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International

Journal of Management
(IJM), ISSN 0976
6502(Print), ISSN 0976(IJM)
- 6510(Online),
INTERNATIONAL
JOURNAL
OF MANAGEMENT
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

ISSN 0976-6502 (Print)


ISSN 0976-6510 (Online)
Volume 5, Issue 11, November (2014), pp. 34-47
IAEME: http://www.iaeme.com/IJM.asp
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IJM
IAEME

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 companys goals can be best achieved through
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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

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
35

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

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

36

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Europe and England and was influenced by changes occurring in the structure of both the local
lo and
urban trading environment.
Introduction to Andhra Bank
Andhra Bank is a public sector bank, with a network of many branches, it has 15 extension
counters, 38 satellite offices and 1563 ATMs as on 30 Nov 2013. During 201112,
2011
the bank entered
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 planning to increase it to
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
March 2013.
Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilised amongst all
the agency
gency banks dealing with the Life Insurance Corporation of India. The bank also has tie-up
tie
with
United India Insurance Company Limited under Banc assurance
Dr. Hhogaraju Pattabhi Sitaramayya founded Andhra Bank in 1923 in Machilipatnam,
Andhra Pradesh. Thee bank was registered on 20 November 1923 and commenced business in the
year 1923 with a paid up capital of 100000 and an authorized capital of 1million
million in the year 1956,
linguistic division of states
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,
Sultan Bazar, Hyderabad, Telangana. In the second phase of nationalization of commercial banks
commenced in the year 1980, the bank became a wholly owned Government
Government bank.
2. REVIEW OF LITERATURE
This study was relevant to the previous studies and researches in the related fields. The
subject to find out and fill up if any research gaps existed.. Literature on banking services can
generally be found, number of books is available on banking related aspects as merchant banking,
loan syndication, securitization, profitability and productivity etc. but, few studies are undertaken on
the role of Customer Relationship Management in the banking services.
Uppal R.K. (2010) Explains in his study about the extent of mobile banking in Indian
banking industry during 2000-2007.
2007. The study concludes that among all CRM is the most effective
while mobile banking and it does not hold a strong position in public and old private sector but in
new private sector banks and foreign banks in mobile banking is good enough with nearly 50 pc
average branches providing mobile
obile banking services. Mobile banking customers are also the highest
in e-banks which have positive impact on profits and business per employee of these banks. Among
all, foreign banks are in 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
also suggests
ts some strategies to improve mobile
m
banking services.
Oghenerukeybe E. A. (2009) he explained in his study about users perception of factors
influencing the effective
ve implementation of existing objectives and to evaluate the effectiveness of
banking web browsers using the Communication-Human
Communication
Information Processing Model,
Model a model
proposed by Wogalter in the year 2006 in the field of warning sciences.
ciences. Findings reveal that is not
very effective at alerting and shielding users from revealing sensitive information.
informa
27 percent
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 of
participants still go ahead to submit sensitive
sensitive information. These outcomes may help the
management of banks develop effective security strategies for the future of electronic banking in
Nigeria.
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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

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.
38

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

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
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Variable Name
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

39

SA
20
110
120
50
72
120
40
90
95
50
50
30
120

A
25
70
100
120
80
100
60
120
110
150
50
100
100

N
100
60
10
30
50
20
60
20
40
30
100
100
30

D
55
10
13
30
28
7
50
15
3
10
25
10
0

SD
50
0
7
20
20
3
40
5
2
10
25
10
0

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.2: representing customer perception


pe
on the statement Routinely
Routinely asking the customer
to provide feedback
Opinion
Strongly
Agree
Agree

Percentage
No. of
(%)
Respondents
20
8
25

10

Neutral

100

40

Disagree

55

22

Strongly
Disagree
Total

50

20

250

100

Inference: 8% of customers
omers are strongly agree the statement bank routinely asking customers
customer to
provide feedback 10%
% of customers
customer agree, 40% of customers are neutral and 42%
42
of customers
disagree the statement.
Table 8.3: representing customer perception on the statement Providing
oviding customized products
and services
No. of
Respondents

Percentage
(%)

Opinion
110

44

Strongly
Agree
Agree

70

28

Neutral

60

24

Disagree

10

Strongly
Disagree

Total

250

100

Inference: 44% of customers


ustomers are strongly agree the statement bankk providing customized
cus
services
and products, 28% of customer agree,
agree 24% of customers are neutral and 4%
% of customers disagree
the statement.

40

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.4: representing customer perception on the statement Transparent


Transparent and well defined
system
No. of
Respondents

Percentage
(%)

120

48

100
10
13

40
4
5.2

Strongly
Disagree

2.8

Total

250

100

Opinion
Strongly
Agree
Agree
Neutral
Disagree

Inference: 48% of customers


ustomers are strongly agree that
th bank is maintaining transparent
transp
and well
defined system, 40% of customers
customer agree, 4% off customers are neutral and 8% of customers disagree
the statement.
Table 8.5: representing customer perception on the statement Bank
Bank website is user friendly
friendly
No. of
Respondents

Percentage
(%)

Opinion
Strongly
Agree
Agree

50

20

120

48

Neutral

30

12

Disagree

30

12

20

250

100

Strongly
Disagree
Total

Inference: 20% of customers are strongly agree that bank website is user friendly,
friendly 48% of customer
agree 12% of customers are neutral and 20%
20 customerss disagree the statement.
statement

41

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.6 representing customer perception on the statement Communication


Communication tools are very
effective
No. of
Respondents

Percentage
(%)

Opinion
Strongly
Agree
Agree

72

28.8

80

32

Neutral

50

20

Disagree

28

11.2

Strongly
Disagree

20

Total

250

100

tools 32% of
Inference: 29% of customers are strongly agree that bank has effective communication tools,
customer agree, 20% of customers are neutral and 19% of customers disagree the statement.
statement
Well developed privacy policy
policy
Table 8.7: representing customer perception on the statement Well
No. of
Respondents

Percentage
(%)

120

48

100

40

Neutral

20

Disagree

2.8

Strongly
Disagree
Total

1.2

250

100

Opinion
Strongly
Agree
Agree

Inference: 48% of customers are strongly


s
agree that bank has well developed privacy policy,
policy 40% of
customer agree, 8% of customers are neutral and 4%
4 of customers disagree the statement.
statement

42

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.8: representing customer perception on the statement Increasing


Increasing customer
convenience
No. of
Respondents

Percentage
(%)

40

16

60

24

Neutral

60

24

Disagree

50

20

Strongly
Disagree

40

16

Total

250

100

Opinion
Strongly
Agree
Agree

Inference: 16% of customers are strongly agree that bank increasing


i
customer convenience,
convenience 24% of
customer agree, 24% of customers are neutral and 36%
36 of customers disagree the statement.
statement
Consistent customer
Table 8.9: representing customer perception on the statement Consistent
experience
No. of
Respondents

Percentage
(%)

Opinion
Strongly
Agree
Agree

90

36

120

48

Neutral

20

Disagree

15

Strongly
Disagree
Total

250

100

Inference: 36% of customers are strongly agreed that they have consistent
onsistent customer experience 48%
of customer agree 8% of customers are neutral and 8%
8 of customers disagree the statement.
statement

43

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.10 representing customer perception on the statement Customer


Customer is the biggest asset of
the organization
No. of
Respondents

Percentage
(%)

95

38

110
40
3
2

44
16
1.2
0.8

250

100

Opinion
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Total

bank 44%
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.
statement

Table 8.11: representing customer perception


per
on the statement Retaining
Retaining existing customers
customers
No. of
Respondents

Percentage
(%)

50

20

150
30
10
10

60
12
4
4

250

100

Opinion
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Total

Inference: 20% of customers are strongly


stron
agree that bank retaining existing customers,
customers 60% of
customer agree, 12% of customers are neutral and 8%
8 of customers disagree the statement.
statement

44

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.12: representing customer perception on the statement Conducting Customer


C
loyalty
programmes
No. of
Respondents

Percentage
(%)

50

20

50

20

Neutral

100

40

Disagree

25

10

Strongly
Disagree

25

10

Total

250

100

Opinion
Strongly
Agree
Agree

Inference: 20% of customers are strongly agree that bank conducting


conducting customer loyalty programmes,
programmes
20% of customers agree, 40% of customers are neutral and 20%
20% customers disagree.
disagree

Table 8.13: representing customer perception on the statement Excellent employee


response
No. of
Respondents

Percentage
(%)

Opinion
Strongly
Agree
Agree
Neutral

30

12

100
100

40
40

Disagree

10

Strongly
Disagree

10

Total

250

100

Inference: 12% of customers are strongly agreed about excellent employee response,
r
40% of
customers agree, 40%
% of customers are neutral and 8% of customers disagree the statement.
statement

45

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

Table 8.14: representing customer perception on the statement ATMs


ATMs are adequately
provided
No. of
Percentage
Respondents
(%)
Opinion
Strongly
Agree
Agree

120

48

100

40

Neutral

30

12

Disagree

Strongly
Disagree

Total

250

100

stomers are strongly agree about adequate provision of ATMs,


ATMs 40% of
Inference: 48% of customers
customers agree, 12% off customers are neutral and no customer disagree the statement.
statement

9. CONCLUSION
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.
Nationalized banks are succeeding in collecting feedback regularly from the right customers and
succeeding in maintaining transparent and well defined system, customers
ustomers are highly satisfied with
privacy policy and ATMs provision. Customer Relationship Management is now becoming a new
comprehensive approach for developing
develop
business sustainability in nationalized banks.
banks This is
because Customer Relationship
elationship Management is important for banking industry because that has
close contact with end customers but have lesser value to industries that are further away from the
end customers.
The implementation of CRM yields more number of benefits to the bank one of the important
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
offering.
Strategic
trategic approach towards CRM implementation
implementa
will enable attainment of the desired
benefits of the CRM investments made by banks.
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
revealed that the gender of the
he respondents has no influence on the CRM efficiency
The strategic framework suggested for effective implementation of CRM emphasizes the
importance of understanding CRM as an organization wide strategy and need for alignment of
banks culture and processes
ses to bring customer centricity at the core of operations

46

International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 11, November (2014), pp. 34-47 IAEME

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