CRM

Journal for Studies in Management and Planning e-ISSN: 2395-0463
Available at Volume 02 Issue 11

http://edupediapublications.org/journals/index.php/JSMaP/ November 2016
A Comparative Analysis of the Public Sector and Private

Sector Banks With Reference To Customer Relationship
Management in India
*Jyoti Rani
*Teaching Assistant, Department of Commerce, B.P.S.Mahila Vishvavidalaya,
Khanpur Kalan, Sonipat, Haryana.
Email: jyotibhanwala@gmail.com
Abstract
comparison to private sector banks. SPSS
This paper has specified that a
packages has used to analyzed and
comparative analysis of the private sector
compile the collected data from the field
banks and public sector banks on the basis
survey. The researcher collected the
of CRM. CRM can be examined on the
original data and frequency distribution
basis of the parameters which have
has studied on the collected data. The
defined the effectiveness from the business
research has helped also to find out the
point of view. This study has specifies the
significant difference between the public
comparative analysis and various factors
sector and private sector banks.
analyzed and documented. This paper has
Key Words: CRM, Online and Offline
considered the 26 factors in which 8
banking services, Customer Satisfaction
factors are more significantly important in
Index
the banking sector. Questionnaires are
filled to the public sector banks and
Introduction
private sector banks. After analyzing the
various factors which are considered in Banks have been managing the
research, it is observed that 8 factors are information of the customers such as their
significant as compared to other factors. profile, location and their saving. They
The research is done to measure the have a close relationship between the
customer satisfaction index and to find out customers and a good knowledge of their
that customer account management in needs and their cash positions. During the
banks. This study also helps to monitor the planned economy period for economic
working styles, structure, and economic development, the bank products were
objectives of various nationalized banks in bought in India and not sold. Our public
sector banks have lost their marketing
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 300

attitude and marketing is the customer relationship between the banking sector
oriented, without customer no one can be and the customers.
succeeds. Public sector bank has improved
When a proper channel established in the
their customer service which is related to
banking sector and after that bank has
that processes such as services are quick,
followed a CRM which improving
error free and convenient for the
customer satisfaction levels. Data mining
customers. Banks have very strong for the
used by the banks which helps in
market intelligence units and in house
analyzing which has helped in improving
research for facing the competition in the
service levels and finding new business
market and customer retention. Marketing
opportunities. It is necessary for the banks
is the combination of demand and supply.
that they established the serious
Most of the times, banks world-over a
governance systems for privacy risk
decade re-engineered their organizations to
management. The critical issue is that
improve the efficiency and reduce the cost
banks are not enabled to safeguard the
for increasing the customers. For this, to
customer privacy completely without
maximize the value of this resource, our
undermining the innovations in banking.
banks need to transfer their branches from
This innovation is beneficial both for the
transaction processing centers to customer
customers and providers. Which are
centric centers. After transferring the
product and transaction-oriented and
branches at the customer centric points,
focused on discrete rather than on the
banks earned the benefits by retaining their
continuous activities. Most of customers
customers. Branches helped the customers
change their banks due to some problems.
to inform and educate about their services
With the help of advanced technology,
such as customer loans, insurance
banking sector provides such type of
products, mutual fund etc. The biggest
services that is internet banking, ATM’s.
challenge our banks face today is that to
After that customer has freely chosen any
establish customer intimacy. It is
bank for their transactions. This situation
important for the banks that they provide
coupled with the pressure of competitive
such type of services that the customer
and dynamic markets which contributed
come back to him. CRM has implemented
for the growth of the banking sector.
and integrated correctly in the banking
sector that established a proper
Objectives of the Study

a) To study & monitor the working banking services and the main aim of the
styles, structure, economic banking sector is to provides the better
objectives of various Nationalized services to the existing customer and retain
Banks in comparison to Pvt. Banks them by providing better services. The
b) To measure the customer study is based on the selected private
satisfaction index sector banks.
c) To evaluate the control criterion for Rathod, M.G. (2012) aim to explore that
the level of computerization by customer are the key indicators of the any
banks to provide efficient services. banks. Customers are satisfied by all the
Literature Review bank which are the private sector,

cooperative and national banks. Customers
Rasmi (2015) aimed to explore the
has not ignored by the banks. A bank can
relationship between the CRM and Indian
grow only when he satisfied their
Banking Sector. The author has focused on
customers. Many time banking sector
the perspective customer which facing the
relate to the retail segment which helped to
CRM policies in context of the banking
provide the services to the customer.
sector. This paper is based to analyze and
Stanley, S. (2012) aim to investigate the
implementing the banking system for the
customer relation with the bank. CRM
CRM and identify the challenges and as
strategy adopted by the banks for
well as success factor for understanding
improving the relation with the loyal
the impact of CRM.
customer and created the new customers.
Simo , M & Bregasi , M. (2013) found out
Customer relationship management has
that banking marketing as manifested not
helped to improve the life time customers
merely in the trading techniques but it also
for the banks.
meet the needs of the customer. And the
Anbouli, P. & Thiruvenkatraj , T.R. (2013)
authors have more focus on the banks that
examined the relationship of the customers
how the political and customer loyalty
and the banks. The authors has analyzed
maintained by the banks that operated in
the perception of the customer on the basis
Albania and which ensure the
of the CRM as a tool of the banking sector
sustainability growth of the banking
for the retaining the customers.
sector.
Popli, G.S. & Rao, D.N. (2009) aim to
Balakrishnan , H & Krishaveni , R. (2014)
investigated that why the CRM need has
examined that customer satisfied with the
arise in the banking sector. Such as various

factors has considered by the authors that  Improved Customer Retention

is intense competitors among the banking Research Methodology
sector to attract and retain the customer.
The data has been collected from the
The customers are well informed about the
primary sources by using the questionnaire
banking industry. The study is based on
cum interview methodology. SPSS
the analysis of the private sector banks and
package are applied to compile and
the public sector Indian banks.
analysis the collected data from the field
Siva Prasad, A.V.V. found out that the
survey. Frequency distribution was studied
banking sector maintain their existing
on the original data collected by the
customer. But the important task for the
researcher on different variables and chi-
banking sector is that they update the
square test applied for making the
customer time to time and also provide the
comparisons .The research has done to
relevant information with the bound to the
measure the significant difference in the
customer.
private sector bank and public sector
Wangsansukcharoen et al. (2015)
banks.
examined the banking performance of Thai
Banking and CRM
Commercial Bank branches with the help
Customers feel empowered in the banking
of the quantitative data in the financial
sectors because they have greater access to
service sector. The authors has examined
the product and services of the banks such
that there is a significant relationship exist
as banks provides the 24 hrs. Service to
between CRM, RMO and business
their retail and corporate customers. Many
strategies. The success factor of the social
services have been launched by the
CRM and RMO have indirect influenced
banking sector to avail their customers
the banking performance through the help
such as educational loans and tourism
of banking strategy.
loans. The greater focused of the banking
Need of CRM in the Banking
sectors on growing economy on the
Industry customer relationship management. CRM
 Long-term customers are more is the only way which helped the banking
likely to become a referral source industry to protect its market share and
 Intense Competition boost the economy. CRM is helped to the
 Timely informed customer banking industry to improve their growth.
 Decline in Brand Loyalty Most widely accepted classification of

customer relationship management Many innovative services have been

systems includes the operational, launched by the banks such as:
collaboration and e-CRM. The major 1. ATM facility for the customer
function of analytical CRM is to support 2. Single window service. Teller
strategies customer information provision system
and customer knowledge acquisition to 3. Innovation of the Debit and Credit
help achieved the final goal of CRM which Card, Smart Card, Mobile and E-
is to enhance customer. Customer got the mail Alerts
benefit in the difference between the 4. Electronic Cash
revenue and cost. CRM is the added Some new schemes as per the customer’s
dimension to ensure that what the needs launched by the banks viz. education
customer has expect to the banks for they loans, marriage loans, housing loans,
are consistent for their and get the benefit personal loans, vehicle loans, furniture
of the banking industry. loans and tourism loans
Data Analysis & Interpretation

Table 1.1
Analysis of the various factor for the public sector and private sector banks
Type of Bank
Public Private Chi- p-value
Relationship with customer % % square
Highly dissatisfied 0.0 0.0
Moderately dissatisfied 0.0 0.0
Neutral 0.1 4.0 2.147 0.342
Moderately satisfied 33.8 34.6
Highly satisfied 65.2 60
Customer Prospecting
5.279
Neutral 47.8 33.3 0.238

Highly satisfied 2.2 0.0

Interactive management
6.876 0.032
Neutral 10.9 0.1
Empowerment to customers
Neutral 53.3 28.9 17.706 0.001
customer expectation
Neutral 29.4 45.4 4.670 0.097
Partnership
Neutral 19.7 29.0 1.207 0.546
Personalization
Neutral 6.4 9.0 1.850 0.396
Presence of Internet facility without risk


Neutral 56.6 29.0 14.887 0.002
Interacting on internet
Neutral 30.4 33.3 0.104 0.950
Speedy Service
Neutral 10.9 4.4 2.115 0.348
Speed of ATM and related service
Neutral 47.9 42.1 2.169 0.538
Staff Cooperation and Behavior
Neutral 10.8 4.5 3.132 0.208
Loan and related facilities with clear
and standard terms and conditions
Highly dissatisfied 0.0 20.0 14.666 0.002


Neutral 56.7 28.7
problem solving attitude / specific staff
Neutral 30.4 35.6 3.905 0.274
Variety of service
Neutral 10.8 0.1 6.825 0.033
Better rate of interest
Neutral 36.9 40.1 1.974 0.578
Finding and Suggestions existing literature on CRM has limited

inputs and addressed to identify the scope
To maintain the sustainable benefits of the
for further improvement in CRM. During
CRM in the flexible and uncertain
this research, various type of the factor is
business environment, it is necessary to
more significant and play important role in
measure the CRM practices. CRM can be
Banking Sector. Responses are taken for
examined on the basis of the parameter
the factor frequency from the public sector
which has helped to defined effectiveness
and private sector banks respondent. After
from its business point of views. The
analyzing the various factors which are

considered in research, it is observed that 8 [5] Prasad, A. V. (n.d.). Customer

factors are significantly as compared to relationship management in public and
other factors. These factors are such as private sector banks – a comparative study.
interactive management, empowerment to Abhinav National Monthly Refereed
customer, customer expectation, better rate Journal Of Research In Commerce &
of interest, variety of services, problem Management , 2(4).
solving attitude, staff cooperation and [6] Rashmi. (2015). A study on
behaviors and speed of ATM and related customer relationship management
services. practices in banking sector in india.
Bibliography Abhinav National Monthly Refereed

Journal of Research in .
[1] Anbuoli, P., & T.R.Thiruvenkatra,
[7] Rathod, M. G. (2012). Importance
&. (2013). A study on customer
of customer relationship management in
relationship management. International
marketing of banking products and
Research Journal of Business and
services. IBMRD's Journal of Management
Management , 6.
and Research , 1.
[2] Balakrishnan, H., & &
[8] SIMO, M., & BREGASI, M.
Krishnaveni, R. (2014). A study on
(2013). Customer relationship management
customer relationship management
and challenging aspects in the banking
practices in selected private sector banks
sector: case of albania. European Academic
with reference to coimbatore district. The
Research, , 479-494,1(4).
SIJ Transactions on Industrial, Financial &
[9] STANLEY, S. (2012). New
Business Management , 2(1).
perspectives in the banking sector –the crm
[3] MANOL SIMO., &
way. International Journal of Marketing,
MAGDALENA BREGASI. (2013).
Financial Services & Management
Customer relationship management and
Research , 1(11).
challenging aspects in the banking sector:
[10] Wongsansukcharoen, J., & &
case of albania. European Academic
Fongsuwan, J. T. (2015). Social crm, rmo
Research, , I(4).
and business strategies affecting banking
[4] Popli, G. S., & Rao, D. N. (2009).
performance effectiveness in b2b context.
Customer relationship management in
Journal of Business & Industrial Marketing
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, 30(6), 742-760.

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Journal for Studies in Management and Planning e-ISSN: 2395-0463

Available at Volume 02 Issue 11

A Comparative Analysis of the Public Sector and Private

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 300

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 301

Literature Review bank which are the private sector,

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 302

factors has considered by the authors that  Improved Customer Retention

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 303

customer relationship management Many innovative services have been

Data Analysis & Interpretation

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 304

Highly satisfied 2.2 0.0

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 305

Highly dissatisfied 1.0 22.1

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 306

Moderately dissatisfied 34.7 46.8

Finding and Suggestions existing literature on CRM has limited

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 307

considered in research, it is observed that 8 [5] Prasad, A. V. (n.d.). Customer

Bibliography Abhinav National Monthly Refereed

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 308

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