EXECUTIVE SUMMARY

Customer relationship management is a broad approach for creating, maintaining and

expanding customer relationships. CRM is the business strategy that aims to understand,
anticipate, manage and personalize the needs of an organization’s current and potential
customers. At the heart of a perfect strategy is the creation of mutual value for all parties
involved in the business process. It is about creating a sustainable competitive advantage by
being the best at understanding, communicating, and delivering and developing existing
customer relationships in addition to creating and keeping new customers. So the concept of
product life cycle is giving way to the concept of customer life cycle focusing on the
development of products and services that anticipate the future need of the existing customers
and creating additional services that extend existing customer relationships beyond transaction
The intense competition which banks have come to face, both as a consequence of growth of
non-banking financial institutions as well as securitization has created the fear of high risk and
has increased the attention towards Customer Relationship Management. Customer relationship
management (CRM) is a multifaceted process, mediated by a set of information technologies that
focuses on creating two-way exchanges with customers so that firms have an intimate knowledge
of their needs, wants, and buying patterns. In this way, CRM is intended to help companies
understand, as well as anticipate, the needs of current and potential customers. The project is a
detail study Need for Customer Relationship Management and customer satisfaction
 CHAPTER1: INTRODUCTION TO TOPIC
The banking industry of India is now running in an enormous challenge concerning both
customer base and performance. Now many banks are rushing to become more customer
focused. A key component of many initiatives is the implementation of Customer Relationship
Management (CRM) concept. CRM has its origin in the basic paradigm of bank marketing, i.e.
to satisfy customers with the possible alternative in the market through a relational exchange
process. Customer Relationship Management (CRM) is comprehensive business strategy. It help
Business to organize its activities around the customer. CRM is not meant for only consume
goods and services companies; it is the secret of success of any type of business. Now a day only
those businesses that constantly strive to earn the trust of their customers are successful.
A perfect CRM strategy is the creation of mutual value for all the parties involved in the
Business process. It is about creating a sustainable competitive advantage by being the best at
Understanding, in the era of cut throat competition, the survival of any bank depends upon
the satisfied customers. Customer satisfaction is the state of mind that customers have about a
Bank when their expectations have been met or exceeded over lifetime of the service
The battle for banks to gain a greater slice of the market share is increasing year by year
as with the globalization effect banks are finding it increasingly difficult to meet the high growth
of customer expectations. In order to boost their economic lines banks are increasingly looking at
ways of achieving organic growth through acquisition of new customers and retaining existing
customers
 1.1: Objectives Of The Study

 To understand need of customer relationship management in bank

 To understand impact on Customer retention using CRM in bank
 To analyze the perception of customer in SBI and ICICI bank
 To analyze relation between customer relationship management in bank and service
quality
 To examine the customer feedback and their knowledge about various services provided
by SBI and ICICI bank

1.2: Scope of The Study

for study various factor of relationship management are taken basically tries to identify the
customers satisfaction with their services among ICICI bank and SBI bank and know about the
customer preferences among ICICI and SBI bank. the study was done to individual customer
restricted to the city of new Mumbai

Sample size: -
For the purpose of this study, the sample size comprises of 66 respondents.
ICICI bank – 33 respondents
SBI bank - 33 respondents

TYPE OF RESEARCH - Descriptive research

SOURCE OF DATA: -

Primary Data: -Primary data will be collected through questionnaire and personal interviews.

Secondary Data: -Secondary data will be collected through various sources such as magazine,
Internet and business journals.

HYPOTHESIS FORMULATION

Null Hypothesis: There is no impact on Customer retention using CRM in bank

Alternate Hypothesis: There is a impact on Customer retention using CRM in banks.

1.3 Limitations Of The Study

 The study is limited to a particular branch of SBI and ICICI bank.

 Since the time is less the researcher has taken a sample of 100 people and it will
not reveal the whole population of a country.

1.4: Literature Review

Customer relationship management in financial services industry is a cyclical process

which starts with definition of customer actions (Panda T, 2003). Panda T described customer
expectations are difficult to manage but are often the cause of dissonance which results in loss of
existing customer base. So understanding of customer expectations with regard to service
delivery levels and product quality is essential for establishing a long term symbolic value
relationship. The challenge before the banks is not only to obtain updated information for each
customer, but also to use the information to determine the best time to offer the most relevant
products (Lau K, et al, 2003). It is also important to understand that if customers bring in profits
for the bank, it becomes imperative for the bank to provide excellent services to those customers,
otherwise they switch to other banks (Ray B, 2007). CRM can be viewed as a process geared
towards increasing the value of customers over their lifetime as customers (Furness, 2001).
Furness P highlighted that the essential part of CRM process is the application of decision
analytics to understand and predict customer behavior. Berry (1983) defines customer
relationship management as attracting, maintaining and enhancing customer relationships in
multi service organizations. CRM, which is becoming a topic of increasing importance in
marketing, is concerned with using information technology in implementing relationship
marketing strategies (Royals L, et al, 2001).

Customer service is the primary end of any bank. A customer always wants something
and expects that the bank should come up to the level to fulfil those needs. Again, the more you
provide, still more the consumer needs. Service quality is about meeting customers’ needs and
requirements, and how well the service level delivered matches customer expectations. Service
quality in banking implies consistently anticipating and satisfying the needs and expectations of
customers (Howcroft, 1991). Berry and Parasuraman (1991) also hold the view that high quality
service gives credibility to the field sales force and advertising, stimulates favorable word-of-
mouth communications, enhances customers’ perception of value, and boosts the morale and
loyalty of employees and customers alike. In today’s competition in Indian banking industry,
customers have to make a choice among various service providers by making a trade-off between
relationships and economies, trust and products, or service and efficiency (Sachdev et al, 2004).
Hallowell Roger (1996) conducted a research on customer satisfaction, loyalty, and profitability
and found that as compared to public sector, private sector bank customers’ level of satisfaction
is comparatively higher.
 CHAPTER2: INTRODUCTION TO INDUSTRY

A bank is a financial institution whose primary activity is to act as a payment agent for
customers and to borrow and lend money. It is an institution for receiving, keeping, and lending
money. An organization, usually a corporation, chartered by a state or federal government, which
does most or all of the following: receives demand deposits and time deposits, honors
instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests
in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and
cashier's checks. Banking is business receiving for lending or investment, of deposits of money,
from public repayable on demand or otherwise and which draw able by cheques, draw and order.
In general terms, Banking is the Process of business activity of accepting and safeguarding
money owned by other individuals and entities, and then lending out this money in order to earn
a profit. Banks play very important role in the economic life of the nation. The health of the
economy is closely related to the soundness of its banking system. Although banks create no new
wealth but their borrowing, lending and related activities facilitate the process of production,
distribution, exchange and consumption of wealth. In this way they become very effective
partners in the process of economic development. Today, modern banks are very useful for the
utilization of the resources of the country. The banks are mobilizing the savings of the people for
the investment purposes. The savings are encouraged and saving rate increases. If there would be
no banks then great portion of a capital of the country would remain idle. A bank as a matter of
fact is just like a heart in the economic structure and the Capital provided by it is like blood in it.
As long as blood is in circulation the organs will remain sound and healthy. If the blood is not
supplied to any organ then that part would become useless. So if the finance is not provided to
Agriculture sector or industrial sector, it will
 CHAPTER3: Introduction To Company

State Bank of India (SBI):

Is an Indian multinational, public sector banking and financial services statutory body. It
is a government corporation statutory body headquartered in Mumbai, Maharashtra. SBI is
ranked as 236th in the Fortune Global 500 list of the world's biggest corporations of 2019. It is
the largest bank in India with a 23% market share in assets, besides a share of one-fourth of the
total loan and deposits market.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of
India, making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras
merged into the other two "presidency banks" in British India, the Bank of Calcutta and the Bank
of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. The Government of India took control of the Imperial Bank of India in 1955, with Reserve
Bank of India (India's central bank) taking a 60% stake, renaming it the State Bank of India.

ICICI Bank Limited:

 Is an Indian multinational banking and financial services company headquartered

in Mumbai, Maharashtra with its registered office in Vadodara, Gujarat. As of 2018, ICICI Bank
is the second largest bank in India in terms of assets and market capitalization. It offers a wide
range of banking products and financial services for corporate and retail customers through a
variety of delivery channels and specialized subsidiaries in the areas of investment
banking, life, non-life insurance, venture capital and asset management. The bank has a network
of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries including
India.

ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the United
Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman,
Dubai International Finance Centre, China and South Africa; and representative offices in United
Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.

  SBI ICICI Bank

Type of bank Public sector (government owned) private sector

1955; ancestry to British India, the

ICICI formed in 1955;
Established in Imperial Bank of India, and the
ICICI Bank formed in 1994
Bank of Calcutta founded in 1806
NSE: SBIN BSE: 532174
BSE: 500112 NSE: ICICIBANK
Traded as LSE: SBID NYSE: IBN
BSE SENSEX Constituent BSE SENSEX Constituent
Ranking (according to Second largest bank in
Largest bank in India
assets) India
14,119 branches; 21,500 branches
Branches (in India) including branches of associate 2,768 branches
banks.
Over 21,000 ATMs, over 45,000
ATMs (in India) 9,363 ATMs
including associate banks
Presence 37 countries 19 countries
 CHAPTER4: DATA INTERPRETATION

Q1: Gender

Chart Title

39% Female
Male

61%

Q2: Age
 Chart Title
3% 5%

Below 18
32%
19-38
39-60
60and above

61%

Q3: Occupation:

24% 26%

23%
27%

Service professional Business Other

 From the above diagram Fig 1: 61% are male and 39% are female. Fig 2: Mention that
age of between 19 to 38 are 61%, 32% are age of between 39 to 60, 3% are above age of 60, rest
of them are below 18. Fig 3: Most of the people occupation are as a service and professional,
least of people are in business.

Q4: What kind of account do you maintain in this bank?

Chart Title

17%

Savings a/c
Current a/c
Demat
Credit card
23%
61%
 From the above pie chart mention that most of the person would like to invest money in
savings account, similarly rest of the people like to invest in current account and Demat.

Q5: What is the reason for choosing this bank as your bank?

9%
24%

21%

45%

Incentive schemes Nearness to office/residence

service goodwill
 From the above bar chart mention that most of the people choose the bank because of
incentive schemes and nearness to office or residence others are looking for the service and
goodwill.

Q7: How long you holding this account?

17%

32%

18%

33%

Below 1 year 1 year to 3year 4 year to 5 year Above 5 year

 From the above bar chart mention that most of the people invest their money for long
term like above 4-5 years, similarly rest of them below 3 years.

Q8: Attitude of employees

icici

21%

39%
3%

15%

21%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

 From the above pie chart mention that 40% & 21% are highly satisfied & satisfied
respectively, similarly 3% & 21% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.

sbi

3% 12%
9%

30%

45%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 12% & 46% are highly satisfied & satisfied
respectively, similarly 9% & 3% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q9: ATM facility

icici

15%
27%

12%

45%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 27% & 46% are highly satisfied & satisfied
respectively, similarly 15% & 0% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

3%3%
9% 18%

67%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 18% & 67% are highly satisfied & satisfied
respectively, similarly 3% & 3% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q10: Passbook facility:

icici

24% 21%

3%

21% 30%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 21% & 31% are highly satisfied & satisfied
respectively, similarly 3% & 24% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

3%
9%
30%

21%

36%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 30% & 37% are highly satisfied & satisfied
respectively, similarly 9% & 3% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q11: Internet banking

icici

12%
3%

12% 42%

30%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 43% & 30% are highly satisfied & satisfied
respectively, similarly 3% & 12% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

6%
12% 24%

3%

55%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 24% & 55% are highly satisfied & satisfied
respectively, similarly 12% & 6% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
Q12: Timings

icici

6%
15% 24%

24%
30%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 24% & 31% are highly satisfied & satisfied
respectively, similarly 15% & 6% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

9% 15%
9%

30% 36%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 15% & 37% are highly satisfied & satisfied
respectively, similarly 9% & 9% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q13: Information about new products and services

icici

6% 12%
15%

24%

42%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 12% & 24% are highly satisfied & satisfied
respectively, similarly 15% & 6% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

15% 18%

15%

52%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 18% & 52% are highly satisfied & satisfied
respectively, similarly 15% & 0% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
Q14: Good co-ordination among staff

icici

15%
21%

21%

42%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 21% & 43% are highly satisfied & satisfied
respectively, similarly 15% & 0% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

6% 3%
30%
21%

39%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 30% & 40% are highly satisfied & satisfied
respectively, similarly 6% & 3% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q15: Personal interest taken by staff in service/ solving problems

icici

12%

9% 30%

18%

30%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 31% & 30% are highly satisfied & satisfied
respectively, similarly 9% & 12% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

6%
6%
24%

15%

48%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 24% & 49% are highly satisfied & satisfied
respectively, similarly 6% & 6% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q16: transparency in banker -customer relationship

icici

15% 18%

18%

48%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 18% & 49% are highly satisfied & satisfied
respectively, similarly 15% & 0% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

9% 9%

36%
45%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 9% & 46% are highly satisfied & satisfied
respectively, similarly 9% & 0% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
Q17: Locker facility

icici

12%
24%

27%
6%

30%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 12% & 27% are highly satisfied & satisfied
respectively, similarly 6% & 24% are unsatisfied and highly unsatisfied respectively, rest of
them are neutral.
 sbi

3%
9% 15%

30%

42%

Highly satisfied satisfied Neutral Unsatisfied Highly unsatisfied

From the above pie chart mention that 15% & 43% are highly satisfied & satisfied
respectively, similarly 9% & 3% are unsatisfied and highly unsatisfied respectively, rest of them
are neutral.
 CHPTER5: FINDINGS

 Most of the people would like to maintain account as a saving account for the long-term
investment.
 People choose the bank because of incentive schemes and nearness to office or residence
others are looking for the service and goodwill.
 Few people like to invest in Demat and current account.
 SBI account holders are more compare to ICICI, Because of good attitude of employees,
ATM facility, passbook facility.
 Most of the account holder get the information about new product and services and
maintain good co-ordination among staff.
 SBI give highly satisfied locker facility to account holders.
 CHAPTER6: CONCLUSION

In this day and age, customers enjoy complete luxury in terms of customized technical
solutions and banks use the same to cement long-term, mutually-beneficial relationships. Fora
bank to succeed in adopting a CRM philosophy of doing business, bank management must first
understand CRM as a holistic concept that involves multiple, interlocking disciplines, including
market knowledge, strategic planning, business process improvement, product design and pricing
analysis, technology implementation, human resources management, customer retention, and
sales management and training

There are various components of CRM like customer information, sales, Marketing
trends and marketing efficacy that acted in tandem to improve relationship between bank and its
consumers. The customers now days are not only exposed of what type of service is being
provided by banks in India but in the world as a whole. They expect much more than what is
actually being provided. So the now coming days SBI and ICICI bank have to provide and cater
to all the needs of the customers otherwise it is difficult to survive in the competition coming up.
They not only expect the safety of money but also best ways to invest that money which need to
be fulfilled. SBI and ICICI bank need to have a better outlook towards to actually what
customers are requiring. Entries of the private sector banks have made the competition tougher.
If a bank is not functioning properly it is being closed. So, it is difficult to face these types of
conditions. Here a simple philosophy can work that customers are God and we need to follow
this to survive and serve Bette

There is a difference in level of satisfaction of SBI and ICICI customers.-Accepted

because in the questions answered by the customers, of both the banks, sib customers are more
satisfied as they have rated their bank providing very satisfactory again SBI is ethical, unlike its
Pvt competitors who hide the charges and recover recklessly through unlawful means SBI has
the widest presence in the remotest places of the country, both in terms of branch banking as well
as alternate channels like ATM.SBI caters equally to the niche customers like Large corporates
and HNI individuals, including NRIs. In this array too, SBI is unmatchable.

In a nutshell it can be said that SBI largest bank in India but due to certain reasons like
courteous staff, working hours, extra facilities and ambience supported innovative services, and
CRM practices are better in terms of customer’s preferences and satisfaction. So, in general, this
study derives that SBI wins consumer preferences as compare to ICICI,