SATISH PRADHANDNYANASADHANACOLLEGE, THANE

(ARTS, COMMERCE AND SCIENCE)

2017-18

A Project Report

on
A STUDY ON CUSTOMER RETENTION AS A EFFECTIVE
TOOL OF CRM IN CO-OPERATIVE BANKS OF THANE CITY

Submitted by

DR. SHRADDHA MAYURESH BHOME

Department of B.Com (Accounting and Finance)

and

SHRADDHA N. KOLGE

Student – FY B.COM (Accounting and Finance)

 INDEX

SR. NO CONTENTS PAGE NO.

01 Introduction 3

02 Review of Literature 4-6

03 Research Methodology 6

04 Analysis and Interpretation of data 7-19

05 Conclusion 20

06 References 21

07 Annexure 22

A STUDY ON CUSTOMER RETENTION AS A EFFECTIVE TOOL OF CRM IN CO-

OPERATIVE BANKS OF THANE CITY
INTRODUCTION

CRM is a business philosophy, a bent of mind that aims at understanding and managing the
needs of the customers. The key here is to adopt a truly Customer-Centric approach that touches
every point and more importantly every person in the company. CRM has already made a big
impact in the world of customer service and will continue to do so. As more and more companies
become customer-centric those that fail to do so will lose competitive advantage. The real value
of CRM lies in harnessing the potential of people to create a greater customer experience, using
technology of CRM as the enabler. Customer relationship management plays a significant role in
customer retention, as establishing, maintaining and enhancing customer relationship have
always been important aspect to any business.

The Indian Banking story is still unfolding along with India’s growth story. Economic growth of
India is likely to average at double-digit for the current decade. The factors supporting this
growth would also be the catalysts for the banking sector be it retail, corporate or rural banking.
The biggest advantage for Retail Banking will be India’s demographic profile with a declining
dependency ratio. There is a sizeable growth in urban middle class and expected to continue at an
accelerated pace in this decade. Around 70 -75 million new middle-income household may
emerge by 2020. A McKinsey study reports that by 2017, the average consumption in rural India
will equal that of urban India in 2005. The economic reforms have also generated new and
powerful customers ( huge Indian middle class ) and new mix of players ( public sector units,
private banks, and foreign banks ) . The emerging competition has generated new expectations
from the existing and the new customers. There is an urgent need to introduce new products and
services along with Customer Retention Strategies. Existing products need to be delivered in an
innovative and cost-effective way by taking full advantage of emerging technologies. The new
rules of competition require recognition of the importance of consumers and the necessity to
address the needs through innovative products supported by new technology.

PROBLEM OF THE STUDY

Customer mobilization and retention has become a complex task for every bank in India, due
to various factors, and every bank is striving hard and take all out efforts to build a
sustainable customer network. To establish and strengthen wide customer base, every bank has
devised various strategies to retain the existing customer and create a new one. This vouches the
significance of Customer Relationship Management in banks. Owing to heavy competition from
the public and the private sector banks, Customer Relationship Management concept came into
existence with much emphasis on customer retention. In the 21 century, banks highly
concentrated on managing customer relationship to retain their customers. In general, banks
experience high cost when they try to acquire new customers rather than retaining the existing
ones. Thus it is imperative to find out the factors which are responsible for the success of
Customer Relationship Management in banks. It is also important to analyse the relationship
among Customer Relationship Management strategies with respect to customer retention in
Cooperative banks in Thane City.

OBJECTIVES OF THE STUDY

i) To analyse the relationship between customer retention and customer relationship

management policies in co-operative banks of Thane city.
ii) To examine CRM strategies adopted by banks for effective customer retention.
iii) To identify the association between customer relationship management and customer
retention dimensions in co-operative banks of Thane city.
iv) To ascertain the problems in customer retention and customer relationship
management.
v) To offer valid suggestions to the bankers for retaining the customers.

HYPOTHESES OF THE STUDY

The study endeavors to test the following hypotheses evolved in the light of the aforesaid
objectives:
1. H₀1:There is no significant relationship among Customer Retention and Customer
Relationship Management in co-operative banks of Thane city.
HA1:There is significant relationship among Customer Retention and Customer
Relationship Management in co-operative banks of Thane city.
2. H₀2:There is no association between demographic profile of the customers and customer
retention dimensions.

HA2:There is an association between demographic profile of the customers and customer

retention dimensions.
3. H₀3:CRM processes have no direct effect on customer retention.
HA3:CRM processes have direct effect on customer retention.
4. H₀4:There is a no significant relationship between the banks’ CRM strategy the
customers’ refusal to turn to other banks.
HA4:There is a significant relationship between the banks’ CRM strategy the customers’
refusal to turn to other banks.
5. H₀5:The environment provided by co-operative banks of Thane is more elegant and
customer-friendly than private sector banks.
HA5: The environment provided co-operative banks of Thane are more elegant and customer-
friendly than public sector banks.

REVIEW OF LITERATURE
1. Anthony Oduro-Senyah (2009) studied the CRM strategies and their successful
implementation in the financial institutions in Ghana Standard Chartered Bank and in State
Insurance Company. They found that the proper implementation of a CRM strategy had yielded
benefits and these benefits had a positive change in customer satisfaction and retention. The
present study proposes that CRM strategies can reduce the cost and increase the profit margin of
the company.

2. Popli and Rao (2009) studied andcomparedCRMimplementation between the

public and the private sector banks in India, and evaluated the impact of CRM on customer
retention between them. They made an outline that there had been no difference in CRM
implementation between the public and the private sector banks in India, and there had been a
positive relationship between the CRM and the customer retention. The present study
suggeststhat both of the banks should meet the customer needs and beat the competition. They
should also deliver superior service and adopt CRM approach to maximise the value of the
customer and the bank.

3. S.S. Hugar and Nancy H. Vaz, D'Costa, (2010) declared that India is on the threshold
of a stark global competition, especially so for the banking sector with the likelihood of the
economy opened for global banks soon. The Indian public sector banks, which have come face-
to-face with competition just since last decade, are found wanting both with regard to
performance as well as their customer orientation. The CRM practices of the banks can help
them in retention of their existing customers in the competitive market.

4. Pedhiwal and Sanjay J.Tale (2011) examined consumer behaviour towards CRM in
banking sectors in Western Vidarbha, Akola District, India. Majority of the customers agreed
that they trusted the bank, commit themselves to the customer’s financial needs and
provide valuable information. The result concluded that if the banks wanted to attain a
sustainable competitive advantage through CRM, they should efficiently applyall the CRM
resources tocreate CRM process capabilities in a unique way.

5. Faizan Mohsan, Muhammed Musarrat Nawaz, Sarfraz khan.M, Zeeshan Shaukat

and Numan Aslam (2011)discovered the impact of customer satisfaction on customer loyalty
and that of customer intention on switching over to the other banks in Pakistan. The study
summed up with suggesting customer satisfaction as a main factor in ensuring customer
loyalty and customer retention. It also identified that customer satisfaction had preventedthe
customersfrom switchingover to the other banks. The present study depicts that customer
loyalty and customer retention acted as the most powerful weapon in banks in the 21st century
and enabled them to survive in a competitive environment.
6. Chantal Rootman (2011) analysed the firm-client relationship and its significance in
increasing customer retention rates in South Africa. She made a detailed analysis with the bank
managers and the clients in South Africa. Based on the analysis with the bank managers, it
reveals that the dimensions, such as communication andfees influenced relationship marketing,
and, in turn, relationship marketing influenced customer retention. This relationship implied that
in case a bank successfully maintained relationship with its clients, customer retention rates
would increase. Finally, she suggested that the bank had utilised relationship marketing strategy
and had ultimately increased their customer retention rate.

7. Christiana Baffoe Ababio and Amy Atiwoto (2011) explained the role of relationship
marketing in customer retention. They demonstrated the application and practice of
relationship marketing and its role in increasing customer loyalty and customer retention in
Ghana banking industry. The result of the study suggested that all the banks had adopted
relationship marketing strategy toretain their customers. The banks also retained similar
capacity and human behavior influence of relationship marketing. The searchers
concluded that the banks should bring differences in implementing their practices of relationship
marketing.

8. Richa Raghuvanshi and Rashmi Tripathi (2012)identified the success factors for an
effective CRM implementation in Axis bank in Lucknow. They revealed that the banks had
failed to convince their customers of their CRM efforts. It was evaluated that various CRM
initiatives and dimensionsbrought forth unfavorable response. The present study highlights the
requirement of proper application and implementation of CRM practices and the banking
services to its customers through effective CRM solutions.
9. Sanjay Kanti Das (2012) studied the comparative perception of SBI customers and other
nationalised banks customers in the issue of CRM practices in Guwahati city of Assam, India. It
was observed that the approach of CRM in SBI and the other nationalised banks had been the
same to some extent but it differed with the reach of CRM because of the profile, capacity and
strategyof CRMin makingit reach the customers. The study concluded that there had been a
significantdifference between the perception of SBI and other nationalised banks towards CRM.
The present study shows that the CRM is a predictable tool of marketing as it can be considered
as the Critical Responsibility of Market with regard to banks.

10. Mihir DashandVineetha Rajshekhar(2013)analysed the perception of relationship

marketing in public and private sector banks in India and discussed various barriers to the
implementation of relationship marketing in Indian banking sector. They found out
asignificant gap between expectations andperceptions in bonding, communication and conflict
handling aspects of relationship marketing. Further, communication and conflict handling
aspects were found to be the significant drivers of overall customer satisfaction. The present
study recommends that the top management should encourage the employees and establish
an effective customer service system. The system should not only respond to customer
complaints, but also encourage the customers to reveal their problems.

11. Gengeswari.K,Padmashantini.PandSharmeelaBanu.S.A(2013),analysed the impact of

customer retention practices on firm performance through the non-financial
measurecustomer satisfaction in Malaysian retail firms. They took customer retention
dimensionswordof mouth,priceinsensitivity, repeat purchase and non-complaining behavior
aswellasdemographic profile. They identifiedthatthesedimensionshadsignificantly influenced the
firm performance over customer satisfaction. The present study suggests that the retail firms
should improve the customer retention and enhance their financial position.

12. Winfred NgandaMbithi (2013) investigated the challenges of customer retention

in Kenyan banking sector. They concluded that unless the banks paid serious attention to
retain their customers, they would fail to achieve the main objective of banking sector in Kenya.
The banks took essentialsteps only to increase new customers, but they failed to concentrate on
retaining the existing customers. The present study highlights that retaining the existing
customers is more significant than increasing the new customers.

13. Msoka Caroline M and Msoka Elizabeth M (2014) in their study examined
determinants of customer retention in commercial banks in Tanzania. Four specific objectives
were developed related to latent variables: customer service, quality of the products provided by
banks, pricing of bank products as well as services and customer satisfaction. The variables’
relationships were established through explanatory studies under positivism paradigm. The study
adopted convenience sampling technique to select a sample of 200 bank customers. Primary data
were collected using questionnaires and all 200 bank customers responded positively. The Chi-
square and multiple regression analyses were used to test the hypotheses. Each latent variable
was found to be effective in determining customers’ retention. The study discovered that
academics need to incorporate quality of products provided by the banks together with pricing of
banks products in customer retention models. For Bank of Tanzania, there is a need to expand
monitoring and include quality of the products provided by banks to determine the sustainability
of banking industry. Moreover, for the banks, there is an opportunity to customize their services
as well as increase revenue and at the same time improve service quality by employing more
Customer Relationship Managers to serve customers better and enhance their retention.

RESEARCH DESIGN

Research design is the model or replica or a pathway which every researcher follows or prepares.
This is a blueprint of the work to be undertaken by the researcher. The study is descriptive in
nature, thus it follows descriptive research design.
SCOPE OF THE STUDY
1) The Geographical scope of the study is to cover Thane and its Suburbs, as well as NaviMumbai
region.
2) The time span/scope of the study is between August2017-April 2017.
3) The scope of the study is confined to Customer Retention as an effective tool of CRM in Co-
Operative Banks of Thane city

RESEARCH METHODOLOGY
1. Universe:
The universe of the study consists of all Co- Operative Banks operating in of Thane city.
2. Sampling Method:
The sample to be studied is selected through Multi-Stage Sampling. Firstly the co-operative
sector banks are chosen on the basis of Convenience Sampling. Secondly, branches to be studied
are chosen through Cluster Method.
3. Sample Unit:
The study will collect information on customer relationship management of banks chosen to
represent the co-operative in of Thane city. The banks which are selected for the purpose of
study are Co- Operative Banks of Thane city from Mumbai region.
4. Sampling Frame:
The information on customer relationship management will be collected from 150 customers of
each selected banks and 25 employees of each selected bank branches.
5. Data Collection:
Both primary and secondary sources are to be used to collect the data. 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.
6. Analysis of Data:
Data so collected will be tabulated suitably for the purpose of the analysis. Appropriate statistical
tools like Chi-square, Correlation analysis, and ANOVA, U-test, H- test and Factor analysis will
be used for the analysis and interpretation of data.

SIGNIFICANCE OF THE STUDY

1. There is intense competition among the Private Sector Banks, Public Sector Banks and
Foreign Banks and they are all taking steps to attract and retain the customers.
 2. 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.
3. Thus, it’s important to know the factors responsible for the success of customer
relationship management.
4. The Customers in Banking Industry today are well informed. 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.
5. Customer relationship management is an important tool, for which a bank must go for in
such a situation.
6. In the present scenario, brand loyalty is on decline. 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.
7. With the help of customer relationship management, strong customer loyalty and a good
image for the organisation can be developed.
8. In the intensely competitive banking industry, retention of existing customers is vital,
which can be achieved through the successful process of customer relationship
management.
9. In today’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.

LIMITATIONS OF THE STUDY

 The sample taken for the study is restricted to a particular region.
 Bias of the interviewee may also effects the results of the study.
 Bias of the respondents may effects the results of the study.

ANALYSIS AND INTERPRETATION:

5.1. IMPORTANT FACTORS ANALYZED
After having responses on 20 factors it was analysed that only eight factors were more associated
and they play vital role in banks.
TABLE 5.1 SHOWS THE DETAIL BELOW

Section A: Questions to know the perception of respondents.

Q.1 CRM leads to improved performance in Bank

Rating 1 2 3 4 5 Total
 Scale Count % Count % Count % Count % Count % Count %
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 4 40 6 60 10 100
GPPJSB 0 0 0 0 0 0 4 40 6 60 10 100
TDCC 2 20 0 0 0 0 4 40 4 40 10 100
Total: 2 5 0 0 0 0 12 30 26 65 40 100

Q.2 Do you think better work will be done, if CRM is made better.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 2 20 8 80 10 100
GPPJSB 0 0 0 0 2 20 2 20 6 60 10 100
TDCC 2 20 0 0 0 0 2 20 6 60 10 100
Total: 2 5 0 0 2 5 6 15 30 75 40 100

Q.3 CRM is very important in service organization like Banks.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 2 20 8 80 10 100
GPPSB 0 0 0 0 0 0 4 40 6 60 10 100
TDCC 2 20 0 0 0 0 4 40 4 40 10 100
Total: 2 5 0 0 0 0 10 25 28 70 40 100

Q.4 CRM is going to improve the business in Banks.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 6 60 4 40 10 100
GPPSB 0 0 0 0 0 0 4 40 6 60 10 100
TDCC 2 20 0 0 2 20 0 0 6 60 10 100
Total: 2 5 0 0 2 5 10 25 26 65 40 100

Q.5 Have you managed customers according to CRM?

Rating
Scale
TJSB 0 0 0 0 2 20 2 20 6 60 10 100
TBSB 0 0 0 0 0 0 8 80 2 20 10 100
GPPSB 0 0 2 20 0 0 4 40 4 40 10 100
TDCC 2 20 0 0 2 20 0 0 6 60 10 100
 Total: 2 5 2 5 4 10 14 35 18 45 40 100

Q.6 Have you implemented CRM guidelines?

Rating
Scale
TJSB 0 0 0 2 20 2 20 6 60 10 100
TBSB 0 0 0 0 2 20 4 40 4 40 10 100
GPPSB 0 0 0 0 4 40 4 40 2 20 10 100
TDCC 0 0 2 20 2 20 0 0 6 60 10 100
Total: 0 0 2 5 10 25 10 25 18 45 40 100

Q.7 Have redesigned jobs according to the requirement of CRM?

Rating
Scale
TJSB 0 0 0 0 2 20 0 0 8 80 10 100
TBSB 0 0 0 0 2 20 6 60 2 20 10 100
GPPSB 0 0 2 20 2 20 2 20 4 40 10 100
TDCC 0 0 2 20 2 20 2 20 4 40 10 100
Total: 0 0 4 10 8 20 10 25 18 45 40 100

Q.8 Have you improved relations with the customers?

Rating
Scale
TJSB 0 0 0 0 0 0 2 20 8 80 10 100
TBSB 0 0 0 0 0 0 2 20 8 80 10 100
GPPSB 0 0 0 0 0 0 6 60 4 40 10 100
TDCC 0 0 2 20 0 0 2 20 6 60 10 100
Total: 0 0 2 5 0 0 12 30 26 65 40 100

Q.9 Have you prepared your people to work in CRM environment?

Rating
Scale
TJSB 0 0 0 0 2 20 2 20 6 60 10 100
TBSB 0 0 0 0 0 0 6 60 4 40 10 100
GPPSB 0 0 2 20 2 20 2 20 4 40 10 100
TDCC 0 0 2 20 0 0 2 20 6 60 10 100
Total: 0 0 4 10 4 10 12 30 20 50 40 100

Q.10 Have you benchmarked your organization performance with best practices of other banks?

Rating
 Scale
TJSB 0 0 0 0 2 20 0 0 8 80 10 100
TBSB 0 0 0 0 6 60 2 20 2 20 10 100
GPPSB 0 0 0 0 4 40 4 40 2 20 10 100
TDCC 0 0 2 20 0 0 6 60 2 20 10 100
Total: 0 0 2 5 12 30 12 30 14 35 40 100

Q.11 Has organization taken transformation initiative?

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 4 40 2 20 4 40 10 100
GPPSB 0 0 0 0 6 60 0 0 4 40 10 100
TDCC 0 0 0 0 0 0 4 40 6 60 10 100
Total: 0 0 0 0 10 25 6 15 24 60 40 100

Q.12 Do you feel motivated with CRM polices?

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 4 40 6 60 10 100
GPPSB 0 0 0 0 2 20 2 20 6 60 10 100
TDCC 0 0 2 20 2 20 0 0 6 60 10 100
Total: 0 0 2 5 4 10 6 15 28 70 40 100

Q.13 Your bank has well defined privacy policy which is clearly mentioned in the website of your bank.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 2 20 8 80 10 100
GPPSB 0 0 2 20 2 20 0 0 6 60 10 100
TDCC 0 0 2 20 0 0 0 0 8 80 10 100
Total: 0 0 4 10 2 5 2 5 32 80 40 100

Q.14 Your bank provides e-mail facility to the customers.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 0 0 4 40 6 60 10 100
GPPSB 0 0 2 20 0 0 2 20 6 60 10 100
TDCC 2 20 0 0 0 0 0 0 8 80 10 100
Total: 2 5 2 5 0 0 6 15 30 75 40 100

Q.15 The online customer service and support staff of your bank is quite efficient in problem solving.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 0 0 4 40 2 20 4 40 10 100
GPPSB 0 0 0 0 2 20 6 60 2 20 10 100
TDCC 0 0 2 20 0 0 0 0 8 80 10 100
Total: 0 0 2 5 6 15 8 20 24 60 40 100
Your bank offers the facility of online registration to keep the complete a/c information of the
Q.16
customers.

Rating
Scale
TJSB 0 0 0 0 0 0 0 0 10 100 10 100
TBSB 0 0 2 20 2 20 2 20 4 40 10 100
GPPSB 0 0 0 0 2 20 4 40 4 40 10 100
TDCC 2 20 0 0 0 0 0 0 8 80 10 100
Total: 2 5 2 5 4 10 6 15 26 65 40 100

Q.17 Your bank contains a list of frequently ask questions along with their appropriate solutions.

Rating
Scale
TJSB 0 0 0 0 0 0 2 20 8 80 10 100
TBSB 0 0 2 20 2 20 2 20 4 40 10 100
GPPSB 0 0 2 20 4 40 2 20 2 20 10 100
TDCC 2 20 0 0 0 0 8 80 10 100
Total: 2 5 4 10 6 15 6 15 22 55 40 100
The customer care and support staff of your bank is easily approachable through toll free
Q.18
numbers.
Rating
Scale
TJSB 0 0 0 0 0 0 2 20 8 80 10 100
TBSB 0 0 0 0 6 60 0 0 4 40 10 100
GPPSB 0 0 0 0 0 0 6 60 4 40 10 100
TDCC 0 0 2 20 0 0 0 0 8 80 10 100
Total: 0 0 2 5 6 15 8 20 24 60 40 100

Q.19 Your bank offers online order within 3-clicks facility for the key customers.

Rating
 Scale
TJSB 2 20 0 0 0 0 4 40 4 40 10 100
TBSB 0 0 0 0 2 20 4 40 4 40 10 100
GPPSB 2 20 0 0 6 60 2 20 0 0 10 100
TDCC 2 20 0 0 0 0 0 0 8 80 10 100
Total: 6 15 0 0 8 20 10 25 16 40 40 100
The website of your bank contains online bulletin board where customers can leave their
Q.20
messages to the general public.

Rating
Scale
TJSB 2 20 0 0 2 20 0 0 6 60 10 100
TBSB 4 40 0 0 0 0 2 20 4 40 10 100
GPPSB 2 20 2 20 2 20 0 0 4 40 10 100
TDCC 2 20 2 20 0 0 0 0 6 60 10 100
Total: 10 25 4 10 4 10 2 5 20 50 40 100

Null Hypothesis 1: There is no significant difference between customer retention

management practices in TJSB, TDCC AND GPPJSB and TBSB.

To test this hypothesis from questionnaire Number of YES responses to the following questions
related to Customer retention Policy were taken into consideration for each Bank. The
hypothesis about equality of mean for four banks is tested with ANOVA technique.
TABLE 5.2 QUESTIONS RELATED TO CRM POLICY
SR. Q.
DETAILS
NO. NO.
1 1 BANK VALUES
2 2 PROBLEMS HANDLED
3 4 AVAILABILITY OF COMPLAINT BOX
4 6 PROVISION OF COMPLETE INFORMATION
5 9 CONSTANT TOUCH
6 12 CRM TO DEVELOP RELATIONSHIP
7 13 PROVISION OF PERSONALISED SERVICE
 8 15 SUFFICIENT NO. OF BANK BRANCHES
ONLINE BANKING TO CONDUCT EASY BANK
9 16
TRANSACTION
10 17 SECURITY OF TRANSACTION
SOURCE: PRIMARY DATA
THE NUMBER OF YES RESPONSES TO ABOVE QUESTIONS IS TABULATED
BELOW
Q. SR.
SBI DENA BOM ICICI
NO. NO.
1 1 142 114 140 174
2 2 127 120 130 164
4 3 120 9 22 161
6 4 111 57 50 115
9 5 90 54 36 130
12 6 91 108 98 140
13 7 102 115 53 129
15 8 96 112 138 171
16 9 109 100 137 174
17 10 109 76 113 158
TOTAL 1441 1240 1153 2152
AVERAGE 102.93 88.57 82.36 153.71
SOURCE: PRIMARY DATA
H0: µBOM = µDENA = µICICI = µSBI Vs H1: µ BOM ≠ µDENA ≠ µICICI ≠µ SBI where µ denote average
number of respondents in favour of CRM policies
The levels of significance used are 5% and 1%.
FINDINGS AND CONCLUSION:

The relations between customer banks are maintained with the help of and Customer
Relationship Management tool. CRM provide good establishment, proper development, timely
maintenance and grapping the long term mutual good relationships with each other. On the basis
of analysis following 8 factors are significant as compared with other factors:
1. Interactive of management
2. Customers empowerment
3. Expectation of Customers
4. Internet services with security
5. Bank Initiative
6. Various Services
7. Online service
8. Trained Staff

Detail Analysis has been done to understand the relation between various questions. Though
CRM can be evaluated on a number of parameters, the most important parameter which defines
its use from business point of view is effectiveness. The existing literature on CRM is having
very limited inputs and addressed partial view so there must exit a way to identify the overall
effectiveness of CRM and also the scope of improvement.
CRM is the central issue of the present study, which may attributed by number of variables. Main
factors were extracted from various researches for Relationship with customer:
1. Customer Prospecting
2. Interactive Management
3. Empowerment
4. Understanding customer expectation
5. Partnership
6. Personalization
7. Presence on Internet
8. Interacting on internet and 24X7 –Telephonic support
9. Speedy Service and Data protection and privacy
10. Speed of ATM and related service
11. Staff Cooperation & behavior
12. Problem solving attitude of specific staff
13. Variety of service
14. Better rate of interest
15. Online Service, payment and other facility
16. Home service like delivery of cash
17. Frequency of response
18. New product and services
19. Quality of Service and Staff
20. Well trained and responsive staff
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