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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
34
A STUDY ON CUSTOMER PERCEPTION TOWARDS
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
PRACTICES IN NATIONALISED BANKS
*Mr. T.Partha Saradhy, **Dr. S.E.V.Subrahmanyam, ***Dr. T.Narayana Reddy
*Assistant Professor, Department of Management Studies, Sreenivasa Institute of Technology and
Management Studies, Chittoor.
**Director, Department of Management Studies, Sreenivasa Institute of Technology and
Management Studies, Chittoor.
***Assistant Professor, Department of Humanities, JNTU College of Engineering, JNTUA,
Anantapur.
ABSTRACT
The CRM practices are adopted to generate better understanding of the customers for product
development, segmentation, appropriate targeting, campaign management and maintenance of long
term profitable and mutually beneficial relationships with customers. A very small proportion of its
potential has been utilized. The paper investigates the successful implementation of CRM. An
attempt is made to clear the benefits of Customer Relationship Management. These results were
discussed and analyzed to get results about how far CRM is implemented to secure competitive
advantage. A set of recommendations will be made so as to pinpoint how CRM can be used to secure
competitiveness. The present level of MIS covers, information needed for control, performance
monitoring, decision making. The purpose of this research is to study the comparative use of CRM in
various private sector banks. Customer Relationship Management is an approach to identify the
tastes and preferences of individual, every customer is viewed with his life time value, and not only
for customer satisfaction but customer retention is also more important.
Keywords: Public Sector Banks, CRM Practices, Customers Satisfaction, Retention. 1. INTRODUCTION TO CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management is the business buzzword in these days. Customer
Relationship Management promises faster customer service with lower costs, more customer
satisfaction with better customer retention and ultimately achieving customer loyalty. All this is done
in hope for more sales and profits. According to company’s goals can be best achieved through
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 5, Issue 11, November (2014), pp. 34-47
© IAEME: http://www.iaeme.com/IJM.asp
Journal Impact Factor (2014): 7.2230 (Calculated by GISI)
www.jifactor.com
IJM
© I A E M E
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
35
identification and more satisfaction of the customers' needs and wants. CRM is a system to identify,
target, acquiring, and retaining the best outcome of customers. Customer Relationship Management
helps in understanding customer needs, and in building relationship with customers by providing the
most suitable products and services with enhanced customer service. It integrates all sub systems to
maintain a database of customer contacts, purchases, and technical support, among other things. This
database helps the company in identifying the needs of the customers to improve the quality of the
relationship.
Customer is the king. Forget the meaning of royal treatment of customers, many of the
organizations are not treating the customer with dignity. Doing a favor by answering a few questions
of the customers on the phone – after putting them on hold for an hour! Standing in line to buy
something was common and expected. The customers go to airports to buy a ticket because the
airlines kept them there.
Nowadays, many businesses such as banks, insurance companies, and other service providers
realize the importance of Customer Relationship Management (CRM) and its potential to help them
acquire new customers retain existing ones and maximize their lifetime value. At this point, close
relationship with customers will require a strong coordination between IT and marketing
departments to provide a long-term retention of selected customers.
The phenomenon of globalization has paved the way for the entry of new generation
multinational (foreign) banks in general and private sector banks in particular into the Indian banking
market. Several banking experts argue that the world class services that are offered by these new
generation banks have a tremendous bearing on the mindset and expectations of Indian banking
customers. The services that are offered by these banks are characterized on a 24 hour X 7 day a
week basis with a focus on delivering higher quality of service across the multiple channels. In this
context, phone banking and internet technologies have emerged as a major option before the Indian
banks. In addition to these modern services such as Tele-banking, Internet banking, Mobile banking,
and Automated Teller Machine (ATM) banking are also offered by Indian banks to serve customers
better. It is against this backdrop, the studies on understanding the demographics of customers’ and
their attitudes towards customer relationship management (CRM) practices are gaining importance.
Several researches studies that were conducted on the customer service aspects of Indian banking
scenario, highlighted the need for designing effective
Customer relationship management (CRM) systems for enhancing the customer satisfaction
and loyalty, Reserve Bank of India (RBI) instructed all public sector banks to focus on implementing
innovative customer relationship management (CRM) systems through multiple touch points of
CRM systems such as call centers, websites, email systems and interactive kiosks across various
service units and support processes. Research studies further revealed that customer relationship
management (CRM) is emerging as an offshoot of the modern technological landscape by
incorporating customer demographics, business intelligence, and Internet proximity and therefore
takes its place at the heart of the modern banks. These technological advancements and global
competitive pressures have reoriented the public sector commercial banks in India to pay more
attention to the changing customer needs and effective CRM interventions in the light of the changes
in the consumer demographics.
The forces of change shaping the banking and financial system worldwide are fundamental
and constant. The intense competitive pressure on the financial system has generated a variety of
products and services to meet the specialized needs of millions of customers. The impact of these
changes in the international financial system was felt in India in the early nineties when she initiated
the process of integrating her economy with the global economic order. This ushered in the phase of
financial sector reforms in our country. Reforms, which are primarily aimed at aligning the Indian
banking system to the international best practices, are having lasting effect on the entire fabric of the
Indian financial system which is presently undergoing a major phase of metamorphosis. While
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
36
reflecting on the dynamics of this change and its implications in the management of banks, one need
to emphasize the phenomenal growth profile of the Indian banking industry in retrospect and
prospect in terms of business, branch network, etc. Correspondingly, the average population served
per bank branch has come down significantly. The cultural diversity, vast geographical spread and
federal character of the country are amply represented in the complexity of the banks' operations.
There has been a perceptible change in the environmental scenario in banking and finance since the
early nineties, and, consequently, managing these institutions efficiently is a major and continuous
challenge.
Adoption of CRM Technology in Banking System Information Technology revolution had a great impact in the Indian banking sector. The use
of computers software had led to introduction of online banking system in India. The use of the
modern innovation and computerization of the banking industry in India has improved after
economic liberalization in the year 1991 as the country's banking sector has been exposed to the
world's market. The Indian banks were finding it difficult to compete with the international banking
standards in terms of customer service to provide convenience without the use of the information
technology and computer system and software.
Reserve Bank of India in the year 1984 formed Committee on Mechanism in the Banking
sector whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major
recommendations of the committee were implementing MICR Technology in all the banks in the
metropolis in India. It provided us standardized cheque forms and encoding and decoding system.
In the year 1994, the Reserve Bank of India set up Committee on Computerization in Banks
was headed by Dr. C.R. Rangarajan which emphasized that the settlement operation must be
computerized in the clearing houses of Reserve Bank of India in Bhubaneswar, Guwahati, Jaipur,
Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-city
cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made Operational. It also focused
on computerization of banking services in all branches and increasing connectivity among branches
through computers. It also suggested implementing on-line banking facilities.
The committee submitted reports in the year 1989 and computerization of all branches started
form the year 1993 with settlement between IBA and bank employees' association.
In the year 1994, Committee on Technology Issues relating to Payments System, Cheque
Clearing and Securities Settlement in the Banking sector was set up with chairman Shri.WS Saraf,
Executive Director, Reserve Bank of India. It emphasized on Electronic Funds Transfer (EFT)
system, with the internet communication network as its carrier. It also said that MICR clearing
should be set up in all banks with more than 100 branches.
Introduction to State Bank of India
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in the year 1806. Three years later the bank received
its charter and was re-designed as the Bank of Bengal in the year 1809. A unique institution, it was
the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of
Bombay established in the year 1840 and the Bank of Madras in the year 1843 followed the Bank of
Bengal. These three banks remained at the apex of modern banking system in India till their
amalgamation as the Imperial Bank of India in the year 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence with a
compulsion of imperial finance or by the felt needs of local European commerce and were not
imposed from outside in an arbitrary manner to modernize Indian banking system and it helps for
developing Indian economy. Their evolution was shaped by ideas from similar developments in
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Europe and England and was influenced by changes occurring in the
urban trading environment.
Introduction to Andhra Bank
Andhra Bank is a public sector bank, with a network of
counters, 38 satellite offices and 1563
in to the states of Tripura and Himachal Pradesh. The bank now operates in 25 states and three Union
Territories.
The government of India owns 58% of its share capital and is
62.14% by infusing 2 billion in capital. The state owned
10% of the shares. The bank has done a total business of
March 2013.
Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilised amongst all
the agency banks dealing with the Life Insurance Corporation of India. The bank also has tie
United India Insurance Company Limited under Banc
Dr. Hhogaraju Pattabhi Sitaramayya founded Andhra Bank in 1923 in Machilipatnam,
Andhra Pradesh. The bank was registered on 20 November 1923 and commenced business
year 1923 with a paid up capital of
linguistic division of states was promulgated and Hyderabad was made the capital of
Pradesh. The registered office of the bank was subsequently shifted to Andhra Bank Buildings,
Sultan Bazar, Hyderabad, Telangana. In the second phase of
commenced in the year 1980, the bank became a wholly owned G
2. REVIEW OF LITERATURE
This study was relevant to the previous studies and researches
subject to find out and fill up if any
generally be found, number of books is
loan syndication, securitization, profitability and productivity etc. but, few studies
the role of Customer Relationship Management
Uppal R.K. (2010) Explains in his study about
banking industry during 2000-2007. The study concludes that among all
while mobile banking and it does not hold a strong position in public and old private
new private sector banks and foreign banks
average branches providing mobile
in e-banks which have positive impact on profits
all, foreign banks are in the top position followed by new private sector banks in providing
banking services and their efficiency is also much higher as compared to other groups. The
also suggests some strategies to improve m
Oghenerukeybe E. A. (2009)
influencing the effective implementation of existing
banking web browsers using the Communication
proposed by Wogalter in the year
very effective at alerting and shielding
participants do not understand the full meaning of the banking sites while the attention of some
users is not captured enough, for they ignore the warnings completely. Even with the presence
participants still go ahead to submit sensit
management of banks develop effective security strategies for the future of electronic
Nigeria.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
37
and was influenced by changes occurring in the structure of both the lo
is a public sector bank, with a network of many branches,
counters, 38 satellite offices and 1563 ATMs as on 30 Nov 2013. During 2011
states of Tripura and Himachal Pradesh. The bank now operates in 25 states and three Union
The government of India owns 58% of its share capital and is planning
62.14% by infusing 2 billion in capital. The state owned Life Insurance Corporation of India holds
10% of the shares. The bank has done a total business of 2230 billion for the fiscal year ended 31
Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilised amongst all
gency banks dealing with the Life Insurance Corporation of India. The bank also has tie
United India Insurance Company Limited under Banc assurance
Dr. Hhogaraju Pattabhi Sitaramayya founded Andhra Bank in 1923 in Machilipatnam,
e bank was registered on 20 November 1923 and commenced business
1923 with a paid up capital of 100000 and an authorized capital of 1million
tates was promulgated and Hyderabad was made the capital of
Pradesh. The registered office of the bank was subsequently shifted to Andhra Bank Buildings,
Sultan Bazar, Hyderabad, Telangana. In the second phase of nationalization
1980, the bank became a wholly owned Government bank.
REVIEW OF LITERATURE
This study was relevant to the previous studies and researches in the related
if any research gaps existed. Literature on
of books is available on banking related aspects as merchant
loan syndication, securitization, profitability and productivity etc. but, few studies
Customer Relationship Management in the banking services.
Explains in his study about the extent of mobile banking in Indian
2007. The study concludes that among all CRM
does not hold a strong position in public and old private
private sector banks and foreign banks in mobile banking is good enough with nearly 50 pc
obile banking services. Mobile banking customers are also the highest
which have positive impact on profits and business per employee of these banks. Among
the top position followed by new private sector banks in providing
banking services and their efficiency is also much higher as compared to other groups. The
ts some strategies to improve mobile banking services.
Oghenerukeybe E. A. (2009) he explained in his study about user’s perception
ve implementation of existing objectives and to evaluate
browsers using the Communication-Human Information Processing Model
the year 2006 in the field of warning sciences. Findings reveal that
very effective at alerting and shielding users from revealing sensitive informa
understand the full meaning of the banking sites while the attention of some
users is not captured enough, for they ignore the warnings completely. Even with the presence
participants still go ahead to submit sensitive information. These outcomes may
management of banks develop effective security strategies for the future of electronic
6502(Print), ISSN 0976 - 6510(Online),
structure of both the local and
branches, it has 15 extension
as on 30 Nov 2013. During 2011–12, the bank entered
states of Tripura and Himachal Pradesh. The bank now operates in 25 states and three Union
planning to increase it to
Life Insurance Corporation of India holds
2230 billion for the fiscal year ended 31
Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilised amongst all
gency banks dealing with the Life Insurance Corporation of India. The bank also has tie-up with
Dr. Hhogaraju Pattabhi Sitaramayya founded Andhra Bank in 1923 in Machilipatnam,
e bank was registered on 20 November 1923 and commenced business in the
million in the year 1956,
tates was promulgated and Hyderabad was made the capital of Andhra
Pradesh. The registered office of the bank was subsequently shifted to Andhra Bank Buildings,
nationalization of commercial banks
overnment bank.
in the related fields. The
. Literature on banking services can
available on banking related aspects as merchant banking,
loan syndication, securitization, profitability and productivity etc. but, few studies are undertaken on
the extent of mobile banking in Indian
CRM is the most effective
does not hold a strong position in public and old private sector but in
banking is good enough with nearly 50 pc
banking customers are also the highest
and business per employee of these banks. Among
the top position followed by new private sector banks in providing mobile
banking services and their efficiency is also much higher as compared to other groups. The study
user’s perception of factors
objectives and to evaluate the effectiveness of
Information Processing Model, a model
ciences. Findings reveal that is not
users from revealing sensitive information. 27 percent
understand the full meaning of the banking sites while the attention of some
users is not captured enough, for they ignore the warnings completely. Even with the presence of
ive information. These outcomes may help the
management of banks develop effective security strategies for the future of electronic banking in
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
38
Migdadi Y.K.A. (2008) he revealed in his investigation to identify the quality of internet
banking service encounter of the retail banks in Jordan, and to identify the quality aspects that should
be improved or sustained. The study evaluates the banks' web sites by using the web site quantitative
evaluation method in the year 2008 for sixteen retail banks in Jordan. The results indicate that the
banks in Jordan have significant positive quality of the internet banking system and service
encounter, further the banks' web sites are rich in their content and significant in the navigation, but
the speed of home page down load and web site accessibility should be developed in the future for
better results.
Banknet India (2006) he concluded after conducting an online survey on 316 ATM users
during the month of August-September, 2006 and survey is limited to India to get insight into users’
perceptions. It is concluded from the survey that the most use (56 pc) of ATM services is for bill
payments and pre-paid mobile recharge where 64 pc respondents feeling comfortable with depositing
of cash/cheques through ATM but they have to wait in long queues and find no money left in the
machine. Most of the respondents claimed to know about fee charged at other bank ATMs and 20 pc
demand more privacy. Overall conclusion is ATMs are preferred over branch banking by majority of
the respondents show the increasing popularity of e-banking among the public sector banks.
3. NEED FOR THE STUDY
Advanced Customer Relationship Management technology requirement increased because of
competitive pressures in banking industry, particularly in banking services. Indian banks are
functioning increasingly with competitive pressure within the banking system from non banking
institutions as well as from domestic and international capital markets.
In this era of increased competition, in order to improve standards it will be benefit able for
the banks to develop long term relationship with the customers by offering superior quality and
services. Developing long term relations with the potential customer depends on three dimensions
like service quality, product quality and relationship quality. In banking industry since the perceived
service quality acts as a foundation for developing long-term customer relationship, the present study
is mainly undertaken to present the customer perception on CRM and to study the perceived services
and its quality provided by the bank system.
4. THE PRIMARY OBJECTIVE OF THE STUDY
The primary focus of this study is on the role of customer relationship management in
banking sector, the banking employees’ relation with its customer to maximize customer satisfaction.
The study conducted to find out the customer relationship management factor influencing on
customer satisfaction as well as customer retention through analysis
To identify the important factors for select a particular bank and identified factors influencing
the bank with selected sample customers of focus pre selected banks. The identified factors which
are influencing are quality of service, and personal relation effectiveness of customer relationship
management techniques. This study is based on 250 customers of SBI and ANDHRA banks.
5. OBJECTIVES OF THE STUDY
The main objectives of the study are as follows.
1. To study the perception of SBI & ANDHRA BANK customers about Customer Relationship
Management.
2. To analyze the perceived service quality of the customers towards their bankers.
3. To study the CRM practices adopted by the banks to improve banking performance.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
39
6. SCOPE OF THE STUDY
The scope of the study is limited to the survey of customers perception of selected public
sector commercial banks namely State Bank Of India(SBI), ANDHRA Bank in chittoor district of
Andhra Pradesh.
7. RESEARCH METHODOLOGY
To achieve designed objectives of the study and to analyze the different factors with
appropriate methodology has been adopted. The present study is exploratory as well as descriptive.
The survey was conducted during August and October 2014. The present study is based on primary
and secondary data. The primary data has been collected from a sample of 250 customers of State
Bank of India and ANDHRA Bank Chittoor in district of Andhra Pradesh. The Primary data has
been collected with a well structured and pre tested questionnaire which was based on Likert five
point scale, secondary data has been collected through internet and websites of selected banks.
The customer perception of State Bank of India and ANDHRA bank on Customer
Relationship Management was judged on the variables like Routinely asking the customer to
provide feedback, Providing customized services and products, Transparent and well defined system,
Bank website is user friendly, Communication tools are very effective, Well developed privacy
policy, Increasing customer convenience, Consistent customer experience, Customer is the biggest
asset of the organization, Retaining existing customers, Conducting customer loyalty programmes,
Excellent employee response, ATMs are adequately provided.
Apart from the questionnaire being used for data collection, personal discussions were also
conducted with the respondents to get further information. The data so collected has been analyzed
with statistical techniques like percentages, averages and charts.
8. ANALYSIS AND INTERPRETATION
Table 8.1: representing customer perception on CRM in banks
S. No Variable Name SA A N D SD
1. Routinely asking the customer to provide feedback 20 25 100 55 50
2. Providing customized services and products 110 70 60 10 0
3. Transparent and well defined system 120 100 10 13 7
4. Bank website is user friendly 50 120 30 30 20
5. Communication tools are very effective 72 80 50 28 20
6. Well developed privacy policy 120 100 20 7 3
7. Increasing customer convenience 40 60 60 50 40
8. Consistent customer experience 90 120 20 15 5
9. Customer is the biggest asset of the organization 95 110 40 3 2
10. Retaining existing customers 50 150 30 10 10
11. Conducting customer loyalty programmes 50 50 100 25 25
12. Excellent employee response 30 100 100 10 10
13. ATMs are adequately provided 120 100 30 0 0
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.2: representing customer pe
Inference: 8% of customers are strongly agree
provide feedback 10% of customer
disagree the statement.
Table 8.3: representing customer perception on the statement ‘
Inference: 44% of customers are strongly agree the
and products, 28% of customer agree
the statement.
Opinion No. of
Respondents
Percentage
Strongly
Agree
20
Agree 25
Neutral 100
Disagree 55
Strongly
Disagree
50
Total 250
Opinion
No. of
Respondents
Percentage
Strongly
Agree
110
Agree 70
Neutral 60
Disagree 10
Strongly
Disagree
0
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
40
customer perception on the statement ‘Routinely
to provide feedback’
omers are strongly agree the statement bank routinely asking customer
% of customers agree, 40% of customers are neutral and 42
customer perception on the statement ‘Providing customized
and services’
ustomers are strongly agree the statement bank providing cus
28% of customer agree, 24% of customers are neutral and 4%
Percentage
(%)
8
10
40
22
20
100
Percentage
(%)
44
28
24
4
0
100
6502(Print), ISSN 0976 - 6510(Online),
Routinely asking the customer
routinely asking customers to
of customers are neutral and 42% of customers
oviding customized products
k providing customized services
% of customers disagree
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.4: representing customer perception on the statement ‘
Inference: 48% of customers are strongly agree th
defined system, 40% of customer
the statement.
Table 8.5: representing customer perception on the statement ‘
Inference: 20% of customers are strongly agree that bank website is user friendly
agree 12% of customers are neutral and 20
Opinion
No. of
Respondents
Percentage
Strongly
Agree
120
Agree 100
Neutral 10
Disagree 13
Strongly
Disagree
7
Total 250
Opinion
No. of
Respondents
Percentage
Strongly
Agree
50
Agree 120
Neutral 30
Disagree 30
Strongly
Disagree
20
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
41
customer perception on the statement ‘Transparent and well defined
system’
ustomers are strongly agree that bank is maintaining transp
40% of customers agree, 4% of customers are neutral and 8%
customer perception on the statement ‘Bank website is user friendly
customers are strongly agree that bank website is user friendly
of customers are neutral and 20% customers disagree the statement
Percentage
(%)
48
40
4
5.2
2.8
100
Percentage
(%)
20
48
12
12
8
100
6502(Print), ISSN 0976 - 6510(Online),
Transparent and well defined
bank is maintaining transparent and well
f customers are neutral and 8% of customers disagree
Bank website is user friendly’
customers are strongly agree that bank website is user friendly, 48% of customer
s disagree the statement.
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.6 representing customer perception on the statement ‘
Inference: 29% of customers are strongly agree that bank has effective communication tools
customer agree, 20% of customers are
Table 8.7: representing customer perception on the statement
Inference: 48% of customers are s
customer agree, 8% of customers are neutral and 4
Opinion
No. of
Respondents
Percentage
Strongly
Agree
72
Agree 80
Neutral 50
Disagree 28
Strongly
Disagree
20
Total 250
Opinion
No. of
Respondents
Percentage
Strongly
Agree
120
Agree 100
Neutral 20
Disagree 7
Strongly
Disagree
3
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
42
customer perception on the statement ‘Communication tools are very
effective’
customers are strongly agree that bank has effective communication tools
20% of customers are neutral and 19% of customers disagree the statement
customer perception on the statement ‘Well developed privacy policy
customers are strongly agree that bank has well developed privacy policy
8% of customers are neutral and 4% of customers disagree the statement
Percentage
(%)
28.8
32
20
11.2
8
100
Percentage
(%)
48
40
8
2.8
1.2
100
6502(Print), ISSN 0976 - 6510(Online),
Communication tools are very
customers are strongly agree that bank has effective communication tools, 32% of
customers disagree the statement.
Well developed privacy policy’
well developed privacy policy, 40% of
customers disagree the statement.
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.8: representing customer perception on the statement ‘
Inference: 16% of customers are strongly agree that bank i
customer agree, 24% of customers are neutral and 36
Table 8.9: representing customer perception on the statement ‘
Inference: 36% of customers are strongly
of customer agree 8% of customers are neutral and 8
Opinion
No. of
Respondents
Percentage
Strongly
Agree
40
Agree 60
Neutral 60
Disagree 50
Strongly
Disagree
40
Total 250
Opinion
No. of
Respondents
Percentage
Strongly
Agree
90
Agree 120
Neutral 20
Disagree 15
Strongly
Disagree
5
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
43
customer perception on the statement ‘Increasing customer
convenience’
customers are strongly agree that bank increasing customer convenience
24% of customers are neutral and 36% of customers disagree the statement
customer perception on the statement ‘Consistent customer
experience’
customers are strongly agreed that they have consistent customer experience 48%
of customer agree 8% of customers are neutral and 8% of customers disagree the statement
Percentage
(%)
16
24
24
20
16
100
Percentage
(%)
36
48
8
6
2
100
6502(Print), ISSN 0976 - 6510(Online),
Increasing customer
customer convenience, 24% of
customers disagree the statement.
Consistent customer
onsistent customer experience 48%
customers disagree the statement.
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.10 representing customer perception on the statement ‘
Inference: 38% of customers are strongly agree that customer is the biggest asset of the bank
of customers agree, 16% of customers are neutral and 2% customers disagree the statement
Table 8.11: representing customer per
Inference: 20% of customers are stron
customer agree, 12% of customers are neutral and 8
Opinion
No. of
Respondents
Strongly
Agree
95
Agree 110
Neutral 40
Disagree 3
Strongly
Disagree
2
Total 250
Opinion
No. of
Respondents
Percentage
Strongly
Agree
50
Agree 150
Neutral 30
Disagree 10
Strongly
Disagree
10
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
44
customer perception on the statement ‘Customer is the biggest asset of
the organization’
customers are strongly agree that customer is the biggest asset of the bank
16% of customers are neutral and 2% customers disagree the statement
customer perception on the statement ‘Retaining existing customers
customers are strongly agree that bank retaining existing customers
12% of customers are neutral and 8% of customers disagree the statement
Percentage
(%)
38
44
16
1.2
0.8
100
Percentage
(%)
20
60
12
4
4
100
6502(Print), ISSN 0976 - 6510(Online),
Customer is the biggest asset of
customers are strongly agree that customer is the biggest asset of the bank, 44%
16% of customers are neutral and 2% customers disagree the statement.
Retaining existing customers’
retaining existing customers, 60% of
customers disagree the statement.
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.12: representing customer perception on the statement
Opinion
No. of
Respondents
Strongly
Agree
50
Agree 50
Neutral 100
Disagree 25
Strongly
Disagree
25
Total 250
Inference: 20% of customers are strongly agree that bank conductin
20% of customers agree, 40% of customers are neutral and 20
Table 8.13: representing
Inference: 12% of customers are strongly
customers agree, 40% of customers are neutral and
Opinion
No. of
Respondents
Strongly
Agree
30
Agree 100
Neutral 100
Disagree 10
Strongly
Disagree
10
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
45
customer perception on the statement Conducting C
programmes
Percentage
(%)
20
20
40
10
10
100
customers are strongly agree that bank conducting customer loyalty programmes
of customers are neutral and 20% customers disagree
representing customer perception on the statement ‘
response’
customers are strongly agreed about excellent employee r
% of customers are neutral and 8% of customers disagree the statement
Percentage
(%)
12
40
40
4
4
100
6502(Print), ISSN 0976 - 6510(Online),
Conducting Customer loyalty
g customer loyalty programmes,
% customers disagree.
Excellent employee
about excellent employee response, 40% of
customers disagree the statement.
International Journal of Management (IJM), ISSN 0976
Volume 5, Issue 11, November (2014), pp.
Table 8.14: representing customer perception on the statement ‘
Inference: 48% of customers are strongly agree about adequate provision of ATMs
customers agree, 12% of customers are neutral and no
9. CONCLUSION
The findings of this research study revealed that the tenure of banking
respondents has an influence on the CRM efficiency especially in public
Nationalized banks are succeeding in
succeeding in maintaining transparent
privacy policy and ATMs provision.
comprehensive approach for develop
because Customer Relationship
close contact with end customers but have lesser value to
end customers.
The implementation of CRM yields
benefits is cost reduction. Secondly, the integrated view of the customer provides the bank an
opportunity to understand its customers well and accordingly cater to their needs with individualized
offering.
Strategic approach towards CRM implementa
benefits of the CRM investments made by banks
respondents has an influence on the consumers’ awareness of CRM. Further analysis of the data
revealed that the gender of the respondents has no
The strategic framework suggested for effective implementation of CRM
importance of understanding CRM as an organization wide strategy and need for alignment of
bank’s culture and processes to bring customer centricity at the core of operations
Opinion
No. of
Respondents
Percentage
Strongly
Agree
120
Agree 100
Neutral 30
Disagree 0
Strongly
Disagree
0
Total 250
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
46
customer perception on the statement ‘ATMs are adequately
provided’
stomers are strongly agree about adequate provision of ATMs
f customers are neutral and no customer disagree the statement
The findings of this research study revealed that the tenure of banking
respondents has an influence on the CRM efficiency especially in public
Nationalized banks are succeeding in collecting feedback regularly from the right customers and
succeeding in maintaining transparent and well defined system, customers are highly satisfied with
privacy policy and ATMs provision. Customer Relationship Management is now becoming a new
for developing business sustainability in nationalized banks
elationship Management is important for banking industry because
close contact with end customers but have lesser value to industries that are further away from the
The implementation of CRM yields more number of benefits to the bank one of the importa
benefits is cost reduction. Secondly, the integrated view of the customer provides the bank an
opportunity to understand its customers well and accordingly cater to their needs with individualized
trategic approach towards CRM implementation will enable attainment of
the CRM investments made by banks. It was also observed that the occupation of the
respondents has an influence on the consumers’ awareness of CRM. Further analysis of the data
he respondents has no influence on the CRM efficiency
The strategic framework suggested for effective implementation of CRM
understanding CRM as an organization wide strategy and need for alignment of
ses to bring customer centricity at the core of operations
Percentage
(%)
48
40
12
0
0
100
6502(Print), ISSN 0976 - 6510(Online),
ATMs are adequately
stomers are strongly agree about adequate provision of ATMs, 40% of
disagree the statement.
The findings of this research study revealed that the tenure of banking transactions of the
respondents has an influence on the CRM efficiency especially in public banking sector.
regularly from the right customers and
ustomers are highly satisfied with
is now becoming a new
in nationalized banks. This is
banking industry because that has
industries that are further away from the
number of benefits to the bank one of the important
benefits is cost reduction. Secondly, the integrated view of the customer provides the bank an
opportunity to understand its customers well and accordingly cater to their needs with individualized
will enable attainment of the desired
It was also observed that the occupation of the
respondents has an influence on the consumers’ awareness of CRM. Further analysis of the data
influence on the CRM efficiency
The strategic framework suggested for effective implementation of CRM emphasizes the
understanding CRM as an organization wide strategy and need for alignment of
ses to bring customer centricity at the core of operations
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 © IAEME
47
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