The short answer is that you must make banking easier for people online than it is inperson.

This will create customer satisfaction and ensure thatthey do not leave. Providing value is crucial when you are asking someone to do something online that has been traditionally done in person. What is meant by providing value is essentially improving what is normally on offer or the experience of carrying out a process. One of the most frustrating things about banking in-person is queuing. If you can ensure that online banking is faster, instantaneous even, then you have added value to the experience. Perhaps there are other things that can be included on the website that you do not have access to instantly in-branch. How about a spreadsheet that helps you plan out personal financing? That would add value to the experience. Once you have features on your website that are an improvement on in-person banking, you must deliver customer satisfaction. This can only be achieved by having a reliable service. If the site frequently crashes when users are doing their finances, they will lose confidence. Security is imperative too; if the website does not have rigorous security measures in place, customers will not be satisfied. Design is where the previous two elements can be achieved. You might have all of these valueadded features on your website but if they are not easy to find by the user, they might as well not be there. If you are adding value by reducing queuing, it's going to be negated if the site is too slow. Design also encompasses security and reliability. Marketing the website is also important. If you tell people that their bank is moving services online, many will be put off because they don't like computers or don't trust the Internet. Many will believe that the bank istrying to save money by cutting corners. Good marketing should show that the website will make banking better for them. If the website is marketed correctly and then the customer logs on to an easy-to-use website, finding new useful features when they are there, then they will be satisfied and their custom will be retained.

1. C.P.PATEL & F.H.SHAH COMMERCE COLLEGEANAND 2. Name :- Dharmesh R. SankharvaRoll No. :- 06Class :- Fourth YR BBA(ITM)Subject :- Consumer Behavior & Brand ManagementTopic :- As a manager of City Bank, Banks online Banking Division, How would to apply the concepts of customer satisfaction and customer retention to designing and marketing effective online banking.Submission Year :- 20082009

3. WHAT IS E-BANKING?First, What is Bank?A financial institution that accepts deposits and channels the money into lending activities. In this deliverable, the terms BANK and FINANCIAL ENTITY will be used indistinctly.What is Service?Financial product offered by a bank or services that does not require a contract, like a bank transfer order.What is E?E means Electronics, Electronics that means Online, Internet, Mobile, etc all these are Electronic devices.

4. So, E-Banking means all the transaction/task related to bank are done through the Internet, Online, Mobile Transaction like Deposit, Withdraw, Payment, etc that all transaction done by Internet or Mobile or Online that banking is called E-Banking.Penalty due to non-payment of bill is not new to anyone of us.And quite obviously, who likes the long procedure of writing acheque,standing in a long queue and then ensuring that the particular amount is available in your bank account? Similarly,Mr. Sharma, who is on business tour for at least 25 days a month,finds it difficult to clear his dues on time because of his busy schedule. He, like many of us, was possibly not aware of the online services,banks are offering these days. With just a click, all his dueswould have been cleared long back. However, it's never too lateto mend.

5. .Indian banks are trying to make your life easier. Not just bill payment,you can make investments, shop or buy tickets and plan a holiday atyour fingertips. In fact, sources from CITY Bank tell us, "Our Internetbanking base has been growing at an exponential pace over the lastfew years. Currently around 78 per cent of the bank's customer baseis registered for Internet banking.To get started, all you need is a computer with a modem or other dial-up device, a checking account with a bank that offers online service and the patience to complete about a one-page application--which can usually be done online. You can avail the following servicesBill payment serviceFund transferCredit card customers Railway passInvesting through Internet banking Recharging your prepaid phoneShopping at your fingertipsSecurity Precautions Internet banking versus traditional method

6. CUSTOMER SATISFACTION Customer satisfaction is the individuals perception of the performance of the product or service in relation to his or her expectation.Customersatisfaction is a key metric for banks to assess how effectively the web furthers their objectives of customer acquisition, retention and increased share of wallet. To assess the role of the online channel in meeting the needs and exceeding the expectations of customers.As banks have aggressively pursued multi-channel strategies, the online channel is growing in importance and adoption. According to Forrester Research, the number of U.S. householdsbankingonline has more than doubled since 2000.Banks have a window of opportunity to figure out how to maximize the impact of their websites to increase loyalty and share of wallet among existing customers while reaching out to new ones.

7. Since our first survey in Summer 2003, the overall customersatisfaction of onlinebankingcustomers has increased by 5.5%, This upswing in satisfaction is significant because satisfaction is highly correlated to the purchase of additional goods and services.customers who pay bills online are more satisfied than those who dont, providing banks an opportunity to increase satisfaction and loyalty by converting online bankers to online bill payers. According to our survey, banks have been effective in increasing usage of online bill payment, which is up 26% among our survey respondents since the summer of 2003. This year, we delved deeper into the variances and similarities in customersatisfaction among online customers of three types of financial institutions: large banks, community banks andcredit unions. While scores for all three are strong, credit unions outperform both types of banks in terms of satisfaction and usage of most onlinebanking features.

8. Key findings from our measurement of customersatisfaction with the onlinebanking experience include: Online banking satisfaction has surpassed satisfaction with the overall banking experience. The satisfaction score for people who bank online has increased 5.5% to 77, This indicates onlinebanking is beginning to fulfill its promise as a

convenient and cost-effective channel to serve customers while increasing customersatisfaction, loyalty and share of wallet. The increase in satisfaction corresponds with increases in customer behaviors tied to loyalty.Highly satisfied online bankers are nearly 39% more likely to purchase additional products and services from their bank than are very dissatisfied online banking customers. Converting online bankers to online bill payers is a huge opportunity for banks, as customers who pay bills online cite higher levels of satisfaction and loyalty. Online billpay customers are 17% more likely to purchase more products and services, increasing share of wallet, and 34% more likely to recommend their banks website, which fosters greater onlinebanking and bill payment adoption. 9. Use of more online features drives satisfaction. Online bankers who use six or more online features are 15% more satisfied and 23% more likely to purchase other products and services from the bank that those who use only one or two online features. Credit unions outperform large banks and community banks when it comes to satisfying online bankers. In addition, credit unions have higher levels of adoption of their institutions online services, except online bill payment. As financial institutions battle for greater share of wallet, credit unions find themselves well positioned to capitalize on higher levels of satisfaction to increase adoption of online bill payment. Offline bank channels are the leading source of information about online banking. To reach online customers and prospects outside of bank channels, online news sites are the preferred source of business news and information. 10. What do consumers want from online interactions?Consumers want a personalized, integrated online channel that caters to their many financial management needs, including: One view of their total financial picture including anytime, anywhere access to account summaries and details, simplified tracking and progress toward achieving specific goals that they can establish, and the ability to make any type of payment from any account they choose on the date of their choosing. Tools, training and supportto assist with both short and long-range goals like savings

strategies, debt reduction and money management, as well as access to others opinions and experiences, that help them make intelligent choices and alerts and reminders that keep them on track. A financial partner and advisorwho helps their customers achieve their financial goals and who proactively advises them on how to improve their financial situation. 11. Concise, relevant communicationthat is specific and personal to their needs, and not just one-size-fits-all information that every customer at the bank receives Making the online channel personal and profitable Increasing the cross / upsell of bank products Monetizing visits and generating fees from online services Attracting and growing deposits while lowering the cost to acquire Lowering the cost to serve Driving customer interactions with online financial toolsChoosing the right partner for online channel optimizationOur objective of creating a universal bank providing end-to-endfinancial services, clearly required solutions which were based onnew-generation technology, offered end-to-end functionality and werehighly flexible and scalable. Financial offered all this and much more. 12. CUSTOMER RETENTION The overall objectives of providing value to customers continuously and more effectively than the competition is to have and to retain highly satisfied customers; this strategy of CUSTOMR RETENTION makes it in the best interests of customers to stay with the company rather than switch to another firm.Studies show that small reductions in customer defections produce significant increases in profits because Loyal customers buy more products.Loyal customers are less price sensitive and pay less attention to competitors advertising.Servicing existing customers. Who are familiar with the firms offerings and processes, is cheaper.Loyal customers spread positive word of mouth and refer other customers. 13. Marketer who designate increasing customer retention rates as a strategic corporate goal must also recognize that all customers are not equal. Sophisticated marketers build selective relationship with customers, based on where customers rank in terms of profitability, rather than merely

strive to retain customers. A customer retention-savvy company closely monitors its customers.Banks less profitable customers who, say make little use of their credit cards or maintain the minimum balance needed to receive free checking should not have penalties waived for bounced balance needed to payments.During the BANK-FINANCE-SYSTEMS exhibition, the company will also be presenting successful projects on the basis of the credit services chip card. The emphases are on: successful customerretention concepts such as "Fan-Banking" and "CityCards", ETicketing by chip card and intelligent pass solutions. 14. 1. Retaining the current customer base is key. The reason is that the cost of acquiring new customers is high, but the probability that they stay is quite low. New customers who are acquired at the margin are quite likely to be switches. They will eventually switch to a better offer. Or as Reichheld puts it: In many businesses, the customers most likely to sign on are precisely the worst customers you could possibly find. 15. 2. Customer satisfaction is the prerequisite for customer retention. More than two-thirds of the customers who are delighted with their bank say they will not switch to another provider. Quite the contrary: they consider buying other products from the same provider, and will even recommend them to others. By contrast, almost three-quarters of dissatisfied customers say they will switch their financial institution. 16. 3. Online banking users are lesslikely to leave their banks. Onlinebanking appears to be the retailchannel that is especiallypromising in cultivating customerloyalty: online banking users areless likely to switch theirchecking account provider thantheir offline counterparts. Only 4per cent of Canadian onlinehouseholds say they are likely orvery likely to switch theirprovider. The correspondingfigure for offline households istwice as high (8 per cent). Whilethese results come from NorthAmerican customers they arelikely to also apply in theEuropean context.

17. 4. Online banking households are more challenging customers, though. They are better informed and more actively involved in their financial affairs than online households that do not use their banks website. This is the result of studies conducted in the United States. Online banking households use websites to gather information and shop around. They also prefer to make their financial decisions on their own.

18. 5. Complexity of online banking sites may turn customers away. A startling 92.6 percent of German internet users regularly abort their visits to bank websites according to an Emnid survey. The top reason for aborting is that they cannot find the information they are looking for because it is hidden or not available.

19. 6. A good website retains customers. A study conducted in Canada finds that a good website causes more online customers to stay with their banks than lower fees, financial advice or a broader product selection. This calls for more attention to be payed to the user-friendliness of online banking services.

20. 7. Online customer retention is worth the effort, because keeping online customers increases a banks profitability. Online customers are often assumed to be more profitable than offline customers, because they are better educated and earn higher incomes. Still, a study controlling for this self-selection bias shows that the internet channel alone increases a customers profitability to the bank by impressive 4 percent.

21. 8. Banks should therefore convince more of their customers to go online. Of those offline customers who are interested in online banking, almost 90% find a security guarantee crucial. A well-known offline brand and relatively cheaper fees are also considered very important. Surprisingly enough, only 29% find a broad selection of financial services important in this context.

Service quality is one of the critical success factors that influence the competitiveness of an organization. A bank can differentiate itself from competitors by providing high quality service. Service quality is one of the most attractive areas for researchers over the last decade in the retail banking sector (Choudhury, 2008). Therefore, banks have to provide service carefully because of the availability of banks. Banks have to improve the service level continuously. There is no guarantee that what is excellent service today is also applicable for tomorrow. To survive in the competitive banking industry, banks have to develop new strategies which will satisfy their customers. In the competitive banking industry, customer satisfaction is considered as the essence of

Success services quality can impact customer loyalty through bringing about customer satisfaction.In online banking systems,customers are the main focus and all efforts being done by this type of banking are infact Intl. Res. J. Appl. Basic. Sci. Vol., 4 (9), 2782-2791, 2013

to keep old customers and attract new ones.Now,The following are several suggestions to keep and attract customers which inother words, is creating loyalty in customers to banks: studying the risk variables perceived;perceived safety in creating customer satisfaction in E-banking. studying reasons for decreasing trust of customers and providing fixes for gaining their trust in Ebanking.

studying the relationship between such variables as reliability,responsiveness,assurance,citizen support,graphic style and service quality in E-banking. : In E-banking, attracting and keeping customers is a difficult and challenging problem for commercial organizations. Therefore,banks and financial institutions strive to recognize factors which can attract customers and make them loyaltyCustomer loyalty will eventually become visible in a companys bottom line through increased revenue, decreased customer acquisition costs, reduced costs of serving repeat customers, and increased profits. Consumers behavioral motivation of loyal relationship is assumed from their satisfaction level. Pakistan) are collectivist People in the collective cultures discriminate in-groups (relatives, institutions and organizations) and out-groups. In this case, word of mouth (WOM) advertisements are important for the banks. argued that the customers who are satisfied tell others about their experiences and this increases WOM advertising. In this way, banks can increase customers. Argued that profit and growth are stimulated primarily by customer loyalty and loyalty is a direct result of customer satisfaction(Kazi Omar ,2011).Creating loyal customers has become more important due to significant increase in competition and concentrated markets. Businesses are trying to attract and satisfy customers and to build longterm relationship through building loyalty among customers (Gremler et al., 1996). Developing a network of loyal and satisfied customers is critical for the survival of many corporations (Gould, 1995). Traditionally there are two approaches to treat customer loyalty. The starting point is to know the influence of factors including trustworthiness, product image, customer relationship and customer satisfaction on customer

loyalty. In emerging markets like Pakistan it is more important to determine factors affecting customer loyalty due to the continuous influx of new players in potential industries (Hafeez et al., 2010). Massive privatization in Pakistan also triggered the need to analyze determinants of customer loyalty for long-term profitability. Longterm success and sustainable reputation of an organization depends on customer loyalty banks should not depend on customer satisfaction alone.They should become sure that customers are not only satisfied but also loyal. Therefore,providing services and products quality for customers is necessary for banks to be successful and to survive in nowadays competitive banking condition,so providing quality services and products will result in reputation of businesses (banks)and enables them to keep customers and also attracts new customers by oral advertising among people and promotes financial performance and profitability. ,banks have shifted their attention towards customers.It must be noted that banks used to consider profitability as a result of attracting more customers.In contrast,Now,research shows that the cost of attracting a new customer is nearly twice the cost of keeping an old loyal customer.In this research ,first off,wetry to study the effective factors resulting in customer loyalty by literature and then they are tested and also the relationship between the structure of loyalty and these factors will be determined.Finally the question could these factors result in customer loyalty in online banking?will be answered.In this research,after testing the existence of relationship between any of the variables and loyalty,the question which arises here is thathow much does online E-banking influence any of these variables?It seems like

its worthy to perform a research measuring .The relationship between loyalty in online banking and any of these variables.By noticing the before mentioned statements,The results achieved through this research can be very important.Such results can be used by managers(bank industry)to design and create a structure based on customer loyalty to online networks in banks.