Customer Relationship Management in Banks: A Comparative Study of Public and Private Sector Banks in Kerala. Article (PDF Available) in International. Abstract: Customer Relationship Management (CRM) was developed as a the various financial services provided by private and public sector banks of. Relationship Management (CRM) is a comprehensive approach for creating, maintaining and relationship management in public and private sector banks. 5 .
So there is a compelling need for the Indian banking industry to modify its marketing strategy to attract the customers and to withstand the stiff competition from foreign banks and new private sector banks. The use of Customer Relationship Management in banking has gained importance with the aggressive strategies for customer acquisition and retention being employed by the bank in today's competitive milieu.
Thus it is imperative to find out the factors which are responsible for the success of Customer Relationship Management in banks. New technologies, research facilities, globalization of services, the flood of new products and the concept of all the facilities under one roof to provide better customer service leading to customer delight.
Thus, it s important to know the factors responsible for the success of customer relationship management. If a Bank wants to have more customers, it should develop a good relationship with its present customers and try to maintain the same in the future also. Customer relationship management is an important tool, for which a bank must go for in such a situation. The customers are switching over frequently to avail the better facilities from other banks. Newer and superior products and services are being introduced continuously in the market.
With the help of customer relationship management, strong customer loyalty and a good image for the organisation can be developed. In toda s competitive scenario, the challenge is to build a safe and sound banking system for a vibrant economy, for which effective customer relationship management is the solution.
Therefore the study is going to be very helpful in finding out the factors which are responsible for the success of customer relationship management in banks. Hypotheses The Hypotheses of the study are as under: The Public sector banks provide a fast mechanism for handling problems and complaints of customers. The Private sector banks provide a fast mechanism for handling problems and complaints of customers. The Public sector banks ensure the maximum utilization of IT- enabled services for offering customers the best and timely services.
The Private sector banks ensure the maximum utilization of IT- enabled services for offering customers the best and timely services. The Public sector banks offer services according to the requirements and expectations of each individual customer. The Private sector banks offer services according to the requirements and expectations of each individual customer.
The Public sector banks employees are quite efficient and skilled for customer relationship management. The Private sector banks employees are quite efficient and skilled for customer relationship management.
The environment provided by public sector banks is more elegant and customer-friendly than private sector banks. The environment provided by private sector banks is more elegant and customer-friendly than public sector banks. The Public sector banks precisely assess the needs, interests and buying habits of customers. The Private sector banks precisely assess the needs, interests and buying habits of customers.
Research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. The study is descriptive in nature, thus it follows descriptive research design. The universe of the study consists of all the private and public sector banks operating in India.
The sample to be studied is selected through Multi-Stage Sampling. Firstly the private and public sector banks are chosen on the basis of Convenience Sampling. Secondly, branches to be studied are chosen through Cluster Method. The study will collect information on customer relationship management of banks chosen to represent the public and private sector banks. The information on customer relationship management will be collected from customers of each selected banks and 10 employees of each selected banks.
Primary data will be collected through interview conducted to obtain information on customer relationship management from selected banks and questionnaire is designed to gather feedback from customers on customer relationship management by selected banks. A lot of secondary information related to selected banks and customer relationship management will be collected through web sites, journals books, magazines etc. Chapterisation Chapter 1 Introduction 1.
Which Sector bank do you have your account? Public Private Both 2. Name of the bank in which you have your Account? In Case you have your Account in more than one Bank, list them as per your preferences. Which type of account do you have in the bank? Saving Current Demat F. Rank the selection criteria from 1 — 4 for opening account with bank? Please tick the appropriate column. Kindly rank from 1 — 4 the reasons for yours preference in this particular bank?
Which facilities are you availing at your bank? Frequently Occasionally Never 9. How did you contact our customer service? If you called on the phone, how quickly did you get through?
Immediately About 1 minute minutes More than 5 minutes Does not apply If you contacted customer service by Fax or Email, how long did it take to get a response? Under 2 hours hours hours 1 business day More than 1 business day They never replied Does not apply 19 Was your customer service representative: Please tick appropriate column. What was your reason for contacting our customer service? How satisfied are you with the way we: No experience] 1 2 3 4 5 Handle your account efficiently, without mistakes?
Apologize for any mistakes?
How satisfied are you with: No experience] 1 2 3 4 5 The time taken by us to respond to your letters? How clearly our letters answers your enquiry? How easy our letters are to understand? No experience] 1 2 3 4 5 The level of privacy we offer in the branch? The cleanliness of the branch? How your enquiries are passed between staff? How often you have to queue? How long you have t o queue? Our efforts to reduce queuing time? How quickly our cashiers carry out transactions? If you have complained, please tell us how satisfied you were with: Not answered] 1 2 3 4 5 The way your complaint was handled The person who sorted out your complaint The time taken to sort out your complaint The follow up contact you received 21 How would you describe your views about Branch Banking?
Please tick in the appropriate column. Highly Satisfied 1 2 3 4 5 Behavior of the staff Time taken to process the transaction Working hours General assessment about the services provided by the branch How would you describe your views about Internet Banking services? Highly Satisfiedspecify the reason if not using the service. How would you describe your views about ATM Banking services?
Highly Satisfiedspecify the reason if not using the service] 1 2 3 4 5 ATM network distribution Continuous Service Variety of transactions Ease of Screen use General assessment about the service Overall, how satisfied are you with the service you receive?
Over the last year, has our service: How likely are you to? Remain a customer of this bank?
Buy another product or service from this bank? Ho u h satisfied are ou ith our a k s o erall perfor a e? Excellent Very Good Good If an option is given to you, would you like to shift from the present Bank? To which aspect of CRM your bank give more importance.
Technology People Process 2. Is there any separate department for CRM in your bank and how that department works. What technology or software your bank has adopted for CRM.
What are the benefits of using that software. Any special training is provided to employees and what are the objectives of that training programme. Please answer the following questions about Customer Service.
Strongly Somewhat Undecided Somewhat Strongly Disagree Agree Agree Agree My department listens attentively to identify and understand customer concerns My department responds promptly to customer requests, despite a busy workload. My department consistently provides courteous service even when the customer is unreasonable 7. How satisfied are you with the quality of the customer service provided by your department?
The segments discovered that helpful in keeping up the client possibility of this model was taken from Michael administration quality, consumer loyalty and client Porter's worth chain model Porter, It comprises maintenance which at last prompts the development of of five essential stages and four supporting conditions the association and productivity Bansal andSharma, driving towards the finished objective of improved client Girdhar watched that by fulfilling the benefit.
Kumar and Rajesh Relationship Management CRM has risen as a center uncovers that any bank that desires to either. They suppliers by making an exchange off amongst recommend that a more profound comprehension of the connections and economies, trust and items, or behavioral measurements of relationship advertising and administration and proficiency Sachdev et al.
CRM is a A relationship taking into account common trust and key to make a prevalent client experience. It deals with confidence keeps going longer. Numerous scientists have been private sector banks. Lu and Shang For this research single cross sectional design is investigated the CRM recognitions in cargo followed, where one sample of a respondent is drawn forwarder administrations from administrative points of from the target population and information is obtained view.
They had turned out with six measurements of from this sample only once. The study was limited in CRM specifically client procurement, client reaction, Bhubaneswar city of Odisha. A structured survey client learning, client data framework, Customer esteem questionnaire was followed. The questionnaire assessment and client data process.
A sample of 60, taken from researched the variables that impact the viability private and public sector banks.
Squares Square Between Groups. In the past the makers CRM in the bank so far so some has moderately underestimated their clients, in light of the fact that satisfied with it and some has neutral opinion about around then clients were not requesting nor had elective this. Be that as it may, the changing Most of the respondents are highly satisfied that they have managed business customersenvironment according is portrayed by to CRM.
Majority of the respondents are moderately monetary liberalization, satisfied expanding that they have rivalry, high shopper benchmarked their organization performance with best practices of other banks. The respondents of public sector and private bank on the customers of banking industries preferred and except question that the measures that banks must put in transparency with the executives.
So, customer place to achieve excellent customer relationship. It is suggested that bank should developed that make work less stressful for employees.
Be question that the need for customer relationship positive in every approach. Bank transaction should be fully Marketing Actions and the Value of Customer computerised. The Banks should design the advertising Assets.
Journal of Services Research, 5 1 Building and Managing and reasonable cost in the other customers who are not Relationships as Valuable Assets. Harvard aware of the Banking facilities. Relationship marketing of All most all respondents are concurred or modestly services: Growing Interest, Emerging Perspectives.
The measures that  Christopher, M. No doubt CRM is here to In Search of the Internet- representatives.