Paper 40

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ArthPrabandh:A JournalofEconomicsandManagement
Vol.1Issue6,September2012,ISSN22780629
CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR:

A COMPARATIVE STUDY OF SBI AND OTHER NATIONALISED
COMMERCIAL BANKS IN INDIA
SANJAY KANTI DAS*
*Head,
Department of Commerce,
Lumding College, Lumding,
Nagaon, Assam.
PinnacleResearchJournals68
http://www.pinnaclejournals.com
ABSTRACT
Customers are the focal point in the development of successful marketing strategy. Marketing
strategies both influence and are influenced by consumers affect and cognition, behaviour and
environment. In the banking field a unique Relationship exists between the customers and the
bank. But because of various reasons and apprehensions like financial burdens, risk of failure,
marketing inertia etc., many banks are still following the traditional ways of marketing and only
few banks are making attempts to adapt CRM. It is with this background, the researcher has
made a modest attempt towards the idea that CRM can be adapted uniformly in the banking
industry for betterment of Banking Services. The lack of understanding on Customer
Relationship Management (CRM) is always a concern among the service providers especially
banks. Banks have their own way of managing their relationships with the customers. However,
the perception of customers on CRM practices among banks should also be taken into
consideration. Here in this paper, effort is given to study the comparative perception of SBI
customers and other nationalised banks customers in the issue of CRM practices. It is observed
that the approach of CRM by SBI and other nationalised are to some extent same and one but the
reach is quiet distinguishable. It is due to the profile, their capability and the strategy of CRM in
making it and reaching down to customers. On the contrary, it can also be asserted that the
background of both banks also found as a big cause for reaching the top CRM. Hence, CRM is
an inevitable tool of marketing that can be considered as Critical Responsibility of Market with
regard to Banks in present context.
______________________________________________________________________________
INTRODUCTION
Customer relationship management is one of the strategies to manage customer as it focuses on
understanding customers as individuals instead of as part of a group (Lambert, 2010). Managing
customer relationships is important and valuable to the business. The effective relationship
between customers and banks depends on the understanding of the different needs of customers
at different stages. The ability of banks to respond towards the customers needs make the
customers feel like a valuable individual rather than just part of a large number of customers.
CRM manages the relationships between a firm and its customers. Managing customer
relationships requires managing customer knowledge. CRM and knowledge management are
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directed towards improving and continuously delivering good services to customers. To

understand more in customer relationship management, we first need to understand three
components which are customer, relationship and their management (Peppers and Rogers, 2004).
More often, managers always make mistakes by seeing customers satisfaction from their eye not
from customers eye (Peppers and Rogers, 2004). Banking sector is a customer-oriented service
where the customer is the KEY focus. Research is needed in such sector to understand
customers need and attitude so as to build a long relationship with them. Customer Relationship
Management includes all the marketing activities, which are designed to establish, develop,
maintain, and sustain a successful relationship with the target customers. CRM identifies the
present and future markets, selects the markets to serve and identifies the progress of existing
and new services.
Thus, CRM is a managerial philosophy that seeks to build long term relationships with
customers. CRM can be defined as the development and maintenance of mutually beneficial
long-term relationships with strategically significant customers (Buttle, 2002). It is the
establishment, development, maintenance and optimisation of long term mutually valuable
relationships between consumers and the organisations. 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 them with the organisations
strategy, people, technology and business processes.
CRM IN BANKING SECTOR

Over the last few decades, technical evolution has highly affected the banking industry. For more
than 200 years, banks were using branch based operations. Since the 1980s, things have been
really changing with the advent of multiple technologies and applications. Different
organisations got affected from this revolution; the banking industry is one of it (Sherif, 2002).
In this technology revolution, technology based remote access delivery channels and payment
systems surfaced. ATM displaced cashier tellers, telephone represented by call centers replaced
the bank branch, internet replaced the mail, credit cards and electronic cash replaced traditional
cash transactions, and interactive television will replace face-to-face transactions (Sherif, 2002).
In recent years, banks have moved towards marketing orientation and the adoption of
relationship banking principles. The key motivators for embracing marketing principles were the
competitive pressure that arose from the deregulation of the financial services market particularly
in India. This essentially exposed clearing banks and the retail banking market to increased
competition and led to a blurring of boundaries in many traditional product markets (Durkin,
2004). The bank would need a complete view of its customers across the various systems that
contain their data. If the bank could track customer behaviour, executives can have a better
understanding, a predicative future behaviour and customer preferences. The data and
applications can help the bank to manage its customer relationship to continue to grow and
evolve (Dyche, 2001). According to Stone et al. (2002) most sectors of the financial services
industry are trying to use CRM techniques to achieve a variety of outcomes. In the area of
strategy, they are trying to:
Create consumer-centric culture and organisation;
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Secure customer relationships;

Maximize customer profitability;
Integrate communications and supplier customer interactions across channels;
Identify sales prospects and opportunities;
Support cross and up-selling initiatives;
Manage customer value by developing propositions aimed at different customer segments;
Support channel management, pricing and migration.
CRM is a sound business strategy to identify the banks most profitable customers and prospects,
and devotes time and attention to expanding account relationship with those customers through
individualised marketing, reprising, discretionary decision making, and customised service
through the various sales channels that the bank uses. Any financial institution seeking to adopt a
customer relationship model should consider six key business requirements (Chary & Ramesh,
2012), they are:
1. Create a customer-focused organisation and infrastructure.
2. Gaining accurate picture of customer categories.
3. Assess the lifetime value of customers.
4. Maximise the profitability of each customer relationship.

5. Understand how to attract and keep the best customers.
6. Maximise rate of return on marketing campaigns.
CRM is developing into a major element of corporate strategy for many organisations
(Rangarajan, 2010; Shibu, 2011). A greater focus on CRM is the only way the banking industry
can protect its market share and boost growth. With intensifying competition, declining market
share, deregulations, smarter and more demanding customers, there is competition between the
banks to attain a competitive advantage over one another or for sustaining the survival in
competition.
In India, the banking sector has been operating in a very stable environment from last thirty forty years. In current scenario of banking sector, the falling of interest rates and tough
competition between these players had made Indian bankers to realise that the purpose of their
business is to create and retain a customer and to see that the entire business process is consistent
with an integrated effort to discover, retain and satisfy customer needs. But the success of' CRM
Strategy depends upon its ability to understand the needs of the customer and to integrate them
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with the organisation's strategy, people, technology and business process. Financial services are
in a structural change whereby competition and customer demands are increasing.
RESEARCH PROBLEM
Modern Marketing philosophy advocates the concept of CRM that creates customer delight. This
applies to all sectors of Sales and Marketing includes the banking. In the banking field a unique
Relationship exists between the customers and the bank. But because of various reasons and
apprehensions like financial burdens, risk of failure, marketing inertia etc., many banks are still
following the traditional ways of marketing and only few banks are making attempts to adapt
CRM. It is with this background, the researcher has made a modest attempt towards the idea that
CRM can be adapted uniformly in the banking industry for betterment of Banking Services. The
role of CRM is quite different and distinguishable to traditional type of Marketing CRM
participate not only in Marketing but also in implementing the business as a strategy to acquire,
grow and retain profitable customers with a goal of creating a sustainable competitive advantage.
Particularly in banking sector, the role of CRM is very vital in leading the banks towards high
level and volume of profits. So there is a need to study the role of CRM in development and
promotion of banking sector through the sidelines of the practices, problems and impact of the
CRM on banking sector all the time.
OBJECTIVES OF THE STUDY
The main objective of the study is to examine the importance of CRM in banking sector, and its
impact on the Customer Satisfaction with a special reference to State Bank of India (SBI) and
other nationalised bank including UBI, BOB, BOI, UCO, PNB and Allahabad bank. The other
specific objectives of the study are:
1. To review the literature on the concept and use of CRM in banking sector.
2. To analyse the perception of customer on CRM as a tool of banking sector in retention of
customers in general and SBI and other nationalised banks in particular.
3. To offer pertinent suggestions based on the findings of the study.
METHODLOGY
The present study is a comparative and analytical one through the perceptions of the customers
of the selected banks. Primary data were collected through a well structured qualitative
questionnaire from the selected banks. A Questionnaire with 21 statements was adapted from
different literature with modifications to suit the setting in the banking sector. Perceptions on
CRM practices are measured by using 3 point Likert scale as follows: 1= Disagree; 2= Neutral;
3= Agree. A sample of 120 customers of the selected banks, SBI (60 customers) and other
nationalised banks (60 customers) of Guwahati city of Assam were selected for the purpose of
the study. Data whatsoever collected were processed, tabulated and analysed by using various
statistical tools, like, Arithmetic mean, Standard Deviation and F test etc.
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LITERATURE REVIEW
In this paragraph, sincere effort is given to highlight the concept and significance of CRM
vis a vis the uses and application of CRM in Banking sector. In the literature, the main difference
among the definitions of CRM are technological and relationship aspects of CRM. The phrase
CRM appeared in the literature after the evolution in the relationship marketing philosophy.
Berry (1983) defined relationship marketing as attracting, maintaining and enhancing the
customers relationships in multi-service organisation. After a few decades, the evolution in
relationship marketing philosophy changed the word relationship marketing to CRM. According
to Brown (2000) CRM is a process of acquiring new customers, retaining the existence
customers, and at the same time understands, anticipates and manages the needs of an
organisations current and potential customers. Furthermore, Mylonakis (2009) described CRM
as an innovative process to create a long term relationship and gaining trust.
CRM in financial service industry is a cyclical process which starts with definition of customer
actions (Panda, 2003). CRM is fundamental to building a customer-centric organisation. CRM is
a key element that allows a bank to develop its customer base and sales capacity. The goal of
CRM is to manage all aspects of customer interactions in a manner that enables the organisation
to maximise profitability from every customer. Panda (2003) described customer expectations
are difficult to manage but are often the cause of dissonance which results in loss of existing
customer base. So understanding of customer expectations with regard to service delivery levels
and product quality is essential for establishing a long term symbolic value relationship. From
the foregoing, it can be said that the purpose of CRM is to bring about Customer Focused
Services (Gummesson, 1987; Gronroos, 1990; Varki and Colgate, 2005; Gan et al., 2006),
Information and Communication Technology, Complaints Management (Wilke 1994;
Ingram,1996; Omarley and Tynan, 2000; Gilly et al., 2005; Achumba, 2006 ), High Quality
Service (Khandwalla, 1995; Eisingerich and Bell, 2006), Timeliness in Service Delivery,
Friendliness of Employees (Reinatz and Kumar, 2003), Ease of Opening Account and
Competitive Charges in order to enhance organisational performance as indicated by such
variables as Customer Satisfaction (Morgan and Hunt, 1994; Naidu et al., 1999), Customer
Retention (Dick and Basu, 1994; Morgan and Hunt, 1994; Reichheld, 1996), increase in number
of customers (Groonroos, 1990), and increased net profit (Khandwalla, 1995; Page et al., 2006).
The organisational performance is enhanced because marketing efficiency is achieved due to the
cooperative and collaborative processes (Sheth and Sisodia, 1995) introduced by CRM which
helps in reducing transaction costs and overall development costs for the company. These brings
about two important processes of proactive customer business development and building
partnering relationships with the most important customers (Chitanya, 2005) and eventually
leads to superior mutual value creation between the organisation and the customer. Further, a
clear vision of CRM along with appropriate strategies if applies in banking sectors found out that
beneficial in maintaining the customer service quality, customer satisfaction and customer
retention which ultimately leads to the growth of the organisation and profitability (Bansal and
Sharma, 2008). Girdhar (2009) observed that by satisfying the internal customers and building
good relationship with them, the relationship with the external customers can also be retained
and satisfied by the banks. Kumar & Rajesh (2009) reveals that any bank that wishes to either
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grow in size of its banking operation or improve its profitability must consider the challenges
affecting its customer relationship.
The following literature review section provides a discussion and argument for the service
quality and CRM practices. The challenge before the banks is not only to obtain updated
information for each customer, but also to use the information to determine the best time to offer
the most relevant products (Lau et al., 2003). It is also important to understand that if customers
bring in profits for the bank, it becomes imperative for the bank to provide excellent services to
those customers, otherwise they switch to other banks (Ray, 2007). Service quality in banking
implies consistently anticipating and satisfying the needs and expectations of customers.
Parasuraman et al. (1985) also hold the view that high quality service gives credibility to the
field sales force and advertising, stimulates favourable word-of-mouth communications,
enhances customers perception of value, and boosts the morale and loyalty of employees and
customers alike. Puccinelli (1999) looks the financial services industry as entering a new era
where personal attention is decreasing because the institutions are using technology to replace
human contact in many application areas. Over the last few decades, technical evolution has
highly affected the banking industry (Sherif, 2002). In todays competitive banking industry,
customers have to make a choice among various service providers by making a trade-off between
relationships and economies, trust and products, or service and efficiency (Sachdev et al., 2004).
Roger Hallowell (1996) conducted a research on customer satisfaction, loyalty, and profitability
and found that as compared to public sector, private sector bank customers level of satisfaction
is comparatively higher. CRM is a key to create a superior customer experience. It manages the
customer relationship by creating a clear understanding (Know), by developing services and
products based on the added value for target groups (Target), then enabling the actual sale and
delivery of services and products through the selected channels (Sell), and developing long term
profitable relationships with customers after sales services (Service) (Hussain, et.al., 2009).
Many researchers have been done in various industries especially in the banking sector that
focussing on customer oriented services (Ndubisi et al., 2007; Rootman et al., 2008; and Dutta
and Dutta, 2009). Lu and Shang (2007) explored the CRM perceptions in freight forwarder
services from managerial perspectives. They had come out with six dimensions of CRM namely
customer acquisition, customer response, customer knowledge, customer information system,
customer value evaluation, and customer information process.
The following literature review section provides a discussion and argument for the selection of
the variables for the empirical investigation on CRM. Almossawi (2001) examined the bank
selection criteria and observed that there are four selection criteria of banks in Bahrain namely
technology, convenience, financial benefits and employees or customer interactions. Wang et al.
(2004) developed an integrative framework for customer value and CRM performance based on
the identification of the key dimensions of customer value viz. functional value, social value,
emotional value and perceived sacrifices. Sin et al. (2005) identified four dimensions of CRM in
their study viz. key customer focus, CRM organisation, technology-based CRM and knowledge
management (Parvatiyar and Sheth, 2001). Rootman et al. (2008) investigated the variables that
influence the effectiveness of CRM strategies in banks viz. attitude, knowledgeability and twoway communication related to bank employees.
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The literature on CRM suggests that banks should consider the customer relationship life cycle
(Dwyer et al., 1987). In general, there are three core phases: customer acquisition, customer
enhancement, and customer recovery. The acquisition phase describes the initiation of a
customer-bank relationship. In CRM initiatives, customer representatives help customers get
used to the products and services, thereby increase customer familiarity. As the service industry
has a high degree of integration and interaction in terms of contact contribution, empowerment is
a helpful instrument for successful control of individual customer relationships (Mudie and
Cottam, 1993). Service recovery is critical as it provides an opportunity to retain customers. If
the customer has been lost but is still attractive, recovery offers could be made to the customer
(e.g. cancellation in the initiation fee; taking care of formality caused by the switching) or value
added services could be offered. In the customer-centered paradigm, customer asset management
(CAM), customer equity (CE), return on quality and service profit chain are similar to CRM
(Berger et al., 2002; Blattberg et al., 2001; Rust et al., 1995; Heskett et al., 1994).
ANALYSIS & FINDINGS

CRM has emerged as a popular business strategy in todays competitive environment. It
is a discipline that enables the companies to identify and target their most profitable customers. It
involves new and advance marketing strategies that not only retain the existing customers but
also acquire new customers. It has been found as a unique technique which can bring remarkable
changes in total output of companies. Through the literature survey and data analysis it can be
inferred that CRM tries to find out the relationship between perception and satisfaction,
commitment and loyalty that underlines the significance in Indian Banking Sector. Customers
largely select their banks based on how convenient the location of bank was to their homes or
offices. With the advent of new technologies in the business of banking, such as internet banking
and ATMS, now customers can freely chose any bank for their transactions. Private Banks have
traditionally viewed themselves as exceedingly Customer Centric offering what they believe to
be highly personalised services to the High Net Worth Customers. It is also found that the
structured approach of CRM can provide various benefits to a bank, namely a distinctive and
consistent customer experience, clear identification of the organisation, technological and
process-related capabilities. The banking industry is much further along than other industries in
recognising the value of CRM and implementing decision support systems to support CRM.
Though most of the banks have already focused on tactical point solutions, theyre ready for a
transition toward strategic, enterprise-wide CRM initiatives that cross major business lines. An
effective decision support system for CRM enables to collect data about customer from every
touch consolidate this information into a single view of the customer, and use this information
for customer profiling, segmentation, cross-selling, up selling and retention efforts. As banks
continue to seek a unified understanding of customer relationships across diverse channels, the
importance and penetration of CRM is expected to grow like anything. With regard to various
aspects of CRM through the opinions of select bank customers the following findings are drawn
and shown in Table 1.
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TABLE 1: CUSTOMERS PERCEPTIONS ON CRM CONSTRUCTS

Sl. Nos
CRM Constructs
SBI
AM
SD
AM
SD
Alternate marketing approaches of bank
2.67 9.42
2.88 9.97
Big challenge for the bank is customer retention
2.55 8.43
3.13 12.18
Ensure basic and key facilities and services
2.55 8.43
3.13 12.18
Prompt services in mean time
2.5
2.58 9.16
Retention of existing customers
2.71 9.28
2.58 12.18
Enhances customers loyalty
2.6
8.68
2.5
CRM is centered in Annual report only
2.8
2.6
10.2 9.4
2.75 10.3
2.68 9.2
2.51 9.07
2.33 8.10
2.83 9.5
2.51 10.60
12
Existence of CRM practices are prevalent

throughout all the levels
CRM creates customer awareness about different
services offered by bank
CRM is undertaken by employee approach to
customers
CRM objective is to increase bank-customer
relationship
CRM objective is to frame customer data base
2.5
8.6
2.8
9.6
13
Bank itself is interested in CRM activities
2.7
9.3
2.4
8.2
14
CRM benefits to retention of customers
2.33 8.8
2.28 7.6
15
CRM attract new customers
2.8
9.7
2.3
16
CRM helps to build customer loyalty
3.0
11.13 2.7
9.52
17
CRM benefits banks performance and productivity
2.7
9.73
8.33
18
CRM promotes customers awareness
2.61 10.5
2.71 9.8
19
2.56 9.3
20
CRM is implemented at the quest of Customer 2.33 8.05

urge
CRM boosts customers confidence
2.68 9.70
2.51 8.76
21
CRM create all round friendly environment
2.66 8.89
F test Value
1.65
Tabulated
Value
Remarks
1.543 [dof = 42,42 at 5% Level of Significance]
9
10
11
ONB
Rejected
9.03
10.19
2.91 10.77 2.61 8.85
2.35 8.6
2.4
7.8
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1. From the analysis, it is found that only few customers recognise that there is a change in
marketing approach of Banks due to changing business environment. Majority of
customers uncertain that the CRM is centered in a particular department very few of the
customers have accepted that CRM is prevalent through all the levels in the Banks. CRM
undertaken by employee approach to customers is found very poor. It is further observed
that the CRM activities are initiated and implemented by the Banks in a serious manner,
so that the customers in particular and the society in general benefited a lot. Providing
service to customers has been identified as the prime responsibility of the Banks and
therefore, Banks considered that CRM is the best tool to perform the job of rendering
good services.
2. It is found that Customer Retention is not a big challenge to Banks as per the opinions of
customers of selected Banks. It is found that though CRM activities have not helped to
increase the confidence of the customers in meeting the changing needs, it helped to
increase the confidence of the customers while rendering services in mean time
efficiently. CRM activities of the selected Banks are not up to the mark in retaining the
key customers.
3. It is beyond doubt that when banks through CRM activity attend the needs of customers
without delay in time, the banks can create more awareness to customers and can create a
customer data base very significantly. According to the perception of customers
enhancing customer loyalty through different activities is not an absolute activity.
According to the analysis, it is observed that CRM activities have not helped to increase
rapport with the customers of the selected banks as expected. Most the customers have
not accepted that the selected Banks are not showing interest in CRM activities with full
attention but maintaining the same as a compulsion. Most of the customers are uncertain
about the CRMs benefit in building the customer loyalty. It is further observed that
CRM activity does not help the Banks to get immediate commercial returns and also to
have a favorable public image over the long run unless the CRM activities are taken up
by all the departments in the banks.
4. All the customers are uncertain about CRM of a Bank that contains creation of complete
customer database. Technological advancement adopted by Banks was not useful to get
the update and latest information over CRM.
5. Through the study, it is observed that the selected Banks customers are being exposed to
the new techniques. It is found that CRM is centered only to a mention in the Annual
report, of the public sector Banks. It is also observed that customers are strongly
disagreeing and some of them are uncertain about CRM activity is undertaken by eMarketing by their banks. It is observed that the awareness level of all respondents is less
as far as the other modes like advertisement etc. by the Bank is concerned.
6. Most the customers have not accepted that the selected Banks are not showing interest in
CRM activities with full attention but maintaining the same as a compulsion. CRM
activity has been felt as an additional workload by the employees but they have feel CRM
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is useful to customers and also the Banks. The attention of management on CRM activity
is totally different between and among the Banks.
7. It is found that the technological necessities for the implementation of CRM do not
require the environments of advanced countries. The basic services providing
infrastructure facilities and technological tools that are available in India suit the
implementation of CRM by banking industry in India.
8. The reach of CRM of both SBI and other nationalised banks is compared and tested
through F Ratio. It is assumed that there is no significant difference between the
perceptions of customers of SBI and other nationalised banks towards CRM. As the
calculated value (1.65) of F is higher than the standard value (1.54), the hypothesis is
rejected at 5% significant level and inferred that there is significant difference between
the perceptions of SBI and other nationalised banks customers towards CRM.
CONCLUSION
The general discussion can be said that the bank is yet to develop an integrative approach
which focuses on the customer needs and to deliver to it. As shown by the study, the bank is far
from developing a customer centric approach both for the customer as well as for the employees.
Thus, for customer relationship management to deliver to its expectations, it should play an
integrative role within the bank and ensure that all processes are integrated in the bank global
strategy, which is far from reality in the study above. In view of this, to implement a CRM
integration strategy, the following recommendations can be adopted:
1. The Indian Banking Sector is flooded with different banks of the same molecule. In
such a competitive environment, the Banks should adopt suitable marketing skills
rather than depending on the trading skills. Hence, new services should be constantly
introduced to ensure the growth of the Banks and to be competitive in the market and
to keep up the enthusiasm of the employees and customers etc.
2. Implement a Customer Centric Process in Banks.
3. Employee Relationship
Management.
Management
first
before
Customer
Relationship
4. Increase customer experience through the web site.

5. Develop channel integration for effective Customer Relationship Management.
6. Proper training should be given to the bank personnel regarding the behavioral
patterns by the Banks before they come and work in the field.
7. More importance should be given to handling online transaction and using mcommerce and mobile banking services.
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8. It should be realised that customer relation cannot be built overnight. CRM should be
considered as Continuous Relationship Management.
9. Data gathered from the customers should be given proper value and it should be
properly utilised. Decision making authority should be extended to field force and
some resources should be given for faster implementation.
10. The Banking sector is developing and getting higher day by day in urban and semi
urban areas; there is large number of customers using the services in the urban and
semi urban areas. So a wide scope in rural areas is expected in the days to come.
Based on the analysis it is very clear that in almost all issues, the working performance of SBI
and other nationalised banks is similar but differing at certain aspects only. The SBI though it is
public sector bank, taking much care in implementation of CRM, fine tuning the CRM and
finally putting it on track. Whereas, other nationalised was not at par with SBI in most of the
aspects like database management, responding to the customers in mean time and
provisionaising the services as expected by the customers. Particularly in marketing approach,
considering customer retention as a big challenge, provisioning the facilities attending the needs
without delay in time, meeting the changing needs creating the database, employee approach to
customers, customer awareness impact of CRM relationship with customer impact over bank
objectives, CRM and public image, CRM and updating the data, CRM and customer satisfaction,
other nationalised is found quite good. On the other hand, in terms of retention of existing key
customers, enhancing customer loyalty, provisionising technological infrastructure, location of
CRM, existence of CRM, approaches of CRM, coverage of CRM by e-Marketing, relationship
with the customer, CRMs objectives and making the customer delight, retention of customers
benefits of CRM to the organisation, loyalty, customer confidence, are found quite satisfactory
and in good condition with SBI. It is very clear from the foregoing analysis that the approach of
CRM by SBI and other nationalised are to some extent same and one but the reach is quiet
distinguishable. It is due to the profile, their capability and the strategy of CRM in making it and
reaching down to customers. On the contrary, it can also be asserted that the background of both
banks also found as a big cause for reaching the top CRM. Hence, CRM is an inevitable tool of
marketing that can be considered as Critical Responsibility of Market with regard to Banks in
present context. The results in this study show the respondents either agree or strongly agree on
majority of the statements in the dimensions used. This study is significant to banks as they get
information on what are items that are important to customers so as to maintain the relationship.
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APJEM

CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR:

directed towards improving and continuously delivering good services to customers. To

CRM IN BANKING SECTOR

Secure customer relationships;

4. Maximise the profitability of each customer relationship.

ANALYSIS & FINDINGS

TABLE 1: CUSTOMERS PERCEPTIONS ON CRM CONSTRUCTS

Alternate marketing approaches of bank

Big challenge for the bank is customer retention

Ensure basic and key facilities and services

Prompt services in mean time

Retention of existing customers

Enhances customers loyalty

CRM is centered in Annual report only

Existence of CRM practices are prevalent

Bank itself is interested in CRM activities

CRM benefits to retention of customers

CRM attract new customers

CRM helps to build customer loyalty

CRM benefits banks performance and productivity

CRM promotes customers awareness

CRM is implemented at the quest of Customer 2.33 8.05

CRM create all round friendly environment

1.543 [dof = 42,42 at 5% Level of Significance]

2.91 10.77 2.61 8.85

4. Increase customer experience through the web site.

4. Brown, S. A. (2000). Customer Relationship Management: A Strategic Imperative in the

18. Gilly, M. C., Stevenson, W. B. and Yale, L. J. (2005). Dynamics of Complaint

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