PROJECT ON

CUSTOMER RELATIONSHIP MANAGEMENT IN

BANKING SECTOR

BACHELOR OF COMMERCE
BANKING & INSURANCE
SEMESTER VI
(2021-2022)

SUBMITTED
In Partial Fulfillment of the Requirement For The
Award of Degree of Bachelor of Commerce Banking & Insurance.

SUBMITTED BY,
SUJIT KUMAR BABU SETHI
ROLL NO.– 211051
UNIVERSITY SEAT NO.- 1017449

UNDER GUIDANCE,
ASST. PROF. SIDDHESH HADKAR

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE

& COMMERCE PAREL, MUMBAI– 400012.

[i]
 MAHARSHI DAYANAND COLLEGE OF
ARTS, SCIENCE & COMMERCE PAREL,
MUMBAI– 400012.

CERTIFICATE
This is to certify that Mr. Sujit Kumar Babu Sethi
of B.Com (BANKING & INSURANCE) Semester VI (2021-2022)
has successfully completed the project on CUSTOMER
RELATIONSHIP MANAGEMENT IN BANKING SECTOR
under the guidance of ASST. PROF. SIDDHESH HADKAR.

Course Coordinator Principal

Project Guide / Internal Examiner External Examiner

[ii]
 DECLARATION

I, Mr. Sujit Kumar Babu Sethi, the student of B.com (Banking &
Insurance) Semester VI (2021-2022) hereby declare that I have
completed the Project on CUSTOMER RELATIONSHIP
MANAGEMENT IN BANKING SECTOR. The information
submitted is true and original to the best of my knowledge.

Signature of student
Name of Student
SUJIT KUMAR BABU SETHI
ROLL NO.- 211051
UNIVERSITY SEAT NO.-1017449

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 ACKNOWLEDGEMENT

The college, the faculty, the classmates & the atmosphere, in the
college were all the favorable contributory factors right from the point
when the topic was to be selected till the final copy was prepared. It
was a very enriching experience throughout the contribution from the
following individuals in the form in which it appears today. We feel
privileged to take this opportunity to put on record my gratitude
towards them.
Course Co-ordinator Dr. KUNAL SONI made sure that the resource
was made available in time & also for immediate advice & guidance
throughout making this project. The principal of our college Dr. C.S.
Panse has always been inspiring and driving force.

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 EXECUTIVE SUMMARY

CRM sustainable competitive advantage by being the best at understanding,

communicating, and delivering, and developing existing customer relationships in
addition to creating and keeping new customers. Customer Relationship Management is
the establishment, development, maintenance and optimization of long-term mutually,
valuable relationships between consumers and the organizations. Successful customer
relationship management focuses on understanding the needs and desires of the
customers and is achieved by placing these needs at the heart of the business by
integrating with the organization’s strategy, people, technology and business processes.
At the heart of a perfect CRM strategy is the creation of mutual value for all the parties
involved in the business process. So the concept of product life cycle is giving way to
the concept of customer life cycle focusing on the development of product and services
that anticipate the future need of the existing customer’s relationships beyond
transactions. CRM is a comprehensive approach for creating, maintaining and expanding
customer relationship. It provides seamless co-ordination between customer service,
marketing, information technology and other customer related functions. It does not aim
to build closer relationship with all customers, but it recommends that organizations take
initiative to identify the most valuable customers by looking for their life time value.
CRM means building an interdependent relationship with the customer in whom each
relies on the other for business solutions and successes. From the Bank’s point of view,
it the management process or approach of acquiring, retaining and growing. Customer
Relationship Management concept is tendency of banking sector to establish and
maintain long-term relationships with customers in order to provide value for customers
and banks. This concept allows bank to identify, segment, communicate and build long-
term relationships with customers on individual basis. In today’s business environment,
banks have aim to identify customers and to adjust offer to meet customer’s needs, in
order to maximize profits. The aim of research, presented in this paper, is to assess to
benefits of introducing Customer Relationship Management concept in banking sector,
by defining strategies, adjustment of organizational structure, culture and internal
processes with help of modern technology.

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 INDEX
Content No Content Page No
1 Chapter 1: INTRODUCTION 1-26
1.1 Introduction to banking 2-3
1.2 Introduction to CRM 4
1.3 Meaning and definition of CRM 5-6
1.4 Types of CRM 7
1.5 Origin of CRM 8-9
1.6 History of CRM 10-12
1.7 Need of CRM 13-14
1.8 The emergence of CRM 15-16
1.9 CRM in Indian Banking 17-18
1.10 Benefits of CRM 19-20
1.11 Importance of CRM banking 21-22
1.12 Implementation of CRM in banking 23
1.13 Challenges of CRM implementation by bank 24-26
2 Chapter 2: RESEARCH & METHODOLOGY 27-30
2.1 Importance of the study 28
2.2 Objectives of the study 28
2.3 Scope of the study 29
2.4 Research design 29
2.5 Data sources (1) Primary data (2) Secondary data 30
2.6 Limitation 30
3 Chapter 3: REVIEW OF LITERATURE 31-33
3.1 Kaujalgi (1999): It performs better customer satisfaction 32
3.2 Greenberg (2004): Bank maintain CRM through provide various 32
services
3.3 Uppal R.K. (2008): Lack of awareness of e-banking services to 32
manage CRM
3.4 Dutta at al (2009): Analyze the exit gap between customer 32
satisfaction
3.5 Dixit at al (2010): Strategy applying to manage different age 33
group of customer
3.6 Research gap 33
4 Chapter 4: DATA ANALYSIS & INTERPRETRATION 34-50
4.1 Analysis of questionnaire through 35-50
a) pie chart
b) bar graph
5 Chapter 5: FINDINGS, CONCLUSION & SUGGESTIONS 51-53
6 Chapter 6: BIBLIOGRAPHY & ANNEXURE 54-58

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 CHAPTER 1: INTRODUCTION

1.1 Introduction to banking

1.2 Introduction to CRM
1.3 Meaning and definition of CRM
1.4 Types of CRM
1.5 Origin of CRM
1.6 History of CRM
1.7 Need of CRM
1.8 The emergence of CRM
1.9 CRM in Indian banking
1.10 Benefits of CRM
1.11 Importance of CRM in banking
1.12 Implementation of CRM in banking
1.13 Challenges of CRM implementation by bank

[1]
1.1 INTRODUCTION TO BANKING

Sec 5 (b) of the Banking Regulation Act, 1949 defines banking as “accepting for
the purpose of lending or investment, of deposits of money from the public,
repayable on demand or otherwise, and withdrawal by cheque, draft, order or
otherwise.”

Prior to initiation of reforms in 1991, Indian banking industry suffered from lack
of competition, low capital base, inefficiency and high intermediation costs. Ever
since the bank nationalization of 1969, the banking sector had been dominated
by the public sector along with a high degree of financial repression
characterized by administered interest rates and allocated credit. Banking sector
reforms of the last two decades have placed greater emphasis on structural
measures and improvement in standards of disclosure and levels of
transparency in order to align the Indian standards with international best
practices. Reforms have brought about considerable improvements as reflected in
various parameters relating to capital adequacy, asset quality, profitability and
operational efficiency.

The key objective of reforms in the banking sector in India has been to enhance
the stability and efficiency of banks. An outstanding feature of banking sector
reforms in India has been the emergence of micro credit as the most suitable
and practical alternative to the conventional banking in reaching the hitherto
unreached poor population. The Self-help Group (SHG)-Bank Linkage Programme
was formally launched in the year 1992 as a flagship programme by National
Bank for Agriculture and Rural Development (NABARD) an aptly supported by
the Reserve Bank of India (RBI) through its policy support.

[2]
IMPORTANCE OF BANKING

Banks play very important role in the economic life of the nation. The health of
the economy is closely related to the soundness of its banking system. Although
banks create no new wealth but their borrowing, lending and related activities
facilitate the process of production, distribution, exchange and consumption of
wealth. In this way they become very effective partners in the process of
economic development. Today, modern banks are very useful for the utilization
of the resources of the country. The banks are mobilizing the savings of the
people for the investment purposes.

In recent years, the banking industry around the world has been undergoing a
rapid transformation. In India also, the wave of deregulation of early 1990s has
created heightened competition and greater risk for banks and other financial
intermediaries. The cross-border flows and entry of new players and products
have forced banks to adjust the product-mix and undertake rapid changes in
their processes and operations to retain competitive.

[3]
1.2 INTRODUCTION TO C.R.M

CRM, or Customer Relationship Management, is a company-wide business strategy

designed to reduce costs and increase profitability by solidifying customer loyalty. True
CRM brings together information from all data sources within an organization (and
where appropriate, from outside the organization) to give one, holistic view of each
customer in real time. This allows customer facing employees in such areas as sales,
customer support, and marketing to make quick yet informed decisions on everything
from cross-selling and up-selling opportunities to target marketing strategies to
competitive positioning tactics.

Once thought of as a type of software, CRM has evolved into a customer-centric

philosophy that must permeate an entire organization. There are three key elements to a
successful CRM initiative; people, process, and technology. The people throughout a
company from the CEO to each and every customer service representative need to buy
in to and support CRM. A company’s business processes must be reengineered to bolster
its CRM initiative, often from the view of, how can this process better serve the
customer? Firms must select the right technology to drive these improved processes,
provide the best data to the employees, and be easy enough to operate that users won’t
balk. If one of these foundations is not sound, the entire CRM structure will crumble.

It’s a strategy used to learn more about customers’ needs and behaviors in order to
develop stronger relationships with them. After all, good customer relationships are at
the heart of business success. A component to CRM, but thinking about CRM in
primarily technological terms is a mistake. The more useful way to think about CRM is
as a process that will help bring together lots of pieces of information about customers,
sales, marketing effectiveness, responsiveness and market trends. If customer
relationships are the heart of business success, then CRM is the vale the pumps a
company’s life blood. As such, CRM is best suited to help businesses use people,
process and technology to gain insight into the behavior and value of customer.

[4]
1.3 MEANING & DEFINEATION OF CRM

DEFINE CRM:

Customer Relationship Marketing is a practice that encompasses all marketing

activities directed toward establishing, developing, and maintaining successful long-
term relationships. The focus of relationship marketing is on developing long-term
relationships and improving corporate performance through customer loyalty and
customer retention.

Customer Relationship Management (CRM) as the name suggests, the primary

focal point is placed on the customer. The key objective is to increase customer
value over time by increasing customer loyalty. If a company develops better
customer relationships, it also improves business processes as well as its profits.
In general, CRM is a more efficient automated method used to connect and
improve all areas of business to focus on creating strong customer relationships.
All forces are coupled together to save, improve, and acquire greater business to
customer relationships. The most common areas of business that are positively
affected include marketing, sales, and customer service strategies.

CRM helps create time efficiency and savings on both sides of the business
spectrum. Through correct implementation and use of CRM solutions, companies
gain a better understanding of their strongest and weakest areas and how they can
improve upon these. Therefore, customers gain better products and services from
their businesses of choice. In order to achieve better insight on CRM, it is
essential to consider all of its components.

[5]
CRM MEANING

Customer relationship management (CRM) is a business strategy that spans your

entire organization from front office to back-office. It is a commitment you make
to put customers at the heart of your enterprise. The right CRM strategy and
solutions can help you securely, reliably and consistently delight your customers
every time they interact with your business by empowering them with anytime,
anywhere, and any channel access to accurate information and more personalized
service. Reach more customers more, effectively, increase customer retention and
boost customer loyalty by leveraging opportunities to up-sell and cross-sell and
driving repeat business at lower cost Drive improvements in business performance
by providing your customers with the ability to access more information through
self-service and assisted-service capabilities when it is convenient for them.
Enable virtualization in your enterprise as more of your people and resources
extend beyond your offices and around the world Balance sophisticated
functionality with rapid implementation and effective support for a faster return
on your CRM investment. Today’s customers face a growing range of choices in
the products and services they can buy. They base their choices on their
perception of quality, value, and service. Each Consumer has a specific behavior.
But buying habits are sometimes difficult to understand. Therefore companies always
want to gain some insight5 about consumer behavior and habits in order to
better control this behavior. Having an impact on consumer behavior means being
able to change consumer’s perception of the product or service, to establish a
relation between the company and its clients.

[6]
1.4 TYPES OF CRM

Nowadays, three major types of customer relationship management systems, namely

operational CRM, analytical CRM and collaborative CRM are being used in many
organizations.

 Operational CRM: It provides support to front-office business process that

involves direct interaction with customers through any communication channel,
such as phone, fax, e-mail, etc. The details of every interaction with customers,
including their requirements, preferences, topics of discussion etc., are stored in
the customers’ contact history and can be retrieved by the organization’s staff
whenever required. This, it presents a unified view of customers across the
organization and across all communication channels. Examples of operational
CRM applications are sales force automation (SFA), customer service and support
(CSS), enterprise marketing automation (EMA), etc.
 Analytical CRM: It enables to analyze customer data generated by operational
CRM applications, understand the customers’ behavior, and derive their true
value to the organization. This helps to approach the customers with pertinent
information and proposals that satisfy their needs. The analytical customer
relationship management applications use analytical marketing tools like data
mining to extract meaningful information like the buying patterns of the
customers, target market, profitable and unprofitable customers, etc. that help to
improve performance of the business.

 Collaborative CRM: It allows easier collaboration with customers, suppliers,

and business partners and, thus, enhances sales and customer services across all
the marketing channels. The major goal of collaborative customer relationship
management applications is to improve the quality of services provided to the
customers, thereby increasing the customer’s loyalty. Examples of collaborative
CRM applications are partner relationship management (PRM), customer self-
service and feedback, etc.

[7]
1.5 ORIGIN OF CRM

CRM originated in early 1970s when the business units had a manifestation that it would
be advisable to become ‘customer emphatic’ rather that ‘product emphatic’. Birth of
CRM was because of this heedful perceptiveness. The famous writer and management
consultant Peter Drucker wrote; ‘The true business of every company is to make and
keep customers’.

Traditionally every transaction was on paper and dependent on goodwill which created
hindrance in clutching customers. People used to work hard in entertaining customers by
presenting new products with astonishing services; they were ready to work overtime for
grasping more and more customers for increasing business, This too resulted in
customer satisfaction and loyalty up to some extent, but at the end of the day there was
no such bonding or relation between the two to carry on with future business smoothly.

Previously business was quite easy as it was mere a one-to-one dealing without any
specific process. But with time, due to incoming complexities in communication, it
found in troubled waters. Emerging of new strategies and technologies on global
marketplace and a mammoth degree of competition in business, the approach needed to
be changed to proactive rather than reactive. Origination of CRM turned out to be a
piece of cake for all suppliers and customers due to its advantages. Customer
relationship management came as a process that dealt with customers surpassing the
whole business.

Originally customer relationship management was based on three major principles;

shielding the current customers, fostering new customers and enhancing asset value of
all technology, business perspectives were totally changed. A CRM system eventually
emerged as consisting of company-full of information which is depicted sophistically to
increase business profit and meliorate customer satisfaction and loyalty, on the same
hand reduces business cost and investment. The outgrowth in origin of CRM as a
strategic approach is result of some of the following important perspectives:

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1. The belief that customers are the real assets and not just the people in the
audience.
2. The maturation of one-to-one transaction advent.
3. Extensive use of software and technologies to maintain useful information and no
manual labour.
4. The realization of the benefits of utilizing information proactively and no
reactively.
5. The change of business view to relationship approach rather than transactional
approach.
6. The approach of concentrating more on customer values rather than concentrating
on how the product is delivered to the customer.
7. The approach of focusing on customer satisfaction and loyalty rather than
focusing self satisfaction and profit.
8. The acceptance of the fact that using high end technologies and software the cost
can radically be decreased without compromising on quality and service of
products.
9. The increasing tendency to retain existing customers and trying to get more and
more business out of them.
10. The realization that the traditional trends of marketing and selling are increasingly
fading out in the current economic scenario.

[9]
1.6 HISTORY OF CRM

CRM hasn’t always been the robust, stand-alone software that so many businesses rely
on today. Over the past four decades, it has evolved out of a variety of other business
programs. During that time, the CRM industry has undergone sea-changes and shakeups
that could have derailed the entire concept.

The 1980s: Pioneered by Robert and Kate Kestnbaum, database marketing collected and
analyzed customer information. Using statistical modeling, that data was then used to
help customize communications with other potential customers.

In 1986, ACT introduced the business world to contact management software.

Essentially a digital rolodex, ACT allowed for the efficient storage and organization of
customer contact information. Goldmine and other vendors also released CMS programs
throughout the 80s.

Near the close of the decade, the proliferation of personal computers and the advent of
server/client architecture paved the way for an explosive growth in software
development.

The1990s: The beginning of 90s brought the first major step toward true CRM software.
Early innovators like Brock Control Systems helped push the evolution of contact
management software toward sales force automation (SFA). SFA took many of the
features of database marketing, automated them, and combined them with contact
management. This provided businesses with much more useful customer information. It
also automated business tasks like inventory control, and sales tasks like customer
interaction tracking. IN 1993, Tom Siebel left Oracle to create Siebel Systems. While at
Oracle, Siebel tried unsuccessfully to convince CEO Larry Ellison to package and sell
their internal sales application as a standalone product.

Siebel Systems quickly became the leading SFA provider on the market.

[10]
By 1995, SFA and contact management had evolved to closely resemble modern CRM
software. However, this emerging product still didn’t have proper name. A number of
terms use. By the end of 1995, CRM won out. Some attribute this to the technology
research company Gartner, while Tom Siebel is also named as a possible source. Either
way, the CRM industry finally had a name.

The last of the decade brought huge changes to the CRM industry. Enterprise resource
management (ERP) vendors like Oracle and Baan entered the market with the sole
purpose of capitalizing on emerging applications. All of this competition pushed CRM
vendors to provide a broader suite of services. More marketing, sales and service
applications were added to CRM on a near-constant basis.

1999 was a busy year for the CRM industry. A number of notable, high-value
acquisitions consolidated the overall market, while emerging e-CRM vendors provided
fierce competition. Using intranet, extranet, and internet, e-CRM vendors offered a level
of intra-organizational collaboration that hadn’t previously been available in the CRM
industry. CRM also made its first foray into the mobile market, with the introduction of
Siebel Handheld.

The 90s came to an end with the debut of the first major software as a service (SaaS)
vender. Geared toward smaller businesses, Sales force was initially ignored by larger
venders. Under the leadership of Mark Benioff, Sales force eventually grew to rival
CRM industry giants like Siebel Systems.

The 2000s: Like most software industries, the CRM industry was hit hard by the
bursting of the dot-com bubble. The entire industry retracted, with giants like Oracle
reporting license losses of more than twenty-five percent.

Due to reluctance to use “dot-com” technologies, e-CRM vendors were hit the hardest.

In the early years of the 2000’s, Paul Greenberg’s book “CRM at the Speed of Light”
suggested a more comprehensive CRM system that manages all business relationships.
By the end of the decade, this became the common thinking across the CRM industry.

[11]
Through the middle of the decade, interoperability with legacy software became more
important. Software giant Microsoft entered the CRM market with Dynamics CRM, and
Oracle acquired Siebel and numerous other enterprise application vendors.

In 2004, Sales force created the next big change in the CRM industry. Force.com
introduced the world to cloud-based CRM. Force.com addressed the criticism that
cloud-based applications weren’t customizable. Social CRM exploded onto the market
with the introduction of Comcast Care-an application that focused more on interaction
than transaction. Most large corporations quickly followed Comcast’s example,
solidifying the place of social CRM.

Through the end of the first decade, and up to the present day, cloud-based and SaaS
CRM solutions continue to integrate more features like customer service and social
CRM. Cloud-based and SaaS CRM solutions continue to gain popularity, largely due to
their lower initial cost and easy integration with mobile devices.

[12]
1.7 NEED OF CRM

Unlike in the past, the banks are market driven and market responsive. With the entry
of new players and multiple channels, customers (both corporate and retail) have
become more discerning and less “loyal” to banks. This makes it imperative that banks
provide best possible products and services to ensure customer satisfaction. To address
the challenge retention of customers, there have been active efforts in the banking
circles to switch over to customer-centric business model. The success of such a model
depends upon the approach adopted by banks with respect to customer data management
and customer relationship management.

Over the years, Indian banks have expanded to cover a large geographic & functional
area to meet the developmental needs. They have been managing a world of
information about customers – their profiles, location, etc. They have a close
relationship with their customers and a good knowledge of their needs, requirements
and cash positions. Achieving customer focus requires leveraging existing customer
information to gain a deeper insight into the relationship a customer has with the
institution, and improving customer service-related processes so that the services are
quick, error free and convenient for the customers.

As is proved by the experience banks are now realizing that one of their best assets for
building profitable customer relationships especially in a developing country like India
is the branch- branches are in fact a key channel for customer retention and profit
growth in rural and semi-urban set up. However, to maximize the value of this resource,
our banks need to transform their branches from transaction processing centers into
customer-centric service centers. This transformation would help them achieve bottom
line business benefits by retaining the most profitable customers. Branches could also be
used to inform and educate customers about other, more efficient channels, to advise on
and sell new financial instruments like consumer loans, insurance products, mutual fund
products, etc.

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There is a growing realization among Indian banks that it no longer pays to have a
“transaction-based” operating model. There are active efforts to develop a relationship-
oriented model of operations focusing on customer-centric services. The biggest
challenge our banks face today is to establish customer intimacy without which all other
efforts towards operational excellence are meaningless. The banks need to ensure
through their services that the customers come back to them. This is because a major
chunk of income for most of the banks comes from existing customers, rather than from
new customers.

Customer Relationship Management (CRM) solutions, if implemented and integrated

correctly, can help significantly in improving customer satisfaction levels. Data
warehousing can help in providing better transaction experiences for customers over
different transaction channels. This is because data warehousing helps bring all the
transactions coming from different channels under the same roof. Data mining helps
banks analyze and measure customer transaction patterns and behavior. This can help a
lot in improving service levels and finding new business opportunities.

[14]
1.8 THE EMERGENCE OF CRM

The developing customer relationship management has historical antecedents

going back into the pre-industrial era. In the recent years however several factors
have contributed to the rapid development and evolution of CRM. These include
the growing de-intermediation process in many industries due to the advent of
sophisticated computer and telecommunication technologies that allow producers to
directly interact with the end customers.

The recent success of on-line banking, Charles Schwab and Merryll Lynch’s On-
line investment programs, direct selling of books, automobiles, insurance etc. on
the internet all at least to the growing consumer interest in maintaining direct
relationship with marketers. The de-intermediation process and consequent
prevalence of Customer Relationship Management is also due to the growth of
the service economy.

Another force driving the adoption of customer relationship management has been
the total quality movement. When companies embraced Total Quality Movement
philosophy to improve quality and reduce cost, it become necessary to involve
suppliers and customers in implementing the program at all levels of the value
chain. This needed close working relationships with customers, suppliers and other
members of the marketing infrastructure. Other programs such as Just in Time
and Material resource planning also made the use of interdependent relationships
between suppliers and customers.

Similarly in the current era of hype-competition, marketers are forced to more

concern with the customer’s retention loyalty. As several studies indicated,
retaining customer is less expensive and perhaps a more sustainable competitive
advantage than acquiring new ones. Marketers are realizing that it costs less to
retain customers than to compete for new ones. Today many large internationally
oriented companies are trying to become global by integrating their world wide

[15]
operation. To achieve this they are seeking cooperative and collaborative solutions
for global operations from their vendors instead of merely engaging in
transactional activities with them. Such customers need to make it imperative for
marketers interested in the business of companies who are globally adopt the
Customer relationship management programs, particularly global account
management programs. Global account management is conceptually similar to
national account management programs except that they have to be global in
scope and this they are more complex. Managing customer relationship around
the world calls for external and internal partnering activities, including partnering
across firms worldwide organizations.

[16]
1.9 CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN
BANK

Indian banks had presumed that their operations were customer-centric, simply because
they had customers. These banks ruled the roost, protected by regulations that did not
allow free entry into the sector. And to their credit, when the banking sector was opened
up, they survived by adapting quickly for long to the new rules of the game.

Many managed to post profits. For them an unexpected bonanza came from government
bonds in which most were hugely invested.

Ironically, the Reserve Bank of India’s moves to cut aggressively the interest rates after
1999, pushed up the prices of bonds. Son banks had a windfall doing almost noting. The
bond profits, like manna from heaven, improved the balance-sheets of all banks
irrespective of their core performance.

However, the era of lazy banking is soon to end. The mesh of rules that propped up the
Indian banking industry is now being dismantled rapidly.

According to RBI road-map, India will have competitive banking market after 2009. As
one of the most attractive emerging market destinations, India will see foreign banks
come in, what with more freedom to come in, grow and acquire.

Therefore, it is imperative that Indian banks wake up to this reality and re-focus on their
core asset - the customer. A greater focus on Customer Relationship Management
(CRM) is the only way the banking industry can protect its market share and boost
growth.

CRM would also make Indian bankers realize that the purpose of their business is to
“create and keep a customer” and to “view the entire business process as consisting of a
tightly integrated effort to discover, create and satisfy customer needs.”

[17]
What is CRM and what will it deliver to the banks? CRM is, probably, one of the least
clearly defined business acronyms, as there is no single definition for it. It is probably
easier to say what CRM is not. Unfortunately, CRM has also become a misnomer for a
range of solutions from IT venders, each providing its own spin on the idea.

CRM is variously misunderstood as a fancy sales strategy, an expensive software

product, or even a new method of data collection. It is none of these.

CRM is a multiple philosophy that places the customer at the heart of a business
organization’s processes, activities and culture to improve his satisfaction of service and,
in turn, maximize the profits for the organization.

A successful CRM strategy aims at understanding the needs of the customer and
integrating them with the organization’s strategy, people, and technology and business
process.

Therefore, one of the best ways of launching a CRM initiative is to start with what the
organization is doing now and working out what should be done to improve its interface
with its customers. Then and only then, should it link to an IT solution.

While this may sound quite straightforward, for large organizations it can be a mammoth
task unless a gradual step-by-step process is adopted.

It does not happen simply by buying the software and installing it. For CRM to be truly
effective, it requires a well-thought-out initiative involving strategy, people, technology,
and processes. Above all, it requires the realization that the CRM philosophy of doing
business should be adopted incrementally with an iterative approach to learn at every
stage of development.

Only time will tell how Indian banks embrace the CRM philosophy and take on the
competition from foreign entities.

[18]
1.10 IMPORTANCE OF CRM IN BANKING

CRM primarily caters to all interactions with the customers or potential customers,
across multiple touch points including the Internet, bank branch, call center, field
organization and other distribution channels.

CRM can help in following ways:

1 CampaignManagement–
Banksneedtoidentifycustomers,tailorproductsandservicestomeettheirneedsandsellt
heseproductstothem.CRM achieves this through Campaign
Managementbyanalyzingdatafrombanksinternalapplicationsorbyimportingdatafro
mexternalapplicationstoevaluatecustomerprofitabilityanddesigningcomprehensive
customerprofilesintermsofindividuallifestylepreference,incomelevelsandotherrelat
edcriteria. Based on these profiles, banks can identify the most lucrative
customers and customer segments, and execute targeted, personalized multi-
channel marketing campaigns to reach the customers and maximize the lifetime
value of those relationships.
2 Customer Information Consolidation – Instead of customer information being
stored in product centric silos, (for e.g. separate databases of savings account &
credit card customers)m with CRM the information is stored in a customer centric
manner covering all the products of the bank. CRM integrates various channels
deliver a host of services to customers, while aiding the functioning of the bank.
3 Marketing encyclopedia- Central repository for products, pricing and
competitive information, as well as internal training material, sales presentations,
proposal templates and marketing collateral.
4 360-degree view of company – This means whoever the bank speaks to,
irrespective of whether the communication is from sales, finance or support, the
bank is aware of the interaction. Removal of inconsistencies of data makes the
client interaction processes smooth and efficient, thus leading to enhanced
customer satisfaction.

[19]
 5 Personalized sales home page – CRM can provide a single view where Sales
Manager and agents can get all the most up-to-date information in one place,
including opportunity, account, news, and expense report information. This will
make sales decision fast and consistent.
6 Lead and Opportunity Management – These enable organizations to effectively
manage leads and opportunities and track the leads through deal closure, the
required follow-up and interaction with the prospects.
7 Activity Management – It helps managers to assign and track the activities of
various members. Thus improved transparency leads to improved efficiency.
8 Contact Centre – It enables customer service agent to provide uniform service
across multiple channels such as phone, internet, email, Fax.
9 Operational inefficiency removal – CRM can help in strategy formulation to
eliminate current operational inefficiencies. An effective CRM solution supports
all channels of customer interaction including telephone, fax, e-mail, the online
portals, wireless devices, ATMs, and face-to-face contacts with bank personnel. It
also links these customer touch points to an operations centre and connects the
operations centre with the relevant internal and external business partners.
10 Enhanced productivity – CRM can help in enhanced productivity of customers,
partners and employees.
11 CRM with Business Intelligence – Banks need to analyze the performance of
customer relationships, uncover trends in customer behavior, and understand the
true business value of their customers. CRM with business intelligence allows
banks to assess customer segments, which help them calculate the net present
value (NPV) of a customer segment over a given period to derive customer
lifetime value. Customers can be evaluated within a scoring framework.
Combining the behavior key figure and frequency to monetary acquisition
analysis with a marketing revenue quota can optimize acquisition costs and cut
the number of inefficient activities.

With such knowledge, banks can efficiently allocate resources to the most profitable
customers and reengineer the unprofitable ones.

[20]
1.11BENEFITS OF CRM

A properly implemented CRM system can bring significant benefits to organizations.

But when I talk about a system, I mean the 3 P’s, the complete consortium of people
(employees, culture), not just an application running on a computer.

CRM is more than just the next wave of computer-aided marketing; it’s a way of doing
business. Let’s take a look at the advantages that a CRM or Customer Relationship
system can bring.

1. Shared or Distributed data

As companies realize that customer relationships are happening on many levels
(not just through customer service or a web presence), they start to understand
the need for sharing all available data throughout the organization. A CRM
system is an enabler for making informed decisions and follow-up, on all the
different levels.

2. Cost Reduction
A strong point in Customer Relationship Management is that is making the
customer a partner in your business, not just a subject. As customers are doing
their own order entry, and are empowered to find the info they need to come to
a buy decision, less order entry and customer support staff is needed.

3. Better Customer Service

All data concerning interactions with customers is centralized. The customer
service department can greatly benefit from this, because they have all the
information they need at their fingertips. No need to guess, no need to ask the
customer for the n-th time. And through the use of push-technology, customer
service reps can lead the customer towards the information they need. And,
most of the timer, the customer can do this on their own, as the CRM system
(remember, the 3 P’s) is more and more able to anticipate the need of the
customer. The customer experience is greatly enhanced.

[21]
4. Increased Customer Satisfaction
The customer feels that he is more “part of the team” instead of just a subject
for sales and marketing (the proverbial number), customer service is better, his
needs are anticipated. There is no doubt that customer satisfaction will go up. If
the products sold exceed the customer expectation, of course, no CRM system
can help you with shoddy products. In my opinion, the term satisfaction is a
contaminated. Many companies think that if customers satisfied that this is a
good predictor for repeat business. However, this is not the case. Only delighted
customers have a great level of loyalty.

5. Better Customer Retention

If a CRM system can help to enchant customers, this will increase customer
loyalty, and they will keep coming back to buy again and again, hence customer
retention.

6. More Repeat Business

The repeat business is coming from the delighted customers, who are turned
from doubting clients into loyal advocates.

7. More new Business

If you are delivering the ultimate customer experience, this will seed the word-
of-mouth buzz, which will spawn more new business.

8. More Profit
More business at lower cost equals more profit.

[22]
1.12 IMPLEMENTATION OF CRM IN BANKING

Implementing a customer relationship management (CRM) system at a bank rakes

careful planning. Banks need to involve key employees in the vendor decision so that
they choose a system which will give them the most for their investment. Ease of use
and ability to view information quickly are equally important to employees and
managers. As Destinationcrm.com points out, CRMs helps firms manage customer
relationships better, and customer relationships are vital to any company’s success.

1. Step 1
Gain employees: opinions. Ask bankers which data is important to them when
tracking customers and prospects. Most bank CRM systems include contact
information, account information and potential sale amounts. They also include
an estimate of how likely it is that the banker will convert a prospect into a new
customer. When employees provide input into the new system decision, they
will be more willing to use the CRM when it is rolled out.
2. Step 2
Research venders: Ask similar sized banks for vendor recommendations. Find
out if the vendor provided appropriate CRM features for the Bank’s specific
needs. Ask if the company delivered the system on time and if the firm provided
sufficient support and training to employees after the sale. Create a spreadsheet
comparing vendor features and pricing.
3. Step 3
Narrow the choices to three or four vendors. Meet with department managers
that will use the CRM system. Review the vendor choices and make a vendor
decision as a group. Arrange training by combining vendor resources and
internal training resources. Allow ample time for employees to learn the CRM
system before holding them accountable for using it.

[23]
1.13 CHALLENGES TO CRM IMPLEMENTATION BY BANK

The most pervasive challenges to effective customer knowledge include:

 The difficulty of obtaining a complete view of customers.
 The need to move away from disjointed, standalone, and inconsistent
channels to provide a cohesive, multichannel offering.
 The burden of disconnected legacy systems and disparate databases that
store client financial data.
 The cost and complexity of meeting stringent government regulatory and
client security and privacy requirements.
 The pressure on margins and growth prospects form increased competition.
 The costs associated with retaining customers and developing customer
loyalty.

Although CRM can help banking institutions efficiently manage their customers, many
banks fail to meld the concept into the prevailing work culture. But the high incidence of
CRM failure has very little to do with the CRM concept itself. Usually it’s a case of the
banks failing to pay attention to customer data they already have.

A lot of banks underestimate the magnitude of CRM. They tend to treat it just like any
other application technology, without realizing that CRM, if done properly, is a strategic
initiative that touches all areas of an organization. According to CRM software firm
People soft, banks need to be aware of three key problems:

 Measuring CRM benefits

A key basic CRM challenge is establishing the measurement method. Banks may find it
hard to build the initial business case justification and then to prove the worth or
success of their investment what makes the later task even more difficult is the fact that
the metrics that are best used to justify a significant IT investment are not always the
most appropriate for evaluating ongoing success.

[24]
When banks seek to justify the cost of their investment in CRM-related technology they
usually focus on hard numbers, typically those related to decreased costs and increased
sales. In other words, the proponents look to justify the top-line expenses with bottom
lines benefits.

Traditionally, banks have determined the success of any project or product mainly in
terms of internal business gauges such as return on investment, units sold asset growth,
or service level agreement measures. One exception to the typical practice of focusing
solely on internal data for gauging success is market share, or market performance.
Interestingly, most CRM practitioners quickly default to marketing and sales measures
when asked about the success of CRM implementations. The tendency to frame the
discussion of CRM measurements in terms of sales and marketing measures is
completely understandable given the phased nature of most CRM projects.

Since the majority of CRM projects are expensive multiphase and multiyear projects that
often involve multiple technologies the funding for CRM projects is also often phased.
CRM sponsors grant funding to project leaders at the completion of one phase and start
of the next. To ensure that the subsequent phases will get funding, project leaders
typically build into each phase of a CRM project demonstrable business benefits.

At completion of each phase of a project, business benefits are expected to accrue

rapidly to the bank. Revenue generation-whether through sales or marketing
improvements- is the preferred business benefit for CRM project sponsors. Not
surprisingly, it is far easier to continue funding large; intricate IT projects when
incremental revenue generation can be squarely identified.

 Customer profitability

Many banks use profitability as a key component in determining how to treat their
customers. But measuring profit in a bank is not easy task. Many banks allow the use of
an accountant’s approach to the measurement process. This means the accounting and

[25]
finance people are in charge of the process, resulting in textbook-accurate allocations
that often do not accurately reflect the activities they are intended to measure.

For example, most bank costs are step-fixed. This means they are neither purely fixed
nor purely variable, with the resource able to process only a finite number of
transactions before more investment are required. The way the step-fixed resources are
allocated can dramatically affect the resulting measurement of account level
profitability.

 The 80-20 Rule

Most banks make critical pricing decisions based n the so-called 80-20 rule, the notion
that 80 percent of profits derive from 20 percent of customers. This may be true, but the
use of incomplete or inaccurate cost information and unproven hypotheses on customer
buying behavior make this rule difficult to apply. One significant problem is that banks
let their customers use the bank’s products and services in an unprofitable way.

By providing a lower level of service to these customers, the bank faces the danger of
driving them away to institutions that provide better service. Given the step-fixed nature
of bank costs as discussed, banks should not view losing unprofitable customers as the
way to improved profits.

[26]
 CHAPTER 2: RESEARCH & METHODOLOGY

2.1 Importance of the of the study

2.2 Objectives of the study

2.3 Scope of the study

2.4 Research design

2.5 Data sources

a) Primary data
b) Secondary data

2.6 Limitation of the Study

[27]
2.1 IMPORTANCE OF THE STUDY

Customer relationship management is very essential to every organization to maintain

longer relationship with the customers. If one company not measures the customer
satisfaction and needs of the customers that cannot find the possible remedies to
counteract the competition. CRM also helps to make appropriate strategies which are
needed to sustain with environmental changes. Many studies were conducted to
understand customer satisfaction levels and needs. Many studies have done in this
particular topic but there are still some issues faced by the customers. So I have been
taken up this study.

2.2 OBJECTIVES OF THE STUDY

The main objective of the study is to identify the importance of CRM in banking sector,
and its effect on the customer with a special reference to Banks. The other objectives
are:

 To identify the Customer Relationship Management (CRM) practices in

banking sector in India.
 To analyze the service quality offered by bank.
 To portray the origin, need of CRM and CRM in banking sector.
 To analyze the socio-economic profile of the customers and their level of
perception towards Customer Relationship Management.
 To access the perception and satisfaction of the customers with the bank.

[28]
2.3 SCOPE OF THE STUDY

1. Scope of this research is limited Indian banking sectors only.

2. Research is carried out in Mumbai only.
3. Research Explores certain customer related aspects such as attitude of
employees, Saving account portability, Locker facility, ATM facility,
Passbook facility, internet banking, timings, Issue of DD, Customer Care,
Ambience, Collection of Cheques, Issue of Cheque book, information about
new products and services, Cheque Deposit for collection and Handling of
Grievances of the customers.

2.4 RESEARCH DESIGN

Research Design : Descriptive in Nature

Research procedure : Survey Method

Research instrument : A well design and structured Questionnaire

 Data Sampling
Sample Size : 50 respondents
Sampling procedure : Random Questionnaire
Statistical tools : Simple percentage

[29]
2.5 DATA COLLECTION

Data were collected from primary data and secondary sources

Primary Data : It were collected through the well designed questionnaires,

schedule by direct contact methods

Secondary Data : The secondary data was gathered from various websites,
newspapers, Text books, Magazines

2.6 LIMITATIONS OF THE STUDY

Limitations as mentioned below:

 The study is mainly based on the data collected from the customer of
various banks; therefore, the accuracy of the data provided by them is relied
upon the point of time taking perceptions from the customers.
 The study is carried out through the customer of various banks availing
with, so the findings may not the entire banking sector.
 The study is carried out in Mumbai only so the findings may not represent
the whole country.
 Time, length, and depth of the study are limited as per the requirements of
Mumbai University.

[30]
 CHAPTER 3: REVIEW OF LITERATURE

3.1 Kaujalgi (1999): IT performs better customer

satisfaction

3.2 Greenberg (2004): Bank maintain CRM through provide

Various services

3.3 Uppal R.K. (2008): Lack of awareness of e-banking

Services to manage CRM

3.4 Dutta at al (2009): Analyze the exists gap between

Customer satisfaction

3.5 Dixit at al (2010): Strategy applying to manage

Different age group of customer

3.6 Research gap

[31]
Literature review was carried out of reviewing and analyzing information related to
CRM, which was collected from various sources like books journals, magazines and
electronic journals and articles from various websites. As the study was exploratory in
nature, literature on CRM was collected during the entire course of the study. The
literature review with the objectives of framing the research objectives, understanding
the practical implications of CRM, understanding emerging trends in CRM, and for
gaining insights into various theoretical concepts related to CRM. Following are some of
the review of literature of some researchers:

 According to Mr. Kaujalgi (1999), stated that information Technology (IT)

performs an important role for giving better customer services, at a lower
cost. Further he stresses that due to presence of advance automation
technology, foreign banks have the advantage in many banking area.
 According to Greenberg (2004), customer having many options among
various services provided by banks. He makes business relationship depends
on his economy, faith and products, efficiency and services.
 Uppal R.K. (2008) stated that in spite of lack of awareness among the
customers of e-banking services, most of the customers uses the e-banks are
satisfied with various e-link and available services. It is further observed
through the responses of respondents that the future of e-banking is bright
and that this e - channels will definitely help in transformation of banking in
a positive manner.
 Dutta et al (2009), the statistical analysis further reveals that there exists of
a gap between the customer expectations and perception in the banking
sector. The expectations of bank customer higher than their perception. This
gap varies cross the banking sector with public sector banks showing the
widest gap and foreign banks showing a narrow gap. Factor analysis further
showed that tangible, assurance, empathy and reliability dimensions are the
explanatory variables predicting customers ‘satisfaction in India.’ ATM

[32]
 machines in convenient places and tele–banking and internet banking
facility. The findings further show that public sector banks are neutral about
the quality services offered.
 Dixit et al (2010), the bank management may classify the market strategy
on age group basis. They obtain their opinion to enable imparting necessary
guidance for use of online banking transactions. Interestingly, the study
reveals that online banking has a very promising future, as emphasized by
the majority (84%) of respondents.

RESEARCH GAP

As discussed, the existing studies have multiple points of views but none of them had
discussed about the specific study of customer awareness about CRM. Thus a need is
felt to initiate research in this direction so as to evaluate a model and establish
relationship between different parameters that will reflects the effectiveness and
efficiency of CRM.

[33]
 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

4.1 Analysis of questionnaire through

a) Pie chart
b) Bar graph

4.2 Analyze the different services provided by the bank

For customer satisfaction

4.3 Analysis the grievances redressed option provided by

Bank

[34]
For the data analysis the survey was taken by me was a well designed questionnaire for
the primary study. Approximately 80 to 90 people got questionnaire but only 51 persons
responded on it.

Interpretation

From the above pie chart it shows that from the 51 respondent 40 (78.4%) of respondent
are male and 11 (21.6%) are female responded to the questionnaire.

[35]
Interpretation

From the above pie chart from the 51 respondent it can be assumed that all the age
groups have bank account.

And according to occupation mostly are doing service at private sector.

[36]
Do you have bank account?

a) Yes
b) No

Particulars No. of respondents percentage

Yes 50 98%
No 1 2%

Interpretation:

From the above pie chart, 98% of the respondents have bank account. So it can be
assumed that all the people have bank account according to the banks age limit.

[37]
Which bank account do you have?

a) Private bank
b) Nationalized bank
c) Co-operative bank / scheduled bank

Particulars No. of respondents Percentage

Private bank 23 44%
Nationalized bank 24 48%
Co-operative bank 11 22%
/scheduled bank

Interpretation:

According to the survey from the 51 respondents 45.1% respondents have account in
private bank, 47.1% of the respondents have account in nationalized bank and the
remaining 21.6% of respondents have account in other banks like Co-operative /
scheduled bank.

[38]
Which account facility you are availing with?

a) Saving account
b) Current account
c) Fixed deposits
d) Recurring Deposits

Particulars No. of Respondents Percentage

Saving Account 50 98%
Current Account 2 3.9%
Fixed Deposits 3 5.9%
Recurring Deposits 1 2%

Interpretation:

According to data received most of the people have saving account. And some of them
have other account along with the saving account.

[39]
Why did you choose this particular bank?

a) I have traditional bank account with the same bank

b) The brand name of the bank in the market
c) Excellent service provided by the bank
d) Tie up with the employees
e) others

Particulars No. of respondents Percentage

I have traditional bank 12 23.6%
account with the same
bank
The brand name of the 7 13.7%
bank in the market
Excellent service 11 21.6%
offered by the bank
Tie up with the 19 37.3%
employees

Interpretation:

From the above the pie chart, 37.3% of account holders bank are tie up with the
employees or organization. 23.6% of account holders are traditionally relate this bank.
21.6% of account holders have the account because of the excellent service provide by
the bank. 13.7% of account holders are have the bank account because of the name of
the bank and remaining 2% have the bank account because the bank is nearby their
residential area.

[40]
Since how many years had been dealing with this bank?

a) Less than 1 year

b) 1-2 years
c) 3-5 years
d) More than 5 years

Particulars No. of respondents Percentage

Less than 1 year 5 9.8%
1-2 years 5 9.8%
3-5 years 22 43.1%
More than 5 years 19 37.3%

Interpretation:

According to the survey 43.1% of people have their bank account for 3-5 years, 37.3%
of the people are more than the 5 years, 9.8% of people have their bank account for the
period of 1-2 years only and only 9.8% of people have their bank account for less than 1
year.

[41]
How many bank accounts do you have?

a) 1
b) 2
c) 3
d) 4

Particulars No. of respondents Percentage

1 35 68.6%
2 13 25.5%
3 2 4%
4 1 2%

Interpretation:

According to the pie chart 68.6% of people have only one bank account, 25.3% of
people have 2 bank accounts and the remaining 6% of people have more than 2 bank
accounts.

[42]
If you have both private and nationalized bank account, than which bank service is
better to you?

a) Private bank
b) Nationalized bank

Particulars No. of respondents Percentage

Private bank 31 60.8%
Nationalized bank 20 39.2%

Interpretation:

From the above pie chart, 60.8% of the people like the services of the private sector
banks. And the remaining 39.2% of the people like the service of the nationalized banks.
It shows that the private sector banks are more attentive towards the CRM to manage
customers.

[43]
What kind of services do you usually use to visit your bank branch?

a) Deposits
b) Withdraw
c) Money transfer
d) Cheque clearance & passbook update
e) Money exchange
f) Others

Particulars No. of respondents Percentage

Deposits 41 80.4%
Withdraw 34 66.7%
Money transfer 6 11.8%
Cheque clearance & 15 29.4%
Passbook printing
Money exchange 1 2%
Others 2 4%

Interpretation:

From the above bar graph it is clearly shown that mostly account holders are visit to the
bank branch to deposit and withdraw of money. And some of them are visit the branch
to money transfer, cheque clearance & passbook printing. Some of them visit the bank
branch for KYC and other purpose.

[44]
Which facility satisfies you most?

a) ATM
b) Loan
c) Preparation of draft
d) Net banking
e) Interest Package
f) Phone banking

Particulars No. of respondents Percentage

ATM 43 84.3%
Loan - -
Preparation of draft - -
Net banking 24 47.1%
Interest Package - -
Phone banking 11 21.6%

Interpretation:

From the survey it shows that mostly people like the ATM, Net banking, and phone
banking services provided by the bank. Banks provide many types of services but the
general publics are not aware about of those services.

[45]
How the banks handle your Grievances? Is that satisfies you?

a) Yes
b) No

Particulars No. of respondents Percentage

Yes 46 90.2%
No 5 9.8%

Interpretation:

According to the survey 90.2% of the total respondents are satisfied with the bank in the
matter of handling of Grievances redressed. It shows that the banks are more lawful to
the customers to maintain and retain the customer.

[46]
Does the bank inform you about the new services or changes on the services on time?

a) Yes
b) No

Particulars No. of respondents Percentage

Yes 42 82.4%
No 9 17.6%

Interpretation:

The survey shows that 82.4% of respondents are agreed that the bank inform the new
services and changes of the policy and other information to the customer on time. Only
17.6% of people disagree about it.

[47]
Do you think bankers maintain good services through CRM?

a) Yes
b) No

Particulars No. of respondents Percentage

Yes 18 35.3%

No 1 2%

Maybe 32 62.7%

Interpretation:

According to the pie chart, 62.7% of people thought that maybe the bank maintain good
services through the CRM. 35.3% of people agreed that the bank maintain good services
through CRM. Only 2% of people are not agreed on it.

[48]
In this modern era, is bank maintains CRM through the online and internet banking?

a) Strongly disagree
b) Disagree
c) Neutral
d) Agree
e) Strongly agree

Particulars No. of respondents Percentage

Strongly disagree 1 2%
Disagree 1 2%
Neutral 15 29.3%
Agree 33 64.7%
Strongly agree 1 2%

Interpretation:

From the above diagram it clearly shown that 64.7% of people agreed that bank
maintain CRM through internet banking and online via SMS or tele calling. 29.3% of
people are Neutral on it. 2% of people are strongly agreed and remaining is not agreed
on it.

[49]
How would you rank the overall services?

a) Excellent
b) Good
c) Fair
d) Poor

Particulars No. of respondents Percentage

Excellent 7 13.7%
Good 31 60.8%
Fair 12 23.5%
Poor 1 2%

Interpretation:

It clearly shows the pie chart that 13.7% of the people given excellent ranking to the
bank for the services. 60.8% of people given good ranking to the bank and 23.5% of
people ranked as fair for the services. Only 2% of people give the poor ranking to the
bank for its services. It means the bank maintain good services through CRM.

[50]
 CHAPTER 5: FINDINGS, CONCLUSION & SUGGESTIONS

FINDINGS:
 CRM is not only a technology initiative; many have confused as it is a
technology initiative, and assigned the CRM implementation project to their
information system or IT group. But to maintain or retain customer all the
employees also have to understand about it and implement it.

 People are satisfied with the service provided by the bank it may be online or
offline (like internet banking services, online services and at the branch) but
the majority of people have issues with the employees of the bank.

 Bank employees are not properly behaved to the customer due to less staff the
staff of the bank delayed the services at the branch. The bank employees
should be more cooperative with the customer.

 Even in ground level account holders are not aware of the CRM. The bank
should take major steps to getting aware about it.

 As compare to the public sector bank, the private sector banks are provided
good customer service.

[51]
CONCLUSION:

Banking can be mysterious for consumers and how they interact with their finances can
be a complex matter. The challenges faced by banks and their customers are many but
the trick lies in de-mystifying complex financial relationships.

Technical solutions deployed by banks today are flexible, user-friendly and meant to
facilitate specific workflow and requirements in implementations processes. In order to
simplify lives, banks have begun to implement end-to-end technologies through all
departments with the intention of removing human error from processes. Previously
existing manual environments could not have been adequate for future visions, growth
plans and strategies.

In this day and age, customers enjoy complete luxury in terms of customized technical
solutions and banks use the same to cement long-term, mutually-beneficial relationships.
For a bank to succeed in adopting a CRM philosophy of doing business, bank
management must first understand CRM as a holistic concept that involves multiple,
interlocking disciplines, including market knowledge, strategic planning, business
process improvement, product design and pricing analysis, technology implementation,
human resources management, customer retention, and sales management and training.

Turning the business strategy into actionable items is a difficult undertaking. For which
Customer Relationship Management works a magic wand.

[52]
SUGGESTIONS:

After careful observation and analysis of both primary and secondary research,
following suggestions are put forward:

 It has been witnessed that the major area of concern for any bank is the customer
service and customer satisfaction, thus just like the private sector banks, it is high
time that the public sector banks also start concentrating more on the customers
and the services provided by bank.
 The services provided by the public sector banks must be quick and fast. This is
a major disadvantage for public sector banks due to which majority of the
respondents prefer private bank services.
 More ATM coverage should be provided for the convenience of the customers
and the ATM should always be avail with cash.
 The need of the customer should properly be understood so that customer feels
satisfied. The relationship value should be maintained.
 Banks should take major steps towards the training and take other sessions to
aware about the CRM to the employees.

[53]
 CHAPTER 6: BIBLIOGRAPHY & ANNEXURE

Bibliography:

Websites:

 https://searchcustomerexperience.techtarget.com/definiation/CRM
 https://en.wikipedia.org/wiki/Customer_relationship_management
 http://www.managementstudyguide.com/
 https://www.ehow.com/how_6808577_implemet-crm-banks-html
 https://www.ebooks.com/en-us/book/289003/customer-relationship-
management/

Books:

Greenberg, Paul. "CRM at the Speed of Light, Essential CRM Strategies for the 21 Century."
MCGraw-Hill: Osborne, 2004.

RK, Uppal. "Customer Relationship Management in Indian Banking Sector." Delhi: New Century
Publication, 2008.

Shraddha M. Bhomw, Rajiv S. Mishra, Swati Subhash Desai, Suyash Pradhan. "Research
Methodology." 176. Mumbai: Himalaya Publication, 2018.

Stanley, A. Brown. "Customer Relationship Mangement A Strateggic Imperative in the World of

Business." 376. Wiley, 2000.

[54]
Annexure:

[55]
[56]
[57]
[58]