ACKNOWLEDGEMENT I, ,is highly to all those who guided me in completing this project.

First of all,I would like to pay my heartiet thanks to entire Faculty especially ,who provided me such a wonderful guidance to do research project and provided their valuable suggestions in understanding the work of Research Project. LAST but not the least,I would like to thanks all faculities at Business college,who gave me the useful tips and suggestions regarding the project.

Title Page Acknowledgement Project Summary
S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Subject Company Profile(Religare) Group Companies of Religare Mission & Vision Management Profile Product Profile Competitive Analysis Of Securities Industries SWOT Analysis Customer Relationship Management & Sales Levels Of Customer Relationship Ideal Investment Ratio Customer Retention Research Methodology Analysis Recommendation Bibliography Annexure Page No.

The project objective included finding the customer satisfaction & expectations from stockbrokers in Delhi and NCR regions. In this project I did a survey in brokerage house where clients sit & trade in stock market. It was a focused group survey and the main objective of the project was to understand role of relationship manager as a financial advisor because client needs a regular assistance from his RM. I also tried to find out that there were some clients who denied shifting their existing brokerage firm & why some clients were ready to change their broker firm.

Objective of the study:

Religare is proud of being a truly professional financial service provider managed by a highly skilled team. Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrated financial solutions to its corporate. Based on this. Plus. Corporate Finance. Religare operations are . Insurance and Mutual Funds. Portfolio Management Services. which include Investment Banking. retail and wealth management clients. who have proven track record in their respective domains. Today. the company started its endeavour in the financial market. Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare Securities Limited.The Research project has been carried out to aid the Religare Securities in offering services that the customer needs and also to improve on some of the existing services of the firm & to study the customer behavior towards their brokerage firms. we provide various financial services. Religare is driven by ethical and dynamic process for wealth creation. Religare Finvest Limited. Equity & Commodity Broking. there’s a lot more to come your way.

our target is to have 350 branches and 1000 business partners in 300 cities of India and more than 7 International offices by the end of 2006. Religare Securities Limited RSL is one of the leading broking houses of India and are dealing into Equity Broking. we have a growing network of more than 150 branches and more than 300 business partners spread across more than 180 cities in India and a fully operational international office at London. Today. Religare Finvest Limited and Religare Insurance Advisory Limited which deal in equity. Unlike a traditional broking firm. . commodity and financial services business. Religare group works on the philosophy of partnering for wealth creation. Religare Commodities Limited. Portfolio Management Services. Religare Enterprises Limited group comprises of Religare Securities Limited. Institutional Equity Brokerage & Research. The growing list of financial institutions with which Religare is empanelled as an approved broker is a reflection of the high level service standard maintained by the company.managed by more than 2000 highly skilled professionals who subscribe to Religare philosophy and are spread across its country wide branches. We not only execute trades for our clients but also provide them critical and timely investment advice. However. Investment Banking and Corporate Finance. Depository Services.

and a SEBI approved Portfolio Manager. This would take care of different investment needs of different classes of investors To facilitate free and fare trading process Religare is a member of major financial institutions like. Religare Commodities is coming up with its branches at 42 mandi locations. Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited. Bombay Stock Exchange of India. company is soon going to launch Internet Trading and Merchant Banking.Extension of services has been a constant feature in Religare to regard the needs of our clients. RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growing commodity trading market in India. It is a flagship effort from our team which would be helpful in facilitating trade and speculating price of commodities in future. Religare Commodities Limited Religare is a member of NCDEX and MCX and provides platform for trading in commodities. RSL serves a platform to all segments of investors to avail the opportunities offered by investing in Indian equities either on their own or through managed funds in Portfolio Management. Religare Finvest . With this realisation. which is an online facility also. National Stock Exchange of India. Consequently.

Religare Insurance Advisory Ltd.Religare Finvest Limited (RFL). providing our clients risk transfer solutions on life and non-life sides. This service will take benefit of Religare’s vast business empire spread throughout the country -. We aim to have a wide reach with our . inter corporate deposit. Along with this. placement of private equity and other structured products. structured products to take care of event of things that may go wrong. It also provides finance for application in Initial Public Offers to non-retail clients in the primary market. As composite insurance broker.providing our valued clients insurance services across India. we would deal in both insurance and reinsurance. Consequently. In a fast paced. working capital loan syndication. the company also undertakes non-fund based advisory operations in the field of Corporate Financing in the nature of Credit Syndication which includes inter alia. RFL is also planning to initiate personal loan portfolio as fund based activity and mutual fund distribution as fee based activities. bills discounting. Religare has been taking care of financial services for long but there was a missing link. RFL is primarily engaged in the business of providing finance against securities in the secondary market. RFL has delivered the most competitive products and services. Religare is soon coming up with Religare Insurance Advisory Services Limited.e. constantly changing dynamic business environment. a Non Banking Finance Company (NBFC) is aggressively making a name in the financial services arena in India. Financial planning is incomplete without protective measure i.

Vision Providing integrated financial care driven by the relationship of trust and confidence. transparent and professional risk transfer advice to become the first choice of India. . we will be offering value based customised solutions to cover all risks which their business is exposed to. both life and general to mitigate risks to life and assets through our existing network of over 150 branches – expected to reach 250 by the end of this year! For corporate clients. Religare Insurance Advisory aims to provide neutral. We also cater individuals with a complete suite of insurance solutions. Our clients will be supported by an operations team equipped with the best of technology support. Mission To be India's first Multinational providing complete financial services solution across the – literally! That’s why we are catering the insurance requirements of both retail and corporate segments with products of all the insurance companies on life and non-life side. Still. there is more in store.

Religare team is led by a very eminent Board of Directors who provide policy guidance and work under the active leadership of its CEO & Managing Director and support of its Central Guidance Team. Board Of Directors Following is the list of Directors of Religare Securities Limited Chairman Mr. Harpal Singh .

Malvinder Mohan Singh Mr. 1. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. Shivinder Mohan Singh PRODUCT PROFILE RELIGARE DEMAT Account opening: Opening a DP account with RELIGARE • • You can open a Depository Participant (DP) account. A copy of PAN card: A document made compulsory by SEBI . 250/.Managing Director Director Director Director Mr. There is a fee of Rs. Sunil Godhwani Mr.which is charged at the time of opening a Demat + trading account. through a Religare branch. Vinay Kumar Kaul Mr.

You must remember to take original documents to the DP for verification. • Structure of holding in the securities should match with the account structure of the depository account. 4. Driving license or PAN card with photograph. Now shares in different order of names can also be dematted. Features: • Holdings in only those securities that are admitted for dematerialization by National Securities Depository Ltd (NSDL) can be dematerialized.2. Driving license. Dematerialization: Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP. Proof of identity: You can submit a copy of Passport. Ration card or Bank passbook as proof of address. Voters ID card. Proof of address: You can submit a copy of Passport. Voters ID card. Passport-size photograph. 3. PAN card with photograph. .

For that it's essential that the shares be transferred to the account of the broker well before the deadline date. The list of these companies can be viewed here. the same cannot be dematerialized into the account of either X or Y alone. • Only those holdings that are registered in the name of the account holder can be dematerialized. Rematerialization: Rematerialization is the process by which a client can get his electronic holdings converted into physical certificates. However if the shares are in the name of X first and Y second. Trades: For all sales made by clients. the shares will have to be given to the broker. then these shares can be dematerialized in this account. Only a few companies have been given the permission to offer Transfer-cum-Demat.• If the shares are in the name of X and Y. The physical shares will be posted by the company directly to the clients. Physical shares which have not been transferred and are still there with a transfer deed cannot be dematted. and the account is in the name of Y first and X second. . The client has to submit the dematerialization request to the DP with whom he has an account along with a Remat request form. so that the Pay In can be made by the broker to the stock exchange concerned.

buy . interest etc or non-monetary benefits like bonus. 25/.or 0.or Rs. These may be either monetary benefits like dividend.01% value of securities whichever is higher .or 0.Documentation .a/c opening .sell R-ALLY Nil Rs.annual charges . 25/. 299/.You must confirm with your broker the settlement date and settlement number and then submit your instructions to your DP. 499/. rights etc. NSDL facilitates distribution of corporate benefits. Schedule of charges for Depository services PARTICULARS Account operations . NSDL is planning to distribute all cash corporate benefits to bank accounts directly. It's important to mention your correct MICR No and attach copy of the cheque leaf with your account opening form. 60/Nil R-ACE Nil Nil Nil Rs.01% value of securities whichever is higher Rs. 250/Rs. Also it's important to give the instructions to your DP as early as possible.One time charges Transaction charges . Corporate benefits: Corporate benefits are benefits given by a company to its investors.or Rs. 999/Nil Nil Rs.

01% value of securities whichever Delivery Instruction Booklet Dematerialization Rematerialization Courier charges for Demat / Remat is higher Rs. What are the benefits of depository system? The benefits of participating in a depository are: • • • immediate transfer of securities. fake securities etc.creation / closure Rs.per request + courier charges.per request + courier charges. debentures.per booklet Rs. Rs. a depository also provides services related to transactions in securities.01% value of securities whichever is higher Rs. 30/.per booklet Rs.per certificate Rs. 20/. 20/.or 0.per request Rs.per request What is a depository? A depository can be compared to a bank. no stamp duty on transfer of securities.or 0. 30/. elimination of risks associated with physical certificates such as bad delivery. 50/.per certificate Rs. 2/. A depository holds securities (like shares. 50/. 20/. 2/. Besides holding securities. bonds and units) of investors in electronic form. Rs.Pledge . . 20/.

Holding investments in equity and debt instruments in a single account. All interactions including account opening. dematerialization. business hours. nomination facility. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. • change in address recorded with Depository Participant (DP) gets registered with all companies in which investor holds securities electronically. • • • transmission of securities is done by DP. past association. What is a DP? As an investor you open a securities account with a DP. range of services etc. transactions. Find out if the DP is in a position to give the specific service you may need. eliminating correspondence with companies. pledge etc are done through the DP. eliminating the need to correspond with each of them separately. Comfort: reputation of the DP. convenient method of consolidation of portfolios/accounts. How do I select a DP? Are all DPs the same? You can select your DP to open a demat account just like you select a bank for opening a savings account. reduction in transaction cost. .• • • reduction in paperwork involved in transfer of securities. Some of the important factors for selection of a DP can be: Convenience: proximity to the office/residence.

What is dematerialization? . Proof of address: you can submit a copy of Passport. Voters ID card. Passport-size photograph. Proof of identity: your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. Ration card or Bank passbook as proof of address.Cost: the service charges levied by DP and the service standard. What should I do when I want to open an account with a DP? The process of opening an account with a DP is similar to the opening of a bank account. Driving license. Driving license or PAN card with photograph. Voters ID card. PAN card with photograph. You must remember to take original documents to the DP for verification. Alternatively. you have to sign an agreement with DP in a National Securities Depository Ltd (NSDL) prescribed standard agreement. you can submit a copy of Passport. which details your rights and duties and those of your DP. At the time of opening an account. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. You can approach any DP of your choice and fill up an account opening form.

and submitting the same along with the physical certificates. Can I dematerialized any share certificate? You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL. an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF). all you have to do is to request your DP for Rematerialisation of the same.The dematerialization system is an alternative to the physical existence of securities. If you wish to get back your securities in physical form. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you. which is available with the DP. What is the procedure for selling dematerialized securities? . they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates. All the scrips included in S&P CNX Nifty and BSE Sensex have already joined NSDL. Your DP will forward your request to NSDL after verifying that you have the necessary balances. The investor has to ensure that before the certificates are handed over to the DP for demat. In this system securities are converted into the electronic form and deposited in a depository account in the investor’s name.800 companies and is steadily growing. This list has more than 2. In order to dematerialize certificates. "Rematerialisation" is the term used for converting electronic holdings back into certificates. Can my electronic holdings be converted back into certificates? Yes.

you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. Instead of delivering physical securities to the broker. your DP may provide the transaction statement at intervals shorter than the stipulated ones. • Before the pay-in day. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. How will I know that my DP has updated my account after each transaction? Your DP will give you a transaction statement periodically.The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities. Investor gives instruction to DP to debit his account and credit the broker's (clearing member pool) account. The procedure for selling securities is given here below: • • Investor sells securities in any of the stock exchanges linked to NSDL through a broker. The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode. investor's broker gives instruction to his DP for delivery to clearing corporation. Can I freeze my account? . probably at a cost. If you so desire. • • The broker receives payment from the stock exchange (clearing corporation). which will give your current balances and the various transactions you have done through the depository account.

This is the additional security feature for the benefit of the investors. The depository system provides the facility to freeze the depository accounts for any debits or for both debits and credits. COMPETATIVE ANALYSIS OF SECURITIES INDUSTRY . In an account which is "freezed for debits". till the time it is de-freezed.Yes. no debits will be permitted from the account.

The result has been a huge surge of listed companies.1. As long as you could hire a good merchant banker and as long as the equity market was buoyant. The encouragement primarily came in the form of low entry barrier. Threat of Entry Entry barrier: Past low entry-barrier: Since the early '80s Indian policy makers and politicians have placed tremendous faith in the public equity market. businessmen have been encouraged to tap the public savings directly by issuing equity. partly because of pressure from various segments to `develop' the Indian capital markets. Partly as a result of lack of state resources. even small companies could get listed. .

and brand value and uncertainty about future. At one stroke this eliminated a lot of companies from accessing the public market. .even when the other firm offers a lower brokerage charge.among those who have not already gone public during the free-forall till 1995? Not many. post office deposits and investment through personal lending. so entry barrier of the industry is also decreasing. Brand identity is important in the share broking sector. and benefits larger firms. switching costs. Availability of Substitutes: The third factor affecting industry competition is the availability of substitutes. As the security industry is highly depends on capital market. The relative price of substitutes and the buyer propensity to substitute have effects on the industry. Although there is a high return in the capital market but there is high risk also. 2. Likely substitutes for investment in stock market are bank deposit. Major broking firms allocate considerable resources to marketing efforts. economies of scale. Factors that determine the threat of entry include capital requirements. Frequent introductions of new schemes and services and other incentives have been successful in enticing investors or clients to trade with certain firms.Current Entry-barrier: In 1995-96 the entry barrier was effectively raised to Rs 10 crore of post issue-listing. These factors can often be strong enough to cause a customer to choose one firm over another -. How many have a Rs 10 crore capital .

and convenience in the share broking industry. money. Bargaining power of supplier The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage of the price of securities proposed to be purchased. and barriers to exit. The security industry is growing day by day. unless the CLIENT already has an equivalent credit with the MEMBER. 4. . personal preference. So the rivalry level of different competitors in the industry is rapidly growing.So if people are not interested in capital market then the share broking firm are of no use. 3. Competitive Rivalry: The final factor is competitive rivalry. The threat of substitutes has to do with time. fixed costs. Intensely competitive industries generally earn low returns because the cost of competition is high or buyers are receiving the benefits of lower prices. brand identity. Factors that affect competitive rivalry include industry growth.

D. telephone/fax numbers or e-mail addresses intimated by the CLIENT to the MEMBER. via mail. courier. The CLIENT agrees that . The contract notes issued by the MEMBER in the electronic form with digital signature is fully valid under the SEBI /Exchange rules and is binding on the CLIENT and is valid mode of delivery of the same. The CLIENT understands that it is his/her/its responsibility to review the trade confirmation upon its first receipt. within (time period as specified by the CLIENT) from the time of execution of order/ trade on the NEAT/CTCL system. oral communication or otherwise at the postal address. fax. as the case may be. Any objection should be informed in writing within twenty-four hours of such confirmation. In all cases. the CLIENT not having intimated to the MEMBER. on the CLIENT and recover any amount due from the CLIENT in connection with the regular business. The MEMBER shall also send the Order/Trade confirmation slip through e-mail to the CLIENT at his/her request. the MEMBER reserves the right to determine the validity of the Client’s objection to the transaction. The CLIENT agrees that the MEMBER will not be responsible for the non-receipt of the trade confirmation due to any change in the correspondence address/ telephone number or email address of the CLIENT.The MEMBER may insist the CLIENT to deposit interest-free margin money as a percentage on the price of securities proposed to be sold. unless the MEMBER has received from the CLIENT the securities in its pool account prior to such sale or has received the securities with valid transfer documents to the Member’s satisfaction prior to such sale. email . The MEMBER is authorized to raise contract notes. The MEMBER shall send the contract note in physical form or digital form to the CLIENT within 24 hours of the execution of the Client’s transaction or at such interval as may be required by the Exchange from time to time. debit notes etc. Registered A.

transfer or deal in any other manner the securities already placed with it as Margin or square off all or some of the positions of the CLIENT as it deems fit in its discretion without further reference to the CLIENT and any resultant or associated losses that may occur due to such square off/sale shall be borne by the CLIENT. dispose. The CLIENT accepts to comply with the Member’s requirement of payment of Margin. The MEMBER may at its sole discretion prescribe the payment of margin in the form of cash instead of securities. . failing which the MEMBER may sell. 5. Bargaining power of buyer: The CLIENT authorizes the MEMBER to set off a part or whole of the Margin i. firms.the information sent by MEMBER by E-mail is deemed to be a valid delivery of such information by the MEMBER. group companies. against any dues of the CLIENT or of a member of the “Family” (hereinafter mean all the individuals. entities and other persons as specified by the CLIENT) in the event of the failure of the CLIENT or a member of the Family of the CLIENT to meet any of their respective obligations under these terms. and the MEMBER is hereby fully indemnified and held harmless by the CLIENT in this behalf.e. by way of appropriation of the relevant amount of cash or by sale or transfer or pledge of all or some of the securities which form part of the margin.

.. SWOT Analysis A SWOT analysis focuses on the internal and external environments. examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

They also help their clients to invest their wealth in the market. SMS alerts (allowing traders and investors to make the most of the available opportunities). Softer. Services like online trading facility. Relationship managers The company has a team of relationship managers who are dedicated to the service of clients. institutional and domestic broking.STRENGTHS Services As a product Religare is a extremely innovative product with very less cost. Religare provides other support services that make retail investors more confident and assured with their trading. advice and transaction services. Religare does not claim . equity driving preference. intangible features like imagery. Marketing Religare (previously Fortis securities) is a veteran equities solutions company with loads of experience in the Indian stock markets. Distribution Network Religare with almost 150 branches beefed up by comprehensive online research. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution. Through efficient trading processes Investors can place their orders directly on the Internet. customized research reports with almost 80% efficiency etc give Religare an edge over its competitors. These RMs take care of clients’ even smallest problem and make efforts to solve them through their expertise. do all the information seeking and basically own the investing process.

. it is something that is spoken with years of focused learning and experience in the stock markets.expertise in too many things. Here we offer Along with Equity. Products Company’s product line is a basket of Financial services offered to its clients. Mutual funds. Corporate Finance and Investment banking etc to our customers. PMS. It’s a all product single shop for investors. Our products are customized according to individual demand and preference. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse. Religare’s expertise lies in stocks and that's what it talks about with authority. personal loans.

WEAKNESS Customer Satisfaction As far as customer satisfaction goes Religare has to tighten its Boots. The account opening takes 2 working days whereas Indiabulls takes half the time for this purpose. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience. good and transparent practices also play a major role in imbibing confidence in traders. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. . Branding Though the company has a efficient products but large part of investment interested population does not know the company. The company does not have enough Relationship managers to cater to huge customer base.

and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade.Competition from banks and Niche Players Most of the banks due to good branding have the faith of the customers of their banking database. Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is . Niche players’ presence as sub brokers or Small broking house like Abhipra. attracts a good share of market and run parallel to giant companies. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Way to wealth etc. Similarly sales proceeds are credited directly to saving account. OPPORTUNITIES The external environment analysis may reveal certain new opportunities for profit and growth.

This has resulted in improved liquidity and heavy volumes on transactions. customer service. It is also known for putting big deals through and enjoys good networking with the FIIs. Religare has been a mega player and is known for being a mover of stocks. Religare is one of the early entrants here.increasing day by day. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time. As to how much it will roar and how swift it can swoop on the market. and many established players may not have systems (technology. the future alone can answer such queries. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. etc. . The traditional business model is highly dependent on a large network of sub-brokers.) capable of directly servicing so many retail customers. Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology.

The Internet serves to break all barriers to information. And. Some have the problem of lack of information or some were scared of volatility of the stock markets. as it offers an extremely hassle-free investing platform.Unfulfilled needs of the customers With so many competitors offering their products in the market but no one is able to completely satisfy the customers. This original idea by Religare itself was born out of the consumer's need for a more transparent. Religare has the opportunity to tap this unsatisfied set of customers and to make hold in the market. easy to understand and convenient option of investing in stocks. Education Level . Religare hopes to fully utilize and capitalize on this platform.

are posing a lot of threats to the company. calculate client risk at that point in time. Also many banking firms are entering into the market with huge investment. and give . Technology based business Online trading is totally based on the technology which is quite complex. THREATS New Competitors A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. 5-paisa etc. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes.The education level in the country is improving year after year as far as technology goes. the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP). kotak. Competitors like ICICI. transactions and indices. Typically. This is creating a lot of competition for large players like Religare and it is creating little confusion in the minds of the customers about the services provided by the broker. hdfc.

given the importance of customer lifetime value. managers are finding it hard to manage customer relationships. Managers today are working hard to build and maintain a relationship with the customer .e. it has to provide quality service all the time to its clients. Though a lot of cyber laws are being made but not yet executed. Few firms have even created offices of customer relationship management: Client partners. While the concepts of CRM and Customer Lifetime value are well established and understood by etc.the 'Go/No go' advice to the trade. and even more number of companies are planning to do the same. Customer Relationship Management & Sales Customer Relationship Management (CRM) is a well known business concept. Account managers. So technology is a kind of threat because unless until it is working properly it is good but internet is not that safe. Program Managers etc. . Switch over cost The cost of switching over from one company to other is minimal therefore the company cant even stop for breathing i. In spite of all these efforts.) for customer relationship management. managing customer relationships has become a challenge for many managers. Several firms have implemented dedicated software tools (Seibel. salesforce.

Airlines have free miles program. Looking from the customer's perspective. • Customer relationship is a dynamic process and can move from one stage to another based on customer's aspirations and customer's buying experience I will briefly describe the levels of customer relationships and its impact to the vendor firm. customer expresses a need for a relationship with the vendor for a few basic reasons: satisfy their needs. Why do customers have a relationship with the vendor? Every salesman knows that customer often wishes to have a relationship with the vendor. but they are willing to enter into a relationship . Grocery stores have a special discount for loyalty card holders etc. Customers need products or services and will obtain them.The challenge of managing customer relationships led to a new concept called Levels of Customer Relationships developed by INSEAD. reliability. • Customers have different needs and expectations during different stages of this relationship. For example. credit card firms have points program. lower cost of transaction. The central theme of this concept is: • Customer relationship is an evolutionary process that can be identified as 6 distinct stages. convenience.aimed at rewarding loyal customers. Many firms therefore want to make use of this relationship and have instituted customer loyalty programs . France.

. Thus there is no real relationship between the customer and the vendor. One has to note that the intensity or depth of the relationship which the customer expresses to have with the vendor depends in the intensity of his/her needs.with the seller to make the process of buying easier and a more pleasant experience. Customer. customer needs tips from his broker while trading in the stock market . Since this is a simple purchase. then customer is willing to have a deeper relationship in order to have their needs satisfied as precisely as possible. customers enter into a relationship with the vendor in order to serve their own needs. wants to implement a ERP software. the customer is willing to establish a deep relationship with the vendor by having a development & maintenance contract with the vendor. If a product/service is vital to the customer e. On the other hand if the customer wants a routine service or generic product e. Customer. who is a telecom service provider. Both examples point to the fact that the level of relationship a vendor enjoys with the customer is directly dependent on the criticality or importance of customer's needs. the customer wants to buy it from a near by store and install it himself.g.g. To understand this considers the following examples: 1. financial product. Since the software has to be customized for the Telco. In short. then the relationship is superficial characterized by buyer's convenience. who wants a copy of MS Project installed in a computer. 2.

relationship between buyer and seller can be identified in 6 distinct levels. Level-1: Utility Need Level-2: Convenience Need Level-3: Comfort Need . the vendor firm must improve the relationship with the buyer. And to improve the relationship. For a vendor to increase sales. vendor must know the current level/stage of relationship he has with the customer.Strengthening Customer Relationships We now understand that the depth of the relationship between vendor and customer is directly dependent on the intensity of the customer's needs. So the first step in managing customer relationship is to know and understand the levels of customer relationships. Levels of Customer Relationships As mentioned earlier. This creates a challenge for a salesman or a marketer at the vendor firm. Also note that the depth of relationship is defined by the customer. Level-1 being the lowest level of relationship and level-6 being the deepest level of relationship.

no-frills selling. Here the customer desires to buy a particular product/service. Customer will buy only if a product/service appeals to the rational side of the customer i. with whom a company enjoys the highest level of relationship. Level-1: Utility Need This is the most basic interaction between customer and vendor. The relationship between the firm and the customer is characterized by efficiency in transactions. It is therefore in the vendor's best interest to have very deep relationship with the customer. Customer does not bond with the vendor as the relationship is a purely utilitarian one exchange of goods/service for money. will also be the most profitable customer. the customer lifetime value is lowest at level-1 and is highest at level-6. vendor must work on availability of the product/service. The vendor should respond to the customer (in this level of relationship) by . Customer. Customer interacts with the seller with the sole aim of acquiring the product/service. To increase sales.Level-4: Personal Recognition Need Level-5: Self-expression Need Level-6: CO-Creation Need From a marketing perspective.e. straight forward. Price and convenience. This is also reflected in the revenue or sales from a customer.

and refrain from interacting at a deeper level i. If the vendor insists or attempts to force a relationship to a higher level. Vendors must first identify the level of relationship the customer has with them. a vendor can deepen the relationship by increasing the number of interactions. This can be done by: Offering a wide range of products/service. Internet or all 24 hour shops. and then craft a strategy to deepen it.for a particular configuration.other than those requested by the customer. Dell can increase the number of customer interactions by offering value added services such as on-site maintenance. office software. cartridges. the customer may "pull-out" thus risking future sales. To understand this..providing the required goods/service. .e. he might get annoyed and cancel the order.e. by not offering added products/service . For example. If the salesman at Dell attempts to push additional hardware or software . free software updates etc. He is buying from Dell to meet by needs at a price which is attractive for him..which is not what he wanted. computer games etc. Scanners. having a 24/7 sales operations i. He placed an order online . In this case. Dell can increase the number of customer interactions by offering a full range of computer accessories: Printers. consider this example: If someone purchased a laptop from DELL Computers. His expectation from the vendor is that Dell will deliver the computer on stated delivery date.

identify and eliminate those procedures that are a hindrance to obtaining a product/service. Dell has a complete e-Commerce website which enables a secure and easy payment method. the vendor must understand thoroughly the entire customer purchase experience and then eliminate the nagging problems in the purchase process. customers look for ease of purchase process.while customers wait for their flight. Airlines provide comfortable lounges at the airport . For example. managers listen to feedback from front-line employees for suggestions to improve the customer's buying experience. Airlines . having the products courier & providing the tracking number to the customer. In addition.e. The vendor should respond by providing services that simplify the buying process i.. This denotes a second level of relationship.Utilitarian relationships can be deepened by augmenting the basic service/goods with a value addition: Cross selling or value addition. having a shorter checkout lines in a store. To improve the buying process. having a service personal ready to attend the customer when the customer enters the bank/hotel/office etc. Often times. For example. Level-2: Convenience Need Once the customer has easy access to service/goods that they need. Service companies often resort to mystery shoppers who act as customers and buy the product/service to measure & improve the buying experience. Dell provides the exact shipment details of the computer and is delivered on the specified time.

This is the sure sign of an inefficient and inconvenient buying process Relationships at this level can in strengthened by widening the service interactions with customers.. the objective of the vendor is to identify situations that pose obstacles to the buying process. Making the buying process as pleasurable as possible. Often times. curb side luggage check in. on-line flight details etc. By this I mean. buying. there are several instances of customers abandoning their purchase process in the midway.also provide e-ticketing. Customer Activity Mapping (CAM) & Customer Decision Mapping (CDM) are the tools that can be used to analyze the decision making. using. And in each stage. Level-3: Comfort Need . to make customers feel comfortable during the purchase process. look at the ways the customer buys your product/service and then provide additional services to make it simpler and easier for the customer. a vendor can strengthen relationship with the customer in this level and also take the relationship to the next level. and consumption experience.

then they wish to have a "pleasant shopping experience" i. many multi-million dollar business deals are done at resorts . This implies that the vendor should foster a buying environment in which customer feels comfortable and is characterized by an agreeable and relaxing purchase ambiance. where the focus was to remove any factor which caused inconvenience to the customer. The marketer should strive to provide customers comfort. Irony of this "comfort need" is that customers often overlook the comfort factor and often customer notices the absence of the comfort. CRM efforts in this level must be focused on making the customer feel comfortable..greater comfort. Note that this is distinctly different than relationship building at level-2. A discomfort during the buying experience is easily noticed and registered. a fortune-100 chemical company often conducts the contract negotiations on a luxury yacht. and other means of generating a positive feeling. BASF.away from the clutter of the office environment. Relationship is built on a feeling of ease and comfort can be strengthened by providing more of the same . fun. fun and pleasant interaction . the customer seeks a buying interaction where he feels comfortable. create a feel-at-ease feeling. surprise. This provides the right ambiance and mood to put the customer at ease and feel comfortable during the buying process.e. while comforts are forgotten by customer. For example.Once the customer has a convenient buying process.

the needs were mostly contextual. Here. In earlier levels. provide consulting advice to the customer Along with dinners/lunches. i. regular/loyal customers expect the vendor to interact in a way that his/her personal choices are recognized.. CRM efforts at this level are to personalize the service/product offerings. At this level. based on the context of buying experience. Level-4: Personal Recognition Need Often times. who knows the clients exact needs and has the authority to deliver the customer's needs. The marketing efforts must be directed at improving/building the memory of pleasant experiences of the customer. the customer needs are "personal".e. in this level of relationship.environment. the loyalty of customer has been well established. For example. . This implies that the customer is seeking a level of relationship where they expect the vendor to recognize their needs without them asking for it. financial institutions treat their high value customers with personalized checkbooks. etc. In business-to-business environment. The "relationship manager" or "client partner" can also make suggestions. providing a personal financial advisor. tickets to popular events etc. This involves training the front-end employees to provide a comfortable experience to the customer and being sensitive and responsive to the customer's level of interaction. customer enjoys the convenience and a feeling of comfort. this is characterized by having a dedicated relationship manager who interacts with the client.

but not a spouse or fiancé.but without invading the privacy of the customer. Relationship at Level-4 is analogous to that of a romantic partner . To bring a customer to this deep level of that any potential tensions or conflicts are avoided or reduced to minimum. the level-3 relationship of making the customer feel comfortable must always be accomplished. vendor can discover (discreetly) the personal needs of the customer . A salesman or marketer or account manager must therefore take extra precaution not to reveal any personal information of the customer to the CRM database system.and for that reason most customers are reluctant to share personal information with the vendor.and then move the relationship to the next higher level. The irony of the CRM systems at this level is that customer feels that the CRM systems compromise customer's privacy . Only when the customer is comfortable. The relationship at this level is more personal .com. possible tastes and preferences sufficiently well to build the relationship. Amazon. This personal information must be carried in the mind of the vendor salesmen. Provide customers with customizable web interfaces. Interactions must be respectful as exchange of personal information may be perceived as invasive. The timing therefore needs to be right . The company must know the customer details. .com etc. which in turn cause most CRM implementations fail.Advent of Internet has created opportunities for vendors to provide customized web interfaces to each of their clients. ebay.

confidence & respect. In a consumer world. The relationship is characterized by mutual trust. tailor made products. .i. buying agent or the key decision maker). The customer then expects Intel (vendor) to announce and supply the latest processors in time so that Dell can ship the computers to its customers in time for Christmas. The client expects the fashion designer to know his/her tastes and provide clothes accordingly. a common example will be that of a (famous) client and his/her fashion designer.that is of Self-expression. and words of appreciation. Level-5: Self-Expression Need Once the customer feels that the vendor recognizes him/her as person and can associate personally with the vendor. Customers who are in this level of relationship expect the vendor to focus on customizing and personalizing the product/service offerings. such as rewards for customer loyalty (given to the customer .e.Customer's need for personal recognition may be met by very simple acts by the salesman. expects Intel to know its needs for latest and most powerful microprocessors for the Christmas season. Dell Computers being a customer of Intel.. For example. The customer expects the vendor to have a clear understanding of their needs and the vendor should be able to meet them. the customer is ready for the next level of relationship .

Their business needs drives the relationship and is partly independent of personal factors. As a result. At levels 5 and above the relationship depends on internal and external factors including rational and emotional considerations. Vendor can strengthen the relationship by understanding the customer's implicit needs and focusing on different ways to customize and personalize the offerings.i. The key for success in building relationship at this level is to understand the customer's implicit needs .. the relationship is characterized by a sense of collaboration.. this involves understanding the customer's business operations. customer is very comfortable dealing with the vendor. customers are more rational. Customer relationships in levels 1-4 are defined by customer's experience and is therefore heavily dependent to the external environment (i. At this level.It must be noted that in a B2B world. those needs which are not expressed verbally.e. external to the customer). In a B2B setting. business models and then providing customized solutions: Like releasing products in time for Christmas or having goods packed in a truck in a manner it is efficient for customer etc. vendor should be able to offer highly customized and personalized offerings.e. Level-6: Co-Creation Need This denotes the highest level of customer relationship. The customer feels a need for a unique product/service . vendor can build this relationship by learning the customer needs. Based on these learning/insights.

The customer's are classified according to the revenue generated .. As a result. lot of valuable .e. With every increase in level of relationship. some aspects of customer's interests merge with that of the vendor's interests. Often the idea of co-creation is initiated by the customer to the surprise of the vendor. Co-creation relationships are personal and rational. Customer feel closely bonded to the vendor to the point that the customer seeks a joint destiny with the vendor. the pay off in terms of additional sales in immense. I. the customer loyalty & trust is very high.are based on revenue generated by customer. Customers are willing to invest for joint development of products/service.this leads to a false sense of customer loyalty and a misplaced attention by the marketer or salesman.and is willing to work with the vendor to develop the product/service. Co-Creation denotes the highest level of customer relationships. Business Implications Understanding the existing customer relationship levels has a huge impact on the future sales. The increase can range from 2x to 100x or even 1000x! In most of today's CRM implementations and its supporting policy . The first step is to understand the level of existing relationship and then look at means of improving the levels of customer relationship. At this level of relationship. One can only estimate what the value of the increased sales. This relationship can be strengthened by broadening interactions which involve co-creation of products/services.

the development of customer loyalty .which is at the heart of marketing. and that calls for deeper relationships to help keep customers loyal over time. CRM policy must consider levels of customer relationship to strengthen the relationship. “TRAIN YOURSELF AND YOUR STAFF TO ASK OPEN-ENDED QUESTIONS. This can be done only with a high level of human involvement in terms of salesmen efforts. In a B2B setting. marketing efforts and even executive efforts to forge a strong relationship. WHICH LEAD TO GENUINE CONVERSATIONS WITH YOUR CUSTOMERS.customers feel mistreated and move their business elsewhere.that have real business implications. The idea of levels of customer relationships is simple & yet very powerful tool to explain complex scenarios . falls right within the context of being customer focused and customer centric marketing based on customer relationship levels. . loyalty tactics need to change every time for financial services”.” How for financial services loyalty tactics must change: “Customer retention costs a lot in the financial services sector.

However. the costs reach a whole new level: acquiring one new customer can exceed US$350. As a rule. To determine which customers to keep. compelling offer at a time when the customer is most open to receiving the message. . and reduce the marketing budget spent on the most costly customers. before firms can address these issues and take action they must closely monitor customer behaviour to develop insights that allow them to target the right customer segment with a relevant. and which to let go. of these 20% will be very profitable. 20% will cost money to retain. which to try to move to a profitable customer segment. financial institutions must now turn to new marketing strategies. and the middle 60% will pay for themselves while generating marginal revenue. Financial institutions must find a way to retain profitable customers. With statistics like these. But in the financial industry. according to Harvard Business Review.It's often said that it can cost up to seven times more to acquire one new customer than to retain an existing one. a customer engagement and retention plan based on extensive data collection and analysis is imperative for the long-term health of companies in the financial industry. turn marginally unprofitable customers profitable.

Relationships mean profit Financial firms that incorporate these rules are the most likely to deepen their relationships with customers. compelling offers. 3. as soon as a money matter comes up. your name flashes in the client's head. and ultimately to increase the value and revenue reaped from their full spectrum of customers. “You must become the person who.New rules for relationships There are new customer relationship rules for the financial industry: 1. Adopt comprehensive customer relationship solutions. Communicate only relevant.” An investment advisor should be an advocate for the client that means the advisor must not only understand the client's goals. ADVISOR MUST WORK AS ADVOCATE “There’s a difference between a sales rep and an advisor. financial industry firms need to constantly monitor their customer portfolio and actively mange their marketing efforts based on the changing behavior of their customers. Identify customer segments and define how you interact with each. but also have the freedom to choose the products and strategies that meet the client's needs. To increase customer loyalty. If an . 2.

a lot of it is distracting. of the best possible options for each client. markets and insurance is extensive. In the investment arena. The press also supplies a lot of information. which can be confusing. Risk cover is now available with lots of benefit options as well as costing structures. While some of the reporting is helpful and informative. Financial planners cut . That's what I set out to change. platforms. If you read all the research available today on international markets. tax vehicles and fee structures has multiplied exponentially. or only offers a fixed number of products. guarantee periods and discount/rebate options. fund managers. Information The amount of information available to the average client on investments. products. We need to be clear about what our services are and what we charge for them.investment manager is relying on commissions. but in fact refer only to daily volatility. which will have little impact in the long term. it would be out of date by the time you got to it. and recommendations. the choice of funds. Headlines like “markets soar on weaker rand” to “markets plummet on news of interest rates” give a sense of success and disaster. it's the client who suffers. Here are some of the areas where financial planners add value: Choice Financial planners research the world of financial products and service providers to come up with a short-list.

While emotions can be a positive force. objective and appropriate with evidence of a systematic. In the days of defined benefit funds and jobs for life. With the massive shift in our world in which employers have effectively washed their hands of the responsibility of ensuring employees’ financial stability in retirement. Financial planners need to keep tabs on new laws and developments so they can adapt personal financial plans for clients where necessary.through this noise for clients with a view to developing and adjusting personal financial strategies. Advice needs to be clear. The re-structuring of costs and commissions as well as the implementation of the Financial Advisors and Intermediary Services Act is evidence of this. it’s more important than ever to help clients achieve the goal of financial independence. The Human Factor We are all emotional about our future and therefore about our cash. most of a client’s financial provision and protection was through a pension fund. Compliance Clients today are more demanding in terms of the level of technical competence they require. effective process. Clients are increasingly called on to make far-reaching decisions about their retirement capital and risk cover provision. they can also be destructive. . which has a significant influence on our future.

Financial planners need to have the right qualifications and ongoing training to ensure they keep up-to-date with developments – but they also need to have empathy with their clients. A practice should be well-funded and well-managed. with a transparent yet confidential process that can be applied by all financial planners in the business. compliance services. Costs include professional indemnity insurance. . Independence There is no doubt the cost of providing advice has increased significantly. Values A Managing finance requires a clinical approach. The planning practice should operate in such a way that plans are not dependent on personalities. not to mention staff. but the element of pro-active caring still needs to be there. training. IT and other operational overheads.Continuity A good financial planner should put in place a plan and have systems in place that ensure the client’s plan will not run off course without the financial planner. risk analysis and client management software. The client expects independence from financial planners and impartial advice. Advice should be consistent and based on a set of values that focuses on client outcomes.

As financial planners we need to be able to read the situation correctly. FAMILY MEMBERS AND OTHER ADVISORS. whether there are technical or emotional factors to take into account. THE INTERNET. This way we can create a certain future for our clients and meet their needs in an environment where markets and investment products are in a state of flux “YOUR CLIENTS CAN GET FINANCIAL INFORMATION FROM MANY PLACES: THE MEDIA. risk & return: IDEAL INVESTMENT RATIO . WHAT SETS YOU APART?” As I have put some standards to manage client’s portfolio as per their age.

The ratio of the investment change as per the age group this is mostly suggested to people aged between 35-45 if the age decreases ratio of equity must increase which gives high return on high risk whereas if the age increases the ratio of the secured returns increases which give low return on low risk but a certain amount of return is fix. And if the person needs high return with lower risk as he is in age of around 40 yrs than he is suggested to invest in mutual funds. FINANCIAL HOME Guaranteed Returns .


this gap starts to erode feelings of goodwill. In new client relationships. How would your clients respond? If asked to relate a quality service experience. Even if your lapses are unintentional. First close the satisfaction gap and create a working foundation on which to build trust and confidence is to align client and advisor expectations of quality service. put yourself in your clients' shoes and give yourself the same test . would your clients cite you as an example? But all too often service performance simply does not meet client expectations. we can choose where we spend our hard-earned money. says former McKinsey consultant Naras Eechambadi” . We all know that quality service is rare." said Kim Collins. and to make that point . but it certainly can be profitable. longer-term clients begin to wonder whether they would get more for their commissions and fees from another advisor. research director at GartnerG2 CUSTOMER RETENTION IS A MULTI-DIMENSIONAL ISSUE: “Customer retention may not be sexy. "Customer retention should be the first line of defense in a financial services provider's CRM strategy. why spend it where the service is poor or unreliable? Only one thing comes to my mind “the importance of quality service”.As consumers. a gnawing "satisfaction gap" can develop between what you actually deliver and what clients expect.

often neglected. the first two capture most of the attention and mind share of the majority of marketers as well as senior executives in many companies. If that is the case. The three are inter-related. but let us discuss them one by one and then talk about how your company could benefit from an increased focus on customer retention. i.e. Increasing the rate at which a company retains customers can be a great value driver. Measurement. Is it a person. it is often not that simple. it can be hard to even define a customer let alone counting how many you have now or have had over time. Depending on the kind of business you are in. area of customer retention. There are three primary elements to it. Of these three elements. a family or a household (people living under one roof. retention seems like a pretty simple thing to measure. ownership and visibility. why then is it the most neglected of the three basic areas of customer management? The answer has to do with three issues. remove duplicates and household their customers together only to find that their customer counts went down and they were too scared to report that to upper management! "How do I explain to the CEO that after spending a lot of money on cleaning our customer data. The definition of a customer starts with defining what kind of entity a customer is. Can't you just see how many active customers you have this month v / s last month or last year and deduct newly acquired customers to measure how many customers you have retained? Sometime the answer is yes. unfortunately. At first blush. it increases profits disproportionate to the amount spent. who are related but not all members of the same nuclear family)? We have had clients who have put in very sophisticated software tools to scrub their customer data.Customer management is not rocket science. we now have fewer . Acquire. In this month I want to focus on the third. It is pretty basic business common sense. grow and retain customers. but.

many of them very valuable and profitable. politically. Of course. especially multi-product organizations with competing brands or products. you need to establish thresholds which define "active". where customers can switch back and forth or subscribe to various levels of service. Each division sent out frequent emails that aggressively promoted their products to their target segments within the corporate customer base. i. Corporate marketing was too weak. cellular phone company. the next problem is defining the term "active". This is relatively easy for companies that are selling some kind of subscription service. fast moving consumer goods.e. but eventually may be longer time frame than you care to think about. complained about the deluge of marketing messages. magazine or cable. Customers. The establishment of these thresholds can itself become a political hot potato. e. some of them contradicting each other. in stock brokerage services where a person can have a trading account but don’t trade for several months. Once you have defined a customer. to . Ownership and accountability can also be an issue in some organizations. but lands you in a quandary. However.customers?" This is a case where the truth does not necessarily set you free. Who owns the customer? Who owns the customer information and bears responsibility for tracking and measuring customer metrics as against product sales? A high tech company sold a wide range of products through multiple divisions that each had a marketing department and all of them had access to the customer file for the entire company. without any knowledge of or coordination with the other divisions or corporate marketing. when you have a product that has a variable purchase cycle. especially when marketing or product groups have their incentive compensation tied to these numbers.g. accurate data eventually leads to better decisions. like a broker house.

until senior account reps in the sales force complained to the head of sales. How do you isolate the impact of your actions from these natural factors outside of your control? A simple way is to establish benchmarks based on historical performance. and their needs change. on the other hand. however. visibility. It is relatively easy to count and claim credit for new customers or for cross selling additional products and services to existing customers.impose communication standards and regulate the outbound traffic. Customers go away for a number of reasons. sometimes (not very often.g. toddlers outgrowing diapers). though) it can be a good thing. and it can be done relatively quickly and with long lasting impact. Bureaucracy? Yes. Product marketers were forced to go through corporate marketing for their direct to customer communications. Why bother with customer retention? Increasing customer retention may well be one of the most effective ways to increase profits. beyond the scope of this month's column. Finally. Customer attrition. who intervened and ensured that corporate marketing coordinated these communications and ensured that each customer only received a limited amount of email and the messages were somewhat tailored to their situation. they grow up (e. . They die. The topic of how you set up statistically significant control groups. but this can be difficult in fast changing markets. is a silent killer of profits. so that they did not receive contradictory or irrelevant solicitations. The best way is through the establishment of control groups within existing customer segments. so that you can track truly voluntary attrition. There is no clear way to measure controllable attrition.

Preventing Customer Loss 3.What drives Customer Retention? There are four fundamental drivers of customer retention: 1. Lowering Overall Costs . Improving Customer Loyalty 2.

educating them. .4. Customer loyalty is driven mainly by a combination of delighting your customers. Improvement in loyalty can equate to significant increases in profitability as customers stay longer with your company and it becomes more difficult for your competitors to lure them away. Increasing Total Revenue Now the drivers have been identified lets examine how they can be affected Improving Customer Loyalty Firstly. having effective complaint resolution and high service quality. there is customer loyalty.

with a full knowledge of the customer’s profit to the business and the costs of the save offer. you can spend more saving a customer than they will inject into in future profits. Otherwise. Implemented correctly this can be an excellent way to prevent revenue loss. Regarding complaints resolution. Attrition management entails anticipating when customers are likely to defect and managing proactive initiatives to stop the defection. However. This has a direct impact on preventing revenue loss.From a company perspective. It is common to hear of the same customer issues occurring without a company taking action to resolve the problem or fix the source of the complaint Loss Prevention Loss prevention is a critical element that is driven by attrition management and wins back success. it needs to be implemented carefully. Exceeding customer’s expectations and occasionally rewarding them for their continued patronage can do this. complaints and negative customer feedback need to be followed up with the customer and the issues resolved to the customer’s satisfaction. this means that you need to deliver on your promises and constantly try to delight your customers. . win back is the process of retaining a customer that has stated that they no longer want your product or service. Alternatively.

Managing touch points is the process of examining the media and timing of customer contact to optimize it for impact and cost. managing customer touch points effectively is a key way to minimize the costs to service and communicate with your customers. there are the drivers that increase revenue. When customers are encouraged to take up more products through cross sell. or upgrade their current product plans. revenue from these customers will increase. Increase Revenue Finally. RESEARCH METHODOLOGY The research methodology is helpful in establishing a framework of evaluation and revaluation of primary and secondary research. As a result money is not wasted on unnecessary contacts and the lowest cost applicable media is used. The techniques and concepts used during primary research in order . Organizations that successfully manage touch points know when and how to contact their customers so that they maximize each contact opportunity. These are up sell and cross sell.Cost Reduction On cost reduction.

PRIMARY RESEARCH The Instrument for data collection. was designed to elicit information on Demographic /Socioeconomic Characteristics. • The information can only be gathered by data collection and then analyzing the available data. Respondents included from all over Delhi and NCR regions. Preliminary information Gathering 3. lead to a logical deduction towards the analysis and results. in the form of a ‘Structured Questionnaire’.to arrive at findings. Data analysis SAMPLE SIZE A sample size of about 200 respondents was taken into consideration on the basis of different brokerage house all over Delhi and NCR regions. It helps in following ways: • The company gets a clear picture of their strength & weaknesses as compared to other competitors. SECONDARY RESEARCH For gaining the market potential of saving accounts following steps were followed: 1. • • They can examine the expectations of clients in the form of data to make a decision. They can even get a clear picture of the customer satisfaction & expectations comparison to other brokers. . Data collection is very important as it help in taking the decision. Observation 2. Data collection 4.

so that the technical language does not intimidate the respondent. A set of closed ended questions was prepared and was presented in front of the respondents to get it filled. Not to lead a person into any preconceived notion Not to influence the respondents answers in any way/form. Use simple language. ANALYSIS . QUESTIONNAIRE DESIGN The questionnaire method has come to the more widely used and economical means of data collection.FIELDWORK Fieldwork plays an important role in collecting the data. Some important points which were kept in mind while doing the fieldwork. • To make the respondents comfortable before questioning them and ensuring the respondent that all information collected is only for academic purpose and will be kept confidential • • • • Ensure that the filled questionnaire will not be disclosed.

.1. In which professions are you engaged in? 90 80 70 60 50 40 30 20 10 0 81 67 BUSINESS SERVICE PROFESSIONAL 18 23 11 ENT REPRENEURS OT HERS 1 profes ions s As this was a focused group survey & mostly I got questionnaires filled from brokerage houses where clients sit on the terminal & trade in the stocks. As the data collected shows that people who mostly invest in the market are businessmen & service class person who don’t have enough time to keep continuous watch on the market fluctuation so they need regular assistance from their relationship manager who is assigned to them so every company is suggested to enforce their relationship managers to stay in contact with their clients.

. Do you trade in stock m arket? 180 160 140 120 100 80 60 40 20 0 1 NO YES As it was a focused group survey which I have done only in the brokerage house but even there are some “NO” in this survey because many time clients may be with his friend who don’t trade in the market & that friend might be interested or not do the relationship manager in that brokerage firm must take some extra care for them so because o his service friend of the client might be persuaded to trade in the market.2.

3. Would you like to trade in market? 200 180 160 140 120 100 80 60 40 20 0 NO YES Here difference is because of the presence of the friend of client in the brokerage house who doesn’t want to trade in the stock market because he might be afraid of losses or due to lack of resources. But if that friend has lack of time than the relationship manager has to give a proper assistance & dedication to that person so that friend can make himself to trade in the stocks. Solution to these problems are present as for lack of money brokers have a option of funding or exposure in which brokers provide predefined multiple of margin money to the client to trade in the market which depends on the type of stocks & amount of socks. . As if that person who has lack of resources might be time or money.

4. What extra services do you expect from your broker? DEPOSITORY SERVICES MARGIN FINANCING 10% PORTFOLIO MGMT SYS TRADING 28% 20% RESEARCH & TECHNICAL SERVICES ALL ABOVE 4% 30% 8% As this was a multiple answer question I got some idea of expectations of clients from his brokers as his expectations changes as per his needs .

Which mode of trading do you prefer? 140 120 100 80 60 40 20 0 1 OFFLINE ONLINE As technology increases most of the people have less time to spent on the other activities than their core business so most of the clients prefer online trading so they can put their bids whenever they want as 24*7. But even after the presence of internet some people like to trade through offline mode reasons might be lack of knowledge or cost sensitive as offline product is used to being at lower cost so here in offline that dedicated relationship manager has to be in contact with his client.5. . In the case of online trading clients are not need to be provided any kind of assistance from their relationship manager but if the dedicated relationship manager provide them a good assistance can put that relationship manager & that organization apart from their competitors.

6. What has been your investment experience in stocks?



As I have mentioned earlier that this is the focused group survey I also interviewed the client I met they said we are very much satisfied from our broker that’s we are still dealing through them. Only in one case they were ready to change when the broker if they feel unsatisfied or they are offered to charge less brokerage as religare is charging.

7. What do u look for when you are going to invest in the stock market?

Most of the people look for moderate return because of presence of risk well as the age group changes the risk-taking factor as age increase people started investing in bonds where a fixed return is possible

8. How often do you trade in the stock market?



Mostly people whom I found in the brokerage house were daily investor which are called jobbers in & people like to invest in the stock when the got some good news like collaboration of a company with other renowned company. And also if there any IPO is coming in the market like RPL came during my training time

9. How would rate the services provided by your broker?
100% 40 80% 60% 40% 20% 0% 42 POOR 65 AVERAGE 68 21 4 CAN'T SAY 51 71 62 23











As the data shows most of the people were satisfied with their brokers because they are giving them profits on their investment & they were ready to pay more to their brokers if they get some extra services as many of the ICICI client denied to shift their account to religare when we contacted them to open their account with religare.

• The broker should provide the current information in stock market as their main problem was that they are not getting information on time. • • 24*7 service should be provided in offline products also. . • The RM should provide proper consultancy to those clients who trade in the market on a special news so they can be persuaded to trade on normal days also. which clients expect from the company. is assistance from their RMs. as one of the major factors. • The RM should also suggest his client portfolio management so he can reduce his risk & can maintain a balance I the investment which he has done so far. Quality of service has been rated highly important by all demographic factors as a reason for brokerage firms.RECOMMENDATION • The company should train RM’s to be fully dedicated to client’s services. www. Gupta ANNEXURE .com Reference books Marketing research .com relegare.economictimes.icicidirect.BIBLIOGRAPHY There was immense need and flow of the information while conducting the analysis as well as while writing the thesis www. which was gathered through various sources mentioned below: Websites: • • • • • • • www.

What extra services do you expect from your broker? a) D Depository services b) M Margin financing c) P Portfolio management services d) T Trading e) R Research and Technical services . In which professions are you engaged in? Business Entrepreneur Service Others Professional 2. why_____________________________________________ 4. Do you trade in stock market? Y Yes No 3. Would you like to trade in market? Y Yes No If not.QUESTIONNARE 1.

f) A of the above All 5. How often do you trade in the stock market? D Daily once in a week . Which mode of trading do you prefer? O Online trading Offline trading If online which terminal are you using_________________________ What are the charges paid for using the online services? ______________________________________________________ 6. What has been your investment experience in stocks? E Excellent A Average Good Bad 7. What do u look for when you are going to invest in the stock market? L Low risk low return M Medium risk medium return H High risk high returns 8.

3. 2. 1.Once in a month on special news 9. Do you have any suggestions/ideas which would help your broker to serve you better? _____________________________________________________________________ _____________________________________________________________________ __________________________________________ Name: ______________________________________ Contact No. No. Services Provided Poor Average Good Excellent Cant say Core Services Facilitatory service Advisory services Please specify the broking firm_________________________________ 10. How would rate the services provided by your broker? Sl.__________________________________ .

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