A Study on Customer Relationship Management Practices in Banking Sector- With Special Reference to Salem District, Tamil Nadu, India Jayakumar A. Periyar University, salem-11 hodcom@yahoo.com Sathiya N. Department of Commerce, Periyar University, Salem-11 Abstract Banks play a vital role in the socio-economic development of our country. Banks offer several facilities to enhance the standard of living of our citizens. In the past, owing to lack of information and proper guidance, the general public could not avail the full benefits from the banking industries to improve their standard of living. It is now undeniable that the face of the Indian consumer is changing. This is reflected in the change in the income pattern of the urban household. The direct fallout of such a change will be the consumption patterns and hence, the banking habits of Indians, which will now be skewed towards retail-products. At the same time, India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. Customer service management is a key component of business today. The concept is very crucial as it incorporates customer, customer service, customer satisfaction, customer value, customer loyalty, customer retention, etc. In one word, it is linked to Customer Relationship Management (CRM) and Customer Experience Management (CEM). So far as jargons are concerned, more or less relationship Marketing, CRM and customer service management are interchangeably used. Relationship Marketing attracts maintains and enhances customer relationship Key words: Customer Knowledge Management, CRM, Customer Service Management 1
Introduction ICBI 2011 Relationship building with customers is now accepted as over-riding goal of marketing and of the business as a whole. In service industries, the goal is especially emphasized since a repeat customer is believed to cost merely a fraction of what needs to be spent in servicing a new customer is service transaction. It is believed that relationships flourish when marketers play the book, meet customers core expectations and exceed in respect of other features of their total offering. Service firms have been the pioneers in adopting the practice of Customer Relationship Management practices. Indian banking industry has witnessed rapid development in recent past with the initiation of financial sector reforms. The thrust of financial sector reforms was to improve efficiency, competitiveness and productivity of the financial system. The entry of new generation private sector banks which provided technology aided services like Internet banking, Mobile banking, Inter Branch network, etc., has electrified the banking environment in India and has added a new dimensions to automation in Indian banking. Customer Relationship Management is a vital factor to improve the performance of the banks. Most of the banks in India are now turning to CRM as they are increasingly realizing that the cost of acquiring new customers is for higher than the cost of retaining existing customers. This quest has led to the implementation of CRM in banks. The concept of CRM is in the initial stage of implementation in banks, as getting the CRM philosophy work in a bank is quite complex as well as a challenging task for, its implementation is based on certain key principles, namely, The banks must realize that all customers are not equal; Customer profitability varies from person to person; Not all customers are evenly desirable for the banks; The banks must differentiate their customers based on the Value Criteria ; Value is the profit that the customer adds to the bank account; and A more profitable customer is a High Value customer and a less profitable customer is a Low Value customer. 2
Changing perception of customer The perception of a customer has drastically changed. Peter Drucker said twenty-five years ago, that the purpose of a business wads to attract and retain a customer. There has been a phenomenal change and paradigm shift towards customer focus during the past five decades in the Indian context, 1961-1970 Servicing the Customer, 1971-1980 Satisfying the Customer, 1981-1990 Pleasing the Customer, 1991-2000 Delighting the Customer, 2001 and beyond Relating the Customer. Today, the customer relationship between the banker and customer has come under the sharp focus both the customers ends. Banks CRM system must capture customers taste, preference, behaviour, living style, age, education, cultural background, physical and psychological characteristics, sensitivity etc, while differentiating customers by the value criteria into low and high value customers. Once the banks differentiate their customers, vis-à-vis the profitability and their other trait, it becomes easy for the banks to customize their service to maximize the overall value of their customers portfolio. The concept of CRM needs to make its impact in the banking scenario, particularly in the nationalized banks, the state banks groups and the private sector banks which constitute the core of the banking system in India. The component of CRM already exists but needs to be put together like the pieces of a puzzle. The pieces to be properly aligned are people, processes, information technology and leadership. This connectivity has to be done by the management, which can be achieved by them by practice over a period of time. Banks also need to identify customers and products that would be most profitable and target customers with products that are appropriate to their needs and service the customers with greater cost efficiency. Banks also need to find out the avenues for increased customer satisfaction, which leads to increased customer loyalty. The present study is focused on the following two categories of banks viz, 3
Public Sector Banks Private Sector Banks Objectives of the study 1. To identify various banking services offered by public and private sector bank to consolidate their CRM strategies. 2. To study the customers perception on factors influencing Customer Relationship Management in banking industry. 3. To classify the customers opinion on initial strategies, maintenance strategies, technology, service satisfaction and impact of CRM. 4. To ascertain the perception of bank executives on various aspects of CRM in their respective banks. 5. To construct and empirical model to ascertain the effectiveness of CRM in public and private sector banks. Methodology Research Design The research design is empirical in nature since the study is conducted by using both analytical and diagnostic type of research. The study is conducted in two stages format, with a preliminary pilot study followed by the main study. The major part of the study is based on primary data. Study Area The Salem district has been chosen for the purpose of study because of the following reasons The Salem district is one of the industrialist areas and most of the transactions through the banks. Salem district is the fourth place of the corporation in Tamil Nadu Almost every bank of the state has multiple branches in the city. Foreign banks are also interested in establishing their branches in the city. The financial literacy of people of Salem is conducive for the purpose of study. The banking habits of the residents of the city are quite similar to that of the people placed in the rest of the country. Hence, it is considered highly appropriate to conduct the study in the Salem district. 4
Sampling Technique ICBI 2011 Convenient Sampling Method is adopted to collect the primary data. The respondents for the purpose of the study are selected systematically. Sample The following criterion is adopted to collect responses from the customers and the bankers. At the first instance, the total numbers of Public Sector Banks and Private Sector Banks in the Salem district have been taken into consideration to decide about the number of banks for the purpose of study in each category. Secondly, the bank under each category has been chosen based on minimum number of two branches in the Salem District as on March 2010. Sample Size By the above processes totally 22 banks were chosen for the purpose of study from every 22 banks. Table 1.3 Number of Sample Size in Customers and Bank Executives S.No Name of the Bank Customers Bank Employees 1 State Bank of India 25 10 2 Allahabad Bank 25 10 3 Andhra Bank 25 10 4 Bank of India 25 10 5 Canara Bank 25 10 6 Central bank of India 25 10 7 Corporation Bank 25 10 8 Indian Bank 25 10 9 Indian Overseas Bank 25 10 10 Punjab National Bank 25 10 11 Syndicate Bank 25 10 12 UCO Bank 25 10 13 Union Bank of India 25 10 14 Vijaya Bank 25 10 15 Catholic Syrian Bank 25 10 16 Centurion bank of Punjab 25 10 17 ICICI Bank 25 10 18 Karnataka Bank 25 10 19 Karur Vysya Bank 25 10 20 Lakshmi Vilas Bank 25 10 21 South Indian Bank 25 10 22 Tamil Nadu Mercantile Bank 25 10 5
Total 550 220 Interview Schedule Two sets of Interview Schedules have been used for the purpose of the study which were collected from 1. Customers 2. Bank Employees Data Collection The sample size was determined by following the three fold approach 1. The total number of Public Sector Banks, Private Sector Banks, in the Salem district has been taken into consideration to decide about the number of banks for the purpose of study in each category. 2. The banks under each category have been chosen based on minimum number of two branches in the Salem district as on March 2010. 3. By the above process totally 22 banks were chosen for the purpose of study. From each of the 22 banks 25 customers and 10 bank employees were selected as respondents. 4. The branches situated in the North, South and Central part of the Salem district were covered for the purpose of study. 5. 555 interview schedules were collected from the customers and 225 interview schedules were collected from the bank employees. Out of the above 550 interview schedules of customers and 220 interview schedules of the bank employees were taken into consideration for the purpose of the research. Scale Development This thesis employs two different scales in its measurement of the perception of respondents about the HRM competencies, constraints and attrition. Each scale has its own range and options. The variety and number of scales are Likert s five point scale and bipolar scale (eg. Yes / No type). The interview schedule used comprises both optional type and statements in Likert s five points scale. The responses of these sections are obtained from the customers and the employees of various banks in the Salem district in the five point scale, which ranges as follows: 5 Strongly Agree, 4- Agree, 3 Neutral, 2 Disagree, 1- Strongly Disagree. 6
This allowed for the standardization of results as well as making it easier for respondents to complete the interview schedule. The author and supervisor discussed the Likert s five point scale and decided to assign the numerical value 3 for undecided or neutral. By referring to several approaches in statistics, it was decided to assign 3 to neutral. Undecided had a connotation that, the statements in the interview schedule do not have proximity to the respondents. But neutral implies that they are well acquainted with the statements in the interview schedule but they want to remain equidistant from the two extremities of agreement and disagreement. This would not affect the high Cronbach value. Literature on theoretical background CRM practices CRM in the field of retail banking has attracted much of researchers and practitioners. There has been continuous research in the field of CRM and its applications in banking and financial services. But in India, research in the field of relationship marketing has not taken off to the expectation and is still in the infant stage when compared to other countries in the west. However, the available contribution from the following authors and researchers in India and other parts of the world in the area of CRM in retail banking is worth mentioning. Hence, the empirical works relating to relationship management of the review is presented in this chapter. Initiation of CRM Aihie Osarenkhone (2007) this is an exploratory study on components of Customer Relationship Management (CRM) strategy to its implementation. This study reveals that relationships are not a tactical approach to buyer-seller exchange. CRM strategy requires and commitment from top management, systematic cross-functional communication, and customer loyalty training programmes for all employees. CRM is a strategy business and process is a continuous learning process where information about individual customer is transformed into a customer relationship. Future researcher analysis should be based when conceptualizing CRM should consist of business strategy, business philosophy and a database application. CRM Maintenance Sudhir Sharma (2008) in his study highlights on this paper is customer relationship, banking industry, development of CRM steps taken by the banks to improve the CRM, customer 7
retention and customer selection. His author s conclusion is that paper on banking industry is concerned, excelling and managing customer relationships will be the future of this industry as customer focusing is not to be viewed just as a business strategy but it should become a corporate mission. Unless this mission percolates throughout the organization at all levels, the chances are that the attempts to address customer issues will receive only lip sympathy. Building value for customers and building shareholders value the challenge for banking industry in India should be treated as two faces of the same coin in the area of people (changing their beliefs and attitudes), technology and quick adaptation in CRM. Technology on CRM Saurbhi Chaturuedi and Rishnu Roy (2007) have focused on Customer Relationship Management provides interactive, personalized and relevant communication with customer to develop and maintain relationships. Customer Relationship Management (CRM) is a strategic orientation which is the most important long-term customers and develops an understanding of these customers whom can be retained. Technologies used by companies to attract successfully and retain customers for the maximum corporate growth and profit. CRM is the goal of meeting customer expectations and needs to value them. CRM includes the breaking down of departmental barriers, improving information flow and work processes. These changes influence effectiveness of an organization. CRM is not a technology thing, though technology is fundamental in making it successful: CRM is a business philosophy. Customer Satisfaction Ashok and Kumar (2006) in their endeavour to elicit the opinion of the customers on their satisfaction with selected bank branches have carried out this empirical study. Banks are the mart of the world, the nerve centers of economics and barometers of nation s property. Today, the cost of retaining a customer is one-tenth when compare with the cost of acquiring a new one. Banks do offer tangible services but that cannot satisfy the customers, who need intangible services which could be experienced like behaviour and efficiency of staff, speed of transactions and the ambience. The focus of this study is to bring out by what extent the selected bank branches cater to the needs of the customers. Customer awareness has to be created and their satisfaction should be known to the customers. Quartile deviation has been used to find the customers level of satisfaction with their banks. Chi square test is applied between the personal and the independent variables to study the factors influencing the level 8
of customer satisfaction. The study concludes that the focus of banking business will have to be customer centered. It also further indicates that nationalized banks are attempting its best to attract higher rate of customer satisfaction. Customer Relationship Management Relationship marketing sometimes is referred to as CRM. CRM is a relationship process which an organization can cultivate with its customer segment in such a way that it could benefit both the customer and organizations. The growing expectations of the customers, fast changing preference and opportunities available to him as a consumer has made him the king in true sense. Customer satisfaction is a growing concern for the banks that want to grow in this competitive world of today. The concept of CRM is now gaining wide acceptance and is recognized as a powerful tool for business development and to have an edge over the competitors on account of the universal traits of human behavior. Organizations has focused earlier on their products as the starting point and then looked around for customers to sell it. But the approach of CRM is different it starts with the customer not the totality of customers because every customer is an individual and thus exact customer has to be dealt individually to find out what they want and accordingly design the products as per their need and supply. In a nut shell, CRM is about growing endurable relationship with profitable customers. CRM focuses on customer retention by adopting a customer oriented strategy to delight their customers rather than just aiming at their satisfaction. It makes the use of the relevant technology available for the purpose. But it should be remembered that proper planning and care is exercised before its implementation to see that the steps are taken for the customer oriented attitude to percolate throughout the organization. This alone can guarantee its success, especially in view of the large investment that the CRM technology entails. The technology helps only in enhancing the relationship with the customers by offering guidance and easy access to the analyzed information about customer and other related matters. CRM adoption is very popular with financial institutions world over than any other type of industry. Some new generation banks in India have already adopted it. But the Indian PSBs do not seem to have given a thought to it yet. May be it is time now for those in authority to 9
give a thought about its suitability to the Indian public sector banks and then plan its proper implementation if they would help these banks to improve their customer orientation. Customer orientation is the attitude of a concern towards its business wherein it places emphasis on listening to customers with a view to maximize their satisfaction with the concern and its products. Such a concern aims at maximizing the long term satisfaction of a customer even at the expense of losing immediate sale. In contrast, a Sale Oriented organization encourages opportunistic means with a focus on immediate sales even at the cost of long term customer satisfaction. Thus, a customer oriented organization is the one which Constantly thinks and talks about its customers Continuously assesses its customers perception Resolves priority issues in favour of its customers. Gives in, compromise, and adds value to its customers. Makes amendments to customers for avoiding poor treatment Employs whatever it takes policy to satisfy special needs. Redesigns the processes, redeploys the resources when they get in the way of service quality. The Indian public sector banks have treaded a unique path since their time of inception. They were born in a competitive regime. After nationalization they faced a totally regulated, noncompetitive atmosphere with a social responsibility at their heart. Now, they are trudging the path of regulated-competitive regime with the knowledge that nothing less than a strong global competition environment seems to have made them to forget what exactly a customeroriented organizations. Customer Role in CRM The following t-test and factor analysis are used to identify the customer s perception of variance elements of CRM in public and private sector banks. These perceptions are identified in lickers 5 point scale which range from strongly agree to strongly disagree in fact theses variables are considered as dependent in nature. 10
The exact perceptions of these 500 respondents is ascertain through the comparisons of hypothesized mean value 3 and computed mean value this enables to uncertain the optimist or pessimistic perception about various element of CRM. 1. Perception of customers regarding initial strategies CRM is a business strategy and philosophy. CRM aims at understanding the customers, their present and future needs, providing best possible service enhancing customer experience and satisfaction, reducing the customer turnover, and ensuring that they remain customers for life. This study concentrates on 9 variables of customer relationship of banks. The prominent variables are banks are able to ascertain time which has been taken to service your transaction, hospitability offered, behavior of the officials in your bank, periodical statement received from your bank, efficiency of ATM service by your bank, appropriate location of the ATM centers, physical appearance of your bank, customization of your bank s services to suite your specific need. The application of t-test to compare the computed mean value based on the perception of customers. In this t-test the computed mean value of the customer is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. Table 1 One sample Statistics and t- test for Customers regarding Initial Strategies variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) IS1 500 3.7420 1.03614.04634 16.013.000 IS2 500 3.0640.96632.04322 1.481.139 IS3 500 3.4580.90904.04423 10.355.000 IS4 500 3.8560.97013.04339 19.730.000 IS5 500 3.9140.86493.03868 23.629.000 IS6 500 3.1080.97685.04369 2.472.000 IS7 500 3.1440.99863.04466 3.224.000 IS8 500 3.8860.88689.03966 22.338.000 IS9 500 3.7600.92309.04128 18.410.000 (Source: Primary Data) From the above table, it is found that the mean value of the initial strategies variables range from 3.0640 to3.9140. In particular it is identified that the variable number of IS2 to IS5 hospitability offered by your bank, efficiency of ATM service by your bank possesses the mean values strictly greater than 3.5. 11
The T-test values are significantly greater than 3.The significance of these mean value are derived from the t-values shown in the table. It is found that t-values 16.013, 10.355, 19.730, 23.629, 2.472, 3.224, 22.338, 18.410 are statistically significant at 5% level. But the second variable in the initial strategies t=1.481 is insignificant at 5% level. Therefore, it can be concluded that, the customers of these banks strongly agreed the time taken service, behavior of the officials in your bank, periodical statement, efficiency of ATM service, appropriate location of the ATM centers, loan facilities, physical appearance of your bank, and customization of bank s services. It also indicates, the IS2 variable, hospitability offered by your bank. These t values are insignificant because these t- test values are lower than 3. It is found that the customer perceived with agreeableness that their bank satisfy them in the quickness of service and ambience of the banks. 2. Strategies to maintenances the customers Recently a new trend has been observed in the market place with respect to maintaining the customers. Though most people feel that implementation of an integrated CRM is better, some organisations, including some reputed and structural organisations, have implemented several strategies to maintain the customers. This study has 16 variables of strategies to maintain the customers. The prominent variables are personal contract, marketing information and advertisement,personal reports, bank s communication with its customers, general and promotional communication, various services offered by the bank, bank staff are courteous and give proper guidance, may I help you counter, understand customers requirements, all information pamphlets and banners are displayed for customers, ombudsman committee, grievance redressal, customers suggestions and complaints, the different scheme offered by this bank are customers friendly, important and valuable customer, customer make better financial decision. The application of t-test to compare the computed mean value based on the strategies to maintain the customers. In this t-test the computed mean value of the customers is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. 12
Table 2 One sample Statistics and t- test for CRM Maintenance Strategies Variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) MA10 500 3.5780.95590.04275 13.521.000 MA11 500 3.5220.98155.04390 11.892.000 MA12 500 2.2640.96133.04299-17.119.000 MA13 500 4.6080.50084.02240 71.792.000 MA14 500 4.4260.59769.02673 53.349.000 MA15 500 3.1820.90028.04026 4.520.000 MA16 500 4.2580.58662.02623 47.952.000 MA17 500 3.4900.89639.04009 12.223.000 MA18 500 3.8280.86250.03857 21.466.000 MA19 500 3.8620.82724.03700 23.300.000 MA20 500 3.5820.84659.03786 15.372.000 MA21 500 3.8760.84738.03790 23.116.000 MA22 500 3.9960.83988.03756 26.517.000 MA23 500 4.0160.91948.04112 24.708.000 MA24 500 3.6300.76830.03436 18.336.000 MA25 500 3.3960.91917.04111 9.634.000 (Source: Primary Data) From the above table, it is examined that the mean values of the strategies maintain the customer s variable range from 2.2640 to 4.6080. Generally, it is ascertained that the variable number 12 and 13, personal reports and account summary reports are prompt and clear, and bank s communication with its customers are frequently and personalized dealings possess the mean values strictly greater than 4. The T-test values are significantly greater than 3. The significance of the mean value is derived from the T-values have been shown in the table. It is found that T-values 13.521, 11.892, 17.119, 71.792, 53.349, 4.520, 47.952, 12.223, 21.466, 23.300, 15.372, 23.116, 26.517, 24.708, 18.336, 9.634 are statistically significant at 5% level. Therefore, it can be concluded that the customers from the different banks strongly agreed about 16 strategies to maintain the customers. Hence, they also agreed. It is emphatically identified that the customers are maintained with the help of their personal contact to customers, marketing information advertisements from the banks, personal reports are prompt and clear to the customers. It also found their bank s communication, may I help you counter, ombudsman committee, grievance redressal, customers suggestions and complaints, banker s advice to the customer about financial decision are ranked by the customers of the banks in an optimistic manner. 13
It is found that the CRM maintenances strategies with agreeableness that there banks satisfy them in the maintenance of customers and ambience of the banks. 3. Technology on CRM Technology has enabled banks to offer new services. Today the demand is not only for accurate, speedy and efficient service but also for new services. This study reveals 10 variables of technology and CRM. The distinguished variables are ATM installed, e-mail internet services, the answers the phone call in a courteous manner and in a friendly way, customers phone call are immediately directed to the appropriate person, core banking, technology time consuming to the customer, employees recruit, technology the bankers will avoid the rush too, computerizing the banking transactions. This study also focuses identification of customer problems through advanced technology and technology perfects the customer relationships. The application of t-test to compare the computed mean value based on the CRM technology of customers. In this t-test computed mean of the customers is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. Table 3 One sample Statistics and t-test for Technology on CRM variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) TEC26 500 3.4340.73670.03295 13.173.000 TEC27 500 4.1160.76924.03440 32.441.000 TEC28 500 3.3260.87936.03933 8.290.000 TEC29 500 3.8880.85611.03829 23.194.000 TEC30 500 3.6620.97656.04367 15.158.000 TEC31 500 3.5360.95841.04286 12.505.000 TEC32 500 3.6400.93603.04186 15.289.000 TEC33 500 4.2240.67434.03016 40.587.000 TEC34 500 4.0760.73164.03272 32.885.000 TEC35 500 4.1360.75806.03390 33.509.000 (Source: Primary Data) From the above table, it reveals that the mean values of the CRM technology and customers variable range from 3.3260 to 4.2240.Generally, it is ascertained that the variable number 28 14
and 33, customers problems are identified through advance technology, employees will recruit more to fill the needs to the customers possess the mean values strictly greater than 4. The T-test values are significantly greater than 3. The significance of these mean value are derived from the T-values shown in the table. It is found that T-values 13.173, 32.441, 8.290, 23.194, 15.158, 12.505, 15.289, 40.587, 32.885, 33.509 are statistically significant 5% level. Therefore, it can be concluded that the customers of these banks strongly agreed the e-mail internet services, ATM, core banking systems, technology time consuming, identification of customer s problems through advanced technology and technology perfect the customer relationship. It is found that the technology and CRM with agreeableness that their banks satisfy them through CRM technology to customers. 4. Customers Satisfaction All customers are not equal. The good and valuable customers must be retained. Companies during the customer acquisition focus on market share, there on retention and later on differentiated service to the best customers. In the complex business environment that exists today, only those that are capable of providing total customer satisfaction can survive. This study provides 14 variables of customer satisfaction in CRM. The important variables are awareness creation, bank s services and scheme widely available, bank users all available media to create awareness, branches are located at convenient locations, waiting time to contact the concerned person, customer services genuine and satisfying, customer services in your banks is personalized, friendly, customers services prompt and modernized, the atmosphere in the bank is warm and welcoming, the service provided is very much concerned about customers problem, the scheduled banking hours suits all customers, ample parking space, the facilities and benefits provided by this bank. The application of t-test compare to the computed mean value based on the CRM technology of customers. In this t-test computed mean of the customers is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. 15
Table 4 ICBI 2011 One sample Statistics and t- test for Customer Satisfaction variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) CS36 500 4.0540.83215.03721 28.322.000 CS37 500 3.6940.94560.04229 16.411.000 CS38 500 2.7360 1.02391.04579-5.765.000 CS39 500 3.4500.92802.04150 10.843.000 CS40 500 3.9220.83265.03724 24.760.000 CS41 500 4.0560.71686.03206 32.939.000 CS42 500 3.6520.88570.03961 16.461.000 CS43 500 3.7260.86743.03879 18.715.000 CS44 500 3.6880.87418.03909 17.598.000 CS45 500 3.9120.79594.03560 25.621.000 CS46 500 3.0300 1.07676.04815.623.534 CS47 500 3.9480.86649.03875 24.464.000 CS48 500 3.8000.93474.04180 19.137.000 CS49 500 4.1620.79057.03536 32.866.000 (Source: Primary Data) From the above table indicates that the mean values of the variables range from 2.7360 to 4.1620. Generally, it is indicated that the 38 and 49 variables, bank users all available media to create awareness about their services, the facilities and benefits provided by this banks is to be appreciated and possess the mean value strictly greater than 4. The T-test values are significantly greater than 3. The significance of these mean value are derived from the t-values shown in the table. It is found that t-values 28.322, 16.411, 5.765, 10.843, 24.760, 32.939, 16.461, 18.715, 17.598, 25.621, 24.464, 19.137, 32.866 are statistically significant at 5% level. Except the variable of 46 in the customer satisfaction t=.623 insignificant at 5% level. This shows that, the customers of these different banks strongly agreed about 13variables of customer satisfaction such as: awareness creations, the ample parking facilities, media awareness, the customer s services satisfaction, personalized, prompt and modernized, the banks atmosphere is warm and welcoming at the suitable banks hours. It is also indicated that the 46 variable, the services provided is very much concerned about customers problem, T-values are lower than 3, so, it gives insignificance. Therefore, it can be concluded that the customers satisfactions of different banks agreed to the customers. It is found that the customer s satisfaction with agreeableness that there banks satisfy them in the customer s satisfaction and ambience of the banks. 16
5. Impact of CRM on Customer ICBI 2011 CRM provides the competitive differentiation in near parity environment. CRM enables customer centric process. Identifying, acquiring, nurturing, retaining customers and developing lifelong relationships with them by providing best possible service and satisfaction in the process of achieving organizational goals towards this end. CRM aims at serving the customers on one to one basis, reducing the intermediaries, continuously monitoring customer needs, both stated and unstated and providing services and products in alignment visit to those needs This study examines on 7 variables of impact of CRM on customer. The distinguished variables are customers have inclination towards smooth management, CRM reflects the growth of the banking services, customer satisfaction is primary responsibility of the bank, problems are solved through proper CRM, prompt services-availability are essential for CRM, financial performance of banks, CRM is lucrative concept for customer. The application of t- test to compare the computed mean value based on the CRM technology of customers. In this t-test computed mean of the customers is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. Table.5 One sample Statistics and t-test for Impact of CRM variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) IMP50 500 3.4880.97146.04345 11.233.000 IMP51 500 3.1140.98943.04425 2.576.010 IMP52 500 3.2300.97725.04370 5.263.000 IMP53 500 3.9180.82743.03700 24.808.000 IMP54 500 3.1080 1.07827.04822 2.240.026 IMP55 500 3.4740.93116.04164 11.383.000 IMP56 500 3.4760.93765.04193 11.351.000 (Source: Primary Data) From the above table, it is examined that the mean values of the variables range from 3.1080 to 3.9180. Generally, it is ascertained that the 54 and 53 variable CRM is lucrative concept for customer, financial performance of banks is essential for CRM, possess the mean values strictly greater than 3. 17
The t-test values are significantly greater than 3. The significance of these mean value are derived from the t-values shown in the table 11.233, 5.263, 24.808, 11.383, 11.351are statistically significant at 5% level. But except the 51and 54 variable in the impact of CRM on customers, t- values of 3.1140 and 3.1080 insignificant at 5% level. Therefore, it can be concluded that the customers of these different banks strongly agreed about 5 variables as the customer satisfaction, prompt services, and financial performance. If banks, CRM have inclination towards smooth management, CRM reflects the growth of the banking services. This study also indicated that the customers in these banks were disagreed the service and the problems are solved through proper CRM. CRM is lucrative concept of customer. Because, these 2 variables T- test values are lower than 3 so, it gives insignificant. It is found that the impact of CRM on customer with agreeableness that their banks satisfy them in the impact of CRM and ambience of the banks. The following percentage analysis and t-test executive s perception of variance elements of CRM maintenance, CRM strategies, technology on CRM and customer satisfaction, is done to identify the banking details of public and private sector banks. The main aim of this section is to analysis the banking details the various banking services offered by public and private sector banks. The opinion of the bank personal is obtained through likely 5 point scales which ranges from strongly agree and strongly disagree. In this context a parametric t- test applied to study exactly the opinion of respondent. Executives Role in CRM The following percentage analysis and t-test executive s perception of variance elements of CRM maintenance, CRM strategies, technology on CRM and customer satisfaction, is done to identify the banking details of public and private sector banks. The main aim of this section is to analysis the banking details the various banking services offered by public and private sector banks. The opinion of the bank personal is obtained through likely 5 point scales which ranges from strongly agree and strongly disagree. In this context a parametric t- test applied to study exactly the opinion of respondent. 6. CRM Maintenance CRM maintenance is a fundamental factor among all the successful organization to retaining the customers. Success and failure of the organization is depending upon 18
maintenance/motivation of the customers. Basically all the organizations are believed to have this instructional procedure in CRM. This study also emphasizes on 20 variables of CRM maintenance. The important variables are segregation of frequency customers more concentration, acquire new customers, ideal location, wear an identify badge, remove FUD, customers requirements, create awareness, office hours, inquiry, customer s request, ATM counter, transactions, quick withdrawal, the Ombudsman service, over-drafts, service charges, prompt and quick service, feel the part of the organization, faulty service, better service. Table 6 Opinion of Executives on CRM Maintenance variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) CRMM1 250 4.1677 1.01642.04514 25.867.000 CRMM2 250 4.0947.77696.03451 31.724.000 CRMM3 250 2.7791 1.13449.05038-4.384.000 CRMM4 250 3.7850 1.14516.05086 15.435.000 CRMM5 250 4.3945.78914.03505 39.789.000 CRMM6 250 2.8580 1.28520.05708-2.488.013 CRMM7 250 3.8422.92759.04120 20.444.000 CRMM8 250 3.9231.91323.04056 22.759.000 CRMM9 250 2.8777 1.15277.05120-2.389.017 CRMM10 250 3.9231 1.09797.04876 18.930.000 CRMM11 250 2.1223 1.22750.05452-16.100.000 CRMM12 250 4.3037.83551.03711 35.136.000 CRMM13 250 1.7041 1.10659.04915-26.368.000 CRMM14 250 2.4122 1.14454.05083-11.563.000 CRMM15 250 2.0296 1.08580.04822-20.124.000 CRMM16 250 3.2367.98366.04369 5.418.000 CRMM17 250 4.5207.81553.03622 41.987.000 CRMM18 250 4.2505 1.08273.04809 26.005.000 CRMM19 250 2.2012 1.22513.05441-14.681.000 CRMM20 250 2.7041 1.07580.04778-6.192.000 (Source: Primary Data) From the above table, it is found that the mean value of the CRM maintenance variables range from 1.7041 to 4.5207. In particular, it is identified that the variable number of CRMM13 to CRMM17, teller system in our bank for quick withdrawal, prompt and quick service to our banks executives possesses the mean value 3.5. 19
The t-test values are significantly greater than 3. Since the t-values are significantly is positive side and it is found that the bank executives strongly agreed the t-values are 25.867, 31.724, 15.435, 39.789, 20.444, 22.759, 18.930, 35.136, 5.418, 41.987, 26.005 are statistically and significantly 5%level.The bank executives strongly agreed that concentration is more on frequency customers, acquire new customers, bank staff wear on identify badge, we remove the fud, create awareness, customers requirements are attended to within the office hours, customer s request, minimum time to complete transaction, service charges are minimum, prompt and quick service to our customer, customers feel the part of the organization. They disagreed that the T-values are 4.384, 2.488, 2.389, 16.100, 26.368, 11.563, 20.124, 14.681, 6.192, there banks situated always in an ideal location, ATM counter installed for the convenience of our customers, quick withdrawal, Ombudsman service, overdrafts facility, better service to our customers. It is also indicated that the 5 and 9 variables, are different schemes to customers' requirements, and few customers to become an inquiry, T-values are lower than 3, so, gives insignificance. Therefore it can be concluded that the, CRM maintenance of different banks agreed to the executives. 7. Strategies for CRM The true business of every organization is to make and keep customers. CRM is the latest philosophy most organizations are adopting for different strategies. CRM has caught the attention of practicing managers, academicians, and industry leaders. This study provides the necessary insight into the improvement aspects of this revolutionary concept. This study provides 13 variables of strategies in CRM. The important variables are training, rewards for creating cordial relations among management and customers, attract new customers, committed project, customer satisfaction, and proper guidance to new customers, customers directly in the delivery process, and sort to outsourcing, customer retention, and pamphlets. The application of t-test to compare the computed mean value based on the perception of bank executives. In this t-test the computed mean value of the executives is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. 20
Table 7 Opinion of Executives on Strategies for CRM ICBI 2011 variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) SCRM21 250 3.9763 1.12615.05001 19.521.000 SCRM22 505 4.6535.74317.03307 49.998.000 SCRM23 250 4.6312.66835.02968 54.954.000 SCRM24 250 3.5286 1.17982.05240 10.088.000 SCRM25 250 4.1854 1.00451.04461 26.572.000 SCRM26 250 2.3669 1.12970.05017-12.619.000 SCRM27 250 2.0256 1.13398.05036-19.347.000 SCRM28 250 4.0375 1.01985.04529 22.906.000 SCRM29 250 2.4615 1.07982.04796-11.228.000 SCRM30 249 4.2312.87421.03886 31.681.000 SCRM31 250 3.9329.97976.04351 21.441.000 SCRM32 250 3.0533 1.31993.05862.908.364 SCRM33 250 4.3846.84348.03746 36.962.000 (Source: Primary Data) From the above table, it is found that the mean value of the strategies for CRM variables range from 2.0256 to 4.6535. In particular, it is identified that the variable number of SCRM27 to SCRM22, staff gives proper guidance to new customers and rewards based on their customer relations with its banks executives who are frequently and personalized dealings possess the mean values strictly greater than 3. The T-test values are significantly greater than 3. Since the t-values are significantly is positive side, it is found that the bank executives strongly agreed the t-values are19.521, 49.998, 54.954, 10.088, 26.572, 22.906, 31.681, 21.441, and 36.962 which are statistically significant at 5% level. The bank executives strongly agreed that respect to customers, reward based on their customer relationships, different customers with different treatment is followed in CRM, attract new customers, highly committed project, the executives and managers are contained to their cabin, we sort to outsourcing, we generate new concepts and approaches for customer retention, pamphlets and notice to easy available. They disagree that the T-values are 12.619, 19.347, 11.228, maintain to measure the level of customer satisfaction, proper guidance to new customers, customers directly in the delivery process. It also indicates the SCRM32 variable, expectations of customers in times of emergency. These T- values are insignificant because these T-test values are lower than 3. Therefore, it can be concluded that the strategies for CRM of different banks agreed to the executives. 21
8. Technology in CRM ICBI 2011 Technology in an essential enabler of the CRM, to implement the CRM in the modern day organizations with millions of customers, so as to achieve one to one relationships with all the profitable and valuable customer, leveraging on Technology is must. The entire ranges of the technologies that are used in building the CRM. This study focuses on 12 variables of technology in CRM. The distinguished variables are to introduce high technology with minimum cost, advanced technology, modern technology, the customer s feedback, core banking internet solutions, fulfill the needs of the customers, time consuming, computerizing the banking transactions. The application of t-test to compare the computed mean value based on the perception of bank executives. In this t-test the computed mean value of the executives is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. Table 8 Opinion of Executives on Technology in CRM variable N mean Std. Deviation Std. Error Mean t-value Sig(2- tailed) Tec34 250 2.4852 1.32074.05866-8.776.000 Tec35 250 3.4142 1.25347.05567 7.441.000 Tec36 250 4.4615.74122.03292 44.398.000 Tec37 250 3.6371 1.21032.05375 11.852.000 Tec38 250 4.2702.75441.03350 37.912.000 Tec39 250 2.8619 1.15784.05142-2.685.007 Tec40 250 4.1953.93215.04140 28.872.000 Tec41 250 2.4680 1.11982.07082-7.512.000 Tec42 250 2.0360 1.10616.06996-13.779.000 Tec43 250 4.0000 1.05663.06683 14.964.000 Tec44 250 2.4120 1.06903.06761-8.697.000 Tec45 250 4.2120.84493.05344 22.680.000 (Source: Primary Data) From the above table indicates that the mean values of the variables range from 2.0360 to 4.4615. In generally, it is indicated that the 42 and 36 variables, time consuming to increase the employees, competition is met with advanced technology is to be appreciated possess the mean value strictly greater than 3. 22
The t-test values are significantly greater than 3. Since the t-values are significantly is positive side, it is found that the bank executives strongly agreed the t-values are 7.441, 44.398, 11.852, 37.912, 28.872, 14.964, and 22.680 which are statistically significant at 5% level. The bank executives strongly agreed that advanced technology, competition met on advanced technology, modern technology, technology manage the real time customer information and feedback, to fulfill the needs of the customers, time consuming, computerizing. They disagree that the t-values are high technology with minimum cost, core banking is one of the internet solutions, technology, time consuming, and computerized customer details accounts will reduce the bankers work. It is also indicated that the 39 variable, core banking is one of the internet solutions, t-values are lower than 3, so, it gives insignificant. Therefore, it can be concluded that the technology in CRM of different bank agreed to the executives. 9. Impact of CRM The aim of any organization is survival and growth. The key to achieve these objectives is their ability and retain the customers. It costs ten times more to acquire a new customer than holding on an existing one. Organizations must be able to understand the life time value of the customers. CRM helps in attracting and retaining valuable, high/most valuable, customers and economic value of the customers. Hence, the CRM helps the organization, to increase sales, product/service, and profit and growth rate. This study examines on 7 variables of impact of CRM. The outstanding variables are customers are maximized, survival is made, to increase product/ service, financial performance, banking growth rate, overall performance of satisfactory. The application of t-test to compare the computed mean value based on the perception of bank executives. In this t-test the computed mean value of the executives is compared with hypothesized mean value 3 to obtain the significance or insignificance value. The results are presented in the following. Table 9 Opinion of Executives on Impact of CRM variable N mean Std. Std. Error t-value Sig(2- Deviation Mean tailed) IMP46 250 3.8960.94698.05989 14.960.000 IMP47 250 2.9360 1.33078.08417 -.760.448 IMP48 250 4.3920.82038.05189 26.828.000 23
IMP49 250 2.6600 1.34747.08522-3.990.000 IMP50 250 3.2040 1.18998.07526 2.711.007 IMP51 250 4.4520.77595.04908 29.587.000 IMP52 250 3.9400 1.11597.07058 13.318.000 (Source: Primary Data) From the above table, it is examined that the mean values of the variables range from 2.6600 to 4.4520 generally, it has been ascertained that the 49 and 51 variable financial performance, customer satisfaction, possess the mean values strictly greater than 3. The t-test values are significantly greater than 3. Since the t-values are significantly positive side and it is found that the bank executives strongly agreed the t-values are14.960, 26.828, 29.587, and 13.318 which are statistically significant at 5% level. The bank executives strongly agreed that customers are maximized, survival is made easy amid competition, banking growth rate increased rapidly, customer satisfaction is achieved, and overall performance is satisfactory. This study also indicated that the customers in these banks were disagreed the services output increase, banking growth rate increased rapidly. Because, these 2 variables t-test values are lower than 3 so, it gives insignificant. Therefore, it can be concluded that the impact of CRM of different banks agreed to the executives. A CRM model of banking industry in Salem disrict The present research concentrate on four important aspects of CRM namely, initial strategies, maintenance strategies, technology in banking services and service satisfaction of customers. The opinion are sought from both customers as well as bank executives a considerable number of sample respondents from these domains on analyzed using percentage analysis, T- test, Factor analysis, Cluster, Discriminate analysis, Analysis of Variance and Co-efficient of Correlation are subsequently exploited to identify the parametric and non-parametric relations. Factor analysis the principal component method identify the factors are initial strategies, maintenance strategies, technology and service satisfaction this factors act as a base to identify a various perceptional difference among the customers of public and private sector banks. 24