Private 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. 1.2 INTRODUCTION TO CUSTOMER RELATIONSHIP MANAGEMENT Customer 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 2
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 3
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.
1.4 Three Key Phases in CRM: 1. Customer Acquisition 2. Customer Retention 3. Customer Extension 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. 4
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
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2. REVIEW OF LITERATURE Number 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 6
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 7
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.
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 8
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.
Kevork 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.
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3.1 NEED OF THE STUDY The researchers 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. 3.2 SCOPE OF THE STUDY The scope of the study was limited to the role of customer relationship management in private banks carried out in HDFC Bank, Amritsar only. 3.3 OBJECTIVES OF THE STUDY Every 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 effectiveness of customer relationship management in private sector banks. 4. To know the various shortcomings felt by customers while dealing with their respective banks. 5. To know the future expectations of customers regarding services of the private banks. 10
4. RESEARCH METHODOLOGY Research 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. 4.1 RESEARCH DESIGN: The research design for the present study was descriptive because it was based on the facts and findings of different kinds. 4.2 SAMPLING DESIGN: 4.2.1 Sample Universe: The Universe for the current study was HDFC Bank, as covering the various customers of private banks. 4.2.2 Sample Size: It was of 25-30 respondents from Jalandhar city. 4.2.3 Sample unit: Customers of Private Banks who belongs to Jalandhar City from the following category: students, businessmen, professionals and service class people. 4.2.4 Sampling Technique: Non probability- judgmental sampling had been used for this study. 4.3 SOURCES 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.
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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 30 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.
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Table 5.1: Demographic Profile of Customers
DEMOGRAPHIC FACTORS CATEGORIES NUMBER PERCENTAGE AGE Below 25 years 15 50.00% 25-40 years 10 33.33% 41-55 years 3 10.00% Above 55 years 2 6.67% Total 30 100 QUALIFICATION Under Graduate 10 33.33% Graduate 12 40.00% Post Graduate 6 20.00% Diploma 0 0.00% Other Discipline 2 6.67% Total 30 100 OCCUPATION Student 15 50.00% Business 8 26.67% Professional 2 6.66% Others 5 16.67% Total 30 100 AVERAGE ANNUAL INCOME (Rs.) Below Rs. 50,000 15 50.00% Rs. 50,001 to1,00,000 2 6.67% Rs. 1,00,001 to 3,00,000 3 10.00% Rs. 3,00,001 to 5,00,000 2 6.67% Above 5,00,000 8 26.66% Total 30 100
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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 Bank 8 26.67% ICICI Bank 14 46.67% Axis Bank 1 03.33% Standard Chartered Bank 3 10.00% IDBI Bank 1 03.33% YES Bank 3 10.00% Total 30 100%
Figure 5.1: Customer Preference for Private Sector Bank
Analysis and Interpretation: The above table and graph depict that out of 30 respondents, 26.67% of respondents prefer HDFC bank, followed by 46.67% in ICICI Bank, 3.33% in AXIS Bank, 10% in Standard Chartered Bank, 3.33% in IDBI Bank and 10% in YES Bank Therefore majority of customers of private banks prefer ICICI among others.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% HDFC Bank ICICI Bank Axis Bank Standard Chartered Bank IDBI Bank YES Bank P e r c e n t a g e
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Largly availed private sector banks 14
2. Types of account operated by respondents.
Table 5.3: Types of Account Operated by Respondents
Type of Account No. of Respondents Percentage Savings Account 30 83.33% Current Account 4 11.11% Term Deposits Account 2 05.56% Total 36* 100%
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. 83.33% are operating savings account, followed by 11.11% respondents who are operating current account and 5.56% operating term deposits account. Therefore, savings account is operated most by respondents
Number of respondents differs because multiple choices were invited. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Savings Account Current Account Term Deposits Account P e r c e n t a g e
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Types of account 15
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 encounter 30 34.89% Mail encounter 26 30.23% Telephonic encounter 8 9.30% Home delivery 22 25.58% Total 86* 100%
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. 34.89% 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. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Personal encounter Mail encounter Telephonic encounter Home delivery P e r c e n t a g e
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Different Service Encounters 16
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 Yes 25 83.33% No 5 16.67% Total 30 100%
Figure 5.4: Help Provided by Customer Service Representative or Not
Analysis and Interpretation: From the above table and graph it is clear that 83.33% respondents are helped by customer service representative in financial planning and 16.67% respondents are not at all helped. Therefore, it is clear that customer service representatives are helping the customers in financial planning. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Yes No P e r c e n t a g e
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Helped by CSR in financial planning 17
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 Yes 27 90% No 3 10% Total 30 100%
Table 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. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No p e r c e n t a g e
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Knowledge about new schemes provided to customers 18
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. Attributes 5 Strongly agree 4 Agree 3 Neutral 2 Disagree 1 Strongly disagree Summated score 8.1 The CSR is very courteous 15 8 4 3 0 125 8.2 The CSR is very knowledgeable 14 8 6 2 0 124 8.3 The CSR attend me quickly 9 11 4 6 0 113
8.1 Majority of the respondents agreed that the customer service representatives they speak are very courteous. 8.2 The customers agreed that the CSR with whom they speak are knowledgeable. 8.3 Majority 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).
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7. Problems faced in the bank out of the following.
Table 5.8: Types of Problems Faced by Respondents
Problems faced in bank No. of Respondents Percentage Slow Service 4 10.25% Long waiting time/ lines 12 30.77% More guarantee requirements 8 20.51% Unfriendly Staff 4 10.25% Difficulty in accessing account 6 15.39% No timely solution 5 12.83% Total 39* 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. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Slow Service Long waiting time/ lines More guarantee requirements Unfriendly Staff Difficulty in accessing the account No timely solution P e r c e n t a g e
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Problem faced 20
8. Level of satisfaction among customers.
Table 5.9: Satisfaction Level of Customers
Sr. No. Attributes 5 Highly Satisfied 4 Satisfied 3 Neutral 2 Dissatisfied 1 Highly dissatisfied Summated score 10.1 Quick and Fast service 9 12 3 6 0 114 10.2 Ease in accessing the account 14 8 3 3 2 119 10.3 Good Staff 12 12 4 1 1 123 10.4 Guarantee requirement 5 14 6 3 2 107 10.5 Transfer facility of your account in any other branch 10 6 11 3 0 113 10.6 Renewing the account 4 16 6 3 1 109 10.7 Loan Facility 3 6 16 2 3 94 10.8 Reliability 13 8 7 1 1 121
10.1 The respondents are satisfied with the service of private banks. 10.2 As regard ease in accessing the account respondents are falling in agree side. 10.3 Majority of the respondents are satisfied with the services of staff. 10.4 Respondents are not satisfied with the guarantee requirements demanded by Banks. 10.5 Most of the respondents are satisfied with the facility of transfer of account in any other branch. 10.6 Respondents are satisfied with the facility of renewal of account. 10.7 The respondents are not satisfied with the loan facilities provided by bank. 10.8 As far as attribute of reliability is concerned the respondents think that private banks are not at all reliable. 22
9. Future expectations of Customers regarding services of bank. Table 5.10: Future Expectations of Customers from Bank Future expectations of customers from bank No. of Respondents Percentage Quick and quality Service 11 24.44% Ease in accessing the account 6 13.33% Less guarantee requirements 4 08.89% True representation of all charges 16 35.56% Timely solution to the problem 8 17.78% Total 45* 100%
Figure 5.7: Future Expectations of Customers from Bank
Analysis and interpretation: From the above graph and table it is clear that 27.37% of the respondents expect true representation of all charges from the bank, 24.15% of the respondents want quick and quality service, 20.04% 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. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Quick and quality Service Ease in accessing the account Less guarantee requirements True representation of all charges Timely solution to the problem P e r c e n t a g e
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Future expectations of customers from bank 23
6. FINDINGS OF THE STUDY After 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.
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7.1 CONCLUSION
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 30 respondents from Chandigarh 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. 25
7.2 RECOMMENDATIONS After 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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