A STUDY ON EMPLOYEES PERCEPTION OF CUSTOMER RELATIONSHIP MANAGEMENT IN E-BANKING. Tiruchirappalli , India ABSTRACT

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1 9 September 2013, Volume: I, Issue: IX A STUDY ON EMPLOYEES PERCEPTION OF CUSTOMER RELATIONSHIP MANAGEMENT IN E-BANKING S.Ramya 1,*, K. Rajam 2, Dr. D. Sivasubramanian 3 1 Assistant Professor, Department of Commerce, SrimadAndavan Arts and Science College, Tiruchirappalli , India 2 Assistant Professor, Department of Commerce, SrimadAndavan Arts and Science College, Tiruchirappalli , India 3 Research Supervisor, Department of Commerce, SrimadAndavan Arts and Science College, Tiruchirappalli , India ABSTRACT This work appraises Employees Perception of customer relationship management in the E- Banking servicesusing the banks namely: State Bank of India (Srirangam Branch, Tiruchirappalli) and ICICI (SrirangamBranch, Tiruchirappalli)Customerrelationship management effect on E-Banking products, services and improve the working environment of Bank employees.. Survey research design was applied in which structuredquestionnaire was used to generate primary data from among the two banks examined while secondary datawere collected from the articles, books and the relating website of the banks. A sample size of 20 junior, middleand senior managers from each of the banks were given questionnaire instrument for completion. It was discovered that customerrelationship management impact on the two banks.therefore, it was suggested that banks should intensify efforts in theircustomer relationship efforts and back it up with up to date information and communication technology. Keywords: Customer Relationship Management (CRM), Corner tones, Employees Perception, E-Banking 1. INTRODUCTION A Customer is the actual or potential buyer of a product. Different roles can be identified in the context of consumers, namely, buyer, decider, initiator, influencer, user, disposer. Today's companies are going head over heels to retain customers. The fact is that the cost of attracting a new customer is far more than keeping a current customer happy. The task of creating strong customer loyalty is called relationship marketing. It is basically a philosophy of doing business in a highly competitive market with strategic orientation focusing on improving relationship with existing key customers to develop lifetime customers. Customer Relationship Management (CRM) is changing the way everything, from cars to detergents, is being sold. Soon, the shoppers at Super markets will wait to watch personalized advertisements for chocolates, toothpaste and tea at checkout counters equipped with video screens. Today, there are many ways a customer can interact with a bank including viasalesperson, web site, catalog, , trade show exhibit or advertisement. With today'stechnology, it's possible for each of these contact points to be driven from the same baseof

2 information about the customer. But the problem lies in the coordination of thesetechnologies where sales force doesn't know about customers' interactions with thebank s web site, call center doesn't know the customer was visited by a salesperson lastweek or the bank sends without consideration of recent catalog purchases.consequently, the customer thinks that the bank s activities are not coordinated. Therequirement today is of integrated customer information architecture to support all theseapplications and thereby preventing coordination problems. 2. REVIEW OF LITERATURE First of all, it must be understood that at its core, CRM is more than just a set oftechnologies: it is a process. Simply stated, CRM comprises the acquisition anddeployment of knowledge about customers to enable a company to sell more of theirproduct and service more efficiently (Flanagan and Sadie, 1998). Almossawi (2001)examined the bank selection criteria being employed by college students in Bahrain. This author focused on younger segment as one of marketing strategies to attract new customers and to understand the potential customers in selecting the banks.there are three reasons why the author chose younger segment; as a sizeable market segment; tend to be a good savers; and they will open bank accounts after completing their study and start working in companies. Metagroep, which, in 2000, defined CRM as the automation of horizontally integrated business process involving front office customer contactpoints (marketing, sales, service and support) via multiple, interconnected delivery channels. CRM is a process that addresses all aspects of Identifying Customers, Creating Customer Knowledge, Building Customer Relationships and shaping their Perceptions of the Organization and its Products. A company is touch points can include the Internet, , sales, direct mail, telemarketing operations,call centers, advertising, fax, pages, stores, and kiosk. CRM technology applications link front office (e.g. sales, Marketing and customer service) and back office (e.g. financial, operations, logistics and human resources) functions with the company s customer touch points. Pisharodi, Angur and Shainesh (2003) in a study of success of CRM found that a processorientedstrategic approach to connect the operational, informational and the organizationalcomponents of CRM are critical for the success of CRM application.reinartz& Kumar (2002) pointed out that Managers need to be careful in differentiatingcustomer loyalty and customer profitability. Enterprises ought to understand the fact thatmanaging customers for loyalty is different from managing them for profits. Wang et al. (2004) developed an integrative framework for customer value and CRM performance based on the identification of the key dimensions of Customer Value viz. functional value, social value, emotional value and perceived sacrifices. The results found that customer satisfaction, brand loyalty and functional values have positive effect on customer behaviour based on CRM performance where brand loyalty is the most significant influence on customer focus, CRM organization, technology-based CRM and knowledge management. Rootman et al. (2008) investigated the variables that influence the effectiveness of CRM strategies in banks includes attitude, Knowledgeability and two-way communication related to bank 10

3 employees.further, based on the survey of literature, the following CRM framework is designed to study the influence of demographic factors on bank employees perceptions towards CRM elements: Customer Knowledge The Individual Value Propostion CRM Elements Relationship Strategy Communication 4. OBJECTIVE OF THE STUDY The Corner Stones of the CRM 1. To Study the influence of demographic factors of Bank Employees 2. To measure the most preferable E-Banking services in selected banks 3. To study the concept and elements of CRM in E-Banking sectors. 5. LIMITATION OF THE STUDY The study covers an analysis over the elements of CRM and its implementation in banking sector. The study mainly centers on the influence of demographic factors on Employees perceptions towards CRM practices among the banks. The analysis was made with regard to evaluation, growth and role of CRM in promotion of banking sectors. Through the study is very comprehensive in nature, it is subjected to certain limitations as mentioned below: 1. The study is mainly based on the data collected from the Bank employees of Srirangam, Tiruchirappalli District of TamilNadu from different selected public and private sector bank; therefore, the accuracy of the date of time of taking CRM perceptions from the Bank employees. 2. The study is carried out through the selected banks branches, so the findings may not represent the entire banking sectors. 6. METHODOLOGY For this pilot study we asked 20 respondents to answer the questionnaires. The study which is descriptive in nature is designed to examine the relationship between the employees perception towards CRM elements among the banks and demographic factors. Data were collected through survey method using a set of structured questionnaire distributed to different selected public and private bank employees. The study made on SBI, ICICI Srirangam branch intiruchirappalli District of TamilNadu.The details of the measurement for demographic factors are Gender, Age, Education 11

4 Level, Experienceof serviceand E-Banking usages among the selected bank employees. Perceptions on CRM elements are measured by using five scale as follows: 1=Strongly Agree, 2= Agree, 3=Neutral, 4=Strongly Disagree, 5=Disagree. Simple statistical tools and test were conducted to get the reliable inferences. The result for Cronbach s alpha value for 78statements of CRM elements was Thus, this is considered good and reliable (Sekaran, 2003). 7. ANALYSIS OF DATA 7.1 Demographic factors of the Selected Bank Employees Table 1 shows the result of respondents profile for this study. Majority of the respondents are male (60%), aged between years old (45%). The equal percentages of married and unmarried respondents are answered the questionnaire i.e.50%.30% of the respondents had Graduate qualification. The result of experience shows that 25% in the selected banks. TABLE 1 Demographic Factors Frequency Percentage (n) (%) Gender Male Female Age (in years) Below and above Marital Status Married Unmarried Educational Qualification Technical Diploma Graduate Post Graduate Professional Others Experience Below 5 years years years years years More than 30 years Most preferred E-Banking products in the selected Banks Table 2 consists of majority of respondents are preferred the ATM services from the selected Private and Public sector bank (i.e. 35% people providing the first place). 40% of respondents provided the tenth rank to the Core Banking system of selected banks. 12

5 Ranks Internet banking ATM Home banking Mobile Banking TABLE 2 Credit card Debit card Electronic fund transfer E- Payment Systems Core Banking Systems Online Trading Systems n % n % n % n % n % n % n % n % n % n % 1 st nd rd th th th th th th th Results 7 th 1 st 6 th 5 th 4 th 8 th 9 th 2 nd 10 th 3 rd 7.3 Elements of CRM in the selected banks TABLE -3 I CUSTOMER KNOWLEDGE SA A N DA SDA (%) (%) (%) (%) (%) 1 Personal Data are correctly Collected Official Data are correctly collected Data about the financial resources are properly collected Relevant proof of the collected data is good Timely update the collection of data Customers data rightly segmented Banking operating hours is convenient Best investment plans and schemes are adopted Innovative financial solutions are provided Easily available E-banking products and services Correctly understand the customer needs Employee's training and skills are good Encouragement to use the E-Banking products are good Best Banking objectives and strategies are adopted Better terms and conditions are used Correctly meet the customers' expectations Best security and privacy features are provided Customer's knowledge is used in a good way II RELATIONSHIP STRATEGY SA A N DA SDA (%) (%) (%) (%) (%) 1 May I Help you counter is really helpful Purified water available in the bank campus Counter Token system is provided Automatic Help Desk is available Security Guard available in the ATM centers Time of request on Loan

6 7 Problem in clearing the Cheque Provide help to remove FUD (Fear, Uncertainty, Doubts.) Explanation about the Banking terms and conditions are good If the periodical accounting statements are available on time Best problem solving methods are used Maintaining good personal contact with the customers Providing 'Usage Manual' for E-Banking services Customer's suggestions are accepted Wish of the customers in festival seasons Easy understand of the new financial plans Proving the Cheque Book in the time of account opening Providing ATM card with PIN No in the time of account opening Net Banking operations Usage manual Easy methods used to retain the customers ATM machines are available at customer's convenient locations Best Core Banking solutions are provided III COMMUNICATION SA A N DA SDA (%) (%) (%) (%) (%) 1 Best communication channels are provided Quick response of the customer's needs Banking information available in various channels E-banking services provided at independent time and place Bank websites are easily used Transaction alert provided in proper channels Easy to meet the Bank officials Best online support provided Simple understanding the machines language Cost of Communication channels are reasonable IV THE INDIVIDUAL VALUE PROPOSITION SA A N DA SDA (%) (%) (%) (%) (%) 1 Correctly find the real customers Better solutions provided for the individual customers' urgent needs Individualized loans are offered Personalized accounting details are available Personal ID and Password provided for E-Banking services Provide better security for Customers' personal data Customers personal recommendation is accepted and implemented Almost importance given for customers satisfaction only Real follow up given for Individual transactions

7 Various elements of CRM TABLE-4 Various elements of CRM No.of respondents (n=20) Percentage (100%) Customer Knowledge Low High Mean: 60.30/ Median: / S.D.: / Min.: 49 / Max.: 71 Relationship Strategy Low High Mean: 72.30/ Median: / S.D.: / Min.:58 / Max.: 86 Communication Low High Mean: 31.80/ Median: / S.D.: / Min.:26 / Max.: 38 The Individual Value Proposition Low High Mean: 29.30/ Median: / S.D.: / Min.:21 / Max.: 40 Overall elements of CRM Low High Mean: / Median: / S.D.: / Min.:167/ Max.: 208 TABLE-5 t-test Name of the bank Mean S.D Statistical inference Customer Knowledge SBI (n=10) T= Df=18 ICICI (n=10) <0.05 Significant Relationship Strategy SBI (n=10) T= Df=18 ICICI (n=10) >0.05 Not Significant Communication SBI (n=10) T=.251 Df=18 ICICI (n=10) >0.05 Not Significant The Individual Value Proposition SBI (n=10) T=.835 Df=18 ICICI (n=10) >0.05 Not Significant Overall elements of CRM SBI (n=10) T= Df=18.189>0.05 ICICI (n=10) R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Reliability Coefficients N of Cases = 20 N of Items = 78 Alpha = Not Significant 15

8 The Table-3 shows the result of elements of CRM among the Bank employees. The Customer Knowledge contains 18 items, out of this item the respondents mostly accepted the item no.6 and 7(35%), the strongly accepted the item no.20, 21 and 22(35% to 40%) in Relationship Strategy (it contains 23 items), the third element in CRM is Communication its contains 10 items, out this the item no.2 have highest percentage and the last element in CRM is The Individual Value Proposition consist of totally 9 items in this item no.3 and 8 was mostly accepted by the Bank employees of selected banks. 8. CONCLUSION The objective of this research is to report on the A Study on Employees Perception Of Customer Relationship Management In E-Banking.As far as we are aware there has been on this area for the banking sectors. Therefore, it is very difficult for us to have a specific and ready-touse questionnaire to be employed. Thus, we propose a framework which includes four corner stones of CRM like, Customer Knowledge, Relationship Strategy, Communication and The Individual Value Proposition. To enable us to have a reliable and valid instrument, we conduct a pilot test on 20 respondents among the selected private and public sector bank employees and our results indicate that our instruments are good to be used with Cronbah s alpha values ranging from out of 78 items. This indicates a good internal consistency of the items in the scale. The results in this pilot show the respondents either agree or strongly agree on majority of the statements in the dimensions used. This study is significant to banks as they get information on what are items that are important to maintain the relationship between the customers and maintain strengthen their relationship with the help of E-Banking products and services. REFERENCES [1] Almossawi, M. (2001). Bank selection criteria employed by college students in Bahrain: An empirical analysis. International Journal of Bank Marketing. [2] Bansal, Ipshita and Sharma, Rinku. (2008). Indian Banking Services: Achievement s and a. challenges. The Icfai University Journal of services marketing, Hyderabad. VI (2), [3] Brown, S.A. (2000). Customer Relationship Management: A strategic Imperative in the World of E-Business. Canada: Jon Wiley & Sons. [4] Berger, P.D., and Bechwati, N.N. (2000). The allocation of promotional budget to maximize customer equity, OMEGA.The International Journal of Management Science, 29, [5] Blattberg, R.C., Getz, G., & Thomas, J.S. (2001). Customer Equity: Building and Managing Relationships as ValuableAssets. In: Harvard Business School Press, Boston, MA. [6] Bose, R. (2002). Customer relationship management: key components for IT success. Industrial Management & DataSystems, 102(2). [7] Chang, T.-M., Liao, L.-L., & Hsiao, W.-F. (2005). An Empirical Study on the e-crm Performance Influence Model forservice Sectors in Taiwan, Paper presented at the 2005 IEEE International Conference on e-technology, e-commerceand e-service (EEE'05) in proceedings,

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