New to bank - Acquisition

Name: Aditi Gupta

Date :
 INTRODUCTION

 About HDFC Bank

 HDFC - Housing Development Finance Corporation.

 HDFC Bank is an Indian Financial services company based in Mumbai , that

was incorporated in August 1994.

 HDFC Bank commenced operations as a Scheduled Commercial Bank in

January 1995.

 HDFC was amongst the first to receive an ‘in principle’ approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector.

 HDFC Bank was the first in India to launch an International Debit Card in
associated with VISA.
 On March 14, 1995, HDFC Bank went public with the launch of its IPO.

 In February, 2000, Times Bank Limited merged with HDFC Bank Ltd. This
was the first merger of two private banks in the New Generation Private
Sector Banks category.

 The equity shares of HDFC Bank are listed on the Bombay Stock Exchange
and the National Stock exchange of India.

 Best banking Performer , India in 2016 by Global Brand Magazine Award.

 NETWORK

 4,787 branches

 12,635 ATM’s in the country

 2,691 cities in India

 75 branches in Jammu and Kashmir

 All branches are OLRT connected

 16 branches in Middle east

 6 in Africa

 Representative offices in Hong Kong, New York, London & Singapore

 MISSION

 Mission is to be a “World Class Indian Bank“.

VISSION

 The HDFC Bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. HDFC
Bank’s business philosophy is based on four core values such as:-

 Operational excellence.
 Customer Focus.
 Product leadership
 BUSINESS STRATEGY

 Delivering more product to more customer.

 Delivering high quality customer service.

 Develop innovative products and services that attract targeted

customers and address inefficiencies in the Indian financial sector.

 Maintaining current high standards for asset quality through

disciplined credit risk management.
 PRODUCTS & SERVICES

Credit and Mutual

Loans
debit card funds

Insurance Deposits
PROJECT :- NEW TO BANK AQUISITION

It means to acquire a new customer and to retain

the old ones. Acquiring a new customer involves
persuading consumer to purchase a company’s
product or service .
 NEW TO BANK: ACQUISITION
STRATEGIES OF HDFC BANK FOR CUSTOMER ACQUISITION
1. Advertising : HDFC indulges in advertising at a great level be it in print media
or television ads.
2. Targeted marketing : Through direct mails ,direct contact or one to one
interactions ,SMSs.
3. Event based marketing : HDFC launches many campaigns to spread information
about its new services and products.
4.Other than these on branch level also the bank indulges in certain targeting and
acquisition activities for gaining more customers:
1. One to one interaction with the customers on day to day basis.
2. Phone calls and mails.
3. Special agents/brokers are appointed to generate leads for acquiring new
customers.
 QUESTIONNAIRE:

A structured questionnaires, for finding level of awareness among new customers

and for studying perception of existing customers is used .Questionnaire used is
closed ended questionnaire.
 DATA COLLECTION METHOD:

• Primary data- The primary data are collected through questionnaire .

• Secondary data- The secondary data has been collected through communication
Books and company’s website.

 ANALYSIS FRAMEWORK:

 The data collected through survey have been carefully, meaningfully analyzed by
well established tools like:
Bar graphs and pie charts
 RESEARCH METHODOLOGY
 Title of the Research:

 “New to bank – Acquisition”.

 DURATION OF RESEARCH:

 5 June 2018 to 31 July 2018

 RESEARCH OBJECTIVE

1. To analyze customers level of awareness about the Bank.

2. To study the factors guiding the customers choice to open an account with HDFC Bank.
3. To study the customer satisfaction relating to services provided by HDFC Bank.
 RESEARCH :
Exploratory & Descriptive research : Exploratory Research means a research
conducted to for formulating a problem for more clear investigation. Descriptive
Research is a research that explore and explain an individual , group or a
situation.

 SAMPLING UNIT:

HDFC BANK LTD. Rehari, Jammu.

 SAMPLE SIZE:

68 people

 SAMPLING TECHNIQUE:
Convenience Sampling
 ANALYSIS AND INTERPRETATION

CUSTOMER -ANALYSIS

 DEMOGRAPHIC QUESTIONS

 GENDER

 Interpretation: Out of 68 customers interacted, 44.1% are males i.e. 30 and 55.9% were
females i.e.38.
  AGE GROUP

 Interpretation : 67.6% customers belonged to the age group 21-30 i.e 46 people ,11.8% were
of 31-40 i.e 8 people ,8.8% were 41-50 i.e. 6 people and 11.8% customers belonged 51-60 i.e. 8
people.
  EDUCATION

 Interpretation : Out of
68 customers 51.5% were graduate ,47.1% were post graduate and
1.5% were higher secondary graduates.
 PROFESSION

 Interpretation:
Out of 68 respondents; 33.8% were students,11.8% were government
employees, 30.9% were private sector employees, 11.8% were businessman and about 11.8%
of them belonged to some other occupation.
 INCOME GROUP:

 Interpretation: Out of68 respondents; 35.3% were students, 10.3% of them earned
below 2 lakh 22.1% of them earned 2-5 lakhs annually, 17.6% of them earned 5-10
lakhs annually, and rest of them earned 10-30 lakhs and above respectively.
  Have you ever heard about HDFC bank?

 Interpretation: Out of 68 respondents; 98.5% have heard about it and 1 person was not sure
about the same.
 Are you a customer of HDFC bank?

 Interpretation: Out of68 respondents 42.6% were customers of the bank and 57.4% were
not the customers of the bank.
 From where did you come to know about the HDFC bank?
 Interpretation: Most number ofpeople came to know about the bank through their family
and friends then second most successful medium was Print Media followed by Broadcast
Media and Outdoor advertisement.
 Do you have any friend or family member availing HDFC services?

 Interpretation : Out of39 respondents, 64.1% people had either their family member
or friend availing HDFC services,15.4% people didn’t have any one known to them
availing services while 20.5% were not sure about the same.
 Are you aware of the benefits that HDFC bank offers to its customers?

 Interpretation:
41% people were aware about the benefits offered by the bank to its customers ,
while 59% people were not aware.
  Which of these products or services are you most interested in?
 Interpretation: About 51.3% of the people were willing to avail the saving account
services. After that, about 41% of the people were willing to avail credit/debit cards
facilities. Then fixed deposits (33.3%), mutual
funds(28.2%),insurance(28.2%),trading/demat account(10.3%) and NRE/NRO
account(5.1%) and about 23.1% of people were not interested in availing any of the
services.
  What are the various characteristics that you look for while choosing bank?
 Interpretation: Maximum number of people gave precedence to advance technology (84.6%). About
76.9% people were inclined towards security. While 69.2% people said well educated and qualified
staff is important for them. About 61.5% of the people look for alternate banking services as a
necessary requirement & good ambience, infrastructure were given least precedence i.e. 51.3% and
33.3% respectively.
  Do you think HDFC bank is better than your bank?

 Interpretation: Out of
39 respondents, 69.2 % of the people were not sure if HDFC bank is better than
there bank. About 25.6% gave negative response saying HDFC is not better than there bank, while
5.1% said HDFC is better.
  How was your first experience with HDFC bank?

 Interpretation :About 74.4% of the people never had any first hand experience with the
bank . While 10.3% of the people had satisfying experience with the bank. 7.7 % had
unsatisfying experience. 5.1 % had highly unsatisfying experience and only 2.6% people
were highly satisfied in their first encounter with the bank.
  In future if you ever avail HDFC services , do you think it will be able to fulfil your
requirements?
 Interpretation: About 79.5% of the people gave 50-50 response. 15.4% were positive and rest 5.1%
gave a negative response.
 How long have you been availing HDFC bank services?
 Interpretation : Out of29 respondents , 24.1% of the customers are associated
with the bank since 1 year , 31% since 2 years, 17.2% since 3 years , and 3.4%
and 24.1% since 4 years and 5 years or more respectively.
  Will you recommend HDFC bank to your family or friends?

 Interpretation : About 96.6% gave positive response saying they will recommend
HDFC bank to their family and friends displaying there level of satisfaction with
products and services provided by the bank. While 3.4% of the customers said they
will not recommend it to friends or family.
  Do you think other banks are better than HDFC bank?

 Interpretation : It is observed that 27.6% people gave a negative response

saying other banks are better where as 27.6 % of them contradicted the
question saying HDFC is better. While 44.8% said they are not sure about the
same.
  What parameters do you think HDFC bank should improve upon?

 Interpretation :About 65.5% of people suggested reduction of charges for various

services . 31% of the people suggested improving the service quality. 17% of the people
suggested to improve the problem solving capability. 13.8% people suggested to improve
both technology and staff. 24.1% of the people suggested to improvise the advertisement
strategy. Rest 3.4% laid emphasis on improving security and infrastructure.
 FINDINGS AND SUGGESTIONS
Research was performed taking responses randomly from people and 68 responses were generated from
the customers 39 out of them were new to bank and did not have a previous relationship with the bank
and 29 of them were old customers to the bank having accounts in bank.

 FINDINGS
 Following findings were made out of this data:
 Awareness level of the respondents was judged and about 98.5% of the people have heard
about the bank and were aware of its existence.
 67.6% of the respondents belonged to the age group 21-30.
 Most number of people came to know about the bank either, through their family/friends or
Print Media.
 The bank is quite good in communicating details as 41% of the people were aware about
the benefits offered by the bank to its customers.
 Most recognized products were savings account (51.3%), credit/debit card (41%), fixed
deposits (33.3%) followed by insurance and mutual funds (28.2%).
 About 23.1% of the people were not interested in availing any of the services.
 Most number of people look for advance technology and security, some look for well-
educated/qualified staff and alternate banking services as a necessary requirement while
choosing a bank.
 FINDINGS AND SUGGESTIONS

 About 74.4% of the people never had any first hand experience with the bank and 15.4% were sure if
they ever encounter any such situation the bank will be able to fulfil there requirements.
 About 96.6% of the existing customer gave positive response saying they will recommend HDFC
bank to their family and friends displaying their level of satisfaction with products and services
provided by the bank.
 About 65.5% of customer suggested reduction of charges for various services. 31% of the people
suggested improving the service quality. 17% of the people suggested to improve the problem
solving capability. 13.8% people suggested to improve both technology and staff. 24.1% of the people
suggested to improvise the advertisement strategy. Rest 3.4% laid emphasis on improving security
and infrastructure.
 SUGGESTIONS
 Bank indulges in vigorous advertisement through direct mails and posters and banners and target
marketing but it should work towards building ad campaigns and hosting events creating a
relationship with the people also some CSR activities should be undertook to reach out customers
emotional value.
 Word of mouth plays a great role in awareness among people so the bank should work towards
creating a better word of mouth about themselves by focusing on previous customers of the bank and
their satisfaction.
 The bank lacks in communicating to the customers about the details of benefits and interest rates
offered and other internal details like yearly charges, ,maintenance charges. By hosting certain
events and also in their advertisements they should communicate the details to create a trust.
 Also all services offered should be advertised and communicated as there came out to be a lack of
knowledge about the products and services
 Some characteristics of the bank were found to be desirable such as its presence in top ranking
banks and its efficient working such qualities should pe stressed upon in advertisements.
 From customers point of view bank needs improvements in increasing number of free transactions,
reduction in quarterly and yearly charges and increasing interest rates on savings accounts
 LIMITATIONS

 Scope of study was very narrow as sample size was very limited.
 Duration of study could have affected the results.
 Due to lack of time, customers did not fill the questionnaires attentively.
 As the customers were busy, deep analysis and assessment was not possible before filling the
questionnaire.
 CONCLUSION

In the world of cut throat competition it is mandatory to acquire new customers as much as
an organization can. To acquire new customers banks indulge in creative strategies of
marketing and advertisement .HDFC being a top runner in banking industry in India has to
keep competing constantly in the market and work towards acquiring customers. Nowadays
banks have changed their orientation as to a study shows that acquisition cost of new
customers is greater than the retention cost. Thus firms are focusing towards building
better customer relations .
A new to bank customer is the one who doesn’t have a relation with the bank ,customer
centric approach says that bank should focus on what customer requires . To acquire new
customers first and foremost generating awareness about the bank among people is
necessary which requires putting in efforts in advertising and creating a positive word of
mouth. This can be done by focusing on improving quality of service and customer
satisfaction. This research gives the bank insight into level of awareness among people
about HDFC which comes out to be satisfactory and also suggests the bank about what
customers looking for Also what is perception about quality parameters in view of old
customers and what can be done to retain them .