CUSTOMER SATISFACTION IN KANCHEEPURAM CENTRAL CO-OPERATIVE BANK(KCCB)

DEFINITION OF CUSTOMER
A customer is the most important visitor on our premises. He is not dependent on us. We are
dependent on him. He is not interruption in our work. He is the purpose of it. He is not an outsider to
business. He is a part of it. We are not doing him a favor by serving him\her. He is doing us a favor by
giving an opportunity to do so.
-MAHATAMA GANDHI
Satisfaction
There will be a considerable overlap between trust and satisfaction as they both represent an
overall evaluation, feeling or attitude about the other party in a relationship. Satisfaction may be
developed through personal experience, or less directly through opinion and the experience of peers. It is
associated with the perceived standard of delivery and may well be dependent on the duration of the
relationship. Anticipated levels of satisfaction may also have an important effect on the duration of trust.
Trust is a belief in a person's competence to perform a specific task under specific circumstances.
In other circumstances, no such trust may exist. This is because relationships are multifaceted. It is quite
possible for parties to hold, simultaneously, different views of each other as to each party's trustfulness in
particular situations. For example, a company may be trusted with regard to its quality but may not be
trusted to deliver on time.

Definition of customer satisfaction

In the economy, "the customer is the king is well know and never failings in its verity. Customer
satisfaction should be the primary driving force of most of the focus is on development of customer
orientation. “Which provides high level of customer retention and significant opportunities for increase
sales”
Customer satisfaction
Oliver defines customer satisfaction as follows "Satisfaction is the consumer's fulfillment
response. It is a judgment that a product or service feature, or the product or service itself, provides" a
pleasurable level of consumption-related fulfillment".
This definition means that satisfaction is the customers' evaluation of a product or service in terms of
whether that product or service has met their needs and expectations. Failure to meet needs and
expectations is assumed to result in dissatisfaction with the product or service. In addition to a sense of
fulfillment in the knowledge that one's needs have been met, satisfaction can also be related to other types
of feelings, depending on the particular context or type of service. For example, satisfaction can be
viewed as contentment. Satisfaction may also be associated with feelings of pleasure for services that
make the consumer feel good or are associated with a sense of happiness. For those services that really
surprise the consumer in a positive way, satisfaction may mean delight. And in some situations, where the
removal of a negative aspect leads to satisfaction, the consumer may associate a sense of relief with
satisfaction.

Retention in competitive markets is generally believed to be a product of customer satisfaction.

Satisfaction is a psychological process of evaluating perceived performance outcome based on
predetermined expectations. Customers are, therefore, satisfied when their expectations are taken of in
contrast, the greater the gap between the level of expectation, and the matching of such expectations, the
greater the level of dissatisfaction experienced by the customer.

Customer Satisfaction Survey Design

A customized CRM customer satisfaction survey is designed for the organization, or taking an
existing survey and altering it to be administered via the Internet, telephone, fax, or newspaper. All
customer satisfaction survey instruments are reviewed to assure validity, reliability, and bias reduction.
Relevant survey instruments should be composed that will yield sound and valid conclusions while
achieving the maximum survey response rate possible.
Customer satisfaction surveys should cover nearly every facet of customer satisfaction, including:

• Overall satisfaction
• Product-level satisfaction
• Importance vs. satisfaction
• Timeliness of delivery
• Customer service process satisfaction.
• Returns and exchange process satisfaction
• Interest in new potential products and services

Customer satisfaction surveys are comprehensively designed to identify and isolate key
independent and dependent variables.

Independent Variables Dependent Variables

Customer service Overall satisfaction
Timeliness of delivery Likelihood to recommend
Competitive pricing Likelihood to repurchase
Professionalism Customer loyally

Customer attitudes are a better predictor of future customer behavior than past behavior.
Customer satisfaction surveys are specifically designed to accurately measure attitudes that affect real
business metrics, like customer retention rates and turnover.

Customer Satisfaction Survey Administration

Once the customer satisfaction survey design phase is complete, then determine the best security
level, incentives, deadlines, and respondent notification method for your particular project. Survey
methodology includes an introductory memo from the client CEO, carefully worded survey invitations,
incentives, timed reminders, and touch-point management to avoid "over surveying."For online CRM
customer satisfaction surveys, send a personalized email invitation to each customer with simple
directions explaining how to access and complete the survey. Embedded in each survey link may be
respondents' unique. Personal Access Code (PAC) and/or demographic data.
This means that when the respondent clicks on their link to access the survey, one can
automatically identify them, validate their responses, and even assign them to a specific demographic
subgroup for analysis. The organization should offer a number of unique services designed to help the
clients achieve maximum survey response rate possible, including personalized email reminders to
incomplete respondents.

Customer Satisfaction Survey Analysis

Customer satisfaction survey results data are useless without an in-house analysis. The in-house
data analysis staff and researchers should turn the raw survey responses into meaningful conclusions for
initiating action.

Customer Relationship Management

Standard computer-generated analysis reports are designed to provide a variety of statistical
graphical and verbatim results summaries. All reports can be "cut" by respondent subgroups or time
periods.
Custom Analysis Solutions
 In addition to the options outlined above, a variety of custom analysis solutions including banner
reports, custom Excel spreadsheet reports, significance testing, manual coding of qualitative responses,
and other special requests can be prepared.
Customer loyalty survey
A customer loyalty survey is ultimately a reflection of the company's desire for customer feedback, as
well as an expression of the organization to potential respondents. As such, whether one is starting from
scratch or modifying an existing survey instrument, there are some key areas of consideration that should
be taken into account. First, start with an overview of the content areas of a typical customer loyalty
survey:

• Overall perceptions of quality, cost, and value.

• Measurement of how customers perceive your corporate image

• Customers' intended future behavior with your company

Detailed questions about the areas where customers interact with you on a day-to-day basis

Satisfaction drivers
Cumby and Barnes suggest that driver exist on five levels and, that these generally involve
progressively more personal contact with the service supplier:
1.Core product or service
2.Support services and systems
3.Technical performance
4.Elements of customer interaction
5.Affective dimension of services.
1. Core product or service
This is the basic product or service provided by the company and probably provides the supplier
with the least opportunity to differentiate or add value.
2.Support services and systems
These include the peripheral support services that enhance the provision of the core product or
services. The customer may well receive an excellent core product or service from the supplier but are
dissatisfied with the supplier because of inferior support services and systems.
3.Technical performance
This level of the 'customer satisfaction model' deals with whether the service provider gets the
core product or whether service and the support services and systems are in place but they do not get them
right on every occasion.
4.Elements of customer interaction
 This level relates to the way the service provider interacts with the customer either face-to-face or
through technology-based contact.
5.Affective dimensions of service
Beyond the basic interaction of the company are the messages, sometimes subtle and often
unintentional, that companies send to their customers that leave them with either positive or negative
feelings towards them. A considerable amount of customer dissatisfaction has nothing to do with core
products and services. Indeed, the customer may be satisfied with most aspects of the interaction.
The problem may lie with 'little things' that may not even be noticed by the staff. It is quite possible
for the supplier to get things right on the first four levels and to dissatisfy the customer because of
something that happens on the fifth level. This emphasizes the importance of critical episode' in the
exchange process.

CUSTOMER SATISFACTION PROCESS

At the heart of any successful strategy to 'manage' customer satisfaction is the ability to 'listen to the
customer'. They suggest five categories of approach –

1.Customer Satisfaction indices

2.Feedback
3.Market Research
4.Front-line personnel
5.Strategic activities.

Customer Satisfaction indices

Customer satisfaction indices are among the most popular methods of tracking or measuring
customer satisfaction. Indeed, business of all sorts now diverts considerable energies into tracking
customer satisfaction in this way.

Feedback

Feedback in this context includes comments, complaints and questions. It may be among the most
effective means of establishing what the customer regards as a satisfactory level of performance and
whether 'dissatisfies' exist within the operation as it is based on actual performance rather than contrived
situations.

Market Research
 In addition to research among customers and non-customers into potential 'satisfiers', dissatisfiers
and customer expectations', 'market research can be used at customer entrance (to establish those drivers
which brought the customers to the company) and customer exit (to establish those factors which cause
the customer to go elsewhere). Again, more valuable information may be achieved in the latter rather than
the former as it is based on actual behavior rather than the perception.

Frontline Personnel

Direct contact with staff can provide a good means of listening to the customer. As it is
frequently suggested that many customers, rather than making a formal complaint to the company, will
simply break the relationship. Frontline staff provides an opportunity for a less formal sounding on
complaints which might otherwise not be heard. The crucial factor here is how this information is fed
back into the decision-marketing process.

Strategic activities

Actively involving in the customer in company decision making may be means of pre-empting
potential dissatifiers and establishing potential satisfiers.

Benefits of customer satisfaction

Many companies adopt strategies to improve customer satisfaction with the perceived objectives
of strengthening bonds and. achieving customer loyalty.
Great claims are made regarding higher customer satisfaction levels, it is suggested that customer
satisfaction increases customer loyalty, reduces price elasticity, insulates market share from competitors,
lowers transaction costs, reduces failure rates and the costs of attracting new customers, and improves the
firm's reputation in the market place. Except in a few rare instances, customer satisfaction is the key of
securing customer loyalty and to generating superior long-term financial performance.

CUSTOMER
CUSTOMER CUSTOMER

SATISFACTION RETENTION PROFITABILITY

Satisfaction does always imply loyalty. They suggest to compelling reasons why not:
* A dissatisfied customer may continue his or her patronage.
* A satisfied customer may be willing (indeed eager) to patronize alternative suppliers in the hope of a
'more satisfying' resist.
INDUSTRY PROFILE

Banking in India originated in the last decades of the 18th century. The oldest bank in existence
in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and
that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve
Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of
India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest
commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the
Government of India holding a stake), 29 private banks (these do not have government stake; they may be
publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of
over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the
public sector banks hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.

Banking in India
The Indian banking systems date back to 1870 when the Bank of Hindustan was set up.
Following British colonisation, three banks were set up under the Presidency's act of 1876, and these later
amalgamated in 1921 to form the Imperial Bank of India. Most of the erstwhile princely states also had
private banks (Mishra, 2001). Following World War II and Independence from British rule in 1947, the
Reserve Bank of India was established as an Apex bank under government control. In 1955, the RBI
acquired control of the Imperial Bank of India, which was re-christened the State Bank of India, and took
control over the state run private banks. In 1969, most banks with higher deposits were nationalised.
Rigid controls by the RBI on the banking sector and closed markets fuelled the growth of these banks,
although bureaucracy limited their activities. Private institutions and money lenders were not encouraged
by the average Indian consumer, as the national sentiment was strongly inclined towards democratic
socialism. This sentiment also gave birth to the concept of co-operative banks, run essentially by various
unions with common objectives, for example the milk producers union and agricultural unions. They
were organised along the lines of co-operative management, with a no profit, no loss basis.
Co-operative Banking:

Co-operative banking is retail and commercial banking organized on a co-operative basis. Co-
operative banking institutions take deposits and lend money in most parts of the world. Co-operative
banking includes retail banking, as carried out by credit unions, mutual savings and loan associations,
building societies and co-operatives, as well as commercial banking services provided by mutual
organizations to co-operative business.

The origin of the co-operative banking movement in India can be traced to the close of nineteenth
century when, inspired by the success of the experiments related to the cooperative movement in Britain
and the co-operative credit movement in Germany, such societies were set up in India. Co-operative
banks are an important constituent of the Indian financial system. They are the primary financiers of
agricultural activities, some small-scale industries and self-employed workers. The Anyonya Co-
operative Bank in India is considered to have been the first co-operative bank in Asia.
Definition of a co-operative bank (Source: ICBA, International Co-operative Banks Association)

A co-operative bank is a financial entity which belongs to its members, who are at the same time
the owners and the customers of their bank. Co-operative banks are often created by persons belonging to
the same local or professional community or sharing a common interest. Co-operative banks generally
provide their members with a wide range of banking and financial services. Co-operative banks differ
from stockholder banks by their organization, their goals, their values and their governance. In most
countries, they are supervised and controlled by banking authorities and have to respect prudential
banking regulations, which put them at a level playing field with stockholder banks. Depending on
countries, this control and supervision can be implemented directly by state entities or delegated to a co-
operative federation or central body. Even if their organizational rules can vary according to their
respective national legislations, co-operative banks share common features.

PROFILE OF TAMILNADU APEX CO-OPERATIVE BANK

At the grass root level, the Primary Agricultural Co-operative Banks (PACBs) are functioning at
village level. At the district level, the Central Co-operative Banks (CCBs) are functioning with the
headquarters at district capital and their branches in various places of the districts concerned. At the apex
level, the Tamil Nadu State Apex Co-operative Bank Ltd.,(TNSC Bank) is functioning at Chennai which
co-ordinates the entire short- term Cooperative credit structure.
 It was subsequently changed into a District Central Co-operative Bank during July 1920. At
present, the Bank is functioning at Chennai with 44 branches, an Extension Counter and Head Office.
TNSC Bank is guiding the District Central Co-operative Banks / Primary Agricultural Co-operative
Banks in their functioning and it is playing a major role in the Cooperative movement of Tamil Nadu.

TNSC Bank was formed in the year in which the Co-operative movement of Tamil Nadu was formed. As
such, the Bank has been serving the people of Tamil Nadu for a centenary for their economic
development. As far as Indian Co-operative movement is concerned, the Bank has commenced its
business from the very next year of the formation of Co-operative movement in India.

Central Co-operative Bank offers banking products and services for individuals and companies in
Bulgaria. Its products include individual and corporate accounts, safe deposit boxes, debit and credit
cards, and deposits of individuals and companies. The company offers consumer, corporate, and mortgage
loans. In addition, it provides money transfers, bank guarantees, letters of credits, and insurance services.
Further, the company offers online payment, pension social security, bill payment, and foreign currency
market services. Central Co-operative Bank, through a network of banks, carries out its international
operations.
BANK PROFILE
At the grass root level, the Primary Agricultural Coop. Banks (PACBs) are functioning at village
level. At the district level, the Central Coop. Banks (CCBs) are functioning with the headquarters
at district capital and their branches in various places of the districts concerned. At the apex
level, the Tamil Nadu State Apex Coop. Bank Ltd., (TNSC Bank) is functioning at Chennai
which co-ordinates the entire short- term coop, credit structure.
It was subsequently changed into a District Central Coop. Bank during July 1920. At present, the
Bank is functioning at Chennai with 44 branches, an Extension Counter and H.O. TNSC Bank is
guiding the Dist. Central Coop. Banks / Primary Agricultural Coop. Banks in their functioning
and it is playing a major role in the coop, movement of Tamil Nadu.
TNSC Bank was formed in the year in which the coop, movement of Tamil Nadu was formed.
As such, the Bank has been serving the people of Tamil Nadu for a centenary for their economic
development. As far as Indian coop, movement is concerned, the Bank has commenced its
business from the very next year of the formation of coop, movement in India.
Central Cooperative Bank AD offers banking products and services for individuals and
companies in Bulgaria. Its products include individual and corporate accounts, safe deposit
boxes, debit and credit cards, and deposits of individuals and companies. The company also
offers consumer, corporate, and mortgage loans. In addition, it provides money transfers, bank
guarantees, letters of credits, and insurance services. Further, the company offers online
payment, pension social security, bill payment, and foreign currency market services. Central
Cooperative Bank, through a network of banks, carries out its international operations.
KANCHEEPURAM CENTRAL CO-OPERATIVE BANK (KCCB)
Kancheepuram Central Co-operative Bank (KCCB) has been started from year 1970. Since
then, it has been functioning successfully. KCCB's head office is in Kancheepuram and KCCB
Tambaram Branch acts as the sub-head office for the branches and totally it has 45 branches
under its control. Co-operative Bank, an important and growing part of many financial systems.
Membership and share capital
There were 752 members at the end of the year as against 762 at the beginning of the year. The
share capital of the members amounted to Rs. 50,49,41,497.00 against KsJ8,32,74,300.00 at the
beginning of the year.
Deposits and borrowing
The outstanding under this head has been Rs.468,29,88,045.65.
Reserves and surplus
The outstanding under this head has been Rs.135,60,96,710.86.
Other liabilities
The outstanding under this head has been Rs.41,55,41,666.37.
Investment
The amount outstanding under this head at the end of the year was Rs.78,12,77,357.73.
Loans and advances
The outstanding under this head at the end of the year was Rs.492,22,61,223.59.

Net result
The bank has earned Net profit of Rs.4,82,67,789.06 at the end of the year. The net-profit of the
bank may be distributed in accordance with Act, Rules and by-law of the Bank.
Classification
The bank is a placed under "B" class for the year under Audit.
Accounts and Audit
The account of KCCB is audited by the Assistant Director of Co-operative audit and assisted by
co-operative audit officers and senior co-operative auditors. A copy of the schedule of defects on
the final audit is prepared along with the following documents:
1. Audit certificate
2. Receipt and disbursement statement
3. Profit and loss account
4. Balance sheet
It is kept open for inspection by any member of the bank. The summary of the Audit
Memorandum shall also be readout at the forthcoming general body meeting of the bank. The
bank is requested to take steps to remedy the defects within a period of three months and report
the same to the Administrative authorities concerned