CHAPTER VI FINDINGS, CONCLUSION AND SUGGESTIONS

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1 CHAPTER VI FINDINGS, CONCLUSION AND SUGGESTIONS 1

2 CHAPTER-VI: FINDINGS, CONCLUSION AND SUGGESTIONS FINDINGS The relations between customer banks are maintained with the help of and Customer Relationship Management tool. CRM provide good establishment, proper development, timely maintenance and grapping the long term mutual good relationships with each other. On the basis of analysis following 8 factors are significant as compared with other factors: 1. Interactive management 2. Customers empowerment 3. Expectation of Customers 4. Internet services with security 5. Bank Initiative 6. Various Services 7. Online service 8. Trained Staff Detail Analysis has been done to understand the relation between various questions. Though CRM can be evaluated on a number of parameters, the most important parameter which defines its use from business point of view is effectiveness. The existing literature on CRM is having very limited inputs and addressed partial view so there must exit a way to identify the overall effectiveness of CRM and also the scope of improvement. CRM is the central issue of the present study, which may attributed by number of variables. Main factors were extracted from various researches for Relationship with customer: 1. Customer Prospecting 2. Interactive Management 3. Empowerment 4. Understanding customer expectation 2

3 5. Partnership 6. Personalization 7. Presence on Internet 8. Interacting on internet and 24X7 Telephonic support 9. Speedy Service and Data protection and privacy 10. Speed of ATM and related service 11. Staff Cooperation & behavior 12. Problem solving attitude of specific staff 13. Variety of service 14. Better rate of interest 15. Online Service, payment and other facility 16. Home service like delivery of cash 17. Frequency of response 18. New product and services 19. Quality of Service and Staff 20. Well trained and responsive staff 3

4 6.1. FINDINGS ON THE BASIS OF CUSTOMERS DATA: As per the data collected via questionnaire prepared for both the customers and Managers one thing that is quite evident that both are fully aware about the customer relationship management. With the help of proper training, employees are able to handle the customer problems and their queries. Due to the emergency of the concepts of CRM one thing that is quite sure that they both are aware of their role. Though there are some problems but still they can be managed. 1. The study revealed that the 84% of the selected sample customers are aware of Information and Communication Technology used by the banks and others are aware but they are not using the same due to security aspects of the same. 2. The bank is providing ATM, e-banking, Telephone banking; Mobile Banking, SMS banking facilities out of which ATM and SMS banking are more popular among customers. 3. Among the four selected banks people are happy on the performance of ICICI Bank, As far as use of CRM is concerned. 4. Around 60% of the respondents are happy with the experience of CRM in banking and 71% are satisfied. 5. Customer visits their bank branch once a 1 month with 50% SBI Bank, 40% ICICI Bank, 55% DENA Bank and 40% BOM Bank out of 600 customers. 6. Customers believe that private banks provide superior services than government banks with 95% SBI Bank, 70% ICICI Bank, 90% DENA Bank and 60% BOM Bank. 4

5 7. Customers satisfied with bank services with 90% SBI Bank, 90% ICICI Bank, and 80% BOM Bank and 75% DENA Bank. 8. Bank employee empowered to take decision that may positively affect customer satisfaction, in the absence of his superior with 70% SBI Bank, 90% ICICI Bank, 80% BOM Bank and 85% DENA Bank customers. 9. As per customer feedback, they have to wait a little long but that is only during weekends when there are a huge number of customers. Other than that as per the survey conducted there are hardly any problems regarding the management. As the banks had made necessary help desks for each of its services that are offered. 10. Customers share positive views concerning bank trustworthiness and accuracy of banking solutions. Therefore, it can be argued that customers trust their bank. Indeed, faith is crucial factor including CRM. 11. This result has to do with the new system and technology-based process adopted by the banking sector. It has seen a revolution in the way it has been operating and rendering their service. Due to this, services have become easy and handy, in consumer banking sector. Banking customers will gain several benefits by adopting an online technology which increases the quality of service, and enable banks management to maintained better relationship building with customer. 12. It can be deduced that the Indian banking sector has not been able to value customer relationships. Therefore, the overall results provide a strong support for Indian banking sector to review its tactical strategies as far as the ability to respond to customers expectations is concerned, provision of an excellent service at any point of contact, convenience and comfort through innovative and modern banking service. 5

6 6.2. BASIS OF FINDINGS ON EMPLOYEES DATA: During the research to understand the importance of factors some were asked to respondents: 1. Interactive management From the responses of various respondent shows that initiative taken for customers plays vital role. After comparing the selected banks it is found that in Dena Bank and Bank of Maharashtra 80 % of respondents is Highly Satisfied but in case of SBI and ICICI Banks it is 100%. It clear that this factor should be targeted in focused manner by all the banks. 2. Customers empowerment The response of different respondents shows that customer empowerment is still needed. During the comparison of selected banks it is found that among DENA and SBI customer 45 % of respondents are neutral. It indicates that this factor is relevant and both banks need to concentrate on it. 3. Expectation of Customers From the responses of various respondents it is clear that they are moderately dissatisfied. While in comparison of banks it was observed that in Dena Bank, Bank of Maharashtra Bank and SBI 55 % of customers are moderately dissatisfied but in ICICI Bank it is 45%.Which indicates that above factor is really associated and require proper attention by all banks. 4. Internet services with security Reply by different customers shows that though now bank provides Internet services but risk plays a vital role. Comparing all Banks it shows that 80% of respondents are satisfied where as 20% is moderately dissatisfied. So, that this factor is significantly relevant and need to be enhanced. It indicates that customers from DENA, BOM and ICICI feel more risk as compared to SBI respondents. 6

7 5. Bank Initiative From various responses initiative taken by Bank for customer play very crucial role. During comparison of Banks it is found that in ICICI, SBI and BOM 60% of respondents are moderately satisfied but for DENA Banks it is 40%. This indicates that Bank initiative is very important aspect and demands attention by DENA Bank. As term and conditions are clear and all follow the same. Then also an undue emphasis is given on rules & procedures of Bank by staff. 6. Various Services Reply shows that services provided by bank plays important role. After comparing selected banks it shows that 84% respondents are satisfied with the bank products and services. Therefore it demands attention by all the banks. 7. Online service Reply by different respondent shows that SBI, ICICI Banks, 80% of customers is Highly Satisfied. However in case of BOM and DENA Banks it is 60%. So, respondents are satisfied with the facility, online customer services, A/C information and online bulletin board, VOIP, online order within 3-clicks and information to the first time e- service users. This indicates that this aspect is significant and requires focus by DENA and BOM. 8. Trained Staff From the responses of respondents it shows that all the selected bank have 20% of customers who are neutral where as in ICICI and SBI Bank 80%, and in BOM and DENA Banks 40% are moderately satisfied.that means importance for need of trained Staff is to be given by BOM and DENA Banks. In spite of young employees in BOM and DENA Banks are well trained with comparison of SBI but customers still found SBI, BOM bank staff is experience to attend problematic situation with their efforts and experience. 7

8 a) 100% employees of the selected banks of Thane city are provided the training by bank regarding the operations of e-crm to be done. b) 90% employees are satisfied with the amount of training given for e-crm and of the opinion that it has resulted in enhancement of productivity of bank and their work with 100% accuracy. c) According to response of employees it is also clear that, use of e-crm has 100% resulted in increase in database of customers which has in turn resulted in increase in CRM strategy by the bank. The employees are in favour of e-crm as it has reduced the error rate of transactions rather than doing it manually. d) Various e-banking services offered by the banks are as follows: Electronic clearance system, Electronic funds transfer, Internet banking, ATM, Mobile banking, Telephone banking, Credit cards / debit cards / smart cards. e) From the point of view of the employees, they are quite aware about the CRM. The above details regarding the type of customer services offered gives a feedback that they know their job well, there are areas that they need to work on and they are working on them too. f) Researcher found that implementing CRM in banks is still a high concern. Respondents from SBI, ICICI Bank 40 %, DENA and BOM Banks 60% customers are moderately dissatisfied. Whereas higher satisfaction level is in SBI and ICICI Banks is 40% and in BOM, DENA Banks it is 20%. So, CRM Implementation is very important and need attention by banking industry. g) In of DENA Banks customers are unhappy from CRM of bank. 75% customers are satisfied in case of ICICI, SBI, and BOM Banks. That s way CRM Implementation is very important and need attention by banking industry. h) From the responses of respondents it is clear that banks are ready for competition, out of total respondents, 75% replies as YES. Respondents from ICICI Banks felt that customers expectations are higher. So, they required 100% accuracy to have long relationship with them. DENA, BOM, and SBI Banks are also realized this and now improving to face challenge of competition. 8

9 i) The study shows that bank performance has improved comparing to last financial year. For ICICI, BOM, and SBI Banks 75% staff replies YES on performance improvement. j) For ATM network ICICI, SBI they have large number of ATMS as compared to DENA and BOM. k) Young staff of ICICI and BOM banks that are faster and aggressive in the comparison to the aged employees in SBI and DENA banks they are little slow. In Competitive Technological advance era in ICICI and BOM Banks are replacing their mindset of employees which adds to fare customer practices in and CRM utilization. l) Almost all the banks are having online website providing important information to the customers. But electronic banking of SBI Bank passes lots of information and services. ICICI is having highest level of networks and potential customers, where as SBI have largest number of customers having faith on it. BOM have advancement in innovative technologies and DENA Bank have maximum group of customers. It is clear that Banks are using CRM strategies rapidly to enhance customer base. m) Customers share positive views concerning bank trustworthiness and accuracy of banking solutions. Therefore, it can be argued that customers trust their bank. 9

10 6.3. SUGGESTED MODEL: After analyzing the collected data, for better implementation of CRM some helpful strategies are suggested. Segment the customers The criteria for segmentation can be total amount of deposit and profit, potential of the customer and estimated future growth of customers. 1. CRM Model for Implementation: On basis of 20:80 rules, I suggest to maintain the "Top" 1% customers, "Big" 4% big customers, "Medium" 15% customers and "Small" the rest 80% customers. Inactive -Our customers but had no business Prospect - Potential customers who are in contact. Suspect Customers for whom we think they may need our services. It means we will have pyramid similar to below: 10

11 Figure No. 6.1: Develop Customer Pyramid Targeting Customer For upper 20% of the preferred segment customer, our resources need to be focused for providing new and improved services as early as possible. 11

12 2. Value improving strategies for Customer a) Identification of Customer Value b) Develop and Decide Value Improvement c) Implement Improvement 3. Enhancing Customer Value Reviewed areas are suggested below: a) Analyses Customers Touch Points b) Performing Customer-Based Accounting c) Evaluating Customer Lifetime Value It is advice to arrived at the expected CLTV, the marketing data cost jointly with the historical profit data to be collected. Figure 6.2: Profitability of one bank customer in his life cycle (Bach/ Osterle 2000, p. 20) 12

13 CLTV model for Fund Services, anticipated being similar to below: Figure 6.3: Customer Lifecycle Value curve 4. Extensive Approach to implementation For the improving success rate, proper and extensive approaches have to be taken for implementation by bank. a) Objective development b) Implementation and Project Planning c) Monitoring and Project Review d) Management Change e) Performance Review f) Management and Support For successful implementation, banks management need strong commitment and fund Services support throughout the life cycle project. 13

14 6.4. SUGGESTED STRATEGIES CRM framework comprises of 4 sub - processes: STEP I: PROCESS OF CRM FORMATION: There are important steps: Figure 6.4: Process of CRM formation 1. Framing Purpose: a) Nature of CRM programs b) Identification of suitable relationship c) Comparing result achieved against objectives and evaluating CRM performance. 2. Appropriate CRM Programs and Selecting Parties Bank has to finalize customer which will be focused for their CRM effort. 14

15 STEP II: PROCESS OF CRM GOVERNANCE 1. Specific Role 2. Communication with Customers 3. Process Alignment 4. Human Resource Decision 5. Process of Proper Monitoring STEP III: PROCESS OF CRM PERFORMANCE ELALUATING For perfect action, performance should be evaluated in terms of modification in customer relationship management with proper aims and significance. STEP IV: PROCESS OF ELALUATING CRM Evaluation path should be planned in advance to get the proper result. Satisfaction of performance would motivate to enhance their Customer Relationship Management planning. 15

16 CONCLUSION: A SATISFIED CUSTOMER IS THE BEST AMBASSADOR After economic reformation, Indian banks have shows tremendous growth in past decade. Indian banks are now scattered in remote corners of Thane. Numbers of India s banking branches are the largest in the world. Today, among the Indian customer, high expectations and technological innovations is increased a lot. For such need, CRM is the best tool. This study provides a step in understanding the existing CRM strategies in Banks at Thane City. The findings indicate that there are several loop holes in the existing tactical CRM Strategies.This study is an example of the knowledge that can be gained in understanding the effectiveness of front end CRM strategies in banking sector from the customer perspective and further in-depth case study analysis can be executed to give more on CRM strategies in the banking. To achieve the customer requirement and to survive in the competition, banks need to deliver best quality of service. Proper CRM adopted by banks, will always help for focusing on increasing the importance for customer and bank. The main plays of customer dedication are: 1. Positive Attitude of Staff. 2. Integrity, Honesty and Reliability. 3. Productive advices 4. Promised service. 5. Superior quality service. 6. Simplicity and easiness in business. 7. Efficient complaints solution. This study shows a direct relationship between bank customers sensibility and satisfaction. Banks are accepted that CRM is the magic stick, which helps banking sector to build closer and profitable relationships with customer. To achieve the customer relationships, success and the survival of the new paradigm, banks has to make CRM 16

17 approaches for recognizing a share of customer as a basis of strategy in their system. This will divert the bank strategy from developing product base strategy to focus on delivering to customers by having a brief and exact ways of delivering the services, through effective CRM solutions. 17

18 RECOMMENDATIONS FOR BETTER CUSTOMER RELATIONSHIP MANAGEMENT STEPS TO FOLLOW: Overall the banks are approaching CRM as a tool for building customer base and increasing the sales. These misinterpreted views held by the banks are damaging the value of the banks and the customers are losing confidence on their bankers. Banks needs to take special efforts to change the image of their banks, if at all they want to realize the possibilities of building strong relationship with their customers. The complete research finding reveals that the Dena Bank and SBI are slightly lacking to convince their customers on CRM efforts taken by them. After technological advancement and new processes, this underperformance has occurred. So, for effective implementation of CRM in above Banks the following application related steps need be taken: 1. Identifying proper initiatives for CRM 2. Implementation of competent technologies 3. Setting standards (targets) for each initiative 4. Evaluating actual performance with the standard 5. Increasing number of help desk 6. Stop focusing on multiple product promotion 7. More focus on increasing customers feeling for comfort in terms of service consumption. 8. Direct handling of customer. 9. Increase addressing customer problems on phone and to decrease the customers visits. 10. The banks need to promote branch banking or branch contact numbers. 11. Increase number of executives to attend the customers. 12. Efforts should be made to redress the problem of the customer ASAP. 18

19 6.5. SUGGESTIONS FOR FURTHER STUDIES: 1. To critically study the importance of CRM. 2. Comparison between customer satisfaction using CRM and e-crm in different banks like ICICI, SBI, etc. 3. Comparative study on customer satisfaction using CRM in rural and urban area banks. 4. To analyse the services provided by different banks as CRM. 19