CUSTOMER RELATIONSHIP MANAGEMENT IN

BANKING SECTOR

A Project Submitted to

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF BACHELOR OF ACCOUNTING AND FINANCE UNDER THE
FACUTLYOF COMMERCE

BY
MANGESH KANOJIA
ROLL NO – 18

UNDER THE GUIDANCE OF:

PROF: SAMEER SHIKALGAR

SIDDHARTH COLLEGE OF ARTS, SCIENCE AND

COMMERCE

2023 – 2024
 CUSTOMER RELATIONSHIP MANAGEMENT IN

BANKING SECTOR

A Project Submitted to

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF BACHELOR OF ACCOUNTING AND FINANCE UNDER THE
FACUTLYOF COMMERCE

BY
MANGESH KANOJIA
ROLL NO – 18

UNDER THE GUIDANCE OF:

PROF: SAMEER SHIKALGAR

SIDDHARTH COLLEGE OF ARTS, SCIENCE AND

COMMERCE

2023 - 2024
 PEOPLE’S EDUCATION SOCIETY’S

SIDDHARTH COLLAGE OF ARTS, SCIENCE & COMMERCE

Buddha Bhavan , Purshotamdas Thakurdas Marg ( Outram road ), Mumbai Fort, Mumbai – 400001

Website : www.siddharthcollage.com

CERTIFICATE

This Is To Certify That MR . MANGESH DINANATH KANOJIA Has Worked

And Duly Completed Her Project Work For The Degree Of Bachelor Of

Accounting And Finance Under The Faculty Of Commerce In The Subject of

“ A STUDY ON CUSTMOR RELATIONSHIP MANGEMENT IN BANKING SECTOR”

And Her Project Is Entitled, PROF . SAMEER SHIKALGAR My Supervision.

Prof. Sameer Shikalgar Dr. Suraj A Purandare

Project Guide Co-ordinator

Internal Examiner External Examiner

Dr. Ashok Sunatkari College Seal

Principal
 DECLARATION

I the Undersigned MR. MANGESH DINANATH KANOJIA declare here by, declare that

the work embodied in this project work titled “A STUDY ON CUSTOMER

RELATIONSHIP MANAGEMENT IN BANKING SECTOR” Forms my own

contribution to the research work carried out under the guidance of PROF. SAMEER

SHIKALGAR is a result of my own Research work and has not been previously summited to

any other University for any other Degree/ Diploma to this any other University.

Wherever reference has been made to previous works of the other, It Has been clearly indicated as

such and included in the Bibliography.

I, here By further declare that I information of this document has been obtained and presented in

accordance with academic rules and ethical conduct.

Student’s Signature

CERTIFIED BY

Prof. Sameer Shikalgar

 ACKNOWLEDGEMENT

To list who all have helped me difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
completion of this project.

I take this opportunity to thanks the University of Mumbai for giving me chance to do this project.

I would like to thanks my Principle, DR. Ashok sunatkari. for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our coordinator DR. Suraj A Purandare for her moral support and
guidance.

Who has always been available to help me out in any difficulties I faced during my research and
also during my academic endeavours.
She has been one of the biggest sources of inspiration to me to undertake and complete this project
successfully and without her it would not have been possible for me to undertake this project work.
So a big Thank you PROF. Sameer Shikalgar for your able and worthy guidance.

I would like to thank my Collage Library, for having provided various reference books and
magazines related to my project.

I would also like to thank all my professors for steering my confidence and capability for giving me
insight into research by giving me exposure to the arena of competitive and real world.
Lastly, I would like to thank my parents and friends for the constant support during the research.

Place: Mumbai (Name of Student)

Date:
INDEX
SERIAL CONTENTS PAGE
No No

1. INTRODUCTION
 

1.1 Introduction to Customer Relationship Management  1

1.2 Stages of relationship with customers  4

1.3 The benefits of CRM  5

1.4 CRM and its role  6

1.5 History of Indian Banking  6

1.6 Banking system in India  8

1.7 Banking in cyber age  12

1.8 Role of banks  13

1.9 Problems and prospects of Indian banks  13

1.10 Competition in Indian Banking  14

1.11 CRM in Banking  14

1.12 Models for CRM in Banking  16

1.13 CRM in banking: Indian Scenario  20

1.14 CRM in banking: Global Scenario  22

1.15 Adoption of CRM Technology in banking sector  23

2. LITERATURE AND REVIEW

 

2.1 Types of CRM in banks  24

2.2 CRM model that boosts customer loyalty  26

2.3 Role of crm in banks  33

2.4 CRM in retail banking  40

2.5 E-CRM in banks  43

2.6 Implementation of CRM in Indian banks  48

2.7 Review of literature  55

2.8 A case study of state bank of India  57

SERIAL PAGE
CONTENTS
No No

3. RESEARCH METHODOLOGY
64
4. DATA ANALYSIS AND INTERPRETATION AND
PRESENTATION
75

5. CONCLUSIONS
76
Who has always en available to help me out in any difficulties I faced during my research and also
during my academic endeavours.

SUMMARY

CRM stands for Customer Relationship Management. A Customer Relationship Management

solution in banking helps bank manage customers and better understand their needs in order to
provide the right solutions, quickly.

The thesis is organized into six chapters. The chapters are organized in the following way. The first
chapter introduces the transactional marketing, relationship marketing, stages of relationship with
customers, key elements of CRM, the benefits of CRM, IDIC model, loyalty model, traditional
customer relationship model, integrated framework model, CRM model, banking system in India,
role of banks, problems and prospects in banks, competition, CRM in banks. They form the basis of
the material for research work since awareness of the theory is essential.

Second chapter comprise of literature and Review. These help the investigator to understand the
concept of CRM to develop the proposed model and the factors i.e. CRM model, IDIC model, QCI
model, Payne’s five forces model, CRM value Chain, customer retention, trustworthiness,
SERVEQUAL factors, dissatisfaction, switchover and long-term relationship that are included in
the model. Role of CRM, Benefits of CRM for banks, CRM in Retail banking, E-CRM in banks, E-
CRM benefits, Implementation of CRM in Indian banks, the impact of CRM on bank performance,
limitations of CRM. They form the basis of research material.

Further the project also include case study of SBI. How it has used CRM strategy to retain their
customer and. Another case study is on case study of Indusend bank

Third chapter includes the methodology which paves the path for conducting research study. A
questionnaire has been designed and used to collect data from both the customer. This research
paper’s objectives are study the concept of CRM, examine the opinion of customers regarding
service facilities, internet services and customer interaction of management. To examine the
objectives a survey method was conducted with 41 respondents. Data regarding this study is
analysed with pie charts, and bar graph. The research shows that positive impact of CRM in banks.

The fifth chapter includes findings and conclusion that are required for the banks to improve the
existing practices based on the results.

The opinion of the respondents support to continue the CRM, and further, improvement required for
more effectiveness to satisfy the existing customers and new ones. Now a days retaining customer
is tough, this project is all about how bank can use various strategies to retain their customer and
bring new customer by upgrading technology and providing better services.

OBJECTIVE OF THE STUDY

The objective of my study on the topic “Customer Relationship and Management in the Banking
Sector” is that this is vital in every organisation. I would like to enhance my understanding and gain
more knowledge regarding this topic and above all. I want to know how CRM plays an important
role in market. What are the functions of CRM in banking sector? How CRM benefits bank to
retain their customer and what strategy bank uses to retain the customer, bring new customer in
their bank?
 INTRODUCTION

1.1 INTRODUCTION TO CUSTOMER RELATIONSHIP MANAGEMENT :

Customer Relationship Management (CRM) is one of the best techniques which support the
development of service sector, it can also be called as one –to–one marketing, customer value
management, customer-centric management, continuous relationship management or
technology–enabled relationship marketing. A customer-oriented organisation develops and
manages individual relationship with different customers for the long-run relationship.

[Francis Buttle [1]] defined CRM as “CRM is the core business strategy that integrates
internal processes and functions, and external networks, to create and deliver value to
targeted customers at a profit. It is grounded on high-quality customer data and enabled by
information technology.”

[W. G. Zikmund, McLeod Jr, and W. Gilbert [2]] defined CRM as “A business strategy that
uses information technology to provide the enterprise with a comprehensive, reliable, and
integrated view of its customer base so that all business processes and customer interactions
help maintain and expand mutually beneficial relationships.”

[Peppers & Rogers [3]] defined CRM as “An enterprise-wide business strategy for achieving
customer-specific objectives by taking customer-specific actions.”

“Customer Relationship Management (CRM) is a fundamental business of every enterprise

and it requires a holistic strategy and process to make it successful”

“CRM deals with long term mutually beneficial relationship among consumers, companies
and other stakeholder”.

“CRM is a well-defined series of functions, skills, processes and technologies which together
will allow companies to manage customer more profitably as tangible assets” [N. Sathia [5]].

The development of CRM is discussed in the following sections as transaction marketing and
relationship marketing.

Customer Relationship Management concept is tendency of banking sector to establish and

maintain long-term relationships with customers in order to provide value for customers and
banks. This concept allows bank to identify, segment, communicate and build long-term
relationships with customers on individual basis. In today's business environment, banks have
aim to identify customers and to adjust offer to meet customer's needs, in order to maximize
1
profits. Using modern technologies, Customer Relationship Management is becoming a
method to maintain existing structure and development of high quality customer base. It
involves development of marketing strategy through a better understanding of the entire
customer base, understanding needs and attitudes of customers, as well as more efficient
consideration of profitability and added value that each customer have for the bank.

The aim of research, presented in this paper, is to assess to benefits of introducing Customer
Relationship Management concept in banking sector, by defining strategies, adjustment of
organizational structure, culture and internal processes with help of modern technology.

The paper presents methods of measuring success of Customer Relationship Management

concept and problems which banks have when implementing a new business philosophy.

Customer Relationship Management has become inevitable for growth and profitability of
Banks in present scenario marked by rising competition, technological advancement and
empowered customers. The CRM practices are adopted to generate better understanding of
the customer for product development, segmentation, appropriate targeting, campaign
management and maintenance of long term profitable and mutually beneficial relationships
with customers.

In Indian banking Customer Relationship Management is still at a nascent stage. A very

small proportion of its potential has been utilised. The concept has been implemented on a
limited scale. The paper investigates the impediments to successful implementation of CRM.
An attempt is made to chart out a strategic framework to realise the benefits of Customer
Relationship Management.

In the present Indian Banking Scenario, two prominent phenomena are the focal point to
emerging practices and policies. These are ‘Technology’ and ‘Relationship Marketing’. The
power of technology that has revolutionised banking services and practices. ‘Relationship
Marketing’ is seen as the only differentiating factor given the almost commoditisation of
banking services. On observation of the recent restructuring, rebranding and reengineering
efforts of many banks, we find that the key motive towards these is to utilise customer
centricity as a strategy. Further, catalysing the importance of Technology and Relationship
marketing is the Core Banking Solution (CBS).

All the banks have overcome the teething troubles of CBS and it has become the axis of
banks’ growth and performance. Going further, most of the Banks have invested in
technology enabled Customer Relationship Management Software to utilise CBS generated
customer information for enhancing business opportunities, access to customers and support.

2
Thus, CRM is a logical progression of CBS for Indian banks. Although, at a nascent stage it
is developing swiftly.

1.1.1 Transactional Marketing (TM) :

Transactional marketing approach focus on individual transaction, it does not take into
account to continue relationship with customer, so its framework does not contain a long-
term strategic perspective as shown in figure 1.1. It only center on tentative adjustments
process regarding performance of marketing function. In this context customers are viewed
as outsiders.

Under transactional approach customers satisfaction, expectation and multiple influences

about decision making processes are not given due implication. It reflects very small
attention paid to customer service and customer commitment.

Business or Customers are

Organisation Outsiders

Gaining more Achievement of

Customers Goals

Figure 1.1 – Transactional marketing framework.

1.1.2 Relationship Marketing (RM) :

Relationship marketing focus on continues marketing instead of isolated individual

transaction. Relationship marketing has two types of approaches, the primary approach
consider customer as insider for the organisation, it also aim to build up a long term
perspective. The idea of retaining customers forever enables the relationship marketing
approach centers around developing loyal customers. In this approach high degree of
customer commitment, contact and services are maintained.

The second approach has greater significance in business and was given more preference.
Later it was shaped to CRM. RM has its narrow focus on the customer. It not only focuses on
the marketing function of the organisation concerned, but also focuses more widely on the

3
entire function connected with customers. Such as value creation and delivery chain of the
organisation e.tc. Organisations have preferred the use of the term CRM instead of RM.

1.2 STAGES OF RELATIONSHIP WITH CUSTOMERS

Relationship in regards with the customers may change time to time. It may be because of
evolvement under different situations. Following are the stages at were relationship with
consumer may evolve.

 Exploration: It is the process when customer investigates or tests the supplier’s

capabilities and performance or cross verifies the product’s or brand’s usefulness. If
the test results fail to satisfy customer’s demands, the relationship drastically come to
an end.

 Awareness: It is the process when the customer understands the motivational values
of supplier or the products he sells.

 Expansion: It is the process when the supplier wins customer’s faith and customer
falls under huge interdependence of the supplier. This is suitable when there are more
chances of business with that particular customer and expands business.

 Commitment: It is a powerful stage when suppliers learn to adopt business rules and
goal to excel.

 Dissolution: It is a stage when customer requirement suddenly changes and he looks

for better perspectives. This sudden change is the end of relationship. Relationship or
interaction with consumer may come to end due to various reasons. It may be because
of customer has not satisfied with the organisational services or he disagree for other
better brand and product.

 KEY ELEMENTS OF CRM :

The figure 1.2 represents the key elements of CRM. The CRM strategy is at the center
because it serves as the compass or the direction for other strategies and actions.

There are two-way arrows going to and from each component because these are all related in
some way to each other. It must be viewed that elements are integrated interdependent

4
 Figure 1.2 Key elements of CRM

1.3 THE BENEFITS OF CRM

The real value to a company lies in the value they create for their customers and in the value
the customers deliver back to the company. So, it is important to mark that the value does not
lie in more information and in more advanced technology. The value lies in the customer
knowledge and is how the company uses that knowledge to manage their customer
relationship. Knowledge is the sole of CRM.

Unfortunately, few companies are transforming the information to customer knowledge and
therefore they miss the opportunity to provide value to their customers. However, applied in the
right way, CRM is the tool that contributes to profit. Companies are transforming the customer data
into knowledge and then use that knowledge to build relationship and loyalty, followed by profits.
Successful CRM implementation is reasonable based on the following benefits.

 Lower Cost of Recruiting Customers:

5
 Customer recruitment cost will be decreased thereby increased savings in marketing,
mailing, contact, follow-up, fulfillment, services, and so on.

 Steady Volume of Business:

Increase in long-term customers’ relationship will ultimately results in constant
volume of business which leads to steady output.

 Reduced Cost of Sales:

Long-term customers are more responsive than the newer ones that will decrease the
selling cost. Marketing campaign cost will decrease due to familiarity with the
distribution channels.

 Higher Customer Profitability:

Customer profitability will increase by higher customer wallet-share, up-selling,
cross-selling and follow-up sales and satisfied customer refers more customers

 Increased Customer Retention and Loyalty:

The retained or long-staying customer buys big quantities frequently .

 Evaluation of Customer Profitability:

Every organisation evaluates and identifies profitable customer, it should also identify
the customer who is going to be profitable in future and never profitable in future.
The key to success in business is to discover economically beneficial customers,
acquire them and never let them go and collect data regarding to this [T. Vijaya
kumar [9]

1.4 CRM AND ITS ROLE IN SERVICES

Service sector is essential for economic growth of any country. Rising urbanization,
privatization and demand for services brought boom in Indian service sector. This sector
continues to be a star performer by contributing major percent of GDP.

The service sector in India comprises a wide range of activities such as tourism,
transportation, business process outsourcing, healthcare, logistics, trading consultancies and
financial sector which includes banking. Banking plays a significant role in the economic
development of our country. Banks have control over a major part of the supply of money in
circulation.
6
1.5 HISTORY OF INDIAN BANKING

Banks in India are flourished even in ancient Vedic times. Money was accepted on deposit
and given in the form of advances. As far back as the second or third century A.D., Manu, the
great Hindu Jurist, devoted a section of his work to deposits and advances and laid down
rules relating to rates of interest to be paid or charged.

Banking system is considered as the backbone of a nation's economy. Banking procedures

were carried by informal methods in the ancient World. However, formal banking has been
developed as the “LIFE BLOOD” of trade and commerce from 20th century. In India,
banking has developed from the primitive to modern stage of banking in a fashion that has no
parallel in world history.

Today, the Indian banking system is divided into commercial banks (Both Public, Private
Banks, schedules and non-scheduled), Regional Rural Banks, Cooperative Banks etc. the
phase of Indian banking system.

Phases of Indian Banking System

The advancement in the Indian banking system is classified into 3 distinct phases:

1. The Pre-Independence Phase i.e. before 1947

2. Second Phase from 1947 to 1991

3. Third Phase 1991 and beyond

Banking during Pre-Independence (1770 to 1947)

There were quite a few banks established during this time. The Banking System in India
began with the establishment of the Bank of Hindustan in 1770 but it stopped operating by
1832. 

During this period, over 600 banks were established. However, very few were able to
succeed. Some of the banks were – 

 The General Bank of India (1786-1791)

 Bank of Bengal (1809)      

 Bank of Bombay (1840)

 Oudh Commercial Bank (1881-1958)    

7
  Bank of Madras (1843)

This phase also witnessed the alliance of the 3 major banks – Bank of Bengal, Bank of
Madras, and Bank of Bombay established by The East India Company.  They together
amalgamated and formed the Imperial Bank. This was taken over by the SBI (State Bank of
India) in 1955. 

Other Banks that were established during this time were –  Allahabad Bank (est. 1865),
Punjab National Bank (est. 1894), Bank of India (est. 1906), Bank of Baroda (est. 1908), and
Central Bank of India (est. 1911). 

The reasons why many major banks failed to survive during the pre-independence period, the
following conclusions can be drawn:

II Phase of Indian Banking – Banking Post Independence (1947 to 1991)

The then Government – after Indian Independence, decided to nationalize the Banks because
all the major banks were led privately which was a cause of concern as people in the rural
areas still turned to money lenders for assistance.

III Phase of Indian Banking(1991 to beyond)

To provide stability and profitability to the Nationalised Public sector Banks, the
Government decided to set up a committee under the leadership of Shri. M Narasimham to
manage the various reforms in the Indian banking industry.

The banks have revolutionized over the years. The Banking sector is extremely important for
a country’s economy. In order to keep the system to thrive, estimated interval changes and
modifications are to be made. 

1.6 BANKING SYSTEM IN INDIA

In the olden days bankers were transacting business with their customers by sitting on
benches in the market place. The bankers knew their individual customers by name, their
financial situation and needs so they could treat “each customer differently” because “each
customer has different needs and brings different value to the relationship”.

In earlier days banker knew their customer connection to the country’s economy and indirect
connection with their own investments, so they could give a special credit or some extra
services to their most valuable customers.

8
But, at present even if one person is a loyal customer with two or three different accounts and
may be credit for the car or mortgage on the house in the same bank, he would be treated the
same as any other ‘new’ customer, if he wishes to open another account for his child or to get
new credit he will need to fill out a bunch of papers about his personal data even. Structure of
Indian banks is shown in figure 1.3.

BAKING SYSTEM IN INDIA

Banking Institutions

Commercial banks Regional Rural banks

Co-operative banks

Public sector Private sector banks

State Co-
operative banks
State bank National Indian Foreign
group bank

Central District Co-

Subsidiary operative banks
companies

Primary Credit
Societies
State bank Subsidiary
of India banks

9
 Subsidiary
companies Figure 1.3 – Structure of Indian banks

Reserve Bank of India is the central bank of the country and regulates the banking system of
India. The structure of the banking system of India can be broadly divided into scheduled
banks, non-scheduled banks and development banks.

Banks that are included in the second schedule of the Reserve Bank of India Act, 1934 are
considered to be scheduled banks. 

All scheduled banks enjoy the following facilities:

such a bank becomes eligible for debts/loans on bank rate from the RBI

Such a bank automatically acquires the membership of a clearing house.

All banks which are not included in the second section of the Reserve Bank of India Act,
1934 are Non-scheduled Banks. They are not eligible to borrow from the RBI for normal
banking purposes except for emergencies.

Scheduled banks are further divided into commercial and cooperative banks.

Scheduled, Non-Scheduled Banks and Development Banks

Commercial Banks

The institutions that accept deposits from the general public and advance loans with the
purpose of earning profits are known as Commercial Banks.

Commercial banks can be broadly divided into public sector, private sector, foreign banks
and RRBs.

 In Public Sector Banks the majority stake is held by the government. After the recent
amalgamation of smaller banks with larger banks, there are 12 public sector banks in India as
of now. An example of Public Sector Bank is State Bank of India.

Private Sector Banks are banks where the major stakes in the equity are owned by private
stakeholders or business houses. A few major private sector banks in India are HDFC Bank,
Kotak Mahindra Bank, ICICI Bank etc.

A Foreign Bank is a bank that has its headquarters outside the country but runs its offices as
a private entity at any other location outside the country. Such banks are under an obligation
to operate under the regulations provided by the central bank of the country as well as the
10
rule prescribed by the parent organization located outside India. An example of Foreign Bank
in India is Citi Bank.

Regional Rural Banks were established under the Regional Rural Banks Ordinance, 1975
with the aim of ensuring sufficient institutional credit for agriculture and other rural sectors.
The area of operation of RRBs is limited to the area notified by the Government. RRBs are
owned jointly by the Government of India, the State Government and Sponsor Banks. An
example of RRB in India is Arunachal Pradesh Rural Bank.

Cooperative Banks

A Cooperative Bank is a financial entity that belongs to its members, who are also the
owners as well as the customers of their bank. They provide their members with numerous
banking and financial services. Cooperative banks are the primary supporters of agricultural
activities, some small-scale industries and self-employed workers. An example of a
Cooperative Bank in India is Mehsana Urban Co-operative Bank.

At the ground level, individuals come together to form a Credit Co-operative Society. The
individuals in the society include an association of borrowers and non-borrowers residing in a
particular locality and taking interest in the business affairs of one another. As membership is
practically open to all inhabitants of a locality, people of different status are brought together
into the common organization. All the societies in an area come together to form a Central
Co-operative Banks.

Cooperative banks are further divided into two categories - urban and rural.

Rural cooperative Banks are either short-term or long-term.

Short-term cooperative banks can be subdivided into State Co-operative Banks, District
Central Co-operative Banks, Primary Agricultural Credit Societies.

Long-term banks are either State Cooperative Agriculture and Rural Development Banks
(SCARDBs) or Primary Cooperative Agriculture and Rural Development Banks
(PCARDBs).

Urban Co-operative Banks (UCBs) refer to primary cooperative banks located in urban and
semi-urban areas.

Development Banks

Financial institutions that provide long-term credit in order to support capital-intensive

investments spread over a long period and yielding low rates of return with considerable
social benefits are known as Development Banks. The major development banks in India
11
are; Industrial Finance Corporation of India (IFCI Ltd), 1948, Industrial Development Bank
of India' (IDBI) 1964, Export-Import Banks of India (EXIM) 1982, Small Industries
Development Bank Of India (SIDBI) 1989, National Bank for Agriculture and Rural
Development (NABARD) 1982

The banking system of a country has the capability to heavily influence the development of a
country’s economy. It is also instrumental in the development of rural and suburban regions
of a country as it provides capital for small businesses and helps them to grow their business.
The organized financial system comprises Commercial Banks, Regional Rural Banks
(RRBs), Urban Co-operative Banks (UCBs), Primary Agricultural Credit Societies (PACS)
etc. caters to the financial service requirement of the people. The initiatives taken by the
Reserve Bank and the Government of India in order to promote financial inclusion have
considerably improved the access to the formal financial institutions. Thus, the banking
system of a country is very significant not only for economic growth but also for promoting
economic equality.

There were 6,200 scheduled bank offices at the end of 2014. Aggregate deposits amounted to
Rs. 79,557 billion, registering a lower growth of 13.4 per cent in 2014, the all-India credit-
deposit ratio was 79.0 per cent in 2014 as per RBI.

Now, the customers are able to access their account by 24×7. The rapid improvement in
technology help the customers to access his bank account wirelessly and the banking system
already know everything relevant about that customer and will automatically choose how to
treat that particular customer for his requirement. Today’s technology is making it possible
and soon it will be used massively–banks will increase profitability and customer will save
time and feel more comfort with the satisfied services, it require building customer
satisfaction through quality service and value.

1.7 BANKING IN CYBER AGE

The electronic age has brought several changes in banking system. The foremost change-
delivery channels have increased leading to lower cost and wider variety of services. The
channels include Internet, ATM and phone banking.

The recently launched negotiated dealing system for bond markets is an example of
electronics has transformed the functioning of the financial markets. Finally, the electronic
age has affected clearing systems, leading to very fast and more reliable electronic funds
transfer.
12
The development in electronic banking has also led to new areas of risk such as data security
and integrity. These require newer techniques for risk management.

1.8 ROLE OF BANKS

The banking sector has shown remarkable responsiveness to the needs of the planned
economy. It has brought about a considerable progress in its efforts at deposit mobilization
and has taken a number of measures in the recent past to accelerate the rate of growth of
deposits. To achieve this end, commercial banks opened a number of branches in urban and
rural areas. In this changing scenario, the role of banks is very important for the growth and
development of customers as well as economy.

Banking sector is offering traditional and other services. The services offered are regular
saving and current a/c, regular FD, ATM, credit cards and D-mat a/c, student banking and kid
e-bank, special NRI services, home loan, vehicle loan and home-appliances loan, tele-
banking, internet banking, power pay roll a/c, online trading, business multiplier a/c, loans
against shares, insurance, portfolio investment scheme, relief bonds and mutual funds, senior
citizen – special deposit scheme and munshi scheme, etc.

1.9 PROBLEMS AND PROSPECTS OF INDIAN BANKS

Indian banking sector is facing few problems and challenges due to Liberalization,
Privatization and Globalization. These are low profitability, lack of integrity, increase of
administrative expenses, survival of branches in loss, inflation, lack of professional
behaviour, lack of personal and friendly approach with customers, non-performing assets,
customer oriented market, problem of customer satisfaction, depression period running over
the country, managing workforce and management of technological advancement.

However, the banks have some prospects in current environment. By converting threats into
opportunities, the banks can have better advantages offering innovative services, door to door
service approach, better customer services by managing relationship with more focuses [C.
H. Lovelock [11]], professional approach, managerial excellence, marketing and
technological orientation, mass-class customized and cyber services, branch expansion or
rationalization of branches and deposit mobilization.

13
1.10 COMPETITION IN BANKING INDUSTRY

With the entry of private and foreign banks, there is cutthroat competition in the banking
industry. This competition has laid foundation for remarkable advancements in terms of
services, technology and products. Every player in the banking sector is adopting innovative
strategies from time to time

for holding their customer base. CRM becomes the competence area for the banks to have an
edge over their competitors [Aitu Afarwal [12]].

1.11 CRM IN BANKING

banking is such an important sector that it touches the life of every human being in some way
or the other. Tremendous changes have taken place in Indian banking sector in such aspects
as the way banks operate, in technology, operational speed and especially in their approach
towards dealing with customers, in the last 10 years or so. At a time when the Indian banking
sector was monopolized by few public sector banks, the level of attention given to the
customer was very low. But n today’s changed scenario, i.e. after the entry of a number of
private and foreign banks in the Indian banking sector, there has been a shift in the focus of
Indian banks from ‘transaction focus’ to ‘relationship focus’.

The cut- throat competition that exists among the various public, private & foreign banks has
necessitated them to adopt a strategic approach in dealing with their customers. Today banks
are the major followers of customer relationship management practices.

Customer relationship management is the process of attracting, maintaining, and enhancing

customer relationships. Customer relationship management or retention marketing represents
a paradigm shift within marketing away from an acquisition and transaction focus towards a
relationship focus. Building long- term and profitable relationships with chosen customers
and getting closer to these customers at every point of contact with them are the two major
goals of CRM. .

14
There is still a long way to go in implementing customer relationship management by banks,
as the trend started only in the recent past. Still in some rural areas the level of attention and
promptness in service given by few public sector banks to their customer is very low.

A customer is the most important visitor on our premises. He is not dependent on us. We are
dependent on him. He is not an interruption in our work. He is the purpose of it. We are not
doing him a favor by serving him. He is doing us a favor by giving us an opportunity to serve
him. If a banking firm can follow the above valuable words given by Gandhi, it will
definitely become the best bank in the world for customer service.

Banks are highly focusing on CRM for the past few years that is expected to continue most of
the financial services industries are trying to use CRM techniques to achieve varieties of
outcomes. These areas are

a. creating consumer-centric culture and organisation

b. Securing customer relationship;

c. Maximizing customer profitability

d. Aligning effort and resource behind most valuable customer groups.

e. To implement CRM strategies, these aspects are considered:

f. Communications and supplier-customer interactions through channels;

g. Identifying sales prospects and opportunities;

The bank would need a bird-eye view of its customers across the various systems that contain
their data. If the bank could track customer behaviour, it helps the executives for better
understanding to predict future behaviour and customer preferences. The data and
applications can help the bank to maintain its relationship with the customer.

CRM helps banking sector to use of technology and human resources; these allow them to
gain insight of consumer behaviour and their values.

15
1.12 MODELS FOR CRM IN BANKING SECTOR

Managing customers profitably is the core objective of any organisation. CRM is the best
method to achieve the core objective. CRM models are helpful to understand the concept of
CRM and regulate the modern concept of CRM. There are number of CRM models
developed to learn and manage customers. Some of the CRM models are explained below.

1.12.1IDIC Model

The IDIC model was developed by Peppers and Rogers [D. Peppers and M. Rogers [3]]. This
model suggests that organisations should take four actions in order to build, keep and
retaining the long term one-to-one relationships with customers as shown in 1.4.

 Identify
 Differentiate (value, need)
 Interaction
 Customize

Identify: Initially an organisation must identify who is actual customer and should know
about their customers’ tastes and preferences. It is not only necessary to know about your
customers but, you have to know more and more about your customers, so that, you can
easily understand and serve them profitably.

Differentiate: Differentiate your customer on two bases: value and need Value: Differentiate
your customer to identify which customer is generating most value now and which offer most
16
for the future. Give more value to those customers who are generating more value for you.
Need:

1.12.2 Loyalty Model

Loyalty model represents that perceived quality, satisfaction and switching cost are the
factors influencing customer loyalty in banking industry. [A. Beerli, J. D. Martin and A.
Quintana [14]] as shown in figure 1.5.

LOYALTY MODEL

Perceived Satisfaction
Quality

Switching Loyalty
Cost

Figure 1.5 Loyalty model

1.12.3 Traditional Customer Relationship Model

Traditional CRM model presents the following key issues as shown in figure 1.6

1. Organisational culture, operations, and go-to-market strategy does not put the
customer and real customer insights into the center of CRM operations

2. Relies on data, analytics, and customer history to drive on-going customer

interactions

3. Puts the organisation at extreme risk of missing the boat from a customer’s
perspective – real needs, wants, concerns, preferences, experiences, etc.

17
4. Companies that rely on this model are at-risk of customer defections, decreased
customer spend/loyalty, etc.

TRADITIONAL CRM MODEL

Figure 1.6 Traditional CRM Model

18
1.12.4 Integrated Framework Model

“The integrated framework for customer value and CRM performance” [Wang, Yonggui, Po
Lo Hing, Chi. Renyong, Yang. Yonghen [16]] focuses on four customer values, when these
values are fulfilled, customer satisfaction is achieved and customer satisfaction in turn creates
customer loyalty as shown in figure 1.7

INTEGRATED FRAMWORK MODEL

figure 1.7 Integrated Framework Model

1.12.5 CRM Model

19
A frame of reference explains the key factors, constructs, or variables and the presumed
relationship between them [M. B. Miles and A. M. Huberman [18]. Understanding those
relationship will help in better utilization of CRM in banking sector, and banks will be able to
build customer loyalty in order to have a better long term competitive edge over their
competitors [M. M. M. Bagram [17]]. as shown in figure 1.8.

CRM Model

Customer perceived Customer satisfaction

value

Customer trust

Customer Switching Barriers

Customer Culture Customer loyalty

Figure 1.8 CRM model

Consequently, a frame of reference presents the theories and models that are most suitable for
the research problem. By studying and understanding the above models the researcher
anticipated to propose the following model for his research.

1.13 CRM IN BANKING: INDIAN SCENARIO

In recent years, a rapid revolution is transforming the banking industry around the world. In
early 1990s, banks and other financial intermediaries have been affected by greater risk and
sharp competition due the wave of deregulation in India. Due to cross-border flows and entry
20
of new players and products, banks are forced to adjust the product-mix and modify their
processes and operations to remain competitive. Also, better tracking and fulfillment of
commitments, multiple delivery channels for customers and faster resolution of
incoordination is possible due to extensive use of technology.

Today banks are market driven and market responsive and every bank’s CEO is more
concerned about how to increase or at least maintain the market share in every line of
business against the backdrop of sharp competition. Additionally, the entries of multiple
channels and new players have made customers (both corporate and retail) more perceptive
and less loyal to banks. This makes it essential that banks offer potential products and
services to ensure customer delight. There have been vigorous efforts in the banking circles
to switch over to customer-centric business model in order to address the challenge of
retention of customers. The approach adopted by banks with respect to customer relationship
management and customer data management decides the success of such a model.

Indian banks are realizing gradually that it is no longer profitable to have a “transaction-
based” operating model and dynamic efforts are made to develop a relationship-oriented
model of operations which are focused on customer-centric services.

Today, the biggest challenge that Indian banks are facing is to establish intimate relationship
with the customer without which all other efforts towards operational superiority are
meaningless. Through services, the banks need to make sure that the customers approach
back to them. The reason is that most of the banks earns major chunk of income for from
existing customers, rather than from new customers.

CRM solutions can significantly help in improving customer satisfaction levels if

implemented and integrated correctly. Data warehousing can help in delivering better
transaction experiences for customers using different transaction channels. The reason is that
data warehousing helps bring all the transactions coming from different channels under the
same roof. Data mining provides banks measure and analyses customer transaction behavior
and pattern to improve service levels and find new business opportunities.

However, it must be noted that customer-centric banking comes with many risks. The
banking industry all over the world is being pushed into a wild new world of privacy
controversy. The banks need to set up serious governance systems for management of
privacy risk. It must be kept in mind that customer privacy issues threaten to compromise the
use of information technology which is at the heart of e-commerce and CRM – Two areas
which are crucial for banks’ future.

21
The important issue for banks is that without undermining the most thrilling innovations in
banking banks will not be able to preserve customer privacy completely. These innovations
promise huge remuneration, both for customers and providers. But to get benefited from
them, financial services companies and their customers will have to make some critical trade
offs.

Yes    Bank    has    developed    YCCRM    (Yes    Bank Collaborative CRM), the prominent
features of which are ‘discussion boards’ and ‘templates’. These enable sharing of relevant
customer information to all concerned staff members to design new products, provide
proactive service, and informed customer handling leading better service. It enables
collaboration among staff and customers to create higher customer value through use of
CRM software.

Punjab National Bank deployed CRM software with modules of Prospect Management, Lead
Management, Activity Management, Product Management, Complaint Management and
Business Intelligence Reporting. The payoffs are in terms of increased customer base, cross-
selling, sales force optimisation, efficient lead management and higher productivity.

Bank of Maharashtra has developed in-house software which generates and updates a variety
of reports on detailed customer information and sends to branches. These reports are utilised
for better customer understanding, better customer support and service by access to relevant
customer information with all stakeholders to enable decision making and Business
Development as well as retention activities.

1.14 CRM IN BANKING: GLOBAL SCENARIO

Worldwide banks have explored and realized the benefits of CRM in a variety of ways.
Different banks have implemented the philosophy in their own different way. A few
illustrations will give a glimpse of the global scenario with respect to CRM in Banking.
Royal Bank of Canada utilized CRM to develop models of assessment of customer
profitability and life time value. These were then included in determining customer decisions
like – Customized Marketing campaign, establishing service levels, segmentation, targeting,
product design and pricing. Customer‟s vulnerability to attrition also is analysed and the
most valuable are flagged before they defect, in order to take preventive action in a focused
and effective way.

Wells Fargo Bank renowned for leadership in service and convenience to varied customer
segments focused on customer service through CRM. Application of CRM enabled better
22
integration of customer information and service applications to assist representatives of
customer sales and services to easily provide a one-stop-shop for any banking service or
transaction. Using CRM, Wells Fargo takes full advantage of available customer information
to offer customer the choice, convenience and price benefits so that they give the Bank, all
their business.

Wachovia Bank uses customer transaction data to support modeling processes that evaluate
each branch‟s current and long term profitability. In Atlanta Bank‟s largest market,
significant performance improvements were attained when it used the output of modeling
process as a basis to decide which of its 96 branches to close and which location to open new
ones.

1.15 ADOPTION OF CRM TECHNOLOGY IN BANKING SYSTEM

Information Technology Revolution had a great impact on the India banking sector. The use
of computer software had led to the introduction of online banking system in India. The use
of the modern innovation and computerization of the banking industry in India has improve
after economic liberalization in the year 1991 as the country’s banking sector has been
exposed to the worlds market. The Indian banks were finding it difficult to compete with the
international banking standards in terms of customer service to provide convenience without
the use of the information technology and computer system and software.

Reserve Bank of India in the year 1984 formed committee on mechanism in the banking
sector whose chairman was doctor Rangrajan, Deputy Governor, Reserve Bank of India. The
major recommendation of the committee were implementing MICR technology in all the
banks in the metropolis in India. It provided us standardized cheque forms and encoding and
decoding system.

In the year 1994, the Reserve Bank of India set up committee in computerization in banks
was headed by Dr. C.R. Rangarajan which emphasised that the settlement option must be
computerized in the clearing house of Reserve Bank of India in Bhubaneswar, Guwahati,
Jaipur, Patna and Thiruvananthapuram. It further stated that there should be a national
clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made
operational.

The committee submitted reports in the year 1989 and computerization of all branches started
from the year 1994 which settlement between IBA and bank employees association.

23
In the year 1994, Committee on Technology issues relating to Payments System, Cheque
Clearing and Security settlement in the banking sector was set up with chairman Shri.WS
Saraf, Executive Director, Reserve Bank of India. It emphasized on Electronic Funds
Transfer (EFT) system, with the internet communication network as its carrier. It also said
that MICR dearing should be set up in all banks with more than 100 branches.

2. LITERATURE AND REVIEWS

2.1 TYPES OF CRM IN BANKS :

Broadly, three types of CRM are adopted by banks:

1. Operation CRM – In this, CRM software packages are used to track and efficiently
organise inbound and outbound interactions with customers including the
management of marketing campaigns and call centres. Operational CRM supports
24
 frontline processes in sales, marketing and customer service, automating
communications and interactions with the customers.

They record contact history and store valuable customer information to ensure a
consistent picture of customer’s relationship with the bank that can be retrieved by
staff as per requirement. The major benefits of operational CRM to banks are:

(a) Sales Force Automation

(b) Customer Service and Support
(c) Enterprise Marketing Automation

2. Analytical CRM – It is about analysing customer information to better address

marketing and customer service objectives and deliver the right message to the right
customer at the right time through the right channel. It involves the use of data
analysis to extract knowledge for optimising customer relationships.

The major benefits of Analytical CRM to banks are:

(a) Customer Retention
(b)  Fraud Detection
(c)  Optimising marketing efforts as per customer life time valu

(d)  Credit Risk Analysis

(e)  Segmentation and targeting

(f)   Development of customised new products matching the specific preferences and
priorities of customers.

3. Collaborative CRM – These involve systems facilitating customers to perform

services on their own through a variety of communication and interactive channels.  It
brings people process and data together and enables channelling of data and
information appropriately to bank staff for proactive decision making and enhanced
informed customer service and support activities.

It provides a means of information sharing to all concerned in timely manner and

includes customer as a creator of service. The major benefits of collaborative CRM to
banks are

25
(a)  Providing efficient customer communication across a variety of channels

(b)  Online services to reduce customer service costs

(c)  Providing access to customer data while interacting with customers.

Thus, CRM can be understood as a catalyst enabling transformation of Banking from     

traditional ‘Transactional banking’ to ‘Relationship Banking’ by use of technology.

2.2. CRM MODEL THAT BOOST CUSTOMER LOYALTY

It’s five times cheaper to keep an existing customer than to gain a new one. But how do you
promote customer loyalty and retain your best customers?

Customer relationship management (CRM) helps businesses develop strategic processes to

win the loyalty of their best customers and improve the buyer experience.

What is CRM?

CRM stands for Customer Relationship Management. It is the foundational strategy a

company uses to develop a customer-centric culture that focuses on managing and optimizing
their current and future client relationships.

In short, companies that specialize in CRM help businesses analyze data about their

customers’ interactions with the company in order to improve the value provided to
customers and increase retention and profit.

In other words, CRM relies on a deep understanding of the customer (individually and
collectively) in order to meet their needs, exceed their expectations, and deliver value.
Ultimately, the companies that do this best will have an advantage over their competitors.

Note: The term CRM is also frequently used to describe the software or technology solutions
that manage those relationships and enable CRM strategies. To avoid confusion, we will refer
to this software as CRM software.

Purpose of CRM

26
The goal of any business is to generate profit from its products or services. To that end, the
purpose of CRM is to optimize the relationship the company has with its strategically
significant customers in order to maximize profits and build long-term success.

Strategically significant customers (SSCs) are a company’s most valuable clients. Generally
speaking, SSCs make up only about 20% of the client base, but they generate 80% of the
revenue. Because they generate more revenue, loyalty, and value than the average customer,
they are an important part of any business’s strategy.

When it comes to CRM, strategically significant customers are a key focus. By capitalizing
on the most valuable customer segments, companies can improve their long-term profitability
and competitiveness.

CRM MODEL

27
 Top 4 CRM models

There are several different strategies or models for customer relationship management. We’ll
cover four of the most common CRM models briefly below.

IDIC model :

The IDIC model was developed by the Peppers and Rogers Group as a generic blueprint for
implementing CRM in a variety of situations. IDIC stands for the four stages of CRM
implementation: identify, differentiate, interact, and customize.

Identify

The first step is to identify your customers, which businesses can accomplish by collecting
information like the customer’s name, address, and purchase history at each point of contact
across the company.

The goal is to collect as much information or data as you can on each customer in order to
better understand their needs, wants, and purchase behaviors.

Differentiate

The next step is to differentiate or segment your customers based on their current and
projected lifetime value. Remember: Not all customers will have the same value to the
business.

By differentiating your customers based on their value to the company, you can prioritize
your customer relationship efforts on the most valuable clients and tailor your interactions to
best fit each segment for optimal profitability.

Interact

The third stage is where you get to apply your CRM plans for interacting with your
customers. Once your customers are analyzed and categorized, you can develop customized
interactions—for example, for valued Keep in mind, you should be learning from each
interaction to continually improve future interactions.
28
customers, you might offer loyalty benefits or rewards to encourage retention and continued
spending.

Customize

After you have documented your customer interactions, you can then analyze them to
develop more customized one-to-one service. The goal is to ensure that your customers’
needs and expectations are met and that you have pinpointed them individually (or very
narrowly).

IDIC Model 

QCI model :

Described as a customer management model rather than a customer relationship model, the
Quality Competitive Index model focuses on three main activities: acquisition, retention, and
penetration.

The QCI model starts with the customer’s external environment at the top—their pain points,
business goals, and other factors will affect whether they are ready to buy or interact with
your sales team, which in turn impacts the customer experience.
29
The customer experience then affects customer proposition (what you offer the customer)
and customer management activities. As you can see from the magnified version of the inner
circle, many activities are involved to acquire and retain customers.

The QCI model also considers the people and technology involved with keeping this whole
system going. Although QCI has replaced the word “relationship” in CRM, this model still
starts and ends with people.

QCI Model

Payne’s Five Forces model :

The Five Forces CRM model was developed by Adrian Payne and Pennie Frow. This model
emphasizes a cross-functional approach for effective CRM processes.

30
There are two main components to the model: cross-functional CRM processes and key
elements of CRM implementation.

Payne’s model outlines five processes:

 Strategy development
 Value creation
 Multichannel integration
 Information management
 Performance assessment

There are four key elements necessary for a successful CRM implementation:

 CRM readiness

 CRM change management

 CRM project management

 Employee management

When implementing a CRM strategy, companies should conduct a CRM readiness

assessment to determine how prepared they are to implement a new CRM process.

Additionally, because CRM involves a fundamental cultural and operational shift, companies
should invest in CRM change management and project management as the new strategies are
introduced and the complexities of the CRM initiatives grow.

Finally, employee buy-in is crucial for successful CRM. Make sure your employees
understand the strategies and processes and engage with the new customer-centric culture.

Without these underlying conditions and elements, the CRM processes cannot succeed.

CRM value chain

A value chain is a high-level model developed by Michael Porter that identifies the processes
a business uses to develop an end product or service for the customer. The goal of the value
chain model is to identify and prioritize the most valuable activities to the company and
improve processes to gain a competitive advantage.

The CRM value chain model applies this principle to customer relationships. This CRM
model observes all the stages and activities required to build a relationship with a customer.

31
These activities are divided into two stages: primary and support.

Primary stage

The primary stage of CRM has five main processes that enable the strategy.

 Customer portfolio analysis: Similar to the IDIC model, the first step of the value
chain model is to analyze your customers to identify your SSCs (a.k.a. the customers
who create the most value for the company). This analysis stage helps companies
understand their customers so they can better address their needs and expectations and
develop strategies to maximize their lifetime value.
 Customer intimacy: The next step is to engage with the customer and build on the
original database of information. At each touchpoint, companies should be collecting
data on the interaction in order to better understand and serve their customer. The
better you know your customer (and adjust your service accordingly), the more likely
you are to retain their business over the long term.
 Network development: A business’s network includes all people and entities
involved in the value chain, including partners, suppliers, customer service, investors,
etc. The goal is to use your customer data to inform the processes at each level of
your network so that the entire system works together to optimize your customer’s
experience.
 Value proposition development: Armed with your customer information and
interaction data, you can create value for your target customers. The idea is to shift
the focus from the product to your service and to reduce process costs to create more
value for the customer.
 Relationship management: The last stage of the value chain model is to manage
your customer lifecycle. This process involves evaluating your business processes and
organizational structure to manage acquisition, retention, and customer development.

Support stage

There are five supporting conditions necessary in order to effectively implement the strategic
processes of the primary stage:

 Leadership and culture

 Procurement processes

32
  HR management processes

 IT/data management processes

 Organization design

Creating and developing these underlying conditions will support a successful CRM
value chain implementation.

CRM VALUE CHAIN MODEL

2.3 ROLE OF CRM IN BANKS :

One of the unique challenges of business banking in a digital world is meeting customer
expectations. You can’t just have a great checking account or lending terms, as you can with
most retail customers. You must offer sound financial advice. And in the information age,
that means having in-depth knowledge of each customer’s industry, taking a tailored
approach, and doing it all faster than ever before. Your corporate customers want goal-based
planning, proactive insights, personalized outreach, and more. As fintechs create seamless,
effortless, personalized experiences for customers, including in the banking space, business
banks should follow suit or risk falling behind in the competitive landscape.

33
What does CRM stand for in banking?

Just as in other industries like retail or business, in banking, CRM stands for Customer
Relationship Management. A Customer Relationship Management solution in banking helps
banks manage customers and better understand their needs in order to provide the right
solutions, quickly. There are many specific benefits of CRM in banking.

2.3.1 BENEFITS OF CRM FOR BANKS

Boosted Sales

On average, business banks loan out 15 times more money than consumer lenders. The stakes
are high if you want to earn those big business accounts, and you need a great CRM to launch
you ahead of the competition. Identify, nurture, and convert leads into deals before the other
guys even know what hit them. 

Increased Lead Conversion

How many times have you called on a prospect to offer them a new service, only to find their
needs have already been handled by someone else—from your own bank? Perhaps a real
estate customer needs to find and lease additional equipment when they expand their
manufacturing efforts in a newly-purchased building. If your bank offers both services, it
makes sense to go after that new opportunity, right? Especially when you know that your
probability of selling an additional product or service to a customer increases with every
successful sale under your mutual belt. The percentages prove it: You’ll convert five to 20
percent for new customers versus 60 to 70 percent for existing customers.

Implementing CRM in banking enables deeper and more customized

customer interactions.

With CRM banking technology, each department can access the same information across all
customer profiles, while also setting up individual triggers for offering additional services.
Employees can look up rich customer profiles compiled from marketing, sales, and service
data to identify new opportunities to convert leads. They won’t have to start from scratch
every time an interdepartmental lead comes through the funnel, so they’ll create a seamless
and personalized experience for the customer and a streamlined conversion process for you.

Personalized Customer Journeys

34
Customer retention is critical, but in order to keep your bank growing, you also need a
constant flow of new customers. How do you find them? What’s the best way to reach out to
them? How can you improve your marketing? A CRM for financial services can help you
answer all of these questions so you can provide your institution with a steady stream of new
and ready leads.

While drawing in loads of customers is great, keeping track of and following up with each
individual customer can overload your staff. So how do you create targeted, successful ad
campaigns without knowing who your customers are and what they want? Well… you can’t.

Increased Productivity

Nearly eight in 10 (79 percent) of all marketing leads are never converted to sales. Incredible,
right? Let’s say you have a full sales team. Would you hire an additional banker if, on
average, he single-handedly increased loan sales by 29 percent and offered a return of 5.6
times his salary in revenue? It’s a no brainer.

What if you could get these results with technology solutions instead of a new hire? You can,
because that’s exactly what a CRM for financial services can do for your bank. CRMs help
cut costs by minimizing repetitive administrative tasks, streamlining proposals, and keeping
your sales team in the loop with just a few clicks. With the right technology, bankers are
capable of handling more accounts in less time.

More Efficient Communication

Social media. Email marketing. Website traffic. Search engines. Marketing has come a long
way from newspaper ads and billboards. Going digital has had its benefits, such as enabling
banks to reach more businesses with lower advertising costs. This dependence on technology
also presents its own challenges.

A CRM can help you monitor the web for conversations about your brands and products. It
can also make it easier for you to respond quickly in a way that puts out the fire instead of
stoking the flames.

Inter-Department Data Tracking

Today, marketing is a data-driven field. But likes, clicks, and visits aren’t the only data points
that can help improve your marketing. You need to know how many of those behaviors lead
to successful sales.

35
When potential clients speak to your bankers, what are their top concerns, and can they be
addressed in your marketing to better prime businesses for the sale? What parts of the loan
process give customers problems or prevent them from becoming raving fans of your bank?

Better Service

With the right banking technology, you may be able to offer services such as mobile check
deposits, fraud alerts, paperless statements, customer service chat, and more. You may
already offer many of these digital services. Imagine what you could do if you paired them
with a great CRM that could keep track of all of your customer interactions.

Improved Customer Experience

With 300 different products and thousands of branches across the country, the head of a
leading US bank’s Wholesale Service Group calls the financial institution a “relationship
bank.” He cites the use of Salesforce as key to maintaining customer satisfaction. Since many
Wells Fargo customers use dozens of Wells Fargo products, they often need help across
many departments and don’t know who to call with specific questions.

Even if your bank has only a few dozen distinct products, your customer service depends on
answering questions and solving problems quickly, without handing the customer off to
department after department. With a good banking CRM, you can easily keep all departments
on the same page and quickly provide each customer with solutions.

Increased Customer Loyalty

What’s the true test of how much you value your customers? Customer retention through
customer service. Although well-timed sales and offering products based on customer needs
are important, 76 percent of consumers say customer service is a primary factor in how they
value a brand. Great service is the part of the sales funnel that keeps your customers coming
back for more.

36
How can a CRM help? By giving you access to rich customer profiles with just a few clicks.
Your customers have businesses to run, so asking them to repeat their issue or customer
history each time they speak to a new representative stretches their patience and wastes your
time and theirs. Instead, you can instantly pull up every service ticket, purchase, and data
point at the precise moment customers need help so you can swoop in to save the day. When
you use a CRM solution to stay on top of customer service tickets and personalize your
response, you can turn issues into opportunities for increasing loyalty and satisfaction.

Improve Customer Retention

With customers opting for online banking solutions as opposed to in-person experiences,
strategizing a way to foster long-term relationships can be difficult for many
organizations.With a banking CRM, there is a great deal of data available right at your
fingertips, which can be used to proactively deliver personalized services. Since your CRM
enables you to record customer notes and personal information, you can enhance every
experience.For example, if a bank teller adds a note to a customer profile that says they were
asking questions about a certain type of loan, the loan department can follow up by emailing
them helpful resources that explain their options. Showing your customers that you’re
listening to them and making efforts to improve their experience at your bank is a strategic
way to promote loyalty.

Enable Quicker Processes

With a single, unified system, any bank employee can access a customer profile to quickly
get up to speed on an account.For example, if a customer contacts a call center, the employee
they speak with can make real-time updates to their profile in the CRM. When the customer
visits their local bank branch, the bank tellers will be able to see notes from their interaction
with the call center. This can eliminate any duplicate conversations and provide the bank
teller with a holistic understanding of the customer’s situation.

Use Insights to Improve Sales and Marketing Efforts

The data in your CRM can be compiled into reports so you can gain a much deeper
understanding of your customers. From there, you can identify trends, successful campaigns,
and areas for improvement that will help you anticipate customer needs and tailor your future
marketing efforts.You can also use the data in your customer profiles to pinpoint areas for
cross-selling and upselling. For example, if a customer makes a deposit inside the bank, the
teller can have a full view of their profile and notify the customer of new products they may
be interested in or qualify for, such as a platinum credit card.
37
Make Your Staff More Productive

With all customer information available under one CRM system, there’s no need for
employees to search through emails or check multiple platforms for the answer to a quick
question. Repetitive administrative tasks are eliminated so employees spend less time
scrounging through data and more time fostering client relationships.

38
HOW CRM HELPS BANK TO SERVE CUSTOMER AS PER THEIR
NEED :

39
It can help you establish a need-based customer-centric business model

Banker can segment customers, communicate with them on the channels they prefer, align
products to financial goals, and more.

By using a CRM to put customers at the center of the business, banks can better anticipate
their needs and engage with customers at the right time throughout their financial life
journey.

It can help you personalise customer relationship at scale

CRM can track customer data across the bank, including service or loan origination
departments, so bankers can get an 360 view of each customer and proactively deliver
personalized service that not only exceeds expectations but also locks in a lifetime of trust.

It can help you deliver digital first engagements

The right CRM will enable banks to deliver the digital-first banking experience customers have come
to expect. From quick and simple on-boarding to real-time service responses, a CRM can help banks
embark on a digital transformation across both online and mobile banking experiences.

It can make marketing efforts more effective

A CRM makes it easy to create reports highlighting customer data points, engagement
channels, product purchasing trends, and more. With this information in hand, marketing
terms can discover new engagement opportunities and deliver insightful, personalized
marketing journey for each and every banking customer.

It can increase banker productivity

CRMs can save banks time by minimizing repetitive administrative tasks, streaming
customer engagement and keeping every team informed across the bank with just a few
clicks. With the right CRM, banker can have optics into their customer needs, relationship
and financial life goals on any device, at any time.

40
2.4 CRM IN RETAIL BANKING

 Meaning of Retail Banking

Customer relationship management is one of the strategies to manage customer as it focuses

on understanding customers as individuals instead of as part of a group. The last decade of
20th century has been the period of the customer. Today a product is manufactured as per the
requirement of the customers. The customer relation skill forms the basis of enhancing and
achieving customer satisfaction. The survival in the competition and retaining a market share
at such time when customers are restrictive, selective and indifferent is quite challenging
task. Addressing the customer's needs with innovation and answering the competition are the
two ways that organisations are adopting to stay out The domain of Customer Relationship
Management encompasses entire marketing and also strategic areas of business decisions,

The banking environment throughout the world has changed due to regulatory and structural
reforms and technological developments, which have reduced entry barriers and created an
integrated global banking market. These changes have forced banks to redefine their service
strategies to customers. Due to changes in the nature of customer relationship, banks are
trying to provide quality service using high-tech standardised services in order to reduce its
effect as a differentiating factor.

Retail banking is a term quite broad in nature - it refers to the dealing of commercial banks
with individual customers, both on liabilities and assets sides of the balance sheet. Fixed,
current/savings accounts on liabilities side and mortgages, loans (eg. Personal, housing, auto
and educational) on the assets side, are the more important of the products offered by the
banks. Related ancillary services include credit cards and depository services. Today's retail
banking sector is characterized by three basic characteristics.

 Multiple products (deposits, credit cards, insurance, investments and securities)

 Multiple channels of distribution (branch, internet)
 Multiple customer groups [ consumer, small business and corporate]

Typical products offered by the Indian retail banking segment are housing loans,
consumption loans for the purchase of durables, auto loans, credit cards and educational
loans. The loans are marketed under attractive brand names to differentiate the products
offered by different banks'

41
Banks these days provide a variety of services ranging from opening a savings account to
internet banking, granting loans to selling insurance, providing locker facilities to transferring
money abroad. Their customers come from all classes of society from a salaried group to a
MultiNational corporation having its business activities all round the world. Banks have to
satisfy all the customers belonging to different social groups, banking has therefore become
more complex and require specialised skills.

 NEED FOR CRM IN RETAIL BANKS :

Retail banking has immense opportunities in a growing economy like India. The rise of
Indian middle class is an important contributing factor in this regard, the percentage of
middle to high income households is expected to continue rising. Improved purchasing
power, coupled with more liberal attitudes towards personal debL is contributing to India's
retail banking segment In order to improve the relations with the customers, today's Retail
Banking is comprehensively concentrating on the quality of the products and the services
offered to the customer, as it is the basic foundation for maintaining and developing long-
term relations with the customer.

Offering quality products and services is not only essential to develop long-term customer
relations, but is also essential to improve marketing productivity and long run profits and
growth'

ICICI Bank retail strategy was centred around intensive deployment of technology to help
reduce costs of service, increase customer retention, and help in cross selling and up-selling
while improving process efficiencies. The bank looked towards allowing the customers use
multiple electronic channels including interne! ATMs, call centres, contact centres, desktops,
kiosks, mobiles and other hand held devices for conducting financial transactions. The group
has adopted a 'click and brick' strategy to leverage the power of electronic channels and
physical presence to ensure rapid product delivery, fulfilment of financial deals and
documentation.

Retail banks are even collaborating with competitors for some of the services to pass on the
benefits to the customer. HDFC Bank offers facility called "One View" where a customer can
view details ofhis accounts in three banks -ICICI Bank, Citibank and HDFC Bank- through a
single window on the internet, Considering that the three banks are fighting it out for the top
slot in retail banking, it appears remarkable that they joined hands to promote a customer-
friendly facility.

42
Retail banks have identified the benefit of e-banking and therefore consumer access to online
services will be developed based upon new direct channels. Three main drivers for
investment in ebanking solutions

 Distribution channel focus allowing cost reduction and efficiency improvement

 Improved customer service with an emphasis on information collection and
management
 Wider e-commerce strategy as a means to link to WAP[wireless Application
Protocol), interactive TV and other emerging technologies

There is a move to multi channel integration which allows banks to obtain a complete picture
of their customer's financial activities in real time. This enables the banks to offer an all-
encompassing service when managing customers' finances. ation to manage high yield
customers and to migrate unprofitable customers to cheaper channels of business.

 STRATEGIC BUSINESS MODET FOR CRM IN RETAIL BANKS:

Many Indian retail banks offer a broad range of products and services, but few stop to think
about strategy: how and by what the retail bank enterprise is defined, and how the efficienry
of its management can be measured. Understanding what area ofretail operations a bank
should focus on is impossible without a clear definition of the bank's goals and objectives.
Only then the bank will be able to formulate a strategy to attain those goals and objectives,

43
Training people in the bank is the first step in implementing any strategy' The balanced
scorecard system is a recognized instrument for implementing corporate banking strategies. It
is used to test existing strategies for completeness, consistenry and relevance.

The system can also be used to provide information to external users. Empirical research in
other projlcts has shown that around one third of those surveyed needed non-monetary
indicators for deiision making purposes. This situation makes it expedient for companies to
incorporate nonmonetary indicators into their reports. The balanced scorecard system is
especially suitable as a strategic communication and specifications instrument'

Software is not a major concern for retail banks when implementing a balanced scorecard
system. Nevertheless, gathering analyzing and evaluating data play a major role. For that
reason, the ma;or computer software developers like SAP, SIEBEL and Oracle are today
working on creating specialized CRM software solutions for retail banking operations'

Indian retail bankers implementing CRM are fast learners, and the balanced scorecard system
has a bright future. By gaining an initial advantage or a market share, Indian retail banks can
secure additional future revenue thr-ough an increased scale of operations. The better known
the product is and the wider it is distributed, the more people will want to use it'

44
2.5 E-CRM IN BANKS

E-CRM OBJECTIVES IN BANKING SECTOR

 To improve the customer service standards resulting in customer satisfaction.

 To maintain the transparency in communicating the information about the products
and services.
 To maintain the information about customers, where and how this data is stored.
 To help the sales staff close deals faster, simplify marketing and sales processes,
discover new customers, and increase customer revenues
 To reduce the Costs of marketing.
 To increase the Conversion rate, i.e., turning the browsers into buyers.

E-CRM TECHNIQUES USED BY BANKS IN INDIA

The online services in banks are initiating a new trend in relationship management to build
one to one relationship with the customers to achieve competitive advantage. The following
are some of the latest e-CRM techniques used by banks in offering new products and services
to their customers.

Internet banking

In the bank portals, the information of bank’s products and services is disseminated to the
customers. The banking services are provided through Net with the convenience of ease and
accessibility. Internet banking offers many benefits to the banks viz. vast reach, reduced
transaction costs, direct marketing and cross selling, build bank’s brand, etc. It also offers
benefits to customers’ viz. reduced cost, convenience, banking with the bank and not the
branch, speed, better cash management, etc. Thus the technology has completely eliminated
the need for branch. Internet banking has the following features:

 Check account balance and transaction details

 Make fund transfer to self or third party accounts
 Inquire deposits / exchange / loan rate
 Online Deposit
 Online Requests for DDs and Cheques.

Mobile banking/ SMS Banking

45
These services empower the customer with an instant access to check balance or post queries
and transaction. A customer can contact banks help line or phone banking number to register
complaints and to post general enquiries. After each transaction, when the amount gets
credited and debited, instant SMS would be sent to the customer. In case of fund transfers,
OTPs are sent to the registered mobile number for a secured transaction.

ATM Services

An ATM is a machine that can deliver cash to the customers on demand after authentication.
As per the RBI report, there are presently 96,664 on-site and 95,544 off-site ATMs in India.
This service is made available 24-7 throughout the year. The growth in ATMs has been
fuelled by a race among banks to expand their customer base by going in for more value
added services on these machines.

Data Warehousing and Data Mining

This technique is used to develop and use customer data to check their profile, retention and
loyalty patterns. They provide valuable inputs for retaining customers and developing
products and services for the future. Thus from the above we found that the technology in
banking has been used in four major ways:

 To enhance the customer base.

 To emanate the banks from the traditional constraints of time and place.
 To introduce new products and services as per the requirements of customer.

E-mail

Email is considered as Banks can maintain the list of its best customers and inform the
customers about various services and schemes offered by the bank.

INFINET and VSAT Network

Indian Financial Network (INFINET), a closer user group (CUG) has been initiated by RBI
to upgrade the country’s payment and settlement system in banking and financial sector.
INFINET uses VSAT (very small aperture terminal) technology. Some of the major
applications of INFINET in banking services/operation are listed as: (i) e-Mail (ii) Any

46
branch banking (iii) Treasury management (iv) EFT (v) Clearing and settlement system for
securities – delivery/payment.

Communication Technology (SWIFT)

International banks and foreign investors have formed a cooperative organization SWIFT.
It’s an acronym for Society for Worldwide Inter Bank Financial Tele Communication. It
provides a computerized network for stage transmission amongst international banks in the
member countries. This technology made available the fastest banking services/facilities to
customers who are engaged in international business.

Electronic Funds Transfer (EFT)

The RBI has introduced Electronic fund transfer technique for public sector banks to help
them offer their customer money transfer service from any bank’s branch to any other bank’s
branch. EFT system takes few seconds to transfer the money electronically to any customer
account in any branch.

Point of Sale Terminal

It consists of two key components a computer terminal that is linked online to computerized
customer information file and a plastic magnetically encoded transaction card that identify
the customer’s account is debited and the retailer’s account is credited by the computer for
the amount of purchase.

Customer smart cards

These cards are issued to key customers which carries all the relevant information, details of
previous and repeat purchases, to make it convenient for the customers to recall and for the
banks to keep a track of the behavioral and purchase trends. Utilities like BEST in Mumbai
are already using smart cards for ticketing in its luxury buses.

Computer networking

Networking between the branches of divisional, regional, zonal and head office of banks
provide access to customer data base from the executive desk. This will integrate the
frontoffice applications with back-office requirements, thus generating MIS for branch
managers and executives at the different controlling offices including Head office for
accurate, speedy and cost-effective customer services.

47
E-CRM BENEFITS :

The long-term business relationships provide many potential benefits for banks and clients. It
is generally less costly for any service firm (bank) to maintain and develop an existing client
relationship (Berry 1983). The customer can also make transaction cost savings by
developing a long-term relationship with bank. The numerous studies carried on in USA
reveals that transacting through Internet is much more economical than other channels.

For instance, it has been estimated that while it costs nearly US $1.07 per transaction using
the normal means, on the Net the costs comes to a mere cent. Even when compared with
telephone banking (5 cents) and the ATMs (2.7 cents), the Net seems to have an edge. In
addition, the strategic and social benefits may be considerable for both parties (Halinen
1989). A long-term relationship may, for instance produce strategic benefits for the bank in
its marketing by generating references and credentials or it may create competitive advantage
by building barriers to switching. The client on its part may enhance the quality of services
offered by engaging in long-term business relationship with a bank (Berry & Parsuraman
1991).

In Net banking the financial statement can be viewed, printed or down-loaded in any format
for ease of analysis. Thus, Internet as a service-delivery channel shifts the control of
transactions from the bank staff to the customer. Net bank customers find better information
through websites than from the unwilling, less knowledgeable and non-cooperative banking
staff.

Thus high level of customer control that translates into customer satisfaction and repeat
purchase is the most critical advantage of e-CRM in banks. Other related benefits include
decreased cost of sales and promotion, high supply-chain management integration and
improved logistics management.

CRM helps in experiencing an edge over its competitors. The efficiency in terms of
operations and strategy can be enhanced with the effective implementation of CRM. Some of
the advantages have been listed below:

 The banks can have a better understanding of customers.

 Long-term customers are more likely to become a referral source.
 Improved customer service leads to better customer satisfaction enabling the Cross
Selling of products and services.
48
  Profitability increases due to more customer acquisition and retention.
 Integration of people, process and technology can be achieved (Centralized database).
 The customized products and services can be provided, according to the needs and
requirements of various segments.
 The transactions with the customers will be more transparent.
 The organization can better manage the leads and opportunities into business through
proper follow ups and interactions.
 The operational inefficiencies can be reduced with the help of CRM. It integrates
customer interactions through phone, fax, e-mail, online portals, wireless devices,
ATMs etc.
 Helps in getting feedback and helps the customers to know about more products
which are beneficial to them.
 Helps in enhancing the TAT by providing faster response to customer inquiries.

2.6 IMPLEMENTATION OF CRM IN INDIAN BANKS

Even though CRM as a concept originated some years earlier in the past however its
principle has been around for some time in the India banking industry. Field officers of
various banks have always contributed in building strong relationship with the customers;
however the focus on customer orientation rather than product orientation as a philosophy
has been in the Indian banking industry for around a decade now. But then, to implement
customer relationship management is a hard nut to crack.

A few of the organizations are really enhancing customer experiences at all the points of
contacts with the customer. It is essential to understand following things:

Who are your target customers and what they value the most

Careful selection of customers

Make products and services which provide the desired value

Plan operational sales channels and customer touch points

Recruit and prepare employees to provide and increase customer value

Continuously enhance your value proposition to guarantee customer loyalty and retention
49
With the advancement in banking machinery and subsequent automation and networking of
bank branches, customers are becoming more and dynamic and less loyal in their behavior.
The development and easy accessibility of the Internet is acting as a catalyst and the whole
market is becoming transparent and thus making customers efficient to move easily from one
bank to another. In such a situation, by satisfying customer at all point of contacts will helps
in retaining old customers and brings in new customers.

CRM deserves differential treatment to different class of customers at times. Service can be
given to customers in two ways depending on the value of relationship with the customer:

Personally through individuals such as customer service manager.

Automate the process using computers.

Where personal management of relationship will be given to high value and business
customers on the other hand automated relationship management can be given to low margin
or mass market segments.

CRM system can open up new more cost effective channels of service delivery. We can
mention example of the Internet and call centers. According to an estimate, up to 90%
reduction in cost per transaction is achieved by using these modes when compared to cost of
transaction at branch. In order to give enhanced and extensive services to customers new
technology platforms are being created by shelling out huge investment in Information
Technology in this sector.

With the recent development in this field by introducing CBS (Core Banking Solutions)
banks can offer seamless transactions across different channels (branches, the Internet, the
telephone and Automated Teller Machines or ATMs). CBS helps in centralizing the
transactions of branches and different banking channels and the customers start banking with
the bank instead of at different branches. As such nowadays a customer is called a customer
of the bank rather than of a branch.

Another problem generally faced by a bank in implementing CRM is resistance to change.

The banking industry is facing major transformation in:

Market : changing from sellers’ market to a customers’ market,

Economy: regulated economy to a more liberalized and open economy,

Technology: high advancements in technology.

50
Thus it is forcing the banks to change the way they do business. A change denotes making
things in a different manner. Now the things should be properly planned, proactive and
dedicated to a defined. This in turn requires two things:

Increase in the ability to adapt changes in the business environment.

Training and motivating the employees so that it develops skills, right attitude, expectations,
perceptions and behavior.

Implementation of CRM in Indian banking is still in its nascent stage and has to travel long
and tough path in order to raise it to the global standards. But the Indian private banks in
association with their public counterparts are considering the issue on a large scale in order to
remain competitive to foreign and other private sector banks.

CRM, being the soul of future banking, proper understanding of the key principles, its
theories and practices should be revisited and redefined to provide a road map to generate
new ideas and technique in the turf. Over the years, banking institutions have been feeling the
pressing need of putting up greater force on this initiative for improving their operation and
appearance.

The main principles of CRM can be grouped into seven guiding factors:

Customer focus

This is the first and foremost guiding principle in CRM. Who is a customer? A customer is a
person or group of persons who receives the product or service, the final output of a process
or group of processes. As a part of this focus on customers, banks must make sure that clients
are correctly identified; requirements are appropriately determined, understood and met
enhancing customers’ pleasure.

Leadership

Some of the basic characteristics viz. Integrity, Dedication, Magnanimity, Humility,

Openness, Creativity, Fairness, Assertiveness, Sense of humor must be properly imbibed
within a leader in order to take out the assist the confused customers and thus help in
resolving the matter in best possible manner. A leader does not suffer “analysis paralysis” but
is always doing something in pursuit of the vision, inspiring others to do the same.

51
“Good business leaders create a vision, articulate the vision, passionately own the vision and
relentlessly drive it to completion.” – Jack Welch, former Chairman and CEO of General
Electric Co.

When there is a slight chance of getting a business but the client is hesitating or in a fix, or
not in a position to decide properly, proper follow up by relationship manager by patient
hearing, kind counseling and to stand by the side of the prospective client to help clear his
doubts and to make him feel happy by realizing that he is going in the right direction and he
is very right in choosing his requirements.

Some of the following points will assist the employees:

Ways and means should be identified and practiced of getting and staying closer to
customers.

It is to be communicated to all employees that all customers should be given a proper hearing
and it should be supported from all levels.

There should be proper re-action to the information and feedback provided by the customers
in designing, developing and providing desired products at afford-able cost.

Proper respect should be extended to the customers. All relevant information should be
collected from them with humble and polite approach. Proper value should be given to their
feedback.

Process approach

For effective functioning of an organization, it has to identify and manage numerous linked
activities with the help of different processes for accomplishing its goal.

Proper attention should be given to the following points:

All processes should be de-signed keeping in view the requirements and desires of the
customers, within the policy, resource availability, strategy of the company.

There should be in built control mechanism for ease of measuring, reviewing and taking
corrective action.

All processes should meet the legal and statutory requirements to perform the activity or
deliver the product or service.

52
All the processes should be properly integrated to meet the goal congruence and should not
function at cross-purpose.

Time involved in processing should be minimum with least waiting time to the customers. If
required delegation of authority and assignment of account-ability at various executive levels
should be addressed, revised and fine-tuned to meet the requirements.

System approach

The system should be responsive and deliver to customers what they desire. Additionally, the
target should be to accomplish more and to surpass the customer’s expectation to
accommodate future requirement and to bolster against the competitors’ attributes. CRM
represents the management of the complete system and is not limited to only one or the other
sub-systems or departments. Its main objective is to increase value to the bank’s customers
on a endless basis by designing and refining organizational processes and systems on an
continuing basis.

Involvement of people

People involvement at all stages is indispensable for the success of a CRM program. The
bank’s managers and other staff must be in a position to exploit the customer relationship
completely.

Customer relation is that aspect of relationship marketing that pursues and guarantees
customer loyalty by fulfilling promises. It continues to satisfy the bank’s customers’ wants
and needs so that defection is absent. It involves of three levels of relationships – financial
relationship, social relationship and structural relationship.

The key focus of financial relationship is frequent marketing programs founded on financial
incentives such as lower rate of commitment charges, reduction of processing fees,
organizing Loan-Mela on special occasions etc. A social relationship program is based on the
social attachment between a company and its customers and creates brand loyalty. The
optimization of structural relationship relates to the replacement of physical resources by
total service replacement.

To order to experience the full benefits of people participation, the human resource
management must focus on employee empowerment, zero defeat service oriented training,
and productivity linked reward and total quality management.

53
Mutually beneficial customer relationship

The relationship with the customer should be based on a mutually beneficial relationship. A
bank should not focus its attention on earning of profits only, but focus should be directed to
the customers’ wealth creation or value augmentation with the aim of earning through
service. Retention of customers and building a long lasting relationship is the central criteria
under this concept.

Continual improvement

One more objective of CRM is the efforts towards constant improvement in the customer
relationship by providing value added services at reasonable cost. An effective way of
bringing improvements is through innovation and change management. The successful
organizations must encourage and foster innovation and perfect the art of change.
Organizations that maintain their spontaneity, flexibility and unpredictability, repeatedly
improve their quality and, beat their competitors in the market place by continuously
innovative new products and services.

Challenges for CRM implementation

The most persistent challenges faced by banks in effectively using knowledge about their
customers include:

Difficulty is obtaining a complete insight about their customers

Need to move away from disorganized, individual, and unreliable channels to provide an
organized, multichannel offering

Problem of separate legacy systems and different databases that store client financial data

Cost and difficulty in meeting rigorous government regulations, client security and privacy
requirements

Pressure on margins and growth prospects from increased competition

Costs related to retaining the bank’s customers and increasing customer loyalty

Even though CRM can aid the banks to efficiently manage their customers, several banks
remain unsuccessful in merging this concept into the existing work culture. However, the
high frequency of CRM failure is not directly related to the CRM concept itself. Generally

54
it’s as a result of the banks’ failure to pay due consideration to customer data they already
have access to.

2.6.1 THE IMPACT/EFFECTS OF CRM ON BANK PERFORMANCE

A healthy business environment is important for the banks to take advantage from the CRM
(Bennani, 2007). Indian banks are now operational in very competitive environment which is
changing the business environment and as a result latest information and ideas are required
(Babu and Hedge, 2006). Changes produced by CRM at economic and social level are
intense. According to Cillán and Jesús (2005), banks carry out banking operations in an
information society and it is easy to understand CRM impacts if the ways in which bank
deals with CRM are understood. The impact of CRM on banks has been debated constantly
by various scholars.

A number of them mention the positive effects on performance of the bank (Kamath, 2010).
There is hardly any author who commented any negative consequence. Although writers and
authors agree on many aspects of CRM, they argue on indirect results that CRM has on
banking processes. Scholars like Hinton and Conner, 2007) mention that if adapted and
managed properly, CRM can help the bank provide better and improved customer service,
make business process especially sales and marketing more efficient and assist in selling
services more effectively. Stevens (2008) proposes that banks can apply CRM tools analyse
information with minimum discrimination. CRM can help the banks to access ideas and
experiences from variety of sources. CRM applications deliver many benefits across
organizational processes and functions (Injazz and Popovich, 2008).

CRM improves information and increases knowledge management. It helps to reduce costs of
transaction and increase speed and reliability of transactions. CRM tools can be used for
effective external communications and service quality (Laharwal, 2010). The banks in India
recognize positive impact that CRM systems and tools have on banks. They realize that it can
increase information and lead to efficient processes and better performance (Rahman and
Bhattacharyya, 2008). The bank staff when trained on CRM can deal with customers
perfectly and solves problems and client issues more professionally (Laharwal, 2010). Nagai
(2005) takes a detailed approach on benefits of CRM. He says that CRM systems collect data
flows between operational systems (like sales and inventory systems) and analytical systems
that can help sort through these records for patterns (Pires, 2006).

Banks can then obtain all-inclusive view of each customer and pinpoint areas where better
services are needed. Kolbe and Brenner (2008) also propose many benefits of CRM such as
its help in responding to campaigns, fulfilling contracts on time, gathering sales and service
55
data, collecting account information and keeping service and support records. In contrast to
Kolbe (2008), Bove (2008) takes a more direct approach. He advises that CRM system and
technology can be used to plan and target the strategies for better customer services.

LIMITATIONS OF CRM

CRM brings benefits and advantages if implemented effectively (Johnson, 2009). Successful
integration or adaption of CRM system in the banks may not be as easy as it looks like. Kurtz
and Snow (2010) express their concerns and thinks that efficient operation of CRM is not
simple as it seems. Every concept has limitations so does the CRM in banks. This is
especially the case in Indian banks. Sharp (2009) is in the view that problems of CRM are
sometimes in excess to its benefits and it’s not worth implementing a CRM strategy.
According to Buttle (2008) most banks fail to prepare for CRM. CRM adaption often
requires change in organizational structure and even organizational culture and environment.
Indian banks are now operational in very competitive environment which is changing the
business environment and as a result latest information and ideas are required (Yadav, 2009).
Changes produced by CRM at economic and social level are intense.

According to Baran and Strunk (2008), banks carry out banking operations in an information
society and it is easy to understand CRM impacts if the ways in which bank deals with CRM
are understood. One of the major drawbacks of CRM is the large investment to build and
maintain a CRM system that requires customer database, hardware, database software;
communication links analytical programs and skilled personnel. Furthermore, there is the
problem of CRM evaluation. Research conducted by Dyché (2006) suggests that many banks
are unable to even estimate or appraise the results from CRM. Ratametha (2009) recognizes
the benefits of CRM for banks but is concerned of CRM implementation in Indian banks.
CRM requires adequate resources and appropriate human and financial capital.

Like Ratametha (2009) many scholars accept that banks face challenges such as skills
deficiency and lack of knowledge. Goldenberg’s (2008) study shows that there is a dawdling
response from Indian banks regarding CRM for bank performance. He blames that on
cultural drawbacks and organizational structure. It is also found by Stone’s (2009) research
that CRM adaption have some major internal and external barriers apart from briefed above.
The internal barriers consist of the characteristics of the management and costs and return,
and external factor comprise of influential environmental factors like social, legal, cultural
and political (Tsai and Cheng, 2007). Like all other things, CRM systems also have few
shortcomings that need to be overcome. The technology is still new I Indian and has lots of
56
areas of improvement. It’s not completely fair to say that CRM doesn’t benefit banks in
meeting their important goals but for some the benefits of CRM don’t seem significantly
greater than the investment of time and effort required to use the system (Yadav, 2009).

2.7 REVIEW OF LITERATURE

A literature review is a text of scholarly paper, which includes a current knowledge including
substantive findings, as-well -as theoretical and methodological contributions to a particular
topic. Literature review use secondary sources, and do not report new or original
experimental work [L. Banglione [19]]. One who is not fully conversant with what has gone
before has little chance of making a worthwhile contribution [O. R. Krishnaswami and M.
Ranganatham [20]]. This chapter deals with literature reviews that support the researcher to
have a keen understanding over the concepts of Customer Relationship Management (CRM)
to conduct the present research.

C.R Sharma [21] studied the impact of Liberalization and Globalization and role of IT in the
organisations, with this influence major changes was identified in Indian banking system,
present clients are demanding more interactive access to their accounts, it is more important
to make the customers perceive that they are getting good services, the quality of customer
service must be beyond their imagination and expectation, it is possible by maintaining
healthy relations with the customers

Berry and Parasuraman [22] study reveals that the improvement of morale and loyalty in
banking employees and customers stimulates favourable word-of-mouth communications to
enhance value of customer’s perception. Customers are selecting among available service
providers, trust and service efficiency are the key factors in selecting service providers.

Gummerson [23] explored the extent of application of RM in banking sector. According to

his findings, the service users hold good image of the company if it provides effective CRM
services. He found that poor RM causes discontinuation of services by many customers

Hallowell Roger [24] conducted a research on customer satisfaction, loyalty, and

profitability. It was found that when compared to public sector, private sector bank
customers’ level of satisfaction is higher in particular point of view.

Parasuraman, A. Zeithaml and L. L. Berry [25] found the gap between expectations of the
customer and actual perceived performance, which is the base for measurement of customer
satisfaction also known as satisfaction gap. Many factors will influence customers in

57
expecting performance standards, at the same time the same factors may not influence the
customer in perceiving performance standards.

J. W. Gosney and Thomas P. Boehm [26] examines CRM when customers cannot easily find
what services they want then different communication tools are require to design to assist
them. The relationship with the customer begins as much after the sale as it does before the
sale.

N. Abeysekera and J. A. S. K. Jayakody [27] in their study explained about importance of

RM in banking, they also explained about how well RM is practiced by private banks than in
public banks, important information is that the majority of corporate customers who deals
with the banks are males. The study contributes to the RM practice by shedding light on how
salespersons can create, develop, maintain and practice RM.

Joe Peppard [29] revealed that the financial services organisations are rushing to become
more customer focused. A key component of many initiatives is the implementation of
customer relationship management software. Our research has highlighted that most
institutions take a rather narrow view of CRM and as such, benefits have been limited.

While second generation CRM has emerged to embrace the total organisation, success in
general has still not been widespread. In the paper, a framework is presented which is based
on incorporating e-business activities, channel management, relationship management and
backoffice/front-office integration within a customer centric strategy

S. Tandon [30] his study revealed that customer satisfaction is one of the formidable
challenges in marketing of services in banking industry in our country. The thrust on
customer service has increased after liberalization of Indian economy.

This can be achieved by efficient customer service and immediate tactful handling of
customer’s grievances. Better customer relationship management leads to customer
satisfaction and a good public image is to win over the customers. Hence, public relations
should be one of the strategies to achieve customer satisfaction

Atul Parvatiyar and J. N. Sheth [31] investigation revealed that recent prominence facilitated
by the several other paradigms of marketing and by corporate initiatives which developed
CRM business activity, and if the phenomenon of cooperation and collaboration with
customers becomes the dominant paradigm of marketing practices in research, CRM has the
potential to emerge as the predominant perspective of marketing. Building long-term
relationship with customers is a fundamental business of every enterprise, and it requires a
holistic strategy and process to make it successful.

58
Sajal Kabiraj, D. P. Agrawal and Deepali Singh [32] discovered the reasons of strategic CRM
for evaluating profitable opportunities with assessment of competition from other financial
institutions like banks and money market funds. They also conclude about new methods of
delivering financial services may affect the role of the retail banks in regard to money, the
payment system, banking supervision and long term relationship with customers through the
use and implementation of strategic CRM business models. The research study enables
managers to assess CRM activities and processes in retail banks.

2.8 A CASE STUDY OF STATE BANK OF INDIA

2.8.1 INTRODUCTION

Information Technology is the technology sweeping the world and is said to be benefiting
each and every sector of human activity including banking. The new technology has radically
altered the traditional ways of doing banking business. The banking sector in India adopted
the use of computers only in the early 1980’s , however it was only by the end of that decade
that the adoption to computerization started growing and many branches have begun using
computers in view of the ongoing development process in the economy. Use of modern, state
of the art technology in banking is increasingly seen as an essential ingredient not only of
good customer service, but also of good housekeeping. The good old manual system on
which the Indian banking industry has depended upon for centuries are perhaps unable to
deliver the goods any more. Hence this repeated outcry for the use of modern technology is
seen as panacea for the ills that afflict the banking sector today.

The banking industry is very much dependent on the customer goodwill, for which IT is
believed to open a new window of great opportunity by way of good CRM (Anil, 2007). The
main objective of the case study is to analyze IT and CRM in the India’s largest commercial
bank – SBI.

When IT-Banking-CRM literature which is taken care or reviewed, which may be called the
new IT-Banking-CRM literature, which is relatively a new literature, yet on which there is an
outpouring of studies. The then RBI (Reserve Bank of India) governor in his address to the
25th Bank Economists conference, he first noted the phenomenon of globalization is
something like a free-for-all world of business and enterprise, the world is brought together
due to developments in the field of technology or technological field and changes also in the
financial sector such as cross-border flows of capital. The governor future viewed that Indian

59
banks are not up to world standards and in this regard it is noted that banks in India very
much fall short of foreign banks in technology and it called upon to bridge this gap.

In another exercise, Chowdhury (2005) mentioned that there is a problem with the
introduction of IT in banking such as infrastructure, power, trained manpower, training, etc.,
and the prospects of keen competition. That is IT offers a wide competing area for banking,
according to him IT, among other things, calls for a close CRM, which is good relationship
banking. In another seminal study an intimate field view of the problem for nearly a decade,
finds customer services particularly in the public sector banks anything but respectful and
satisfactory and he makes out his point by a number of case studies; according to which the
Indian commercial banks are quite away from IT and good customer services. There is thus a
broad national angle and development perspective to IT, Banking and CRM, According to
which the theme has to come from the confines of banks to the national and social arena.

SBI is the main commercial bank of the nation, its importance in the banking system is next
only to that of RBI. The bank is a trend setter in the new banking practices. The Reserve
Bank of India (RBI) designated SBI as Domestic Systemically Important Bank (D-SIB) on
August, 2015. SBI was designated as D-SIB because of its size, sustainability cross
jurisdictional activities and interconnectedness. Systemically important banks are perceived
as banks that are too big to fail (TBTF) (Alexander, 2006). This perception of TBTF creates
an expectation of government support for these banks at the time of distress. Due to this
perception, SBI enjoy certain advantages in the funding markets and moreover it builds the
confidence of various stakeholders including investors and customer.

2.8.2 PROFILE OF SBI

SBI is the largest commercial bank in India and is providing good services to its esteemed
customers by making use of modern technology and CRM. Thus IT and CRM would
improve customer service, enhance productivity and ultimately facilitate banks to maximize
profits. SBI is the oldest and number one in the country with respect to many parameters of
banking, such as branches, deposits, advances, ATMs and many others.

Table 1
60
SBI’s journey through numbers

Parameters Numbers

1 Branches 16333

2 Deposits 119443

3 Advances 13545

4 ATMs 54560

Source. SBI annual report 2014-15

2.8.3 IT SERVICE

Services are vital link between the customers and the banks, SBI introduced customer
friendly services to its large customer base, some of them are Automated Teller Machines
(ATMs) , Internet Banking (IB), Mobile Banking (MB), Point of Sale Terminals (POST) and
others to name a few.

Table 2

IT Services

Services Figures

1 Internet Users 2.70

2 Mobile Banking Users 1.35

3 Daily average ATM transactions 99.95

4 Point of Sale Machines 2.00

5 No. of ATMs 54560

6 Cash Deposit machines 1849

7 Kiosks 2595

Source. SBI Annual Report: 2015

According to RBI data, the number of ATMs in the country stood at 166894 out of which
SBI has the largest number of ATM network to the tune of 54560 as on 31st March 2015.
Rapid growth in the number of Internet connections and users has opened up a large market
of cyber consumers. It is expected, overtime, the internet will have far reaching consequences
61
for the banking industry and will evolve into one of the main environments in which business
and individual customers will choose to conduct their daily account transactions. SBI has
2.70 Lakhs Internet Banking users as on June 2015.

On the other hand there are more people using a mobile phone than a bank account in India.
And setting up bank branches is not only expensive but time consuming. According to some
studies it could easily take more than two decades for bank branches to reach the entire 1.2
billion populations. The way out is clearly Mobile banking – using handsets to enable some
of the banking functions like payments, money transfer and so on. SBI has 1.35 crores
registered mobile banking users and this is increasing by 2 Lakh new mobile banking users
per month. SBI has also activated nearly 2 Lakh Point of sale terminals and as a result, debit
card spends over point of sale and e-commerce of SBI group crossed Rs.30000 Crores for the
FY 2015.

SBI along with its associate banks has one of the largest ATM networks in the world with up
to 54560 ATMs. Kiosks and cash deposit machines as on 31st march 2015 goes up to 2595
and 1849 respectively. The objective is to strengthen ATM facilities across every nook and
corner of this vast country and enhance customer convenience. SBI is pursuing an aggressive
IT policy with the objective of achieving efficiency in internal operations, meeting
customer/market expectations and facing competition effectively for which purpose several
IT projects have been launched to carry the mission forward.

Table 3

Other IT Services

Services Figures

62
1 Core Banking Transactions (Daily Average Transactions) 6.40 Crore

2 Touch Points 1.28

3 Business Correspondent and customer service Points 57575

Source. SBI Annual Report: 2014-15

As the premier bank of the country, a great responsibility devolves upon the SBI to set tone
for the rest of banking in every banking aspect. The SBI need to assume this race, at least in
respect of PSBs, hence, the need is to push IT to the fullest extent and push forward banking
services and CRM to commensurate levels for the real take-off of the banking sector

2.8.4 CRM

CRM is defined as a company’s ability to continuously maximize the value of its customers
franchise by effectively allocating scarce resources to specific customers or customer
segments in those areas viewed as having a significant impact on the profit imparting
behavior of customers. The purpose of IT in banking is to provide full satisfaction to the
customers, while increasing profitability, decreasing risk and fraud to the bank. At the same
time it is to be noted that where culture in not conducive, even brilliant strategies will fail to
get translated into action.

Customer satisfaction is a growing concern for the banks who want to grow in this
competitive world of today, the concept of CRM is now growing wide acceptance and is
recognized as a powerful tool for business development and to have an edge over the
competitors on account of universal traits of human behavior. organizations have earlier
focused on their products as the starting point and then looked around for customers to sell it,
but the approach of CRM is different, it starts with the customer not the totality of the
customers, because each customer has to dealt individually to find out what they need and
want and to design the product as per their need and supply. In a nut shell CRM is about
growing enduring relationship with profitable customers.

It is a known fact that nearly 70% of the customers leave the branch/bank because of
wrong/bad attitude of staff at branch. If banks take reasonable care to the following aspects,
there is no question why a customer should not be satisfied, delighted and remain loyal to the
bank. Following are the measures for good CRM.
63
 Skill
 Willingness
 Systems and procedures
 Latest Technology
 Good Infrastructure
 Quality of Service
 Standard of Performance
 Fundamentals of Marketing
 Marketing Research
 Publicity
 Advertisements
 Merchandising
 Distribution
 Customer service and Support

According to the view, good CRM is not just a function of IT, but more of attitude and
concentrated behavior. The need, in other words is for a democracy like thing in CRM.
The best of the technologies cannot achieve much unless the bureaucratic mind-set of
banking is altered. Under the changed banking situation of IT and a high degree of
competition, efficiency, productivity and customer services, thus, CRM appears as
essential for successful functioning, profitability and customer retention and extension of
the banks.

CRM is of prime importance, particularly in the case of the banking industry, which is so
much customer based and for its expansion, growth and profitability. The conceptual
relationship of IT- Banking-CRM is the inevitable adoption of IT by banking, which
among other things, impacts upon banks- customer relationship. IT in banking among
other things leads to a good CRM. The IT-Banking-CRM relationship is positive.

The CRM measures in the SBI appear to consists of the following

 Extended Banking Hours

 Punctuality
 Prompt Computerized accounts information
 Banking Ombudsman
 ATMs
 Suggestion – grievance boxes

64
  Information Desks
 Computerization
 KYC
 Staff courtesy

Yet, it does not appear to extend to reach out to the wider public and special services to the
poverty-stricken, which should be perceived as the real CRM in our poverty- stricken
country.

Thus, as rightly noted, CRM represent a new way of doing business for banks. It is seemingly
a democratic and customer driven banking, in which each and every customer counts, not just
the High Net-worth Individuals (HNIs). The heart of it appears to be good customer service
and a favorable customer opinion regarding them.

3. RESEACRH METHODOLOGY

OBJECTIVES OF STUDY
65
  To study the concept of CRM
 To examine the opinion of the customers as to CRM of the banks with respect to
services offered
 To analysis the opinion of customers as to CRM of the banks with respect to customer
interactions of management
 To study the opinion of the customers as to CRM of the banks with respect to internet
services.

NEED AND IMPORTANCE OF THE STUDY

The banks are facing difficulties in acquiring customers and retaining existing customers as a
result of the advancement technology and computerization networking of bank branches the
customers are becoming more and more dynamic and less loyal in their behaviour.

Most of the bank concentrating more on retaining the existence customers rather than going
for new customer. Implementation of CRM poses a greater challenge to the bank after
acquiring the customers.

METHODS OF DATA COLLECTION

a) Primary data: The present study is based on primary data, questionnaire was the
male tool for collecting the primary data. The questionnaire was design in a
systematic way of covering adequate and relevant almost all aspects of the study area.
b) Secondary data: secondary data required for the study was collected from books,
journal, past research, reports and various websites.

SAMPLE AREA

The survey is conducted within Mumbai City

SAMPLE SIZE

41 responses received out of the survey 7

LIMITATION OF THE SURVEY

 The sample is limited to 33 respondents a small sample in size which represents the
whole Indians CRM techniques.
 Lack of primary data is collected because of covid19.
66
 Couldn’t receive response of illiterate customers.
 Survey area is limited to Mumbai city only.

4. DATA INTERPRETATION AND ANALYSIS

67
 Figure.5.1

Pie chart 5.1 shows that 65.9% respondents were female and 34.1% respondents were male

Figure.5.2

This figure shows the percentage of all respondents’ age. It shows that is covers only 18-60
age groups for survey

68
 Figure 5.3

India’s literacy rate is increasing day by day. Highest respondents percentage is of graduates.

Figure 5.4

The above chart indicates that maximum responses are received by students. The maximum
facility of the bank is avail by the students , business man/woman, and employee the
minimum facility of banks are avail by others. The highest users of the banks are students

69
these days the banks should focus more on what these students expect from banks in order to
retain their existing customers.

Figure5.5

The above figure indicates that people are having account in all the sector banks for their
banking facilities. As per the chart maximum people are having account in nationalized bank
68.3% and private bank 65.9% whereas Minimum people are having account in co-operative
bank 12.2%.

Figure 5.6

70
The above chart indicates that how many people are satisfied with the service provided by
bank 61% people are satisfied with the service provided by bank, as per the above pie chart
the banks are providing proper service to their customers. Customers are satisfied with the
services provided by bank.

Figure 5.7

The above chart indicates that whether the bank provide personalized service to its customers
or not, 58.5% people responses are in “yes” they provide personalized services whereas
41.5% people responses are in “no” they don’t provide personalized services.

71
 Figure 5.8

the data I have received from the people out of my survey is that, all the people use all the
mode of transactions provided by banks. The percentage of Internet and ATM mode is very
high compare to telephone and going to branch physically. This states that online mode of
contacting the banks are given higher preference. Banks should enhance more in these modes
to retain their existing customers.

Figure 5.9

The above chart indicates that how much the customers are satisfied by the behaviour of the
employee in the bank. 36.6% people have selected excellent, according to them the employee
behaviour was good towards them.

72
 Figure 5.10

The above charts indicates that whether the customers complaint are resolved effectively or
not, whether it is resolved within the time periods or not. 53.7 % people response is “yes”
their complaints are resolved in time whereas 29.3% people responses is “no” their
complaints are not resolved, and 17.1% people are not sure whether banks resolve the
complaints.

Figure 5.11

The figure indicates that what services people avail from banks, people avail all the services
of the banks. The services which is used by all the peoples are Mobile banking, Internet
banking, Debit card, saving a/c. the other services which are used by less peoples are Demat
a/c, loan, Credit card, Current a/c, and fixed deposit.

73
 Figure 5.12

The above chart indicates that whether banks explain a particular scheme to its customer in
detail or not majority of the people response is in “yes”

Figure 5.13

The above figure indicates that whether the customer are aware of all the services provided
by bank or not, majority of people responses is in “yes”

74
 Figure 5.13

The above chart indicate that whether the bank help their customer on time, whenever they
have any problem, listens to their problem and address them or not. 63.4% people response
is” agree” the customers are satisfied and their questions are addressed by bank.

Figure 5.14

The above chart indicate that 51.2% people “agree” phone calls are transferred to the best
who could answer their query, 48.8% people “disagree” phone call were not transferred to the
best who could answer their query.

75
 Figure 5.1

According to survey I have conducted 26.8%, 53.7% people are saying they are satisfied by
the online facility provided by bank it has helped them a lot during the phase of covid19.
12.2%, 26.8% people are not satisfied by the online service provided by bank.

Figure 5.16

According to above chart all the people are going to stick to online mode of transaction even
after this pandemic ends.

76
 5.CONCLUSION

With the research conducted, it has been found that there is a relationship between customer
relationship management and customer satisfaction. CRM is one of the greatest approach and
tool for gaining customer base and thereby surviving in this competitive environment. Now a
day CRM with customer by banking sector used to get customer database, customer
satisfaction level, customer loyalty, long time service, customer retention, to identify
profitable customer for their bank.

FINDINGS
The research work reveals that there is a positive impact of CRM in banking sector. Now
banks are providing all the financial services like ATM, Mobile banking, Internet banking
services. Respondents are getting all other services like loan facilities, overdraft facilities and
various recent govt schemes for educational loan , home loan and for small medium
businesses. Customers are highly satisfied with overall banking services.

77
 6.BIBLOGRAPHY

 Customer Relationship Management In Banking Sector

https://www.researchgate.net/publication/
281411054_CUSTOMER_RELATIONSHIP_MANAGEMENT_IN_BANKING_SECTOR_
An_Empirical_Study_with_reference_to_Banks_in_Thiruvannamalai_District_Tamil_Nadu

https://issuu.com/sanjaykumarguptaa/docs/project-report-on-crm-in-banking?ff

https://www.salesforce.com/solutions/industries/financial-services/resources/banking-crm/

https://economictimes.indiatimes.com/industry/banking/finance/banking/coronavirus-
indusind-bank-witnesses-3-fold-rise-in-digital-account-openings/articleshow/77764787.cms

https://thefinancialbrand.com/106930/banking-personalization-engagement-crm-ai/

https://www.techadv.com/tag/banking

https://youtu.be/mZvM9Mw3FBs

http://www.ijasrm.com/

78
https://www.ukessays.com/essays/marketing/crm-in-banking-sector-new-age-banks-
marketing-essay.php

https://shodhganga.inflibnet.ac.in/handle/10603/129193

https://www.bankingfinance.in/customer-relationship-management-banking-sector.html

https://www.researchgate.net/publication/
281411054_CUSTOMER_RELATIONSHIP_MANAGEMENT_IN_BANKING_SECTOR_
An_Empirical_Study_with_reference_to_Banks_in_Thiruvannamalai_District_Tamil_Nadu

https://www.revechat.com/blog/customer-relationship-management-examples/

https://www.icommercecentral.com/open-access/crm-in-banking-sector-with-special-
reference-to-new-age-banks-1-19.php?aid=37978

https://www.icommercecentral.com/open-access/customer-relationship-management-in-
banking-system-case-of-kosovo.php?aid=86732

https://www.crmnext.com/industries/banking?
utm_medium=adwords&utm_campaign=SEA_leadgen&utm_source=&utm_content=496745
349241&utm_term=crm%20in%20banking&gclid=CjwKCAjw9r-
DBhBxEiwA9qYUpfd4a6l-dj7ZD06pCQHFsUtBfeufuhabCiQrsRAz6j3EoQE4-
Na0jxoCcaQQAvD_BwE

https://issuu.com/sanjaykumarguptaa/docs/project-report-on-crm-in-banking

79
A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT
IN BANKING SECTOR

QUESTIONNAIRE

1. Gender
o Male
o Female
o Others

2. Age
o Below 18
o 18.-25
o 26-45
o 45-60
o 60 and above

80
3. Education
o Graduate
o Post graduate
o Professional

4. Occupation
o Student
o Business man/woman
o Employee
o Other

5. Having bank account with

o Nationalized bank
o Private bank
o Co-operative bank

6. Were you satisfied with the service provided by your bank?

o Satisfied
o Dissatisfied
o Neutral

7. Do you think they provide you personalized services?

o Yes
o No

8. During covid19 which is your preferred mode of contacting your bank

o Telephone/mobile
o Internet
o Going to branch physically
o ATM

9. How would you rate the behaviour of the employee in the bank
o Excellent

81
 o Good
o Average
o Bad
o Worst

10. Do you feel that your complaints are resolved effectively?

o Yes
o No
o Not sure

11. Please tick the service you avail from bank

o Mobile banking
o Demat a/c
o Internet banking
o Loan
o Credit card
o Debit card
o Current a/c
o Saving a/c
o Fixed deposit

12. If you want to know about any particular scheme does it proprely explain to you or
not?
o Yes
o No

13. Are you aware of all the services and scheme provided by your bank
o Yes
o No

14. The waiting time having your questions addressed were satisfactory or not?
o Agree
o Disagree

82
15. Your phone calls were quickly transferred to the person who best could answer your
question
o Agree
o Disagree

16. Because of covid19 each and every person have switched to online, how much you
are satisfied with the online facility provided by bank
o Excellent
o Good
o Bad
o Worst

17. If the pandemic end would you still stick to the online facility of the bank provided to
you?
o Yes
o No

83