, Market Position, Value Proposition 2. CRM Strategy: Objectives, Segments, Effective Interaction 3. Valued Customer 4. Organizational Collaboration 5. CRM Processes: Customer Life Cycle, Knowledge Management 6. CRM Information: Data, Analysis, One View Across Channels 7. CRM Technology: Applications, Architecture, Infrastructure 8. CRM Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve Creating a CRM Vision Successful CRM demands a clear vision so that a strategy and implementation can be developed to achieve it. The CRM vision is how the customer-centric enterprise wants to look and feel to its customers and prospects the customer value proposition (CVP) and the corporate brand values are key to the CRM vision. Without a CRM vision, the enterprise will not stand out from the competition, target customers will not know what to expect from it and employees will not know what to deliver in terms of external customer experience. A successful CRM vision is the cornerstone to motivating staff, generating customer loyalty and gaining a greater market share. Developing a CRM Strategy A CRM strategy is not an implementation plan or road map. A real CRM strategy takes the direction and financial goals of the business strategy and sets out how the enterprise is going to build customer loyalty that feel-good factor of customer connection with an enterprise that means customers stay longer, buy more, recommend
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the enterprise to others and are more willing to pay a premium price. The objectives of a CRM strategy are to target, acquire, develop and retain valuable customers to achieve corporate goals. Customer Experience: The Voice of the Customer: Customers experiences when interacting with the enterprise play a key role in shaping their perception of the enterprise the value it provides and the importance it places on the customer relationship. Good customer experiences drive satisfaction, trust and long-term loyalty. Poor customer experiences have the opposite effect and, because bad news travels faster and further than good news, they harm the enterprises ability to create new relationships with prospects. No amount of internal second guessing can simulate what its really like to be a customer. True CRM Requires Organizational Collaboration Many enterprises believe that implementing CRM technologies makes them a customer-centric organization. They forget, ignore or deliberately avoid the necessary changes to the enterprise itself. True CRM means that individuals, teams and the whole enterprise must become more focused on the needs and wants of the customer. The term organizational collaboration, highlights the many facets of the customer-centric internal change needed to deliver the required and desired external customer experience. As a critical part of a CRM program, it will involve changing organizational structures, incentives and compensation, skills and even the enterprise culture. Customer Process Re-engineering: Talk to Your Customers Past efforts to re-engineer processes were primarily driven by the desire to improve the efficiency of an enterprise and reduce costs. The beneficiary was the enterprise, not its customers. The rise in CRM has led to a focus on reworking key processes that touch the customer and asking customers which processes matter to them. Enterprises frequently do not realize that their functionally fragmented processes often mean that the customer has a poor experience and receives less than the expected value. Successful re-engineering should create processes that not only meet customers expectations, but also support the customer value proposition, provide competitive differentiation and contribute to the desired customer experience.
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Customer Information: Is the Lifeblood of CRM Successful CRM requires a flow of customer information around the organization and tight integration between operational and analytical systems. Having the right information at the right time is fundamental to successful CRM strategies, providing customer insight and allowing effective interaction across any channel. Unfortunately, most enterprises CRM information capabilities are poor the result of numerous and fragmented departments, initiatives, databases and systems. Enterprises that establish a business plan for sourcing, managing and leveraging their customer information assets are more likely to achieve their CRM goals and objectives and gain a competitive advantage Technology Decisions Are Key to Enabling CRM Strategies For most technologists, CRM is all about technology. CRM technologies are an essential enabler for any modern CRM business strategy, but they are just one piece of the puzzle. Key Technology decisions that enterprises have to take are in three areas namely CRM applications, architectural issues and integration. In many CRM projects, integration issues start as a relatively low priority, and then rise in prominence (cost and time) as enterprises realize that true CRM requires seamless customer-centric processes, supported by integrated technology across the enterprise and its supply chain.

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Need of CRM in the Banking Industry A Relationship-based Marketing approach has the following benefits: 1. Over time, retail bank customers tend to increase their holding of the other products from across the range of financial products / services available. 2. Long-term customers are more likely to become a referral source. 3. The longer a relationship continues; the better a bank can understand the customer and his/her needs & preferences, and so greater the opportunity to tailor products and services and crosssell the product / service range. 4. Customers in long-term relationships are more comfortable with the service, the organization, methods and procedures. This helps reduce operating cost and costs arising out of customer error. With increased number of banks, products and services and practically nil switching costs, customers are easily switching banks whenever they find better services and products. Banks are finding it tough to get new customers, and more importantly, retain existing customers. According to a research by Reichheld and Sasser in the Harvard Business Review, 5% increase in customer retention can increase profitability by 35% in banking business, 50% in insurance and brokerage, and 125% in the consumer credit card market. Therefore, banks are now stressing on retaining customers and increasing market share.

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Data Interpretation and Analysis

Ques :1 Since when are you availing the services of SBI? YEARS PERCENTAGE(%)
Less than 1 yr 1-3 yr More than 3 yr 36 34 30

No. of Years

30% 34%

Less than 1 year

36%

1-3 years more than 3 years

INTERPRETATION:The data given above clearly explain itself that the SBI bank is performing very well. As the percentage of new customers is increasing every year from 30 to 34 and 36 percentage, which is quite satisfactory, as in the presence of other public and private banks which are attracting the customers with new methods.

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Ques:2

Which type of services are you availing at present?

SERVICES
Current a/c Saving a/c Fixed Deposit Mutual Funds Others

PERCENTAGE(%)
12 53 23 7 5

Type of Service
7%
23% 12%

Current a/c Saving a/c Fixed Deposit Mutual Funds

53%

INTERPRETATION:As per the research, the data collected shows that the percentage of the saving account is the highest as compared to other accounts. The business class account i.e. current account is having 12 percent which is low and the percentage of the fixed deposits is 23 i.e. satisfactory and the mutual fund investors ratio is 7 i.e. because of the less interest of people in mutual funds and preference to older investment methods.
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Ques:3

Are you satisfied with the services offered by bank staff?

RESPONSE
Yes No

PERCENTAGE(%) 68 32

Sales

32%

68%
Yes No

INTERPRETATION:The research shows that the dealings and behavior of the staff members are up to mark and generally customers are satisfied. Few of the customers say no as they are facing some problems due to more work load on staff which leads to them having less time to deal with customers.

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Ques:4 If yes, what are the various factors on which you are
satisfied? FACTORS
Co-operative Behavior Less Time Consuming Provide Valuable Information Others

PERCENTAGE(%) 63 20 9
8

Factors Leading to satistaction Co-operative Behavior Less Time Consuming Provide Valuable Others Information
INTERPRETATION:The ratio of the satisfactory customers is quite good and the customers are happy with the cooperative behavior of the staff. Due to the competent staff members the work performance is quick and efficient and hence they take less time to resolve queries of customers and provide valuable information to them.
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9% 20%

8%

63%

Ques:5

If no, what are the various factors on which you are not

satisfied? FACTORS
Less Cooperative Behaviour More Time Consuming Doesnt Provide Any other Valuable Information Others

PERCENTAGE(%) 21

35 24

20

Factors leading to dissatistaction

20% 24% 35%

21%

Less Co-operative Behaviour More Time Consuming Doesnt Provide Any other Valuable Information

INTERPRETATION:As the coin has 2 sides similarly some of the customers are also there who are dissatisfied with the dealings of the staff. In their opinion the staff members behavior is not cooperative and they also take more time to resolve their problems. Moreover they dont provide any valuable information according to these customers.
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Ques: 6 In addition to SBI Bank, which other Banks services

currently you are availing? BANKS
Union Bank of India Axis PNB HDFC Others None

PERCENTAGE(%) 26 9 15 14 18 18

Other banks services being used

18% 18% 14% 15% 26% 9%
Union Bank of India Axis PNB HDFC

INTERPRETATION:As the business needs cant be satisfied with availing the services of one bank, so the customers are also having the accounts in other banks. Most of the customers are availing the services of Union bank of India in addition to SBI (state bank of India). As almost all banks branches are there in Visakhapatnam having their accounts in PNB, HDFC, Axis, and others.

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Ques: 7 What is prompting to you not avail the services of Banks

other than SBI? REASON
Slow processing of transactions in SBI Strict Requirements in SBI More emphasis to Private Sector Banks Others Didnt Specify

PERCENTAGE(%) 11 28 25 16 30

Reasons for not using only SBI 30% 11% 28% 25% 16%
No fast proceesing Strict Requirements More emphasis to Private Sector Banks Others

INTERPRETATION:As one bank can not fulfill all business requirements, so on the question of using other banks facilities most of the customers think that the requirements of the SBI Bank is very strict. Next reason is, many customers are gaining faith on Private sector banks. Very few are dissatisfied due to slow processing while many other customers didnt specify particular reason in this regard.

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Ques: 8 Are you aware of the various services offered by the SBI
Bank? RESPONSE PERCENTAGE(%)
Yes No Cant say 50 34 16

Awarness about services offered by SBI 16% 34%

50%

Yes No Cant say

INTERPRETATION:The awareness of the customers of SBI Bank is quite well. As per survey many customers are fully aware about all services and many of them are not having full information as due to lack of personal interest and some have not given the answered to this question.

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Ques:9 Tick the following which services are you aware of?
DIRECT BANKING FACILITIES
E-Banking Phone Banking Money Transfer Facilities through ATM Didnt specify

PERCENTAGE(%)
39 37 20 77 9

Facilities
100 80 60 40 20 0 E-Banking Phone Banking Money Transfer Facilities through ATM Didnt specify Facilities

INTERPRETATION:No body today is untouched with the facility of ATM, so this is the most currently in use. In modern business times the e-commerce is the backbone of business so the net banking is also the main product of the banking system and also due to the busy schedule of the businessman the phone and mobile banking is highly in use.

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Ques: 10 What are the various problems that you come to face while
dealing with Bank? PROBLEMS
ATM is not working Long queues at teller counter Taking more time to resolve the queries Rigid requirements Less customer dealing time Cheque is not credited to a/c Didnt specify

PERCENTAGE
10 34 20 15 8 5 17

40 30 20 10 0

Problems Faced by customers

probl ems

INTERPRETATION: There are many aspects where SBI bank has to give attention. Generally customers are facing many problems like long queues at teller counter, high charges for not maintaining AQB etc. Customers want reforms on many problems like increase the customer dealing time and in order to retain customers they have to resolve these problems.

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Ques11: What would you recommend to improve SBI Banks services

further? RECOMMENDATIONS
Increase customer dealing time Improvement in Infrastructure Improve Net Banking Provide Services equal to private sector bank Others Didnt Specify

PERCENTAGE
16 44 41 48 18 5

Recommendations
60 50 40 30 20 10 0

Series 1

INTERPRETATION:On the question of the recommendation, 48% customers say that this bank should provide services equal to private bank. 44% customers say that they are facing problems due to poor infrastructure, so intention should be given to this aspect. 41% customers say that the bank should improve net banking. 16% customers feel that the customer dealing time is less, so Banking Hours should be increased.
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FINDINGS In Visakhapatnam, there are number of banks, despite of the tough competition, the number of the new customers of SBI Bank are increasing every year. 62% customers are having their savings account. The current account user are very less while percentage of the fixed deposits is 22. 68% customers are satisfied with the Banks services and Behavior and only 22% are dissatisfied with the Banks performance. Most of the customers are happily satisfied with the staffs cooperative behaviour. They are satisfied with the fast processing of transaction as they take less time. They get valuable information at time. Very few people are dissatisfied because of more time consuming transactions and less cooperative behavior. 26% of the SBI Banks customer are having their account in Union Bank of India ,15% in PNB,14% in HDFC etc. which shows that the user of the Union Bank of India is the next highest in Visakhapatnam. 28% respondent says that they have account in other bank due to strict requirement, 25% are saying that they give more importance to private sector banks. 29% doesnt specify the reason. The awareness about the various services is quite good but not satisfactory as 50% customers are aware about the various services of the bank, 34% are not aware about the services and 16% respondents answer to cant say. The user of the ATM is the highest and the use of the net banking and phone banking is the second highest, while the knowledge about the money transfer is very less among the customers. Some Customers are having problems with the banks working conditions as 34% customers said that there are long queues at teller counter, 20% said staff take more time to resolve queries, 15% said about strict requirement and many others reasons. 44% of the customers require improvement in infrastructure and 48% customers want that SBI should also provide services equal to private banks. While 41% customers want improvement in e-banking service. 18% doesnt specify.

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Conclusion

Banking can be mysterious for consumers and how they interact with their finances can be a complex matter. The challenges faced by banks and their customers are many but the trick lies in de-mystifying complex financial relationships. Technical solutions deployed by banks today are flexible, user-friendly and meant to facilitate specific workflow and requirements in implementation processes. In order to simplify lives, banks have begun to implement end-to-end technologies through all departments with the intention of removing human error from processes. Previously existing manual environments could not have been adequate for future visions, growth plans and strategies. In this day and age, customers enjoy complete luxury in terms of customized technical solutions and banks use the same to cement longterm, mutually-beneficial relationships. From the complete analysis, this is clear. So at the outset we can say that SBI bank has good scope in future and try to compete with the private sector banks.

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RECOMMENDATIONS

The research shows that the teller is the most crowded counter and always having long queues, so teller counters should be increased. The Bank should also improve its infrastructure as customers feel inconvenience in sitting and standing. As e- commerce is going to increase, many customers want this bank improve net banking even more. Customers say that may be this public bank does not provide services more than private banks but this can be overcome by proper awareness programmes. Some customers have also strongly recommended that the number of branches of bank should be increased in VISAKHAPATNAM. Pay attention for a long time to only one customer with whom staff is dealing, as other customers are also waiting and staff should understand we should not waste other customers valuable time. Banking hours should be increased as the bank closes the customers visit by 3:30p.m. This is very incontinent to the customers. As the cheques are not cleared in time due to lack of attention. So staff should take necessary steps so that cheques should be credited in customers a/c in time. The staff should be efficiently trained for handling the grievances of the customers in order to maintain prosperous relationship between the customer and the business.

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LIMITATIONS In spite of the best efforts there are always some problems or limitations associated with market research that cannot be removed but can be minimized only. In this survey also there could be certain error due to these factors. Small Sample Size Its sample size is very small as compared to total customer base that means our sample size is comparatively small in accordance with the universe, which is large enough. So deduction drawn from the project cant be generalized. Scope of the project is limited to Visakhapatnam region only. That cant be generalized to the whole of universe of SBI Banks customers.

Non Response Error As this research is based upon responses provided by customer, so nonresponses and some wrong responses may become part of error.

Sampling It is not possible to cover each and every customer so it has been tried to cover all section of customer by taking representative sample, which limit the research to a certain extent. These limitations may have effect on findings of the work but not up to large extent and thus do not affect the findings of the work very significantly. Some of the respondents didnt like to share their views and some were ignorant about the facts of SBI Bank.

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BIBLIOGRAPHY
Berry, L. L. (1983). Relationship Marketing. In L.L. Berry, G.L. Shostack, & G.D. Dpah (Eds.), Emerging Perspectives on Service Marketing (pp. 2838). American Marketing Association. Gronroos, C., From Marketing Mix to Relationship Marketing: Towards the Paradigm Shift in Marketing, Management Decision, no. 32(2), 1998, pp. 4-20. Shainesh,G. and Sheth, J.N. (2006): Customer Relationship Perspective: A Strategic Perspective, Macmillan India Ltd.. Sheth, J.N. and Parvatiyar(2000): A., Handbook of Relationship Marketing, Thousand Oaks, California: Sage Publications

Weblinks www.crm2day.com www.crmguru.com http://www.sbi.co.in/user.htm http://en.wikipedia.org/wiki/State_Bank_of_India

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Annexure
QUESTIONNAIRE
Dear Respondent, The purpose of this project is to assess the effectiveness of Customer Relationship Management (CRM) Practices adopted by State Bank of India. Please answer the following questions. Needless to say, your response would be treated confidential and would be used only for the purpose of study. Name : - Age : - Account No :- City : - ..

Q: 1 Since when are you availing the services of SBI? < 1 yr 1- 3 yr > 3 yr

Q: 2 Which type of services are you availing at present? Current a/c Fixed deposit Saving a/c Mutual Fund

If any other, specify. Q: 3 Are you satisfied with the services offered by the bank staff ? Yes No

Q: 4 If yes, what are the various factors on which you are satisfied? Co-operative Behavior Provide Valuable Information n Less Time Consuming Others

Q: 5 If no, what are the various factors on which you are not satisfied? Less Co-operative Behaviour More Time Consuming

Doesnt Provide Any Other Valuable Information If any other, specify.

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Q: 7 In addition to SBI Bank, which Banks services currently you are availing? Union Bank Of INDIA PNB If any other, specify. Q: 8 What is prompting you to avail the services of other banks? Slow Processing of Transactions in SBI More emphasis to Private banks Strict Requirements Others Axis Bank HDFC None

Q: 9 Are you aware of the various services offered by the SBI Bank? Yes No Cannot say

Q: 10 Tick the following which services are you aware of? E- Banking Phone Banking Facilities through ATM (mini statement, bill payment etc.)

Money Transfer

Q: 11 What are the various problems that you come to face while dealing with Bank? ATM is not working Long queues at teller counter Cheque is not credited to a/c If any other please specify 1). 2) Rigid requirements Less customer dealing time Taking more time to resolve the queries

Q: 13 What would you recommend to improve SBI Banks services further? Increase customer dealing time Improve net banking more If any other, specify. Thank You., Improvement in infrastructure Provide services equal to private sector bank

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