Sbi Customers Perception On CRM: A Study: M. Malla Reddy A. Suresh

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Asia Pacific Journal of Marketing & Management Review Vol.1 No. 3, November 2012, ISSN 2319-2836
SBI CUSTOMERS PERCEPTION ON CRM: A STUDY

M. MALLA REDDY*; A. SURESH**
*Lecturer, Govt. Degree College, Utnoor, Adilabad. **Research Scholar, Department of Commerce and Business Management, Kakatiya University, Warangal. Faculty, University Arts and Science College, Subedari, Warangal.
ABSTRACT The banking industry in India has undergone radical changes due to the liberalization and globalization measures undertaken since 1991.Today, Indian banking industry is one of the largest in the world. State Bank of India is the largest public sector bank in India. There has been a great surge in efficient customer service. A highly satisfied and delighted customer is a vital non-financial asset for the banks in the emerging IT era. Customer Relationship Management (CRM) provides interactive, personalized and relevant communication with customers to develop and maintain ralationships.CRM is a tool to retain the 20% customers who give 80% of the revenue. This paper explores the perception of Customer Relationship Management with respect to the Customers of State Bank of India in Karimnagar district of Andhra Pradesh. The study is based on the responses of 200 customers of State Bank of India branches in Karimnagar district. _________________________________________________________________________ INTRODUCTION www.indianresearchjournals.com Customer Relationship Management has emerged as a popular business strategy in todays competitive environment. It is a discipline which enables the companies to identify and target their most profitable customers. Customer Relationship Management has been in India for over two decades but its penetration into the industry in general and financial service sector in particular has not been very impressive. With the entry of many foreign banks and setting up of many private sector banks, there is an increased competition in the banking sector to attain a competitive advantage. Banks have slowly but surely realized the importance of building and maintaining customer relationships. CRM is a holistic strategy which can help the banks to become customer oriented and implement customer- focused strategies, which in turn will help them build long lasting relationships with the customers and hence increase their profits.
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CONCEPT OF CRM Customer Relationship Management is a strategic orientation that identifies the most important long-term customers and develops and understanding of how these customers can be retained.CRM can be defined as the strategies, processes, people and technologies used by companies to successfully attract and retain customers for maximum corporate growth and profit. Parvatiyar and Sheth (2000) defined CRM as a comprehensive strategy and process of acquiring and partnering with selective customers to create superior value for the company and the customer. REVIEW OF LITERATURE Body and Limayem(2004) explored that CRM in terms of partnerships, empowerment with customers and personalization, have a positive and direct impact on customer loyalty. Effective CRM will lead to greater customer loyalty(Evans & Laskin, 1994). Organization can use website characteristics to build tight relationships with their customers who become loyal to them, rather than to select customers on a transaction-by- transaction basis from a large pool of non-loyal customers ( Reinartz & Kumar, 2002). As pointed out by Bohling(2006), top managements support is essential for the success of CRM implementation. They also identified that CRM success was more strongly associated with CRM ownership being at the corporate level. NEED FOR THE STUDY The forces of deregulation, globalization and advancing technology have greatly increased the competitive pressures in all the industries, especially in the banking industry. Indian banks are functioning increasingly under competitive pressures emanating from within the banking system, from non banking institutions as well as from domestic and international capital markets. Thus in this era of increased competition, in order to prosper, it will be imperative for the banks to develop long term relationships with the customers by offering quality services. Developing long term relations with the customer depends basically on three dimensions product quality, service quality and relationship quality for any kind of industry. This fact is also applicable for banking industry. Since the perceived service quality acts as a foundation for developing long-term customer relationships, the present study is mainly undertaken to present the SBI customers perception on CRM and to study the perceived service quality provided by the bank. OBJECTIVES OF THE STUDY The main objectives of the study are as follows. 1. To study and present the perception of SBI customers about CRM. www.indianresearchjournals.com
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2. To analyze the perceived service quality of the customers towards their bankers. 3. To study the CRM practices adopted by the bank to promote the customer relationship. RESEARCH METHODOLOGY In order to achieve the objectives of the study and to analyze the different factors considered, an appropriate methodology has been adopted. The present study is exploratory as well as descriptive. The survey was conducted in the month of June,2012. The present study is based on primary data. The primary data has been collected from a sample of 200 customers of SBI branches in Karimnagar district of Andhra Pradesh. The data has been collected with a well structured and pre tested questionnaire which was based on Likert five point scale. The perception of SBI customers on CRM was judged on the following 12 variables: visual appeal of physical facilities; guidance signs at service counters; timely services by bank employees; problem solving interest of bank employees; security measures taken; service performing information; prompt services by employees; safety of transactions; convenient of operating hours; parking facilities at bank; sending of transaction information through sms, and installation of new ATMs. Apart from the questionnaire being used for data collection, personal discussions were also conducted with the respondent customers to get further information. The data so collected has been analyzed with one way or two way tables. The statistical techniques like percentages, averages and charts were also used. PROFILE OF THE SAMPLE The profile of the respondents of SBI customers, Account wise, Gender, age, Qualification, Employment, Income and Area wise is furnished in the Table1. TABLE-1: DEMOGRAPHIC PROFILE OF THE RESPONDENTS Parameters 1.Type of Account Holders Current Account Savings Account Fixed Deposit 2. Gender Male Female 3.Age Below 20 years 20-40 Number of Respondents 75 81 44 113 87 29 83 (In %) 37.50 40.50 22.00 56.50 43.50 14.50 41.50
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40-60 Above 60 years 4. Qualification S.S.C Graduates Post Graduates Professional Course Holders 5.Typeof Employees Un-Employees Private Employees Govt. Employees Agriculture Business Persons 6.Income Level Below Rs-10000 10000-20000 20000-30000 30000-40000 Above Rs-40000 7.Area Urban Rural Total
67 21 26 79 56 36 14 32 67 44 43 23 38 86 37 16 137 63 200
33.50 10.50 13.00 39.50 28.50 18.00 7.00 16.00 33.50 22.00 21.50 11.50 19.00 43.00 18.50 8.00 68.50 31.50 100% www.indianresearchjournals.com
It is evident from the Table 1 that the majority of the respondents are of Savings Account holders account for 40.50 percent. In terms of Gender, it is evident that the majority of the respondents are of male (56.50 percent).41.50 percent of the respondents are in the age group of 20-40 years. Graduates account for 39.50 percent, followed by Post Graduates who accounted for 28.50 percent. Government Employees dominated the sample size who account for 33.50 percent and 22 percent of sample respondents have Agriculture as their occupation. In terms of Monthly Income Level, it is evident that 43 percent of the respondents are earning monthly income of Rs-
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20000-30000, followed by 19 percent of the respondents who are earning monthly income of Rs10000-20000. The sample is dominated by the respondents who belong to Urban Area with 68.50 percent and 31.50 percent of the respondents belong to Rural Area. PERCEPTION OF MANAGEMENT SBI CUSTOMERS ABOUT CUSTOMER RELATIONSHIP
ANALYSIS OF THE RESPONSES A thorough analysis of the data and information using statistical tools, viz., tables and charts, was made for more clear understanding. TABLE2: VISUAL APPEAL OF PHYSICAL FACILITIES AT BANK Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 97 56 18 19 12 200 percentage 48.50 28.00 9.00 8.50 6.00 100.00
TABLE3: GUIDANCE SIGNS AT SERVICE COUNTERS OF BANK Scale Strongly Agree Agree Neutral Disagree No. of Respondents 56 103 12 19 percentage 28.00 51.50 6.00 9.50
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The data about visual appeal of physical facilities at bank is shown in the Table2. It is evident that the majority of the respondents, i.e., 48.50 percent, strongly agree with the visual appeal of physical facilities at bank, followed by the respondents agree with the physical facilities at bank account for 28 percent.
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Strongly Disagree Total
10 200
5.00 100.00
From the Table3, it is found that 51.50 percent of the respondents agree and 28 percent of the respondents strongly agree with the guidance signs at service counters of banks. However, the respondents who disagree with the guidance signs at service counters account for 9.50 percent. TABLE4: TIMELY SERVICES BY BANK EMPLOYEES Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 27 67 91 11 04 200 percentage 13.50 33.50 45.50 5.50 2.00 100.00
It is observed from the Table 4, that the majority of the respondents, i.e., 45.50 percent neither agree nor disagree with the timely service provided by bank employees, followed by 33.50 percent of the respondents opined that they agree with the timely services by bank employees. TABLE5: PROBLEM SOLVING INTEREST OF BANK EMPLOYEES Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 11 16 89 81 03 200 percentage 5.5 8.00 44.50 40.50 1.50 100.00 www.indianresearchjournals.com
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From the Table 5, it is very clear that 44.50 percent of the respondents neither agree nor disagree with the problem solving interest of bank employees and 40.50 percent of the respondents disagree with the problem solving interest. However, the respondents who agree with the problem solving interest of bank employees account for 8 percent. TABLE6:SECURITY MEASURES AT BANK Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 33 79 61 16 11 200 percentage 16.50 39.50 30.50 8.00 5.50 100.00
It can be viewed from the Table6, that 39.50 percent of the respondents agree and 30.50 percent of the respondents neutral with the security measures taken at bank. However, 16.50 percent of the respondents strongly agree with security measures taken at bank TABLE7: SERVICE PERFORMING INFORMATION Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 26 69 78 16 11 200 percentage 13.00 34.50 39.00 8.00 5.50 100.00 www.indianresearchjournals.com
From the Table 7, it can be analyzed that the majority of the respondents i.e., 39 percent neither agree nor disagree and 34.50 percent of the respondents agree with the service
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performing information at bank. However, the respondents who strongly agree with the service performing information account for13 percent. TABLE8: PROMPT SERVICES BY BANK EMPLOYEES Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 17 79 83 15 06 200 percentage 8.50 39.50 41.50 7.50 3.00 100.00
From the Table 8, it is evident that the majority of the respondents i.e.,41.50 percent neutral about prompt services provided by bank employees. While, 39.50 percent of the respondents agree and 8.5 percent of the respondents strongly agree with the prompt services provided by bank employees. TABLE9: SAFETY OF TRANSACTIONS AT BANK Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 13 78 91 14 04 200 percentage 6.50 39.00 45.50 7.00 2.00 100.00 www.indianresearchjournals.com
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Table 9 revealed that the majority of the respondents i.e., 45.50 percent opined that they neutral about safety of transactions at bank.39 percent of the respondents agree with the safety of transactions. However, the respondents who disagree with the safety of transactions at bank account for 7 percent.
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TABLE10: CONVENIENT OF OPERATING HOURS OF BANK Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 11 99 79 07 04 200 percentage 5.50 49.50 39.50 3.50 2.00 100.00
The opinion about the convenient of operating hours is presented in the Table10. It is evident from the Table10 that the majority of the respondents i.e., 49.50 percent agree with the convenient of operating hours of bank. However, 39.50 percent of the respondents opined that they neutral about convenient of operating hours of the bank. TABLE11: PARKING FACILITIES AT BANK Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 09 26 73 86 06 200 percentage 4.50 13.00 36.50 www.indianresearchjournals.com 43.00 3.00 100.00
The opinion of the respondents about parking facilities available at bank is placed in the Table 11. Majority of the respondents i.e., 43 percent expressed that they disagree with the parking facilities, followed by 36.50 percent of the respondents who neither agree nor disagree with the parking facilities available at bank. However, 4.50 percent of the respondents strongly agree with the parking facilities.
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TABLE12: SENDING OF TRANSACTION INFORMATION THROUGH SMS Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 32 93 57 13 05 200 percentage 16.00 46.50 28.50 6.50 2.50 100.00
From Table 12, it is evident that the majority of the respondents agree with the sending or transaction information through sms account for 46.50 percent, followed by 28.50 percent of the respondents opined that they neutral about sending of transaction information through sms. However, 16 percent of the respondents who strongly agree with the sending of transaction information through sms. TABLE13: INSTALLATION OF NEW ATMS Scale Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Respondents 47 89 37 21 06 200 percentage 23.50 44.50 18.50 10.50 3.00 100.00 www.indianresearchjournals.com
The data about opinion on installation of new A.T.Ms is presented in Table 13. It is very clear that the majority of the respondents i.e., 44.50 percent agree with the installation of new A.T.Ms of concerned bank, followed by 23.50 percent of the respondents who strongly agree with the installation of new A.T.Ms.
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CONCLUSION The implementation of CRM yields a number of benefits to the bank one of the important benefits is cost reduction. Secondly, the integrated view of the customer provides the bank an opportunity to understand its customers well and accordingly cater to their needs with individualized offering. The implementation of CRM has helped the bank to come closer to its customers and the emphasis has shifted from sales to customers. It may be noted that the bank should increase the no. of ATMs as the customers are increasing from day to day. The bank can also enhance its operating hours i.e., 8 am to 8 pm six a week. Steps should be taken to provide parking facilities at bank premises. Bank employees should show courtesy towards customers in providing timely services at bank. CRM is to be described and used as an enterprise-wide strategy in the bank. It should be involved all the areas of the bank to work in synchronization towards a common goal of stronger and long-term customer relationships. REFERENCES 1. Divya Prabha D and Dr. Krishnaveni R (2008), A study on Corporate Customer Relationship Management in Banking Industry, PSG Journal of Management Research, vol. 1, No. 2, pp.177-121. 2. Saurbhi Chaturvedi and Dr. Rishu Roy (2008), Impact of CRM on Organizational Effectiveness: An Exploratory Study of Services Sector, Management Trends, vol. 5, No. 1, pp.12-18. 3. Sanjit Kumar Roy (2008), CRM Implementation in Banks, the Icfaian Journal of Management Research, vol. VIII, No. 7, pp. 55-72. 4. Han-Yuh Lies (2007), Development of a Frame work for Customer Relationship Management in the Banking Industry, International Journal of Management, vol. 24, No. 1, pp.17-20. 5. Anderson K and Kerr C (2002), Customer Relationship Management, New York Mc Graw-Hill. 6. Kothari C R (2004), Research Methodology, New Delhi, New Age International Publishers. 7. Ravichandran N (2003), Indian Banking Sector: Challenges and Opportunities, Vikalpa, vol. 28, No. 3, pp.83-89. 8. Manoj Kumar Paul and Arup Barman (2010), Customers Satisfaction- A Case Study in Rural Banking, The Indian Journal of Commerce, vol. 63, No. 1, pp. 21-29. 9. Uppal K R and Rimpi Kaur (2008), Customer Service in Banks: An Empirical Study, The Icfaian Journal of Management Research, vol. VIII, No. 4, pp. 7-20. www.indianresearchjournals.com
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