rajbhadur sbl

7/29/2019 rajbhadur sbl

1/73

PROJECT REPORT

ON

EFFECTIVENESS OF CUSTOMER RELATIONSHIP

MANAGEMENT PROGRAMME IN

STATE BANK OF INDIA

Submitted in the partial fulfillment of the requirement for the

award of the degree of Master of Business Administration

SUBMITTED BY :Niraj Kumar RastogiReg. no. : 520919732

Centre Code : 00988

Sem : IV

SIKKIM MANIPAL UNIVERSITY


2/73

EFFECTIVENESS OF CUSTOMER

RELATIONSHIP MANAGEMENT PROGRAMME IN

STATE BANK OF INDIA

BY

Niraj Kumar RastogiReg. no. : 520919732

A project report submitted in partial fulfillment of the

requirements for Master of Business Administration of Sikkim

Manipal University, India.

Sikkim Manipal University of Health, Medical and Technological

Science

Distance Education Wing

Syndicate House

Manipal - 576119


3/73

Annexure B

I here by declare that the project report entitled



STATE BANK OF INDIA

Submitted in partial fulfillment of the requirements for the degree of

Masters of Business Administration to Sikkim Manipal University,

India, is my original work and not submitted for the award of any other

degree, diploma, fellowship, or any other similar title or prizes.

Place: Delhi Niraj Kumar Rastogi

Date: Reg. no. : 520919732


4/73

The project report of

Niraj Kumar Rastogi



STATE BANK OF INDIA

Is approved and acceptable in quality and form.

Mr. Sanjay Wasan

Teacher-incharge


5/73

Annexure D

This is to certify that the project report entitled



STATE BANK OF INDIA

Submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration of Sikkim Manipal University of

Health, Medical and technological Science.

Niraj Kumar Rastogi

Has worked under my supervision and guidance and that no part of this

report has been submitted for the award of any other degree, diploma,

fellowship or other similar title or prizes and that the work has not been

published in any journal or magazine.

Reg. no. : 520919732

Certified

Mr. Mohit Gupta

(Director)


6/73

A CKNOWLEDGEMENTI offer my sincerest thanks and express my deep gratitude to Mr. SanjayWasan, my project guide for her immense help and guidance.

I would also like to take this opportunity to thank Mr. Mohit Gupta and allthe other staff of institute for their continuous help in providing detailedinformation & guidance whenever needed, in project.

Last but not least; I would like to thank all my friends for their continuous

help whenever I was needed in project.

Niraj Kumar RastogiReg. no. : 520919732


7/73

Contents

1. Executive Summary

2. Objective of study

3. Research Methodology

4. Introduction to CRM

5. Data presentation, analysis and interpretation

6. Findings

7. SWOT analysis

8. Conclusion

9. Recommendations

10.Limitations

11.Bibliography

12.Appendix


8/73

CHAPTER-1


9/73

EXECUTIVE SUMMARYThis project is to know about the effectiveness of customer relationshipmanagement in STATE BANK OF INDIA. Today Consumers largelyselected their banks based on how convenient the location of bank's

branches was to their homes or offices. With the advent of new technologiesin the business of bank, such as Internet Banking and ATMs, now customerscan freely chose any bank for their transactions. The pressures ofcompetitive and dynamic markets have contributed to the growth ofCUSTOMER RELATIONSHIP MANAGEMENT (CRM) in the FinancialServices Sector.

Here I have done survey in Delhi to know how today largest bank of India iscatering the different need of the customers. Banks have abandonedtraditional method of serving the customers. They are using newly methodof fulfilling the need of the customers. They are giving emphasizes onmaintaining the customer relation as product of all the banks are the sameand in order to differentiate from others, they are targeting the customer byfulfilling their individual needs. These branches are providing every type ofthe facility to its customers like accounts, loans, mutual funds, insurance

etc This project is based on the data collected by the personal interview,questionnaire method and other secondary sources, mostly and coveredcustomer of all age group and I have covered 100 respondents, who havetheir accounts in banks which include students, businessmen and employees.From analysis of this project I have concluded that most of the customers aresatisfied from the dealings, products, services, and the facilities provided bythe bank. And the SBI Bank is holding a strong customer base in DEHLIcity despite of the presence of other so many private and public banks.

The bank is providing all the competitive products and services to thecustomers suit to their particular requirements. It has different types ofSaving accounts, Current accounts, Loans, and Investment proposals etc.,which are highly technical products to compete with other banks. Peoplewho are using the services of other banks are generally attracted with thehighly efficient staff and services like InstaAlert etc. Majority of the people


10/73

prefer to open their accounts in SBI Bank because of their wide network andtie up with other banks branches and companies. Though it is in the mind ofthe people that public sector banks dont give the best service but my projectresult is totally opposite to this. The survey shows that 88% customers arefully satisfied with the banks performance and their dealings. But the other

side that come into light while this study is that some customers are also notsatisfied with the dealings of the bank because of some reasons and Bankhas to take corrective measures.


11/73

CHAPTER-2


12/73

Objective Of The Study & ScopeAs we know that the customer is regarded as The King. Customers are thelifelines of the business. No business can be done without them. But in thecompetitive market, you can get the customer but the more difficult is toretain the customers, and this can only de done if we satisfy customers fromhead to toe. If we will not satisfy the customers then they will leave ourorganization and join other. Today if the organization has the largestcustomer base then it may be possible it cannot provide the best services toall these customers.

So I am working on the project of the effectiveness of customer relationshipmanagement in SBI bank.

The main objective of my study is

To determine how this bank has the largest customer base. To know how it is providing the best services to the customers. To know how it is providing the services individual to each customer

irrespective of whole customers.

To find that the customer is satisfy from these various products andservices of bank.

The main Scope of the study is: -

1) To find out the customers satisfaction level.

2) To find out why customers have an account in more than one bank.

3) To find the pitfall in the services of the bank.


13/73

4) To throw light on how banks are meeting the needs of customersseparately in order to maintain long relation.

5) And what bank should improve to increase its customers base and tocompete other banks?


14/73

CHAPTER- 3


15/73

RESEARCH DESIGN &METHODOLOGYRESEARCH PROBLEM: -Effectiveness of customer relationshipmanagement in STATE BANK OF INDIA

TYPE OF RESEARCH: -Descriptive ResearchBlend of Descriptive method has been used in this research for the collectionof data. As the research is related to the study of consumer satisfaction,which can more effectively be studied through direct questions, personalinterview and informal talks- experimental research will not much effective.Also, considering the time constraints, descriptive research leading toconclusive result is the most suitable design for this research as it is relatedto why anything happening. It checks the behavior features of a customer.

DATA COLLECTION METHOD: -PRIMARY DATA:-Questionnaire MethodThe data has been collected through questionnaire method. Thequestionnaire was designed in such a way to cover as many aspects ofconsumer behavior as possible. Many questions have been asked in it forfeedback from customers. In it both opened ended questions and close ended

questions have been asked for study.


16/73

Secondary Data:-Under this data is taken from the internet. All the data related to its profile,mission and capital structure is taken. Even data related to this study is also

taken from the book which is sent to banks manager annually and alsoquarterly related to its management, mission and many other things.

SAMPLE DESIGN: -Random SamplingSAMPLE SIZE: - 100SAMPLE UNIT: - IndividualGEOGRAPHICAL LOCATION: - DELHISTATISTICAL TECHNIQUES USED: -PercentageAnalysis


17/73

CHAPTER-4

Introduction


18/73

For a long time companies saw their customers only as transactions,

focusing their efforts on everything that surrounded the customer but

without ever actually getting to the customer. Every organization realizes the

need to get closer to the customer to increase market share and fight

competition, particularly in the fast moving turbulent environment. Thus themarketing functions are fast changing to adapt themselves to changing

challenges faced at various fronts. With multiple sales channels, increasing

competition and ever-reducing margins, the need to listen to the customer

closely has never been greater than it is today.

Building a long lasting, mutually beneficial relationship with the customer

has assumed tremendous importance in todays business environment.Marketers now understand that retaining the customers is far more

challenging though profitable than acquiring new customers in the fast

moving competition. The most profitable companies are those that make the

smartest decisions about investments in attracting and retaining customers.

Thus the traditional transactional approach to achieve marketing goals

became insufficient. This situation necessitated the emergence of new

approach namely relationship building through CUSTOMER

RELATIONSHIP MANAGEMENT. Customer Relationship Management(CRM) has now become a strategic necessity for the sales and business

development professionals who continuously strive to be one up their

competitors.

Traditionally, few people changed their banks unless serious problemsoccurred. In the past there was, to certain extent, a committed, ofteninherited relationship between a customer and his/her bank. The philosophy,culture and organization of financial institutions were grounded in this

assumption and reflected in their marketing policies, which were productand transaction-oriented, reactionary, focused on discrete rather thancontinuous activities.

Today, financial institutions can no longer rely on these committedrelationships or established marketing techniques to attract and retaincustomers. As markets break down into heterogeneous segments, a more


19/73

precisely targeted marketing technique is required, which creates a dialoguewith smaller groups of customers and identifies individual needs.

Also, before the Internet revolution, consumers largely selected their banksbased on how convenient the location of bank's branches was to their homesor offices. With the advent of new technologies in the business of bank, suchas Internet banking and ATMs, now customers can freely chose any bank fortheir transactions. Thus, the customer base of banks has increased, and sohas the choices of customers for selecting the banks.

History of Customer Relationship Management

Customer Relationship Management (CRM) is one of those magnificent

concepts that swept the business world in the 1990s with the promise of

forever changing the way businesses small and large interacted with theircustomer bases. In the short term, however, it proved to be an unwieldy

process that was better in theory than in practice for a variety of reasons.

First among these was that it was simply so difficult and expensive to track

and keep the high volume of records needed accurately and constantly

update them. In the last several years, however, newer software systems and

advanced tracking features have vastly improved CRM capabilities and the

promise of CRM is becoming a reality

The evolution of CRM was gradual. The concentration at the beginning wasonly on consumption. Human activities were confined to consuming

whatever was available within their reach. Then the concentration slowly

moved towards production. Production was though in starting just for

consumption on later it moved towards production for exchange. During the

sales era, production was performed exclusively for sales and the attention

was just on the product. Whatever was produced became saleable because

of the limited supply. This made organization move towards marketing

activities. It is at this stage the concentration shifted from products tocustomers. Understanding and meeting customers needs became imperative

for any business survival. Thus the emergence of customer driven

organizations, keeping customers as their focal point took place. However

cut throat competition made it difficult and challenging to retain customers.

CRM emerged as a new approach enabling marketers with brand new tool


20/73

and techniques to reach, acquire, retain and expand customer base. Through

CRM companies tried to re-personalize their customer relationships by

installing sales technology - sales contact management, Web personalization

of e-sales messages, and sophisticated segmenting and predictive modeling

tools for more tailored sales messages.

In the beginning

The 1980s saw the emergence of database marketing, which was simply a

catch phrase to define the practice of setting up customer service groups to

speak individually to all of a companys customers.

In the case of larger, key clients it was a valuable tool for keeping the lines

of communication open and tailoring service to the clients needs. In the case

of smaller clients, however, it tended to provide repetitive, survey-like

information that cluttered databases and didnt provide much insight. As

companies began tracking database information, they realized that the bare

bones were all that was needed in most cases: what they buy regularly, what

they spend, what they do.

However database marketing was too costly, too difficult and didnt pay out

on the bottom line, except in the case of business-to-business key account

marketing. A little database marketing went a long way, which was verygood news for everyone except technology vendors. Organizations could do

quite well simply by knowing how recently and frequently customers

purchase; how much they spend; what they purchase; and an iota of

customers demographics.

Advances in the 1990s

In the 1990s companies began to improve on Customer Relationship

Management by making it more of a two-way process. Instead of simply

gathering data for their own use, they began giving back to their customers

not only in terms of the obvious goal of improved customer service, but in

incentives, gifts and other perks for customer loyalty.

This was the beginning of the now familiar frequent flyer programs, bonus

points on credit cards and a host of other resources that are based on CRM


21/73

tracking of customer activity and spending patterns. CRM was now being

used as a way to increase sales passively as well as through active

improvement of customer service.

True CRM comes of age

Real Customer Relationship Management as its thought of today really

began in earnest in the early years of this century. As software companies

began releasing newer, more advanced solutions that were customizable

across industries, it became feasible to really use the information in a

dynamic way.

Instead of feeding information into a static database for future reference,

CRM became a way to continuously update understanding of customer

needs and behavior. Branching of information, sub-folders, and custom

tailored features enabled companies to break down information into smaller

subsets so that they could evaluate not only concrete statistics, but

information on the motivation and reactions of customers.

The Internet provided a huge boon to the development of these huge

databases by enabling offsite information storage. Where earlier companies

had difficulty supporting the enormous amounts of information, Internet

provided new possibilities and CRM took off as providers began movingtoward Internet solutions.

With the increased fluidity of these programs came a less rigid relationship

between sales, customer service and marketing. CRM enabled the

development of new strategies for more cooperative work between these

different divisions through shared information and understanding, leading to

increased customer satisfaction from order to end product. Today, CRM is

still utilized most frequently by companies that rely heavily on two distinct

features: customer service or technology.

Customer Relationship Management: The Concept

Customer Relationship Management is the establishment, development,maintenance and optimization of long-term mutually valuable relationships

between consumers and the organizations. Successful customer relationship


22/73

management focuses on understanding the needs and desires of thecustomers and is achieved by placing these needs at the heart of the business

by integrating them with the organization's strategy, people, technology andbusiness processes.

Customer Relationship Management (CRM), also known as relationshipmarketing or customer management, is an information technology industryterm for the methodologies, strategies, software, and other web-basedcapabilities used to help an enterprise organize and manage customerrelationships. The goal of CRM is to aid organizations in betterunderstanding each customer's value to the company, while improving theefficiency and effectiveness of communication. CRM captures, analyzes,and distributes all relevant data from customer and prospect interactions toeveryone in the organization. This distribution of information helps an

organization better meet customer, product, and service needs.

CRM has replaced traditional marketing techniques that focused on keymarketing mix elements, such as product, price, promotion and place. By

being too functionally-based, traditional marketing techniques neglected thecustomer in the after-sales process and failed to meet customers' desires.CRM emphasizes customer retention over customer acquisition and isrecognized as one of the most viable tools used to further a company'ssuccess in the highly competitive business world.

There are three major areas that focus on customer satisfaction: sales,marketing, and service. The functionality of and between these three fields isessential to successfully connecting a company's front and back offices tofacilitate effective, enterprise-wide coordination. The professional salesforce predicts and proposes the real-time analysis of information anddistributes this information to the company and business partners. Marketingconcentrates on personalizing customer preferences and offering themsatisfying experiences. Service is associated with the companies' call centersand coordinates interaction between Web, e-mail, and other communication

medias. These fields are developed further with the help of CRMautomation.

At the heart of a perfect CRM strategy is the creation of mutual value for allthe parties involved in the business process. It is about creating a sustainablecompetitive advantage by being the best at understanding, communicating,and delivering, and developing existing customer relationships in addition to


23/73

creating and keeping new customers. So the concept of product life cycle isgiving way to the concept of customer life cycle focusing on thedevelopment of products and services that anticipate the future need of theexisting customers and creating additional services that extend existingcustomer relationships beyond transactions.

MODEL OF CRM

We now consider the Business Strategy Perspective on CRM. Here, wepropose a model, which is a hybrid, and typical of many of the models anddiagrams of CRM that you will find on The Internet and in popular books onthe topic of eMarketing/eCommerce. The model has three key phases andthree contextual factors:

Three key phases:

1. Customer Acquisition. 2. Customer Retention. 3. Customer Extension.

Three contextual factors:

4. Marketing Orientation.


24/73

5. Value Creation. 6. Innovative IT.

1. Customer Acquisition - This is the process of attracting our customer forthe first their first purchase. We have acquired our customer.

Growth - Through market orientation, innovative IT and value creation weaim to increase the number of customers that purchase from us for the firsttime.

2. Customer Retention - Our customer returns to us and buys for a secondtime. We keep them as a customer. This is most likely to be the purchase ofa similar product or service, or the next level of product or service.

Growth - Through market orientation, innovative IT and value creation weaim to increase the number of customers that purchase from us regularly.

3. Customer Extension - Our customers are regularly returning to purchasefrom us. We introduce products and services to our loyal customers that maynot wholly relate to their original purchase. These are additional,supplementary purchases. Of course once our loyal customers have

purchased them, our goal is to retain them as customers for the extendedproducts or services.

Growth - Through market orientation, innovative IT and value creation weaim to increase the number of customers that purchase additional orsupplementary products and services.

4. Marketing Orientation - means that the wholes organisation is focusedupon the needs of customers. Customer needs are addressed by the ThreeLevels of a Product whereby the organisations not only supplies the actual,tangible product, but also the core product and its benefit, and also theaugmented product such as a warranty and customer service. Marketingorientation will focus upon the needs of consumers for all three levels of a

product. (N.B. 'market' orientation and 'marketing' orientation are not thesame).

5. Value Creation - centres on the generation of shareholder value basedupon the satisfaction of customer needs (as with marketing orientation) andthe delivery of a sustainable competitive advantage.


25/73

6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers.Whilst IT and/or software are not the entire story for CRM, it is vital to itssuccess. CRM software collects data on consumers and their transactions.Huge databases store data on individuals and groups of individuals. In someways, CRM means that an organisation is dealing with a segment of one

person, since every consumer displays different purchasing habits andpreferences. Organisations will track individuals, and try to market productsand services to them based upon similar buyer behaviour seen in otherindividuals (e.g. When Amazon tells you that customers that viewed/boughtthe same product as you, also bought another product).

Building Customer Relationship Management Achieving the long-term value of customer relationship management

(CRM) requires a strategy involving the whole business and should beapproached at an enterprise level. Only a small, but growing, numberof enterprises are tackling CRM at this level, with most CRMinitiatives consisting of departmental projects or attempts to integratethe work of multiple projects.

Executing CRM requires board-level vision and leadership to drive arelentless focus on the customer. It involves learning new customer

management skills, culture and organization, and grappling with thetechnology challenges of multi-channel alignment and systemsintegration. Even if the top management accepts the need forenterprise-level CRM, the high reliance on meeting sales and profittargets often mean that, although CRM is the most importantchallenge facing an enterprise, it is not seen as the most urgent.Besides lack of leadership and support from top management, themain reason that enterprises are not approaching CRM at an enterpriselevel is inability to see the big picture, lack of a strategic framework

to provide the support for the CRM journey.

Gartner created the Eight Building Blocks of CRMa framework to

help enterprises see the big picture, make their business cases and plantheir CRM implementation. The framework can be used to developthe CRM vision and strategies. It can also be the basis of anassessment of the enterprises existing and required CRM capabilities,

to help understand its current position and future strategy.


26/73

The framework emphasizes the need to create a balance between therequirements of the enterprise and the customer. The two central

building blocks in Figure 1 (valued customer experience andorganizational collaboration) are joined by a yin and yang motif toemphasize that this is where people meet, build relationships and

provide value to each other. Too many CRM initiatives suffer from aninward focus on the enterprise, whereas the point of CRM is toachieve a balance between value to shareholders or stakeholders andvalue to customers for mutually beneficial relationships.

The Eight Building Blocks of CRM are1. CRM Vision: Leadership, Market Position, Value Proposition2. CRM Strategy: Objectives, Segments, Effective Interaction3. Valued Customer

4. Organizational Collaboration5. CRM Processes: Customer Life Cycle, Knowledge Management6. CRM Information: Data, Analysis, One View Across Channels7. CRM Technology: Applications, Architecture, Infrastructure8. CRM Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve

Creating a CRM Vision

Successful CRM demands a clear vision so that a strategy andimplementation can be developed to achieve it. The CRM vision ishow the customer-centric enterprise wants to look and feel to itscustomers and prospectsthe customer value proposition (CVP) andthe corporate brand values are key to the CRM vision. Without aCRM vision, the enterprise will not stand out from the competition,target customers will not know what to expect from it and employeeswill not know what to deliver in terms of external customerexperience. A successful CRM vision is the cornerstone to motivatingstaff, generating customer loyalty and gaining a greater market share.

Developing a CRM Strategy A CRM strategy is not an implementation plan or road map. A real

CRM strategy takes the direction and financial goals of the businessstrategy and sets out how the enterprise is going to build customerloyalty that feel-good factor of customer connection with anenterprise that means customers stay longer, buy more, recommendthe enterprise to others and are more willing to pay a premium price.


27/73

The objectives of a CRM strategy are to target, acquire, develop andretain valuable customers to achieve corporate goals.

Customer Experience: The Voice of theCustomer:

Customers experiences when interacting with the enterprise play a

key role in shaping their perception of the enterprise the value itprovides and the importance it places on the customer relationship.Good customer experiences drive satisfaction, trust and long-termloyalty. Poor customer experiences have the opposite effect and,

because bad news travels faster and further than good news, they harmthe enterprises ability to create new relationships with prospects. No

amount of internal second guessing can simulate what its really

like to be a customer.

True CRM Requires Organizational Collaboration Many enterprises believe that implementing CRM technologies makes

them a customer-centric organization. They forget, ignore ordeliberately avoid the necessary changes to the enterprise itself. TrueCRM means that individuals, teams and the whole enterprise must

become more focused on the needs and wants of the customer. Theterm organizational collaboration, highlights the many facets of thecustomer-centric internal change needed to deliver the required anddesired external customer experience. As a critical part of a CRM

program, it will involve changing organizational structures, incentivesand compensation, skills and even the enterprise culture.

Customer Process Re-engineering: Talk to Your Customers

Past efforts to re-engineer processes were primarily driven by thedesire to improve the efficiency of an enterprise and reduce costs. The

beneficiary was the enterprise, not its customers. The rise in CRM hasled to a focus on reworking key processes that touch the customer andasking customers which processes matter to them. Enterprisesfrequently do not realize that their functionally fragmented processes

often mean that the customer has a poor experience and receives lessthan the expected value. Successful re-engineering should createprocesses that not only meet customers expectations, but also support

the customer value proposition, provide competitive differentiationand contribute to the desired customer experience.

Customer Information: Is the Lifeblood of CRM


28/73

Successful CRM requires a flow of customer information around theorganization and tight integration between operational and analyticalsystems. Having the right information at the right time is fundamentalto successful CRM strategies, providing customer insight andallowing effective interaction across any channel. Unfortunately, mostenterprises CRM information capabilities are poor the result ofnumerous and fragmented departments, initiatives, databases andsystems. Enterprises that establish a business plan for sourcing,managing and leveraging their customer information assets are morelikely to achieve their CRM goals and objectives and gain acompetitive advantage

Technology Decisions Are Key to Enabling CRM Strategies

For most technologists, CRM is all about technology. CRM

technologies are an essential enabler for any modern CRM businessstrategy, but they are just one piece of the puzzle. Key Technologydecisions that enterprises have to take are in three areas namely CRMapplications, architectural issues and integration. In many CRM

projects, integration issues start as a relatively low priority, and thenrise in prominence (cost and time) as enterprises realize that trueCRM requires seamless customer-centric processes, supported byintegrated technology across the enterprise and its supply chain.

Getting the Best Out of CRM Performance Metrics

The other seven building blocks depend on performance targets andmetrics to gauge their success, and enterprises must set measurableCRM objectives and monitor CRM indicators to successfully turncustomers into assets. Without performance management, a CRMstrategy a program is destined to fail. Getting the Best out of CRMPerformance Metrics introduces a framework for measuring an

enterprises success with CRM by creating a hierarchy of performance

metrics with four levels, namely: corporate, customer strategic,operational and process, and infrastructure input metrics. These

metrics have an internal and an external focus and link operations tostrategy and corporate financial benefits. Each enterprise will have aunique set of metrics applicable to their situation.

Need of CRM in the Banking Industry


29/73

A Relationship-based Marketing approach has the following benefits: -

1. Over time, retail bank customers tend to increase their holding of the otherproducts from across the range of financial products / services available.

2. Long-term customers are more likely to become a referral source.

3. The longer a relationship continues; the better a bank can understand thecustomer and his/her needs & preferences, and so greater the opportunity totailor products and services and cross-sell the product / service range.

4. Customers in long-term relationships are more comfortable with theservice, the organization, methods and procedures. This helps reduceoperating cost and costs arising out of customer error.

With increased number of banks, products and services and practically nilswitching costs, customers are easily switching banks whenever they find

better services and products. Banks are finding it tough to get newcustomers, and more importantly, retain existing customers.

According to a research by Reichheld and Sasser in the Harvard BusinessReview, 5% increase in customer retention can increase profitability by 35%in banking business, 50% in insurance and brokerage, and 125% in theconsumer credit card market. Therefore, banks are now stressing on

retaining customers and increasing market share.

Private Banking and CRM

Private Banks have traditionally viewed themselves as exceedingly'Customer Centric' offering what they believe to be highly personalizedservices to the High Net Worth Customers. However, changes in thecustomer behavior and accumulation of wealth are resulting in the needs ofHNW customers becoming more diverse and complex in terms of the sortsof products they want, the channels through which they want to access them

and the associated range of advice.

The wealthier the customers, the more demanding they are - and the clientsexpect more and more from their banks. Competition for "Supremely elite"is increasing.


30/73

Customer Experiences

The first step towards successfully winning, retaining and growing theprofitability of private banking customers is to understand what their wantsand needs are, so that the organization can be built around serving thoseneeds. Only when an organization has done this and incorporated this into itsstrategy can it start to design its value proposition and a customer experiencethat will enable it to achieve a differentiated competitive position in the

private banking market, and more importantly, do so in an economicallyviable way.

The Basic Customer Experience

There is a basic 'generic' customer experience that many private bankingcustomers are seeking. To be a credible player in the market, a private bankmust be able to deliver this 'base' experience. This represents a common setof needs that are shared by most HNW customers. Therefore, the private

bank must have the capabilities required to meet these needs for the majority

of its customer base.

All customers, regardless of wealth levels, have similar emotional needs,which drive their need for advice and their purchase of products. Differentwealth levels impose different priorities on meeting these needs and open upnew avenues for doing so.


31/73

Take a simple example, HNW customers can afford on it to fund theirretirement, so their priorities may be associated with growing wealth, ratherthan preserving it, allowing them to choose a product option with a higherrisk/reward ratio.

If this is true, it means all HNW customers start with a basic, common set ofwhat they want and need from a bank, which might include: -

1. Personal, long-term relationship

2. Advice combining industry expertise and knowledge of personalcircumstances

3. High quality, consistent quality

4. Security, privacy, confidentiality

At this basic level, grouping together these core wants and needs produces aset of generic characteristics that an HNW individual seeks from anorganization before he or she will even consider placing any of his or herwealth with it.

Underlying these generic characteristics is a set of capabilities coveringorganization, process and technology, which the private bank must process

to operate in the high net worth market.

Challenges in Customer Relationship Management

It is indisputable that customers are the number-one asset for most

companies. Without them there would be no sales, and so eventually no

business. The idea behind customer relationship management (CRM) was to

manage customer relationships in a personalized manner, across the

enterprise and throughout the lifetime of the customer. However the picture

is not as rosy as it seems to be. In truth, though, the manner in which many

businesses operate, as a collection of separate business units with the


32/73

associated politics, often gets in the way. There are few major stumbling

blocks to realizing the CRM dream:

Multiple lines of business are involved, but processes rarely flow

seamlessly across departmental boundaries.

Departments need to share customer information, an act that can be both

technically difficult and politically sensitive.

Departments often have their own systems, and sometimes multiple

versions of systems, housing customer data that should be common

across departments and systems.

Many companies rely on their Web site to provide customers with

information or to support customer self-service, but the site often is

managed by yet another department, adding to the difficulty of keeping

information up-to-date and consistent across all the various departmental

systems.

Next problem is to decide what kind of customer information is relevant

and how it will be used.

Customers retention often poses another difficulty. A study by Mookherjee,

A and Shainesh, G., 2000 indicate that In competitive markets even

satisfied customers switch or defect to competitors offers. Since profitable

customers are more loyal for any organization there is a need to identify

better predictors of loyalty. Indicators of relationship strength like trust,

satisfaction and commitment are better predictors of loyalty. By including

these parameters in building CRM managers can develop a system with a

focus on customer loyalty.


33/73

For CRM to work, companies must bring together a number of disparate

processes, systems and types of data, regardless of where they reside, to

deliver an integrated, unified view of the customer that drives a consistent

approach to interactions that is proactive as well as reactive. One of the most

common tactical ways of overcoming this issue is to implement a centralized

data warehouse. The key is strong business intelligence (BI) focusing on

customer information. Once this exists, customer information, wherever it

resides, will be available for analysis to provide insights and guide

interactions across the enterprise. Further for any CRM initiative to be truly

effective, an organization must convince its staff that change is good and

that CRM will benefit them. Then it must analyze its business processes to

decide which need to be reengineered and how best to go about it. A team of

carefully selected executives must choose the right technology to automate

what it is that needs to be automated. This process, depending upon the size

of the company and the breadth of data, can take anywhere from a few

weeks to a year or more.


34/73

STATE BANK OF INDIA

State Bank of India (SBI) is government-owned and is the largest bank inIndia. If one measures by the number of branch offices, SBI is the secondlargest bank in the world. It traces its ancestry back to the Bank of Calcutta,which was established in 1806; this makes SBI the oldest commercial bankin the Indian subcontinent. SBI provides various domestic, international and

NRIproducts and services, through its vast network in India and overseas.With an asset base of $126 billion and its reach, it is a regional banking

behemoth.

In recent years the bank has focused on three priorities, first, reducing itshuge staff through Golden handshake schemes known as the VoluntaryRetirement Scheme, which saw many of its best and brightest defect to the

private sector, second, computerizing its operations and third, trying tochange the attitude of its largely rude staff through a programme aptly

named 'Parivartan' or 'change'. On the whole, the Bank has been successfulin the first two initiatives but has failed in the third.

Associate banks

There are seven other associate banks that fall under SBI. They all use the"State Bank of" name followed by the regional headquarters' name. Thesewere originally banks belonging to princely states before the governmentnationalized them in 1959. In tune with the first Five Year Plan,emphasizing the development of rural India, the government integrated these

banks with the State Bank of India to expand its rural outreach. The StateBank group refers to the seven associates and the parent bank. All the banksuse the same logo of a blue keyhole. Currently, the group is merging all theassociate banks into SBI, which will create a "mega bank", and one hopes,streamline operations and unlock value.

State Bank of Bikaner & Jaipur
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/Non-Resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Image:100_0209.jpghttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Non-Resident_Indianhttp://en.wikipedia.org/wiki/Indian_subcontinenthttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bank


35/73

State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

Growth

State Bank of India has often acted as guarantor to the Indian Government,most notably during Chandra Shekhar's tenure as Prime Minister of India.With 10000 branches and a further 4000+ associate bank branches, the SBI

has extensive coverage. Following its arch-rival ICICI Bank, State Bank ofIndia has electronically networked most of its metropolitan, urban and semi-urban branches under its Core Banking System(CBS), with over 4500

branches being incorporated so far. The bank has the largest ATM networkin the country having more than 5600 ATMs[1]. The State Bank of India hashad steady growth over its history, though the Harshad Mehta scam in 1992marred its image.

In recent years, the bank has sought to expand its overseas operations bybuying foreign banks. It is the only Indian bank to feature in the top 100world banks in the Fortune Global 500 rating and various other rankings.According to the Forbes 2000 listing it tops all Indian companies.

CUSTOMER CARE

Customers of the Bank can meet senior executives of the Bank on 15th ofevery month (between 3.00 p.m. and 5.00 p.m.) without any prior

appointment and discuss issues relating to their accounts/bankingtransactions. In case 15th of month is a holiday, customer can meet on thenext working day.

In case, excessive delay in resolving their problems is experienced,customers can contact the helpline of the Local Head Office, under whosecontrol the branch functions
http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-0#cite_note-0http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-0#cite_note-0


36/73

I. State Bank of India strongly believes that a satisfied customer is the mostimportant factor for growth of its business. The Bank was the first in India tointroduce a code of Fair Banking Practices in India called Towards

Excellence. The code reflected the commitment of the Bank to provideBanking services of a high order to individual banking customers. The codecame into effect from October 1997 as part of the Golden JubileeCelebrations of Indian Independence. The Code was substantially revised inthe year 2005 taking into consideration the transformation in banking

practices and customer service standards that have since taken place.

II. In February 2006, Reserve Bank of India set up the Banking Codes andStandards Board of India (BCSBI) as an independent autonomous watchdogto ensure that customers get fair treatment in their dealings with Banks. TheBCSBI has published the Code of Banks Commitments to Customers

(the Code) which sets minimum standards of banking practice andbenchmarks in customer service for banks to follow. SBI is a member of theBCSBI and has therefore voluntarily adopted the Code as its Fair PracticeCode in dealings with its customers. The complete copy of the Code isavailable at http://www.bcsbi.org.in/Code_of_Banks.html

III. This document called the Citizens Charter of State Bank of Indiaprovides key information on various facilities/services provided tocustomers in ordinary branches of State Bank of India. The Code togetherwith the Citizens Charter will thus ensure high standards of accountability,

responsibility and transparency in the Banks dealings with customers. TheCharter also provides comprehensive information on Banks Grievance

redressal mechanism. It also specifies the obligations on the part of thecustomers for healthy banker-customer relationship.

IV. This is not a legal document creating rights and liabilities. Theinformation on general terms and conditions provided herein may not applyto special branches of the Bank like Personal Banking Branches etc. (Theinformation on services provided by these branches can be obtained from the

branches or the helplines of the respective Local Head office Centres).Loans and advances may also have specific terms and conditions notmentioned in the Charter. However, all terms and conditions will complywith the principles and commitments undertaken by the Bank in the Code.

V. Copies of the Code and Citizens Charter will be available on request toall our customers at our branches, administrative offices and at our web site.


37/73

We will ensure that all our staff members are aware of the commitmentscontained in these documents and faithfully implement them.

VI. The Charter provides essential information on transactions relating tosavings, current and fixed deposit accounts, collections and remittances,grievance redressal etc. For further details and complete information onterms and conditions of service visit our branches or write to our Local HeadOffices (addresses and contact nos. available on our website www.sbi.co.in).

VII. Information given in the Charter is current as of March 31 2007.Information given is subject to change/revision. The Bank will endeavour toupdate the information on the website when changes are made but pleasecontact the nearest branch/Zonal Office/Local Head Office for the latest

changes, If any.

VIII. We request all our customers to keep us informed of their experiencesabout the customer services rendered at our branches and feel free tocomment on the Code and Citizens Charter. Your feedback will help usevaluate, improve and widen our range of services. Your comments andfeedback may be sent to the address given in paragraph VI above.

VARIOUS FACILITIES AND SERVICES OFFERED BY BANK

Personal Banking

Deposit Schemes

Personal Finance

Services

Agricultural/Rural

AgriculturalBanking

Micro Credit

Regional Rural

NRI Services

Who is NRI?

Type of Accounts
http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,19http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,20http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,21http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,66http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,66http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,67http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,68http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3,417http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3,363http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3,363http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3,417http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,3http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,68http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,67http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,66http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,66http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,21http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,20http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,19http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1


38/73

Banks

International

Profile

Trade Finance

Merchant

Banking

Correspondent

Banking

Corporate

Banking

Corporate

Accounts

Mid Corporate

Group

Project Finance

Products &

Services

Services

Internet Banking

ATM Services

e-Z Trade

Govt. Business

Govt. Accounts

Public Provident

Fund

SBI e-Tax

SME

Project Uptech

Charter for SSI
http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,68http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,42http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,43http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,45http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,45http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,44http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,44http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,53http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,53http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,436http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,436http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,472http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,54http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,54http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10,76http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10,75http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,21,595http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,69http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,70http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,70http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,535http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203,206http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203,208http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,650http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,650http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,650http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203,208http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203,206http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,203http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,535http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,70http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,70http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9,69http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,9http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,1,21,595http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10,75http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10,76http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,10http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,54http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,54http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,472http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,436http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,436http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,53http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5,53http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,5http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,44http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,44http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,45http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,45http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,43http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4,42http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,4http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,8,68


39/73

CHAPTER-5


40/73

Ques :1 Since when are you availing the services of SBI?

INTERPRETATION:-

The data given above clearly explain itself that the SBI bank is performing

very well. As the percentage of new customers is increasing every year from

30 to 34 and 36 percentage, which is quite satisfactory, as in the presence of

other public and private banks which are attracting the customers with new

methods.

Ques:2 Which type of services are you availing at present?

YEARSPERCENTAGE

Less than 1 yr 36

1-3 yr 34

More than 3 yr 30

36%

34%

30%

PERCENTAGE

less than 1 yr 1-3 yr more than 3 yr


41/73

SERVICES PERCENTAGECurrent a/c 12

Saving a/c 91

Fixed Deposit 22

Mutual Funds 7

Others 0

INTERPRETATION:-

As per the research, the data collected shows that the percentage of the

saving account is the highest as compared to other accounts. The business

class account i.e. current account is having 12 percent which is low and the

12

91

22

7

00

10

20

30

40

50

60

70

80

90

100

PERCENTAGE

PERCENTAGE

SERVICES

Current a/c

Savings a/c

Fixed deposit

Mutual Funds

Others


42/73

percentage of the fixed deposits is 22 i.e. satisfactory and the mutual fund

investors ratio is 7 i.e. because of the low interest of people in mutual funds

and prefer old investment methods.

Ques:3 Are you satisfied with the services offered by bank staff?

RESPONSE PERCENTAGE

Yes 88

No 31

INTERPRETATION:-

PERCENTAGE

88

31

Yes No


43/73

The research shows that the dealings and behaviour of the staff members are

up to mark and generally customers are satisfied. Few of the customers says

no as they are facing some problems due to more work load on staff and

having less time to deal with them.

Ques:4If yes, what are the various factors on which you aresatisfied?

FACTORS PERCENTAGE

Co-operative Behavior 73

Less Time Consuming 30

Provide Valuable Information 23

Others 0

73

3023

00

10

20

30

40

50

60

70

80

PERCENTAGE

PERCENTAGE

FACTORS

Co-operative Behaviour Less Time Consuming

Provide Valuable Information Others


44/73

INTERPRETATION:-

The ratio of the satisfactory customers is quite good and the customers arehappy with the cooperative behaviour of the staff. Due to the competent staff

members the work performance is quick and efficient and so they take less

time to resolve quarries of customers and provide valuable information to

them.

Ques:5 If no, what are the various factors on which you are notsatisfied?

FACTORS PERCENTAGE

Less Co-operative Behaviour 14

More Time Consuming 18

Doesnt Provide Any other Valuable

Information

11

Others 1


45/73

INTERPRETATION:-

As the coin has 2 sides similarly some of the customers are also there who

are dissatisfied with the dealings of the staff. In their opinion the staff

members behaviour is not cooperative and they also take more time to

resolve their problems. Moreover they dont provide any valuable

information.

14

18

11

1

PERCENTAGE

Less Co-operative

Behaviour

More Time Consuming

Doesnt Provide ValuableInformation

Others


46/73

Ques: 6 In addition to SBI Bank, which Banks services currently youare availing?

BANKS PERCENTAGE

Kotak Mahindra 14

OBC 9

PNB 15

HDFC 26

Others 18

None 18

PERCENTAGE

14

9

15

26

18

18

Kotak Mahindra

OBC

PNB

HDFC

Others

None


47/73

INTERPRETATION:-

As the business needs cant be satisfied with availing the services of one

bank, so the customers are also having the accounts in other banks. Most of

the customers are having the services of HDFC bank in addition to SBI

(state bank of India). As almost all banks branches are there in DELHI, so

the customers are having their accounts in PNB, Kotak Mahindra, OBC, and

others.

Ques: 7 What is prompting to you not avail the services of only SBIBank?

REASON PERCENTAGE

Not do fast proceesing 11

Strict Requirements 28

More emphasis to Private Sector Banks 25

Others 16

Didnt Specify 29


48/73

INTERPRETATION:-

As one bank can not fulfill all business requirements, so on the question of

using other banks facilities are, most of the customers thinks that the

requirements of the SBI Bank is very strict. Next reason is, many customers

are gaining faith on Private sector banks. Very few are dissatisfied due to

slow processing; many other customers didnt specify particular reason due

to personal problems.

Percentage

11

28

25

16

29

Not do fast proceesing

Strict Requirements

More emphasis to Private Sector Banks

Others

Didnt Specify


49/73

Ques: 8Are you aware of the various services offered by the SBIBank?

RESPONSE PERCENTAGE

Yes 50

No 34

Cant say 16

INTERPRETATION:-

The awareness of the customers of SBI Bank is quite well. As per survey

many customers are fully aware about all services and many of them are not

having full information as due to lack of personal interest and some has not

given the answer to this question.

Percentage

50

34

16

Yes No Cant say


50/73

Ques:9 Tick the following which services are you aware of?

DIRECT BANKING FACILITIES PERCENTAGEE-Banking 39

Phone Banking 37

Money Transfer 20

Facilities through ATM 77

Didnt specify 9

0

10

20

3040

50

60

70

80

90

FACILITIES

PER

CENTAGE

E- Banking

Phone Banking

Money Transfer

Facilities through ATM

Didnt specify


51/73

INTERPRETATION:-

No body today is untouched with the facility of ATM, so this is the most

currently in use. In modern business times the e-commerce is the backbone

of business so the net banking is also the main product of the banking

system and also due to the busy schedule of the businessman the phone and

mobile banking is highly in use. The SBI bank is also providing the facility

of the money transfer but this facility is yet to get popularity as very few

customers is aware about it.

Ques: 12 What are the various problems that you come to face whiledealing with Bank?

PROBLEMS PERCENTAGE

ATM is not working 10

Long queues at teller counter 34

Taking more time to resolve the queries 20

Rigid requirements 15

Less customer dealing time 8

Cheque is not credited to a/c 5

Didnt specify 17


52/73

INTERPRETATION:-

There are many aspects where SBI bank has to give attention. Generally

customers are facing many problems like long queues at teller counter, high

charges for not maintaining AQB etc. Customers want reforms on many

problems like increase the customer dealing time and in order to retain

customers they have to resolve these problems.

10

34

20

15

85

17

0

5

10

15

20

25

30

35

40

isnot

rking L

ongq

ueuesat

teller

counter

Takingm

oretime

toreso

lvethe

que

ries

Rigidrequ

irements

Less

customer

dealingtime

Cheq

ueisnot

creditedtoa/c

Didn

tspecify

Percentag

e

Problems


53/73

Ques:13 What would you recommend to improve SBI Banksservices further?

RECOMMENDATIONS PERCENTAGE

Increase customer dealing time 16

Improvement in Infrastructure 44

Improve Net Banking 41

Provide Services equal to private sector

bank

48

Others 18

Didnt Specify 5

Percentage

16

44

41

48

18

5

Increase customer dealing time

Improvement in Infrastructure

Improve Net Banking

Provide Services equal to private sector bank

Others

Didnt Specify


54/73

INTERPRETATION:-

On the question of the recommendation, 48% customers say that this bank

should provide services equal to private bank. 44% customers say that they

are facing problems due to poor infrastructure, so intention should be givento this aspect. 41% customers say that the bank should improve net banking.

16% customers feel that the customer dealing time is less, so Banking Hours

should be increased.


55/73

CHAPTER- 6


56/73

FINDINGS In Delhi, there are number of banks, despite of the tough competition, the

number of the new customers of SBI Bank are increasing every year.

91% customers are having their savings account. The current account userare very less while percentage of the fixed deposits is 22.

88% customers are satisfied with the Banks services and Behavior and only31% are dissatisfied with the Banks performance.

Most of the customers are happily satisfied with the staffs cooperativebehaviour. They are satisfied with the fast processing of transaction as theytake less time. They get valuable information at time.

Very few people are dissatisfied because of more time consumingtransaction and less cooperative behaviour.

26% of the SBI Banks customer are having their account in HDFC,15% inPNB,14% in kotak mahindra etc. which shows that the user of the HDFC is

highest.

28% respondent says that they have account in other bank due to strictrequirement, 25% are saying that they give more importance to privatesector banks. 29% doesnt specify the reason.


57/73

The awareness about the various services is quite good but not satisfactoryas 50% customers are aware about the various services of the bank, 34% arenot aware about the services and 16% respondents answer to cant say.

The user of the ATM is the highest and the use of the net banking and phonebanking is the second highest, while the knowledge about the money transferis very less among the customers.

Some Customers are having problems with the banks working conditionsas 34% customers said that there are long queues at teller counter, 20% said

staff take more time to resolve queries, 15% said about strict requirementand many others reasons.

44% of the customers require improvement in infrastructure and 48%customers want that SBI should also provide services equal to private banks.While 41% customers want improvement in e-banking service. 18% doesntspecify.


58/73

CHAPTER-7


59/73

SWOT ANALYSIS OF SBI BANK

SWOT Analysis:-SWOT Analysis is mainly to see what are the various strength,

weakness, opportunities and threats of the organization. As we know that every

organization is specialize in one field and weak in other field. No one organization

can be specializing in every field because it is beyond its scope. If every

organization will be specialize in every field then there will not be any competition

between various organizations and it will not have fear of lose the business to other

organizations. So this analysis is given as follow:

STRENGTHS:-

Main strength of this bank is, it is the largest bank of the INDIA, it has widenetwork of branches and ATM overall pan INDIA.

Less charges are taken from the customers for providing the services. Mostof customers arevhappy due to this complaint of this.

This bank also keeps that type of customers which are of low profitability. Itbelieves not only in profit which is main aim of every organization. It is alsoperform social responsibility.

This bank has monopoly in most of fields as it provide clearance house,

come most important after RBI, provide loans to the poorest farmers andneeding persons.

It has seven subsidiary banks ,all of these capture more market growth rateby more synergy.


60/73

WEAKNESS:-

First weakness of this branch is ,it doesnt issue the memo immediately ifany one work is not perform in time or any one come late. No one takeresponsibility on his shoulder .

High networking technology is used in some branches. All branches are notcomputerized and high security softwares are not used.

Daily performance chart of the organization doesnt come on the computer

of every employee as in private sector bank. Even performance of theemployee also doesnt come.

No incentives are given to the employees for motivating them. Even theincentive is also not fixed for the employee who has operation work. Onlythey have to perform customers work.

High discipline is not used in the branch as it is requirement of everyorganization. No organization can exist in this competitive environmentwithout it.

In this bank, account is open with minimum of Rs.1,000. Some low classperson cannot manage this amount in initial stage.

Every employee in this branch is overloaded with work. The work

distributed is more than working capacity of the employee.

This bank spends less on basic facilities what I have found that are very oldATM which mostly remain out of work, no sitting and standing arrangementetc.


61/73

OPPORTUNITIES:

It can increase its network more as good response is coming as customer

base is increasing, it means people are ready to take services of this bank.

It can relax some of its internal rules to catch more customers. Many otherbanks have not rules which this bank has put in ahead of customers.

From the customer feedback it is found that its customers have mainlysaving, current accounts and fixed deposits. Its customers have no insurance

policy of its bank, less awareness of mutual fund. These customers should be

provided full knowledge about its all products. As this banks customer baseis increasing, knowledge of all products should be given.

It can open branches in foreign also as many of its customers are NRIs. Ithas tied up with other banks in foreign to handle the foreign transactions.

THREATS:-

New banks are coming in INDIA. This will increase the competition and thishas to consecrate on its marketing activities.

New banks are giving relaxations to its customers. So it will have to changeits rules.

New banks are poaching the employees of this branch. So this bank has toretain its employees with it.

New banks are spending more to capture the more customers so this bankwill have to change its policy of less spending or it will have to find newmean to retain its customers with it.


62/73

CHAPTER- 8


63/73

Conclusion

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

Technical solutions deployed by banks today are flexible, user-friendly and meantto facilitate specific workflow and requirements in implementation processes. Inorder to simplify lives, banks have begun to implement end-to-end technologiesthrough all departments with the intention of removing human error from

processes. Previously existing manual environments could not have been adequatefor future visions, growth plans and strategies.

In this day and age, customers enjoy complete luxury in terms of customizedtechnical solutions and banks use the same to cement long-term, mutually-

beneficial relationships. From above complete analysis, this is clear. So at the lastwe can say that SBI bank has good scope in future and try to compete with the

private sector banks.


64/73

CHAPTER- 9


65/73

RECOMMENDATIONS The research shows that the teller is the most crowded counter and always

having long queues, so teller should be increased.

Bank should also have to improve its infrastructure as customers feelinconvenience in sitting and standing.

As e- commerce is going on increasing, many customers want this bankimprove net banking more.

Customers say that may be this public bank does not services more thanprivate banks but it can try to provide services as equal.

Some customers have also strongly recommended that the number ofbranches of bank should be increased in DELHI.

Pay attention for a long time to only one customer with whom staff isdealing, as other customers are also waiting and staff should understand we

should not waste other customers valuable time.

Banking hours should be increased .as the bank close the customers visit by3:30p.m. Which is very incontinent to the customers?


66/73

As the cheque is not cleared in time due to lack of attention. So staff shouldpay proper care that cheque should be credited in customers a/c in time.

Bank should decrease its AQBs non maintenance charges.


67/73

CHAPTER- 10


68/73

LIMITATIONSIn spite of the best efforts there are always some problems or limitations

associated with market research that cannot be removed but can be minimizedonly. In this survey also there could be certain error due to these factors.

Small Sample Size

Its sample size is very small as compared to total customer base that meansour sample size is comparatively small in accordance with the universe,which is large enough. So deduction drawn from the project cant be

generalized. Scope of the project is limited to Kapurthala region only. That

cant be generalized to the whole of universe of HDFC Banks customers.

Non Response Error

As this research is based upon responses provided by customer, so non-responses and some wrong responses may become part of error.

Sampling It is not possible to cover each and every customer so it has been tried

to cover all section of customer by taking representative sample, which limitthe research to a certain extent.

These limitations may have effect on findings of the work but not up to largeextent and thus do not affect the findings of the work very significantly. Some of

the respondents didnt like to share their views and some were ignorant about thefacts of HDFC Bank.


69/73


70/73

BIBLIOGRAPHY Berry, L. L. (1983).Relationship Marketing. In L.L. Berry, G.L. Shostack, & G.D.Dpah (Eds.), Emerging Perspectives on Service Marketing (pp. 28-38). American MarketingAssociation. Gronroos, C., From Marketing Mix to Relationship Marketing: Towards theParadigm Shift in Marketing,Management Decision, no. 32(2), 1998, pp. 4-20.

Shainesh,G. and Sheth, J.N. (2006): Customer Relationship Perspective: A StrategicPerspective, Macmillan India Ltd..

Sheth, J.N. and Parvatiyar(2000): A.,Handbook of Relationship Marketing, Thousand

Oaks, California: Sage Publications

www.crm2day.com

www.crmguru.com


71/73


72/73

QUESTIONNAIRE

Dear Respondent,

The purpose of this project is to assess the effectiveness of Customer Relationship Management

(CRM) Practices adopted by State Bank of India. Please answer the following questions. Needless

to say, your response would be treated confidential and would be used only for the purpose of

study.

Name : - Account No :-

Age : - City : - ..

Q: 1 Since when are you availing the services of SBI?

< 1 yr 1- 3 yr > 3 yr

Q: 2 Which type of services are you availing at present?

Current a/c Saving a/c

Fixed deposit Mutual Fund

If any other, specify.

Q: 3 Are you satisfied with the services offered by the bank staff ?

Yes No

Q: 4 If yes, what are the various factors on which you are satisfied?

Co-operative Behaviour Less Time Consuming

Provide Valuable Information Others

Q: 5 If no, what are the various factors on which you are not satisfied?

Less Co-operative Behaviour More Time Consuming

Doesnt Provide Any Other Valuable Information


Q: 7 In addition to SBI Bank, which Banks services currently you are availing?


73/73

Kotak Mahindra OBC None

PNB HDFC


Q: 8 What is prompting to you not avail the services of only SBI Bank?

Not do fast proceesing Strict Requirements

More emphasis to Private Sector Banks Others

Q: 9 Are you aware of the various services offered by the SBI Bank?

Yes No Can not say

Q: 11 Tick the following which services are you aware of?

E- Banking Phone Banking

MoneyTransfer Facilities through ATM (mini statement, bill payment etc.)

Q: 12 What are the various problems that you come to face while dealing with Bank?

ATM is not working Rigid requirements

Long queues at teller counter Less customer dealing time

Cheque is not credited to a/c Taking more time to resolve the queries

If any other please specify

1). 2)

Q: 13 What would you recommend to improve SBI Banks services further?

Increase customer dealing time Improvement in infrastructure

rajbhadur sbl

Documents