You are on page 1of 2

Customer satisfaction , a business term,is a measure of how products and services supplied by a compan y meet or surpass customer expectation

. It is seen as a key performance indicato r within business and is part of the four perspectives of aBalanced Scorecard.In a competitive marketplace where businesses compete for customers, customer sati sfaction is seen as a key differentiator and increasingly has become a key eleme nt of business strategy.Organizations need to retain existing customers while t argeting non-customers;Measuring customer satisfaction provides an indication of how successful theorganization is at providing products and/or services to the marketplace.Customer satisfaction is an abstract concept and the actual manifest ation of the state of satisfaction will vary from person to person and product/s ervice to product/service. Thestate of satisfaction depends on a number of both psychological and physical variableswhich correlate with satisfaction behaviors such as return and recommend rate. The levelof satisfaction can also vary depend ing on other factors the customer, such as other products against which the cus tomer can compare the organization's products.Satisfaction with banking services is an area of growing interest to researchers andmanagers. The commercial banki ng industry like many other financial service industriesis facing rapidly changi ng market. New technologies, economic uncertainties, fiercecompetition and more demanding customers and the changing climate have presented anunprecedented set of challenges. Intangible assets, particularly brands and customers, arecritical to any organization and in todayâ s competitive environment relationshipmarketing is critical to banking corporate success.12 Banking is a customer oriented services industry. As we know that customer is th e kingtherefore customer is the main focus and customer service is the different iating factor.Banks have also started realizing that business depends on client service and thesatisfaction of the customer and this is compelling them to impro ve customer service and build relationship with customers. With the current chan ge in the functional orientation of banks, the purpose of banking being redefin ed. The main driver of this change ischanging customer needs and expectations. C ustomers look for a relationship with bank when they receive benefits from its s ervices.The banking industry like many other financial service industries is fac ing a rapidlychanging market, new technologies, economic uncertainties, fierce c ompetition and moredemanding customers and the changing climate has presented an unprecedented set of challenges .The banking industry in India has undergone dr amatic change post independence. Bankshave also starts realizing that business d epends on client service and the satisfaction of the customer and this is compel ling them to improve customer service and buildrelationship with customers.With the current changes in the functional orientation of banks, the purpose of banki ng is being redefined. The main driver of this change is changing customer needs andexpectations. Customers In urban India no longer want to wait in long queues and spendhours in banking transactions. This change in customer attitude has go ne hand in handwith the developments of ATMs, phone and net banking along with a vailability of serviceright at the customer doorstep. Further the world class ba nking experience provided by private and multinational banks with their ever evo lving products and services has raisedthe bar of customer expectations. With the emergence of universal banking, banks aim to provide all banking products and s ervice offering under one roof and their Endeavour isto be customer centric. The Indian banking industry is also embracing technology rapidly.Big players among the private and public sector banks are reengineering and automatingtheir core b anking processes.13 1.4 RURAL BANKING Rural banking in India started since the establishment of banking sector in Indi a. RuralBanks in those days mainly focused upon the agro sector. The Haryana Sta te CooperativeApex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking inthe economy of Haryana State and has been providing aids and fin ancing farmers, ruralartisans, agricultural laborers, entrepreneurs, etc. in the state and giving service to itsdepositors. National Bank for Agriculture and Ru

It provides andregulates credit and gives service for the promotio n and development of rural sectorsmainly agriculture.ral Development (NABARD) is adevelopment bank in the sector of Regional Rural Ba nks in India. New policies are introduced by RBI for themâ The policy conveys that foreign banks in India may not acquire Indian ones (exc ept for weak banks identified by the RBI. customers (bothcorporate and retail) have becom e more discerning and less "loyal" to banks. Mutual fund. Present scenario bankingindustry has been undergoing a rapid transfor mation. banks have verys trong in-house research and market intelligence units in order to face the futur echallenges of competition.Share market. Banks today are market driven andmarket responsive. With the entry of ne w players and multiple channels. needs. 1. small scale industries. This makesit imperative that banks provide best possible products and services to ensure customer satisfaction. requirements. cash positions. handicrafts. co ttage and village industries. After the set up foreign banks in India. Insurance. on its terms) and their Indian subsid iaries will not be able toopen branches freely.14 .5 FOREIGN BANKS IN INDIA Foreign Banks in India always brought an explanation about the prompt services t ocustomers. Money lenders. Main competitors for banking sec tor. Post offices.their profiles. Family an d friends. etc. The y have been managing a world of information about customers . especially customer retention. l ocation. the banking sector in India also become competitive and accusative. Furthermore.