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1.1 INTRODUCTION TO PRIVATE SECTOR BANKS


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
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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
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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.
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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
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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
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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
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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.
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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
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Largly availed private sector banks
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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
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Types of account
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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
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Different Service Encounters
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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
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Helped by CSR in financial planning
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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
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Knowledge about new schemes provided to customers
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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


Score=30*5=150 (Strongly Agree)
Score=30*3=90 (Neutral)
Score=30*1=30 (Strongly Agree)

Analysis and Interpretation

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
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Problem faced
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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


Score=200*5=1000 (Strongly Agree)
Score=200*3=600 (Neutral)
Score=200*1=200 (Strongly Agree)


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Analysis and Interpretation

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.
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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
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Future expectations of customers from bank
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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.

24

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.













26

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