A STUDY ON CRM PRACTICE IN INDIAN BANK

A PROJECT REPORT

Submitted in partial fulfillment for the award of degree of

EMBEDDED PROJECT
IN
BUSINESS RESEARCH MANAGEMENT (BMT 6024)

Under the Supervision of

Dr.UMA PRICILDA J

ASSOCIATE PROFESSOR

Department of MBA

VIT BUSINESS SCHOOL

SUBMITTED By

SRIRAM J 16MBA0018

AZAD G 16MBA0019

JOE PRASAD 16MBA0026

ARVINTH RAM S 16MBA0064

G NESHAKUMAR 16MBA0070

VELLORE

MAY, 2017
 DECLARATION

We hereby declare that the project work entitled A Study on CRM PRACTICE IN INDIAN
BANK submitted to VITBS, is a record of original work done by us under the guidance of
Dr.Uma Pricilda J. Associate Professor, VITBS. This project work is submitted in partial
fulfillment of the requirements for the award of the degree of Master of Business Administration.
The results embodied in this project have not been submitted to any other University or Institute
for the award of any degree or diploma.

Date: 2 May 2017

Place: Vellore

SRIRAM J 16MBA0018

AZAD G 16MBA0019

JOE PRASAD 16MBA0026

ARVINTH RAM S 16MBA0064

NESHAKUMAR G 16MBA0070
 ACKNOWLEDGEMENT

It gives us immense pleasure in bringing out this project report of the project entitled.

A STUDY ON CRM PRACTICE IN INDIAN BANK

Firstly, we would like to thank our teacher and guide Professor Dr. Uma Pricilda J. who gave us
her valuable suggestions and ideas when we were in need of them. She encouraged us to work on
this project.

We are also grateful to our college for giving us the opportunity to work with them and
providing us the necessary resources for the project

We would also thank to all of them who helped us to complete this project.

We are immensely grateful to all involved in this project as without their inspiration and valuable
suggestion it would not have been possible to complete the project within the prescribed time.

SRIRAM J 16MBA0018

AZAD G 16MBA0019

JOE PRASAD 16MBA0026

ARVINTH RAM S 16MBA0064

NESHAKUMAR G 16MBA0070
 TABLE OF CONTENTS

1.0 Introduction
1.1 Background 2
1.2 Scope of the report 2
1.3 Research Objectives 2
1.3.1 Major objectives 2
1.3.2 Allied Objectives 2
1.4 Methodology 2
1.4.1 Data Collection 2
1.4.2 Source of data 2
1.4.3 Data collection 3
1.4.4 Data Analysis 3
1.5 Hypothesis 3
1.6 Limitations 3

2.0 Literature review 4

3.0 CRM Concepts 9

3.1 CRM 10
3.2 Purpose of CRM 10
3.3 Identifying CRM Customers 11
3.4 Customer Retention 11
3.5 Understanding Customer Loyalty 12
3.5.1 Customer Retention 13
3.5.2 Others 15
3.6 Customer Lifecycle 15
3.7 Information Technology and CRM 16

4.0 Data analysis And Interpretation 17

5.0 Research Findings and conclusion 27

References
Appendix Part 29
Appendix-01: Questionnaire 30
5.0 Appendix-02: References 34
 LIST OF FIGURES

S.NO CONTENTS PAGE.NO

1.1 Customer Retention 11
1.2 Customer Loyalty Stages 12
1.3 Degree Or Factors Of Customer Loyalty 14

1.4 Age 18
1.5 Gender 18
1.6 Educational Qualification 19

1.7 Number Of Years Having An Account 19

1.8 Type Of Account 20

 EXECUTIVE SUMMARY

Customer relationship management (CRM) is a foreseeable practice in the banking sector. For an
organization to undertake a CRM program. It needs to consider a multitude of requirements like
database for containing customers information, sales force automation, proper sales and
marketing strategy etc. the main focus of literature in CRM has been customer centric. The
System is a business strategy that uses information technology to provide the enterprise with a
comprehensive, reliable and integrated view of its customer base so that all business processes
and customer interaction help maintain and expand mutually beneficial relationship. A CRM
system brings together lots of pieces of information about customers, customer characteristics,
sales transactions, marketing effectiveness, responsiveness and market trends for the purpose of
enhancing customer service, improving customer satisfaction, increasing customers referrals,
ensuring customer retention by aligning business processes with technology integration.

The finding derived from the research survey is very sorrowful for the authorization of CRM in
Banks. Indian banks are doing a very good banking with its customers maintaining relationships
with both its corporate and individual customers. But the level of CRM is in semi or moderate
level with full capabilities of IT support.

Banks are doing their utmost for retaining the customers by valuing them proper method. They
mainly focused on new and existing customers both to maximize profit. When their valuation
criterion differs from situation as a result, these are now in shortage in liquidity. So, they are
putting more emphasis on deposit criteria to measure customer valuation for the bank. They are
doing same strategy almost for retaining and in valuation of customers. But their some strategies
are different from each other.

Our main focus on Customer retention factors and customer valuation, in this case they are doing
best but overall CRM practice have not introduced yet all over the country of banks branches.
 CHAPTER I
INTRODUCTION

1
1.1 BACKGROUND

Customer Relationship Marketing or Management (CRM) is an inevitable practice in the banking

sector. In such comportment, our course teacher has approved the following issue. The issue of
the research is Customer Relationship. And specifically in Banking this paper has to work
on specific organizations, and mainly selected banks are

Indian banks are taken to find out how strategically retaining and valuating their customer by
which methods and strategies of CRM.

1.2 SCOPE OF THE REPORT

In this project work is to find the terms structure of CRM in Indian Bank. So, includes are

Methods used in CRM

Strategies to handle short-term CRM problems and situation o Customer retention factors
and processes
Customer valuation factors and tools

1.3 RESEARCH OBJECTIVES

1.3.1 MAJOR OBJECTIVES

To identify the customers relationship marketing practices in Indian Bank as a Banking sector
narrowly focused on methods, strategies, and customer retention and customer valuation system.

1.3.2 ALLIED OBJECTIVES

1. To identify requirements for having long-term relationships with customers

2. To know customization of services, technologies, products and other specialized needs to
increase the share of a customer and strengthen the customer relationship.
3. A try to find the percentage of implementation of the theoretical prospects in real life

1.4 METHODOLOGY

1.4.1 RESEARCH DESIGN

Our research is an exploratory qualitative research to find the CRM process, their characteristics
in Indian Bank.

1.4.2 SOURCES OF DATA

Only secondary data have been used to prepare the report.

Primary Data: This research is conducted based on primary data collected from senior
bankers.

2
 Secondary data: Secondary data comes from different published source like research
report, articles on bank customer relationships management and website of Indian Bank.

1.4.3 DATA COLLECTION

Primary data has collected with a formal questionnaire (Questionnaire Given into Appendix
part). Secondary data has collected from different websites and library sources based on proper
judgments.

1.4.4 DATA ANALYSIS

Data are presented in tabular form and analyzed with the help of different statistical tools. Then
it was explained by researchers observations.

1.5 HYPOTHESIS

H1: There is no significance difference between type of account and age.

H2: There is no significance difference between number of years having an account and age.

H3: There is no significance difference between number of years having an account and
awareness of the services.

H4: There is no significance difference between educational qualification and awareness of the
services.

H5: There is no significance difference between Staff conduct, Credibility, Communication and
Customer Accessibility and Age.

H6: There is no significant difference between the Gender and staff conduct, credibility,
customer accessibility, communication

H7: There is a positive relationship between the staff conduct, credibility, communication,
customer accessibility.

H8: There is no significant difference between the communication and customer accessibility

1.6 LIMITATIONS

Some problems occurred while conducting the report paper. These are given below

Due to short time it was not possible to increase the accuracy and acceptance of paper
questions solutions.
Some questions are refused for security.
Due to short time important works like comparison among different banks is not possible.

3
 CHAPTER II
LITERATURE REVIEW

4
 REVIEW OF LITERATURE

1. The study aims to find out the effect of electronic Banking products on customer
satisfaction and loyalty. The objectives were to evaluate the effectiveness of electronic
banking methods employed by the Bank; to determine the current level of customer
satisfaction and loyalty at GCB Bank Ltd (GCB), Koforidua; and to find out the
relationship that exists between electronic banking and customer satisfaction. Findings on
the effectiveness of electronic banking methods employed at GCB, Koforidua Branch
indicated that the methods offer quick services to its clients; respondents can easily
transfer money from one account to another electronically; there is insufficient number of
Automatic Teller Machine (ATM) booths. Findings revealed that Electronic Banking has
satisfied most of the customers' banking needs; GCB is characterized with long queues;
the presence of breakdowns of ATM machines affects Electronic banking services hence
affecting the level of client's satisfaction. The Pearson's correlation between Electronic
banking and customer satisfaction stood at 0.388, which is a weak direct relationship
between the two variables. It's been recommended that management of GCB invest in IT
to further promote efficient service delivery. There is also the need to do extensive
customer education to enable more customers patronize.
(VOL. 2, No.12 (1), April, 2016

The Effect of Electronic Banking Products on Customer Satisfaction and Loyalty: A Case of
GCB Bank Ltd, Koforidua

Martin Offei Otu, Kwaku Nuamah-Gyambrah and Samuel Baffoe)

2. A primary purpose of management and marketing strategy is to develop a competitive

advantage. A competitive advantage provides customers with superior value compared
with competitive offerings. Banking has traditionally operated in a relatively stable
environment for decades. The purpose of the study is to theoretically and empirically
develop a better understanding of quality and customer relationship management (CRM)
impact on banking competitiveness. A bank has to create customer relationships that
deliver value beyond that provided by the core product. This involves added tangible and
intangible elements to the core products, thus creating and enhancing the product
surrounding. One necessary condition for the realisation of quality and the creation of
value added is quality measurement and control. This is an important function to ensure
the fulfilment of given customer requirements. The key ways to building a strong
competitive position are through CRM, product/service quality and differentiation.

(Mosad Zineldin, (2005) "Quality and customer relationship management (CRM) as competitive
strategy in the Swedish banking industry",

The TQM Magazine, Vol. 17 Issue: 4,pp. 329-344)

5
 3. The study examined the impact of the quality of service delivery on customer satisfaction
in the Nigerian banks using Ordinary Least Square (OLS) methodology. The study
established a relationship between better banks performance in service delivery and
customer satisfaction through effective customer relationship management (CRM).
Findings revealed that increase in the number of working days and number of bank
branches led to better levels of customer satisfaction. Empirical evidence also revealed
that increase in PROFIT margin is a function of improved level of customer satisfaction
while number of bank branches (NNB) has a positive but insignificant relationship with
customer satisfaction because the spread of branch networks or channels has better
effects on customer satisfaction than number of banks. It also emphasized the role of the
number of working days in achieving better bank services and profitable customer
relationship management. The study thus recommends that the Nigeria banking industry
should improve the quality of service delivery as it is a prerequisite for achieving a high
level of customer satisfaction.

(Service Delivery and Customer Satisfaction in Nigerian Banks, FARAYIBI, Adesoji Oladapo,
(2006),

The TQM Magazine, Vol. 22 Issue: 8,pp. 369-411)

4. The purpose of this research is to analyse the dimensionality of the concept of perceived
value in the banking sector, adapting the GLOVAL scale of measurement of perceived
value to the banking services sector. Perceived value is found to be a multidimensional
construct composed of six dimensions: functional value of the establishment, functional
value of the personnel; functional value of the service; functional value price; emotional
value; and social value. A scale of overall perceived value in financial services was
obtained, composed of six dimensions and represented by 22 items that are significant for
their measurement.

(Juan Carlos Fandos Roig, Javier Sanchez Garcia, Miguel Angel Moliner Tena, Jaume Llorens
Monzonis, (2006) "Customer perceived value in banking services", International Journal of Bank
Marketing, Vol. 24 Issue: 5,pp. 266-283)

5. Customer relationship management approach is mainly a process. In order to realize this

process some elements are required. In this process business apply CRM in four stages:
Identification, Differentiation, Interaction and Customization. The aim of this study is to
make an attempt the CRM practices in the context of banking services. Hereby this study

6
 has been conducted in the branches of banks, which give individual/commercial services
in Konya, applying the Customer Relations Management. Surveying method has been
used in order to collect data. The employees of these banks who work in the sales and
marketing department of the branches participated in the survey. Finally the results and
suggestions related to the analysis results have also been introduced in the study.

(Evaluating of CRM in Banking Sector: A Case Study on Employees of Banks in

Konya,Mehmet Karahan a, mr Hakan Kuzu b* (2006)

International Journal of Bank Marketing, Vol. 25 Issue: 3,pp. 286-323)

6. In the centre of marketing activities today is the service quality. For the banks to be
successful in the intensively competitive environment, they are bound to attach
importance to service quality. The purpose of the present study is to reveal the
relationship between the customer relationship management (CRM) and the service
quality of bank Sepah of Maku in Iran. The findings of this study suggest that managers,
who aim to build and sustain a service quality base, should concentrate on the issue of
communication. And also, this bank should implement strategies aimed at improving the
communication with customers and obtaining information concerning the customers
needs, and resolving conflicts between the customer and the bank during a service failure.

(Changiz Valmohammadi, Mohammad Beladpas, (2014)

"Customer relationship management and service quality, a survey within the banking sector",

Industrial and Commercial Training, Vol. 46 Issue: 2,pp. 77-83)

7. This paper aims to give a short overview on bank/customer relationship experience in the
Latvian banking system and the impact of developing technology in banking. Without
usage of technology commercial banks cannot provide customers with effective services,
but short banking history increases the danger of such a reduced loyalty towards the
services supplier. Satisfaction with services provided is not the only factor influencing
customer loyalty level. Customers experiencing a short banking history can be loyal to
the service provider due to the lack of financial literacy. A great impact on loyalty level is
made by other factors, such as: image, prestige, word of mouth, etc.

(Andra Brige, (2006) "Building relationship with customers by using technological solutions in
commercial banks of Latvia",

Baltic Journal of Management, Vol. 1 Issue: 1,pp. 24-33)

7
 8. The purpose of this paper is to study the relationship between customer relationship
management (CRM) system and customer satisfaction in branches of Ghavamin Bank in
the capital city of Iran, Tehran. The results revealed that the four factors of CRM system,
i.e. service quality, service characteristics, level of service access, and handling
complaints have a positive effect on customer satisfaction in the surveyed branches of
Ghavamin Bank.

(Alireza Rezghi Rostami, Changiz Valmohammadi, Jahan Yousefpoor, (2014)

"The relationship between customer satisfaction and customer relationship management system;
a case study of Ghavamin Bank",

Industrial and Commercial Training, Vol. 46 Issue: 4,pp. 220-227)

9. The purpose of this paper is to develop a multi-item scale for measuring the customer
relationship management effectiveness (CRME) in Indian retail banks and to examine its
relationship with key customer response variable. The results of factor analyses revealed
five dimensions for CRME, namely, organizational commitment, customer experience,
process-driven approach, reliability and technology-orientation. Organizational
commitment, process-driven approach and reliability were found to positively affect
customer satisfaction. Reliability was found to have direct association with customer
loyalty and both customer satisfaction and loyalty-influenced cross-buying.

(C. Padmavathy, M.S. Balaji, V.J. Sivakumar, (2012)

"Measuring effectiveness of customer relationship management in Indian retail banks",

International Journal of Bank Marketing, Vol. 30 Issue: 4,pp. 246-266)

10. To convert the principle of customer relationship management (CRM) into practical
guidelines for best practice in the implementation of a CRM programme in the real
world. The design and implementation phases of CRM programme development are
described in detail, the latter organised into 18 initiatives in five categories: testing,
founding, building doing and ongoing.

(Adam Lindgreen, Michael Antioco, (2005)

"Customer relationship management: the case of a European bank",

Marketing Intelligence & Planning, Vol. 23 Issue: 2,pp. 136-154)

8
 CHAPTER III
CONCEPT OF CRM

9
3.1 CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management or relationship marketing (CRM) system is a business

strategy that uses information technology to provide the enterprise with a comprehensive,
reliable and integrated view of its customer base so that all business processes and customer
interaction help maintain and expand mutually beneficial relationships. CRM systems help
organizations improve the profitability of their interactions safer and friendlier through
individualization and personalization. CRM is thus a technique or a set of processes designed to
collect data and provide information that helps the organization evaluate strategic options.
Therefore, Customer relationship management (CRM) is

A widely implemented strategy

For managing a companys customers, clients interactions and sales prospects
It involves using technology to organize, automate, and synchronize business processes
Principally sales activities, also for marketing, customers service and technical support
1. Overall goals are to find, attract, and win new clients, o Nurture and retain those
the company already has,
2. Entice former clients back into the fold, and reduce the costs of marketing and
client service.

Customer relationship management describes a company-wide business strategy including

customer-interface departments as well as other departments. Measuring and valuing customer
relationships is critical to implementing this strategy.

3.2 PURPOSE OF CRM

A CRM system brings together lots of pieces of information about customers, customer
characteristics, sales transactions, and marketing effectiveness, responsiveness, and market
trends, however the purposes of a CRM system are to:

Enhance customer service

Improve customer service
Identifying the valuable customer of the firms
Ensure customer retention by aligning business processes with technology integration

Now it is important to emphasize why retention is necessary

To increase customer share into the market

Retention increases profitability
Sales and marketing costs are amortized over a longer customer lifetime
Customer expenditure often cost less to service
Satisfied customers provide referrals
Satisfied customers may be prepared to pay a price premium

10
Not all of these reasons may apply to a particular business, but overall they represent a
significant opportunity for most companies to improve profit. Customer retention also helps
predict the profitability of the company and is therefore an excellent management tool for
considering the success of quality and customer service programs.

3.3 IDENTIFYING CRM CUSTOMERS

Each customer must be analyzed and potentially treated uniquely. Identifying and expanding
relationships with profitable customers is vital. Those customers who possess account in a bank
but hardly maintain transactions are not profitable for that bank. Customer relationship
management provides the framework for analyzing customer profitability and improving
marketing effectiveness. As it is important to comprehend that traditional transactions and
relational transactions are not the same. Transactions are discrete events that result in no feeling
of relationship and no anticipation of future interactions. Customers oriented to the transaction
seek to maximize their own benefit on the current exchange, while those who are committed to
the relationship may be more willing to negotiate or compromise to maintain interactions
overtime. The overall objective of creating relationship is to build trust and loyalty, which lead to
an altered focus for the marketing management process. A table is given in the Next Page for
proper comprehension of the differences in traditional selling and relationship selling approach.

3.4 CUSTOMER RETENTION

Customer Retention is the activity that a selling organization undertakes in order to reduce
customer defections.

Exhibit 1.1: Customer Retention

11
3.5 UNDERSTANDING CUSTOMER LOYALTY

The term loyalty refers to a customers co manufacture, service provider or other entity based on
favorable attitudes and behavioral responses such as repeat purchases. But repeat purchase
behavior alone is not sufficient to prove loyalty. Some repeat purchase decision is considered as
spurious loyalty means there is no strong attitudinal influence. People sometimes make purchase
decision as their parent used it before, using attitude loyalty and behavior to provide a framework
for thinking about customer loyalty yields four categories of customers : NO Loyalty customers
have a weak attitude and low repeat patronage behavior: Inertia Loyalty customers are strong on
repeat behavior but weak on attitude : Latent Loyalty customers have strong attitudes but repeat
purchase is low, and Loyalty customers are high in repeat purchase behavior and strong in
attitude. Loyal customers are the most desirable customers because they purchase a large amount
of the product and may act as referrals to the organization.

Exhibit 1.2: Customer Loyalty Stages

Customers levels of loyalty to organize the progression of the relationship that customer can
have with organization. The ladder gives an understanding of decision about how to approach
each level of customers. The elaboration of each level is given with the help of a diagram.

Prospect: new customers targeted as prospect

Customers: anyone who has done business with organization only once

Client: person doing repeated business

Supporter: someone who is passive and not out performance

12
Advocate: person who is pleased with services rendered and recommends others the same

Partner: person who is very close and having long tern relationship, which is applicable
especially in business to business relationship.

While new customers are important, they should not be the only focus on marketing efforts. The
marketing ladder illustrate that there are two main marketing tasks: attracting new customers and
retaining existing ones. To achieve success it is essential to balance scarce marketing resources
between the two in an optima manner. Information technology within a CRM system is a
continuous process. The firm recognizes its lack of knowledge and begins to learn about
customers segments and their distinct needs before the first sale is made. From purchases
databases, mailing lists, e-mail referral, and other sources, organization can acquire mountains of
data about potential customers and thus begin to tailor promotional messages, product features,
and options. With the forts sale or transaction, a new customer is acquired and a relationship
should begin.

3.5.1 FACTORS THAT AFFECT CUSTOMER LOYALTY

SATISFACTION

Customer satisfaction results from a comparison between pre- purchase expectations an actual
performance. Dissatisfied customers may cause harm to the goodwill of the organization. For
this reason it is necessary to take actions to prevent dissatisfactions. Marketers continue to
understand the degree of discrepancy between expectations and actual performance. The level of
loyal customers is easy to identify based on the degree on discrepancies. These loyal customers
act positively on behalf of the organization. A satisfied customers tells well about the
organization to this or her family and then his relatives , friends, colleagues etc. in this way by
word of mouth the positive impression is diffused among a biggest number of customers.

EMOTIONAL BONDING

People are by birth sensitive to emotional issues. This emotional bond to many other issues like
in case of banking services, customers are expected to get services with a smile and courtesy
which is the basis of belief. This belief helps customers to prevent them switch to other banks.
Some companies try to connect with their customers while others have more difficulty in
accomplishing this level of commitment. CRM must reach beyond the idea of the rational,
consumer and strive to establish feelings of closeness, affection, and trust as true emotional
bonding is often based on trust and respect. CRM systems attempt to build emotional with
customers.

13
 Exhibit 1.3: Degree or factors of Customer Loyalty

TRUST

Trust, the third component of the model, is interrelated with emotional bonding. Trust reduces
uncertainty / risk and is viewed as a carefully thought out process, whereas brand affect may be
an instantaneous response. In many situations, trust means a customer believes that the marketer
is reliable and has integrity. When there is trust in a relationship, all partners believe that none
will ant opportunistically. Marketers, especially the marketers of services, establish trust by
maintaining open and honest communication and by keeping the promise they make.

CHOICE REDUCTION AND HABIT

The fourth component of customer loyalty is choice reduction and habit. In fact , customers like
to reduce their choices to a manageable set, usually not more three, people feel comfortable with
familiar brands and well known situations that been rewarding. Part of customers may have
switching tendency to the unfamiliar, the untried, or the new. There may be a cost in time,
money, or, potential risk. There may be perceived performance risk or social risk. The fear of
these risk bound customers to stay with one service.

HISTORY WITH THE COMPANY

A final component of customer loyalty involves the customers with the company.CRM is usually
more focused on a customer as those customers who are having long term contract with the
company but not making transactions profitability, cannot be considered as CRM customers. The
concept of valued customers according to CRM states that those who maintain long term

14
relationship with recordable transaction with the company are CRM customers. For this reason
past history of recorded is necessary for initiating relationship marketing.

3.5.2 FACTORS THAT LESSENS CUSTOMER LOYALTY

COMPETITIVE PARITY

When the offerings of different organization are not differentiated, competitive parity exists. If
customers perceive that brands are identical, perceived risk is low and there is a greater tendency
for brand switching as the likelihood of loyalty toward the product declines.

VARIETY SEEKING BEHAVIOR

As we have already mentioned, people who become bored and have a nerd for variety may
engage in variety seeking behavior. People may simply wait a new experience because of the
declining benefits associated with patronage or because they felt energized by the prospect of
having a new experience. Organization can benefit from variety seeking behavior by satisfying
the need and creating flanker brands, new flavors, or other extension of the basic service. Like
some bank provide ATM facility, which can pursue customers to maintain service and enjoy the
convenience

LOW INVOLVEMENT

Low involvement customers often engage in s satisfying behavior in which they make decisions
that are good enough and not interest in a service category, he or she is less likely to be loyal to
a particular company brand. Customers who are low in involvement tents to be price sensitive,
another factor which lessens loyalty towards the brand or organization

3.6 CUSTOMER LIFE CYCLE

The stage a customer goes through from the time before decline to do business with an
organization until he or she decision to stop being a customers is called the customer life cycle,
shown in figure 3.3 when a customer make an initial purchase , he or she does so to satisfy a
need , want or desire. During the first voluntary transaction, the customers exchange money, or
sometimes of value worth the price of the offering for something of value typically eh good or
services provides by the organization. In other word, both parties benefit because each gives
something up and each receives something. We label this the accusation stage the customer
completes the initial transactional exchange. Notice that even at this stage, the life value of the
customer is important in that suspects are qualified to be prospects based on an estimated of
lifetime value. In some situation, the initial transaction is the only transaction that ever occurs
and the customer is a one-time buyer who is then lost. The benefit of CRM system is to track the
reason for looking such initial purchases to make correction to win them back.

15
3.7 INFORMATION TECHNOLOGY AND CRM

The costs of implementing the CRM system include software, hardware, external consulting, and
the internal IT staff. One CRM application that is receiving increased is price optimization , a
method in which the organization tailors prices to each customers with the objectives of
optimizing overall revenue , innovation in information technology (IT) and data warehousing
make this possible. The heart of the CRM system is the data warehouse, and the data warehouse
would be impossible without fast, relatively low cost computer storage. Use of data warehouse is
essentially a three step process

Data input
Data storage
Data analysis and information delivery

16
 CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION

17
DATA ANALYSIS

AGE

Exhibit 1.4: AGE

We have got a total of 112 responses in that 59.8% are from the above the age 0f 20 25 ,
14.3% are from the age of age of 26 35 , we have only 4.5% of respondents from the age of
above 56 years.

GENDER

Exhibit 1.5: GENDER

We have got a total of 112 responses in that 61.6% are male and 38.4 % are female respondents

18
EDUCATIONAL QUALIFICATION

Exhibit 1.6: EDUCATIONAL QUALIFICATION

We have got a total of 112 responses in that 56.3% have a bachelors degree while 29% of our
respondents have a primary higher education degree, there are few respondents who have a
secondary certificate from this we can find that most of the customer who have a bank account
has the basic education qualification

NUMBER OF YEARS HAVING AN ACCOUNT

Exhibit 1.7: NUMBER OF YEARS HAVING AN ACCOUNT

We have got a total of 112 responses in that 55 .4 % of customers are having a bank account
between 1- 5 years and there are only 11.6% of customers having a bank account of above 16
years. In this we can find that there are many new customers for the bank and bank has to
maintain a good customer relation with them to increase the customer base

19
TYPE OF ACCOUNT

Exhibit 1.8: TYPE OF ACCOUNT

We have got a total of 112 responses in that 76.8 %are having the saving account and 13.4% are
having the current account the bank must take additional care in retaining these customers and
have provide them with various facilities according to their needs

CHARACTERISTICS OF POPULATION

ONEWAY

ANOVA

What kind of account do you primarily have with the bank vs age

Sum of df Mean Square F Sig.

Squares

Between Groups 3.883 4 .971 2.391 .055

Within Groups 43.036 106 .406

Total 46.919 110

HYPOTHESIS: There is no significant difference between the age and primary account with the
bank

The significance value is greater than 0.05

Ho is accpeted

20
There is no significant difference between the age and primary account with the bank

ANOVA

Number of years of having an account with the bank vs age

Sum of Df Mean Square F Sig.

Squares

Between Groups 87.427 4 21.857 67.718 .000

Within Groups 34.213 106 .323

Total 121.640 110

HYPOTHESIS: There is no significant difference between the age and no of years of having
account

The significance value is less than 0.05

Ho is rejected

There is a significant difference between the age and no of years of having account with the bank

ANOVA

Are you aware of the services the ATM offers vs no of years having account

Sum of df Mean Square F Sig.

Squares

Between Groups .969 3 .323 3.208 .026

Within Groups 10.467 104 .101

Total 11.435 107

HYPOTHESIS: There is no significant difference between the awareness of services in ATM vs

no of years having account

The significance value is greater than 0.05

Ho is accepted

There is no significant difference between the ATM offers vs no of years having account

21
ANOVA

Are you aware of the services the ATM offers vs education qualification

Sum of df Mean Square F Sig.

Squares

Between Groups .915 3 .305 3.014 .033

Within Groups 10.521 104 .101

Total 11.435 107

HYPOTHESIS: There is no significant difference between the education qualification vs the

aware of the services the ATM offers

The significance value is less than 0.05

Ho is accepted

There is no significant difference between the education qualification vs the aware of the
services the ATM offers

22
ONEWAY SC CR CM CA BY Q1 (AGE)

ANOVA

Sum of Df Mean Square F Sig.

Squares

Between Groups .864 1 .864 .989 .322

SC Within Groups 91.796 105 .874

Total 92.660 106

Between Groups 2.805 1 2.805 3.593 .061

CR Within Groups 83.543 107 .781

Total 86.349 108

Between Groups 2.573 1 2.573 3.346 .070

CM Within Groups 79.969 104 .769

Total 82.542 105

Between Groups 1.897 1 1.897 2.213 .140

CA Within Groups 92.594 108 .857

Total 94.491 109

HYPOTHESIS: There is no significant difference between the age and staff conduct , credibility
, customer accessibility , communication

The significance value is less than 0.05

Ho is rejected

There is a significant difference between the age and staff conduct , credibility , customer
accessibility , communication

23
ONEWAY SC CR CM CA BY Q2 (GENDER)

ANOVA

Sum of df Mean Square F Sig.

Squares

Between Groups 13.454 3 4.485 5.832 .001

SC Within Groups 79.206 103 .769

Total 92.660 106

Between Groups 7.493 3 2.498 3.326 .023

CR Within Groups 78.856 105 .751

Total 86.349 108

Between Groups 17.212 3 5.737 8.958 .000

CM Within Groups 65.330 102 .640

Total 82.542 105

Between Groups 15.291 3 5.097 6.822 .000

CA Within Groups 79.200 106 .747

Total 94.491 109

ONEWAY SC CR CM CA BY Q2

HYPOTHESIS: There is no significant difference between the Gender and staff conduct ,
credibility , customer accessibility , communication

The significance value is less than 0.05

Ho is rejected

There is a significant difference between the gender and staff conduct , customer accessibility ,
communication

24
Ho is accpeted

There is no significant difference between the gender and credibility

CORRELATION

SC CR CM CA

Pearson
1 .845** .770** .807**
Correlation
SC
Sig. (2-tailed) .000 .000 .000

N 107 107 105 106

Pearson
.845** 1 .835** .785**
Correlation
CR
Sig. (2-tailed) .000 .000 .000

N 107 109 106 108

Pearson
.770** .835** 1 .790**
Correlation
CM
Sig. (2-tailed) .000 .000 .000

N 105 106 106 105

Pearson
.807** .785** .790** 1
Correlation
CA
Sig. (2-tailed) .000 .000 .000

N 106 108 105 110

**. Correlation is significant at the 0.01 level (2-

tailed).

HYPOTHESIS: There is a positive relationship between the staff conduct, credibility,

communication, customer accessibility

Ho is rejected

There is a high positive relation between the staff conduct , , credibility , communication ,
customer accessibility

25
STAFF CONDUCT VS COMUSTOMER
ACCESSIBILITY

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .807a .651 .648 .55338

a. Predictors: (Constant), SC

ANOVAa

Model Sum of Df Mean Square F Sig.

Squares

Regression 59.491 1 59.491 194.269 .000b

1 Residual 31.848 104 .306

Total 91.340 105

a. Dependent Variable: CA

b. Predictors: (Constant), SC

HYPOTHESIS: There is no significant difference between the communication and customer

accessibility

The significance value is less than 0.05

Ho is rejected

There is a significant difference between the communication and customer accessibility

There is a 64.8 relationship between the communication and customer accessibility

26
 CHAPTER V
FINDINGS AND CONCLUSION

27
FINDING

There is high positive correlation between the staff conduct, credibility, communication,
customer accessibility. From the regression analysis we found out that there is 64.8%
relationship between the communication and customer accessibility. We can also conclude that
the age and gender of the customer doesnt have an impact on the staff conduct , credibility ,
communication of the bank employees.

CONCLUSION

The past decade was one of intense change and explosive innovation. New
technologies emerged more frequently, disrupting the stability of entire markets. Customers
became more mobile, informed and demanding. And competitors became more adept at quickly
improving their improving their operations. As a result, companies watched as processes and
technologies that once provided competitive advantage became baseline capabilities. With the
standard of excellence continually rising, companies have been forced to outdo themselves with
each successive customer initiative. Companies must continue their efforts to build loyalty and
retain customers while ensuring that investment can generate profitable returns. Product and
service enhancements that required small incremental investments offer the potential to earn
loyalty in such a way that benefits all customers and meets ROI requirements. There are
significant profits to be gained through better management of marketing investment and practical
application of marketing processes. Applying these principles to retention marketing helps in
strategic planning. As more vulnerable and valuable customers are targeted, more can be
invested to keep customers and build loyalty. These processes, techniques, and tools are designed
to capture the benefits of greater integration and balance customer relationship initiatives with
appropriate levels of investments.

The banking industry is much further along than other industries in recognizing the
value of customer relationship management and implementing decision support system to
support it. An effective decision support system for CRM enables you to collect data about your
customer from every touch point, consolidate this information into a single view of the customer,
and use this information for customer profiling, segmentation, cross-selling, up-selling and
retention no surprise that investment in CRM system is expected to grow at a compound rate

28
APPENDIX

29
APPENDIX: 01 QUESTIONNAIRE

CRM PRACTICE IN INDIAN BANK

QUESTIONNAIRE FOR THE CUSTOMERS

1. Age: a. 20-25 b.26-35 c.36-45 d.46-55 e. above 56

2. Gender: a. Male b. Female

3. Marital status: a. Single b. Married

4. Qualification of the customer: a. Secondary certificate b. Diploma degree c. Bachelor degre

e d. Higher education degree

5. Which area are you working in? a. Private Sector b. Government Sector c. Own business d.
Others

6. Number of years of having an account with the bank: a. 1-5years b. 6-10years c. 11-15years
d. above 16years

7. What kind of account do you primarily have with the bank? a. Current account b. Savings ac
count c. foreign account d. Premier account

8. Are you satisfied with how customers are treated by bank officials? a. Yes b. No

9. Have you ever lodged a complaint before? a. Yes b. No

If Yes,

10. What type of complaint did you lodge? a. ATM retraction b. Delayed Cheque book c. Non
delivery of statement d. Balance inconsistencies e. Delayed loan process

11. How long did it take for your complaint to be resolved? a. Promptly b. Fairly c. Delayed

12. Were you satisfied with the outcome? a. Yes b. No

13. Are you aware of the services the ATM offers? a. Yes b. No

14.Can you say that the ATMs at Indian Bank are reliable? a. Yes b. No

15. Have you ever issued a cheque to a third party before? a. Yes b. No

16. Did you receive a call from staff for confirmation before payment was made? a. Yes b. No

17. Have you ever received a care call from Indian Bank before? a. Yes b. No

18. Does the bank consult you when introducing new products? a. Yes b. No

30
19. If yes how were you consulted? a. Sms alert b. Phone call c. Emails d. Focus discussion gr
oup

20. How do you wish to be consulted by the bank when introducing new products? a. Sms alert
b. Phone call c. Emails d. Focus discussion group

21. Do you feel welcome when you visit any Indian Bank Branch? a. Yes b. No

22. Are you attended to on time when you come to this branch to transact business? a. Yes b. N
o

23. Have you ever been visited by a bank staff before? a. Yes b. No

24. If yes how often? a. Weekly b. Monthly c. Quarterly d. Yearly

BANKING SERVICE QUALITY

DIMENSION 1 : STAFF CONDUCT

25. Branch staffs are willing to help me

12345

Strongly disagree Strongly agree

26. Service of the branch staff is very prompt

12345

Strongly disagree Strongly agree

27. Branch staffs are courteous

12345

Strongly disagree Strongly agree

28. Expression of genuine concern if there is a mistake in my account

12345

Strongly disagree Strongly agree

29. Staffs of this branch are facilitators

12345

Strongly disagree Strongly agree

31
30. Staffs of this branch are neat

12345

Strongly disagree Strongly agree

31. Staffs of this branch is ready to apologize for a mistake

12345

Strongly disagree Strongly agree

DIMENSION 2 : CREDIBILITY

32. Branch staff keeping me informed about matters of concern about me

12345

Strongly disagree Strongly agree

33. Branch staff is able to rectify a mistake

12345

Strongly disagree Strongly agree

34. I feel secured in my dealings with the branch staffs

12345

Strongly disagree Strongly agree

35. Branch staff helping me, to learn how to keep down my banking costs

12345

Strongly disagree Strongly agree

36. Branch staffs are knowledgeable about bank's services and products

12345

Strongly agree

37. Branch staffs give quality advice about managing my finances

12345

Strongly disagree Strongly agree

32
38. Branch staff telling me about the different types of accounts and investment available

12345

Strongly disagree Strongly agree

39. Branch staff telling me about ATM and net banking facilities

12345

Strongly disagree Strongly agree

DIMENSION 4: CUSTOMER ACCESSIBILITY

40. This branch has sufficient number of counters to meet service requirements

12345

Strongly disagree Strongly agree

41. Branch staffs are providing service requirements even after banking hours

12345

Strongly disagree Strongly agree

33
REFERENCES

Judith, W. Kincaid. Customer Relationship Management, 5th Edition, 2011, Repo India Ltd.

Zikmund, G. William, Raymond Meleod, JR. Faye, W.Gilbert. Customer Relationship

Management Integrated Marekting Strategy and Information Technology, International ed.

Berson, Alex, Stehphen Smith, Kurt Thearling Building Data Mining Applications for CRM
Edition 2000, Tata Mcgraw-Hill.

Malhotra N.K. (2000). Marketing Research An applied Orientation. New Jersy: Prentice Hall
International, Inc.

Kotler, Philip. Marketing Management Analysis, Planning, Implement and Control, 3rd ed.
Englewood Cliffs, N.J.U.S.A. Prentice Hall Inc.

Hawkins, Del L, Rager J Best Kenneth A Coney, Consumer Behavior. Building Mareting
Strategy 8th ed. Irwin/Mcgraw Hill.

Delozier, M. Wayne. The Marketing Communication Process, Mcgraw-Hill Book Company

www.en/wikipedia.org/wiki/customer_relationship_management

www.en/wikipedia.org/wiki/customer_lifecycle

www.en/wikipedia.org/wiki/customer_lifevalue_management

www.en/wikipedia.org/business_relationship_management

www.google/research/crm

34