User talk:Chaitanya1311

Hi anna, i updated the new one, I used stars followed by brackets to the sentences which i had doubt, so [please check it anna. I did not kept in bold letters anna. plz check it n reply as sson as possible anna

A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES IN BANKING INDUSTRY TABLE OF CONTENTS S.NO	PARTICULARS	PAGE NO 1	Abstract	03 2	Introduction/Statement of the Research Problem	04 3	Rationale	05 4.	Definition of CRM	06 5	Aims and Objectives of research	07 6	Methodology 	07 7	Sources of data collection	09 8	Sampling procedure	09 9	Sample size and time	09 10	Sample design	09 11	Nature of data	09 12	Areas of the study	10 13	Resource Requirements: Factor Analysis - Classification Method	10 14	Rotating the Factor Structure	11 15	Rotational strategies	11 16	Interpreting the Factor Structure	11 17	Confirmatory Factor Analysis	12 18	Is Factor Analysis Objective? 12 19	Ethical considerations	13 20	Need for CRM	14 21	Goals Requiring CRM Solutions	14 22	Customer Identification	14 23	Cross Selling or Up Selling	15 24	Customer Acquisition	15 25	Customer Retention	15 26	Conclusion	16

Abstract: A short synopsis of 300-400 words Change is a natural phenomenon. Time cycle necessities a change in perception because almost all THE USERS DOES'T venture to go against the wind. A stage of fore competition is found existent in service sector organizations like banks day-care entertainment, electrical telecommunications automobiles. Transport, Tourism, Hotels, Personal Care, Education, Hospitality, Consultancy etc. Sky is the limit for quality. Definition of CRM “Customer Relationship Management is a comprehensive strategy and process of     acquiring, retaining and partnering with selective customers to create superior value for the company and the customer” As the objective of every business organization is to earn profit, The growing competition among the service sector organizations forced banking industry too to adopt different strategies to earn profits by satisfying, retaining and delighting the customers. So the present research topic aims at Customer relationship management practices followed BY DIFFERENT banks to turn outstanding service into outstanding profitability. The sample selected is a purposive sample. Since the NUMBER OF service sector organizations is huge it is intended to take only a few selected service organizations to study the customer Relationship Management. People who are using various services from the SELECTED service organizations are intended to be included in the sample for the study. Customers of today demand ‘universal banking’.((((( Prior empirical work implies that BUILDING RELATION SHIP is not necessarily better, but rather building the right type of relationship is the key performance improvement))))

You can use this for the above sentence (((((Prior empirical work implies RATHER THAN BUILDING GOOD RELATION SHIP IN EVERY ASPECT, BUILDING THE RIGHT TYPE OF RELATIONSHIP IS THE KEY FACTOR TO IMPROVE THE PERFORMANCE.))))))

.Banks should BE aware of the fact that a bank'S interaction with its clients though employees influence the effectiveness of the institutions customer relationship strategies. The first implication for manager is that CRM program should be directed towards an adroit combination of capabilities that competitors may struggle to match. On this point the results are quiet clear: high performance banks base their CRM program success on business structure first. Bringing these capabilities together is not easy but effective CRM can be a source of competitive advantage.

Introduction/Statement of the Research Problem Change is natural phenomenon. Time cycle necessities a change in perception because almost all user's does't venture to go against the wind. Yesterday the perception of service was confined to week and advice only with service motto. Today services have been commercialized, of course it is due to the emergence of the materialistic age in which financial health of an organization and economic status of an individual prove to be an important base for evaluating soundness perfection and excellence. Individuals and organization are trying to make professionalized efforts to earn and generate the maximum they can. A stage of fore competition is found existent in service sector organizations like banks day-care entertainment, electrical telecommunications automobiles. Transport, Tourism, Hotels, Personal Care, Education, Hospitality, Consultancy etc. Sky is the limit for quality. The private sector organizations keep themselves aware of the emerging trends in customer expectations and they are trying to maintain the best relationship with the consumers. This practice would bring the desired success by sending, persuading ad stimulating the impulse buying by customers and gradually transform them into habitual users of the services. Customer’s relationship helps in winning and keeping the customers for a long time. This would increase the market share, maximize profitability and bring maximum prospectus to the marketers of services. It is right to mention that application of modern marketing principle would help almost all the organization in enriching their efficiency. *(If the potential sale enriched we become strong, and if we are strong the resistance power is increased)*. This helps in maintaining good relationship with customers. Over a century ago a small firm store anywhere in the world before the advent of supermarkets and automobiles, people went to their neighborhood general stores to purchase goods. The proprietor and small staff recognized the customer by name and knew the customers preferences and wants. The customer in turn remained loyal to the store and made repeated purchases. This idyllic customer relationship disappeared as nations grew and the populations moved from the farm communities to large urban areas the customer become *(mobile and supermarkets and departmental store were to large urban areas the consumer became mobile and supermarkets and departmental stores were established to achieve economies of scale through mass marketing.)*

Statement of the problem With the emergence of globalization the banking sector in India has changed its pace. Many private banks and multinational banks entered into the Indian economy to serve the customers. Customer has more options to choose the type of service he need and the services of banker from public and private sectors. It is not only a problem to the banker to get the new customer but also create lot of problem to retain the existing customers. This make the researcher to select the topic called as “Customer Relationship Management”. Rationale Service sector is growing as an important sector in the world economy. The complex nature of services and their growing importance have made it necessary for firms to deliver better service quality, customer relationship to satisfy and retain the customers. Banking services are recognized as one of the important services. Banks provide financial services to the customers. Banks have greater responsibility of safeguarding the personal or corporate funds and providing advisory services on financial matters. The banks are the trusted places of customers, and have come across many changes in their functioning. There is a high degree of competition among the banks. In this regard the QUALITY OF SERVICE plays an important role. The public sector banks should also bring changes in their functioning. The role of technology has become as crucial as never before. The bank will have to adopt a full-fledged marketing strategy. Customer satisfaction is crucial for the future of any banking organization. There is no universally accepted definition of CRM. The CRM is neither a product nor a service; rather it is an overall business strategy. It enables companies to effectively manage relationships with their customers by providing an integrated view of the customers to everyone in the organization. CRM is a business approach and a strategy that establishes a single link between back office and front office uniting them into a single entity for the benefit of the customer. ---

Definition Customer Relationship is crucial than marketing, because it covers marketing management, manufacturing management, human resource management, service management, sales management, research and development management. Thus CRM requires organizational and business level approaches which are customer centric for doing business rather than simply a marketing strategy. CRM involves all of the corporate functions required to contact customers directly or indirectly. The term “touch points” is used in CRM to refer to many ways in which customers and firms interact. In marketing literature, the term Customer Relationship Management (CRM) and Relationship Marketing (RM) are used interchangeably. These two terms are used to reflect a variety of themes and perspectives relating to customer management. The following are the some of the definitions of CRM. CRM is marketing oriented towards strong lasting relationships with individual accounts (Jackson). Relationship marketing is attracting, maintaining and enhancing customer relationships. “Customer Relationship Management is a comprehensive strategy and process of     acquiring, retaining and partnering with selective customers to create superior value for the company and the customer” As is implicit in the above definition, the purpose of CRM is to improve marketing productivity. Marketing productivity is achieved by increasing marketing efficiency and by enhancing marketing effectiveness. In CRM, marketing efficiency is achieved because cooperative and collaborative processes help in reducing costs and overall development costs for the company. Two important processes of CRM include proactive customer business development and building partnering relationship with most important customers. These lead to superior mutual value creation.

Aims and Objectives of research As the objective of the every business organization is to earn profit. The growing competition among the service sector organizations forced banking industry too to adopt different strategies to earn profits by satisfying, retaining and delighting the customers. So the present research topic aims at Customer relationship management practices followed the banks to turn outstanding service into outstanding profitability. 	To examine the various process and sub process of the operational features of banks. 	To analyze the customer satisfaction, customer retention, customer loyalty etc. 	To examine the operational process before CRM and after CRM 	To analyze the customer satisfaction status.

Methodology The study covers customer relationship management practices in selected service sector organizations such as Banking, in twin cities of Hyderabad and Secunderabad. This service sector organization is doing a wonderful job in the Indian market over the last 15 years hence these are considered as the sample. *(The study is based on a survey of 150 respondents through a structured questionnaire covering different groups of customers Viz. a group of 150 members representing banking data. Finally the researcher could collect 150 complete questionnaires from the customers were taken as an effective sample.)* The scope in the study includes studying, understanding and collecting information with respect to Customer Relationship Management in the select service sector organizations  to tabulate apply statistical methods and to draw  reasonable conclusions  regarding  the various aspects  relating to Customer  Relationship  Management  and its importance in the survival of the service sector organization in the long-run. As the study is about Customer Relationship Management the scope will include meeting the various customers of the select service organizations and gathering information relating to their satisfaction with relationship being maintained by the organization and also finding out their satisfaction levels. With the help of the study valuable information will be supplied to the competitive advantages which they can create over the other organization through effective implementation of Customer Relationship Management. The study could create awareness among the service sector organization that, if they have to stay in the race they need to go for the implementation of customer Relationship Management in their organization and also serve and retain their customers. The respondents attitudes are measured through likert scale on a five point basis namely (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) strongly Agree. The present study is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. The sample selected is a purposive sample since the number to service sector organizations is huge it is intended to take only a few selected service organizations to study the customer Relationship Management. For the purpose of the study “CUSTOMER” is the person who is using the services is taken for the study. People who are using the various services from the select service organizations are intended to be included in the sample for the study. Sources of data collection Research is mainly based on primary data. Secondary data has been used for the substantiating primary data. Research has been done by primary data collection. It has been collected by interacting with various groups of customers across the banks. The secondary data has been collected through various journals, magazines, newspapers and websites.
 * (The data obtained from the study were analyzed by using factor analysis for identification of the key factors presented by the respondents in the areas of Customer Relationship Management practices like banks, insurance, and telecommunications services with the help of a comparative study between the public and private sector entities.)*

Sampling procedure The sample of the study will be taken in a random manner. Sample was collected through personal visits to customers, by formal and informal talks and through filling up the questionnaire prepared. The sampling will be carried out at different location in Hyderabad and Secunderabad. The data has been analyzed by using mathematical/Statistical tool. Sample size & Time The sample size of thesis will be limited to 150 respondents. All the respondents should be the customers of the selected organizations. The thesis will collect the data on customer relationship management for a period of 10 years and the time to finish the thesis will be of four months. Sample design Statistical Package for Social Science (SPSS) is used for data analysis purpose. Data has been presented with the help of bar graph, pie charts, line graphs etc. The study also used the following statistical techniques viz., Frequency analysis and cross tabulation, etc. Nature of data Areas of the study The study refers to Customer Relationship Management in Hyderabad & Secunderabad in select service sector organizations taken for the study:
 * (The data will be collected through primary and secondary sources. The primary data will be collected through a questionnaire administer to the sample respondents and through direct personal interviews of all existing and potential consumers.)* *(Lists of customers from the respective service sector organizations will be obtained for administering the questionnaire.)* The secondary data will be collected from the organizations internal records, reports, books, journals, magazines and newspapers and also from other sources like Internet.

Resource Requirements: Factor Analysis as a Classification Method Let us now return to the interpretation of the standard results from a factor analysis. We will henceforth use the term factor analysis generically to encompass both principal components and principal factors analysis. Let us assume that we are at the point in our analysis where we basically know how many factors to extract. We may now want to know the meaning of the factors, that is, whether and how we can interpret them in a meaningful manner. To illustrate how this can be accomplished, let us work "backwards," that is, begin with a meaningful structure and then see how it is reflected in the results of a factor analysis. Let us return to our satisfaction example; shown below is the correlation matrix for items pertaining to satisfaction at work and items pertaining to satisfaction at home. Factor Loadings: Let us now perform a principal components analysis and look at the two-factor solution. Specifically, let us look at the correlations between the variables and the two factors (or "new" variables), as they are extracted by default; these correlations are also called factor loadings. Apparently, the first factor is generally more highly correlated with the variables than the second factor. This is to be expected because, as previously described, these factors are extracted successively and will account for less and less variance overall. Rotating the Factor Structure: We could plot the factor loadings shown above in a scatterplot. In that plot, each variable is represented as a point. In this plot we could rotate the axes in any direction without changing the relative locations of the points to each other; however, the actual coordinates of the points, that is, the factor loadings would of course change. In this example, if you produce the plot it will be evident that if we were to rotate the axes by about 45 degrees we might attain a clear pattern of loadings identifying the work satisfaction items and the home satisfaction items. Rotational strategies: There are various rotational strategies that have been proposed. The goal of all of these strategies is to obtain a clear pattern of loadings, that is, factors that are somehow clearly marked by high loadings for some variables and low loadings for others. This general pattern is also sometimes referred to as simple structure. Typical rotational strategies are varimax, quartimax, and equamax. Interpreting the Factor Structure: Now the pattern is much clearer. As expected, the first factor is marked by high loadings on the work satisfaction items; the second factor is marked by high loadings on the home satisfaction items. We would thus conclude that satisfaction, as measured by our questionnaire, is composed of those two aspects; hence we have arrived at a classification of the variables. Is Factor Analysis Objective? The concept of heuristics is useful in understanding a property of factor analysis which confuses many people. Several scientists may apply factor analysis to similar or even identical sets of measures, and one may come up with 3 factors while another comes up with 6 and another comes up with 10. This lack of agreement has tended to discredit all uses of factor analysis. The fewer factors the simpler the theory; the more factors the better the theory fits the data. Different workers may make different choices in balancing simplicity against fit. A similar balancing problem arises in regression and analysis of variance, but it generally doesn't prevent different workers from reaching nearly or exactly the same conclusions. After all, if two workers apply an analysis of variance to the same data, and both workers drop out the terms not significant at the 0.5 level, then both will report exactly the same effects. However, the situation in factor analysis is very different. For reasons explained later, there is no significance test in component analysis that will test a hypothesis about the number of factors, as that hypothesis is ordinarily understood. A similar issue arises in identifying the nature of the factors. Two workers may each identify 6 factors, but the two sets of factors may differ--perhaps substantially. The travel-writer analogy is useful here too; two writers might each divide the US into 6 regions, but define the regions very differently.)*
 * (Banking industry.

(Ethical considerations Customer Relationship Management (CRM) is a major business buzzword of 2000s. CRM is a means to gain trust from customers by meeting the needs of each customer in a more personalized way. CRM principally revolves around marketing. It involves integrating information gathered from all the distribution channels and analyzing the data, with the help of IT, to understand customer behavior. The continuous analysis and improvement over a long period of time should result in enhancing customers’ lifetime value with the firm.      …..By Philip Kotler. For an information industry, CRM is a term for methodologies, software and Internet capabilities that help an enterprise manage customer relationships in an efficient and organized way. Here, technology can be a boon. A successful CRM solution depends on the ability to interact with customers, through any channel they choose, as well as a way to track and maintain real-time records of customer interactions so that a holistic view of the customer can be established. ) Need for CRM Banking industry has undergone tremendous changes during the past decade, during which consolidation and reform became inevitable. Banks have realized the significance of customer service not only for business expansion but also for their very survival. They have woken up to the fact that they need to understand and manage their customers better. Falling interest rates are making corporate lending a low revenue business, prompting banks to look for additional non-interest related business. CRM helps categorize and segment customers and align products that best suit them. Goals Requiring CRM Solutions The primary redundant goals of banks that require CRM solutions are: •	Customer Identification •	Cross Selling or Up Selling •	Customer Acquisition •	Customer Retention •	Customer Satisfaction and Delight. Customer Identification It refers to acquiring the entire customer-centric data such as knowledge customers’ current demographic details, related products and their holding pattern with the bank. This should allow the banks to generate a single, comprehensive view of every one of its customers. With this base, the banks must identify prime customers who require to be specially treated under CRM. Cross Selling/Up Selling Cross Selling and Up Selling are huge untapped opportunities for banks. CRM solution should adopt an integrated approach to customer needs, which not only would build customer loyalty and business, but also enable banks to offer their customers the additional services they might really want, for example, a minor customer may be offered an educational loan; a Savings Bank customer may be offered a credit card or a housing loan, a busy businessman may be offered Internet banking etc. Customer Acquisition CRM is aimed at optimizing processes and functions related to the customer. All operations can be optimized and systemized to enhance efficiency and effectiveness, on a continuous basis. This continuous learning would help banks to bring out better products that target potential as well as existing customers. The operations can be aimed at getting the right customers and then retaining them by extending special treatment under CRM environment. Customer Retention Customer retention is the most important focus of CRM. Banks should employ a CRM solution that consolidates information from all customer interactions, whether it is personal contact or inquiries to the call center or the Internet. It should be kept in mind that it is many times costlier or obtain a new customer than to retain an existing one. Every banking representative should have an ability to access a 360-degree view of any customer, in time, to enhance the competitive advantage and customer retention. Customer Satisfaction and Delight When a customer receives a higher level of service than what he expects, he is satisfied. On the contrary, if he receives a level of service lower than his expectations, he is dissatisfied. A dissatisfied customer tells at least 10 other people about what went wrong with the bank, which can trigger an exodus of customers from the bank. Else, it will definitely stem the flow of new customers into the bank. Hence, the banker should make all efforts to improve services on a continuous basis. Banks operate in a very dynamic market and it is important to be proactive to delight a customer, at least, the prime ones, beyond the level of satisfaction. To achieve this, banks must continuously innovative new products and features, using technology as a tool.

Conclusion The banking industry in India has undergone volatile changes during the last decade and one of the major areas of change has been customer service. Customers of today demand ‘universal banking’. Prior empirical work implies that more relationship building is not necessarily better, but rather building the right type of relationship is the key performance improvement. Banks should aware of the fact that a bank interaction with its clients, though employees influence the effectiveness of the institutions customer relationship strategies. Customer Relationship strategy has specifically influenced by two variables. They are knowledgebility and the attitude of the bank employees. The knowledgbility of bank employees with regard to banking products, services, policies and/or procedures and the attitudes of bank employees in each banking branch should be positively adopted in order to improve a bank customer relationship management. This is possible if customer relationship management is implemented in its true spirit. On this point the results are quiet clear: high performance banks base their CRM program success on business structure first. Bringing these capabilities together is not easy but effective CRM can be a source of competitive advantage. On the basis of the analysis it can be concluded that large and majority of the customers are satisfied with the present functioning of bank would definitely be delighted if the bank changed its exchange with customers to become more cognitive, emotional, physical pleasing and well connected. The loyalty of the bank employees is also very good and efforts should be made in the direction of maintaining it and satisfying the few exceptional dissatisfied employees because unless and until the employee is satisfied he or she cannot provide a memorable experience to the consumers. This will adversely affect the whole service profit chain of the bank. (To embrace CRM in banks must transform its focus from a product oriented view to a customer oriented view), something that requires an architecture that is able to change the organizational culture and operations as well, in order to bring about closer cooperation between CRM and the various stakeholders. *(In response to this in this research has developed an appropriate.)* *(Banks may start their CRM efforts by focusing on only one part of their business, such as CRM for a particular a call center or field service, or by developing enterprise-wide solutions. So it is inevitable to the banks to implement CRM in its true spirit.) *