CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR-A CASE STUDY OF PNB

Submitted by:Abhimanyu Sadhu (1) Ajay Rathore (02) Ankit Gupta (5) Ankita Kapoor (6)

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT?

Customer relationship management (CRM) is a model for managing a companys interactions with current and future customers . It involves using technology to organize, automate, and synchronize Sales, marketing, customer service, and technical support.

 Nowadays, many businesses such as banks, insurance companies, and other service providers realize the importance of CRM and its potential to help them acquire new customers retain existing ones and maximize their lifetime value. At this point, close relationship with customers will require a strong coordination between IT and marketing departments to provide a longterm retention of selected customers.

CASE STUDY OF PNB

 Established in 1895 at Lahore, undivided Indi a, Punjab National Bank(PNB) was the first Indian bank to have been started solely with Indian capital. The bank was nationalised in July 1969 along with 13 other banks

 Apart from offering banking products, the bank has also entered the credit card & debit card business; bullion business; life and nonlife insurance business; Gold coins & asset management bu siness, etc.

Banking is something about transition of money. In todays scenario each bank offers similar services, only thing which differentiates one bank from other is customer experience which creates customer preference about bank and thus decides the bankers business. In order to enriching the customer experience with firms profitability, ones approach should be customer centric and in doing so CRM plays a vital role.

Research methodology is a way to systematically conduct the research process the study involves the various steps thst are generally adopted by a researcher in studying research problems: Define the problem Specify what information is needed Identify the source of information Decide the techniques Gather and process the information Analyze and interpret the information Present the findings

 TO study the concept of CRM in banking sector To find the effency of pnb in crm To find the satisfaction among the customers of pnb To give suggestions to the bank as to how it can improve services to their customers

SAMPLING PLAN
Sample Size:Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. 100 respondents (or in other words, 100 customers of the Punjab National Bank) Sample Method: Random Sampling is used for all of the respondents from the customer base of the Punjab National Bank. Research Instrument: Structured Questionnaire.

PIE CHART 2: VISUAL APPEAL OF PHYSICAL FACILITIES AT BANK

Strongly Agree agree neutral 6% disagree strongly disagree

7% Sd : 1.22 Mean: 4.03

11%

48%

28%

The data about visual appeal of physical facilities at bank is shown in the pie chart 2. It is evident that the majority of the respondents, i.e., 48.00 percent, strongly agree with the visual appeal of physical facilities at bank, followed by the respondents agree with the physical facilities at bank account for 28 percent.

PIE CHART 3: GUIDANCE SIGNS AT SERVICE COUNTERS OF BANK

Strongly Agree agree neutral disagree strongly disagree

5% Sd : 1.09 Mean: 3.85

10%

6%

28%

51%

From the pie chart 3, it is found that 51.00 percent of the respondents agree and 28 percent of the respondents strongly agree with the guidance signs at service counters of banks. However, the respondents who disagree with the guidance signs at service counters account for 10.00 percent.

PIE CHART 4: TIMELY SERVICES BY BANK EMPLOYEES

very quick quick 4% 2% avg slow very slow

13% Sd : 0.84 Mean: 3.56

42%

39%

It is observed from the pie chart 4, that the majority of the respondents, i.e., 42.00 percent believe that the bank employees offer them services at an average manner, in terms of time; followed by 39.00 percent of the respondents opined that the service of the bank employees is quick.

PIE CHART 5: PROBLEM SOLVING INTEREST OF BANK EMPLOYEES

strongly agree agree neutral 1% 5% 9% disagree strongly disagree

Sd : 0.83 Mean: 2.77

41%

44%

From the pie chart 5, it is very clear that 44.00 percent of the respondents neither agree nor disagree with the problem solving interest of bank employees and 41.00 percent of the respondents disagree with the problem solving interest. However, the respondents who agree with the problem solving interest of bank employees account for 9 percent.

PIE CHART 6: SENDING OF TRANSACTION INFORMATION THROUGH SMS

strongly agree agree neutral 3% disagree strongly disagree

6% Sd : 0.92 Mean: 3.67

16%

29%

46%

From pie chart 6, it is evident that the majority of the respondents agree with the sending or transaction information through sms account for 46.00 percent, followed by 29.00 percent of the respondents opined that they neutral about sending of transaction information through sms. However, 16 percent of the respondents who strongly agree with the sending of transaction information through sms.

PIE CHART 7: INSTALLATION OF NEW ATMS strongly agree agree neutral disagree strongly disagree
3% 10% 24%

Sd : 1.04 Mean: 3.79

18%

45%

The data about opinion on installation of new A.T.Ms is presented in pie chart 7. It is very clear that the majority of the respondents i.e., 45.00 percent agree with the installation of new A.T.Ms of concerned bank, followed by 24.00 percent of the respondents who strongly agree with the installation of new A.T.Ms.

PIE CHART8: SAFETY OF TRANSACTIONS AT BANK

strongly agree agree neutral 2% 7% 7% disagree strongly disagree

Sd : 0.87 Mean: 3.45

39%

45%

Pie chart 8 revealed that the majority of the respondents i.e., 45.00 percent opined that they neutral about safety of transactions at bank.39 percent of the respondents agree with the safety of transactions. However, the respondents who disagree with the safety of transactions at bank account for 7 percent.

PIE CHART 9 : SECURITY MEASURES AT BANK

strongly agree agree neutral 6% disagree strongly disagree 8% 16%

Sd : 1.13 Mean: 3.56

30% 40%

It can be viewed from the PIE chart 9, that 40 percent of the respondents agree and 30 percent of the respondents neutral with the security measures taken at bank. However, 16 percent of the respondents strongly agree with security measures taken at the bank.

TO FIND THE SATISFACTION LEVEL AMONG THE CUSTOMERS & RELATIONSHIP BETWEEN CRM & CUSTOMER SATISFACTION:

PIE CHART 10 : SATISFACTION AMONG THE CUSTOMERS OF THE BANK

highly satisfied satisfied neutral dissatisfied highly dissatisfied

Sd : 1.19 Mean: 3.1

20%

8%

10%

24%

38%

PIE CHART 11 : WILLINGNESS FOR A LONG TERM RELATIONSHIP WITH THE BANK
very high high neutral 11% 7% 19% 28% low very low

Sd : 1.29 Mean: 3.07

35%

Interpretation: From pie chart10 & 11, it is very evident that the satisfaction & the loyalty levels of the customers (towards the bank) are not that high, rather they are very much neutral. This shows that the Customers are a little indecisive about their opinion regarding the bank.

FINDINGS & SUGGESTIONS

a) Customers are not only demanding the best interest rates and security in their banking transactions, but also expect their banks to display personalised service with an aim at establishing a trustworthy relationship with their customers. b) The Brand PNB needs to create a little more Brand Awareness. c) The Service Quality needs to be worked upon. The Top management needs to realise its importance & impart guidance to the employees to enhance service quality at customer level, as good CRM implementation is possible through adequate training and empowerment of the bank staff .

CONCLUSION
The implementation of CRM yields a number of benefits to the bank. One of the important benefits is cost reduction. Secondly, the integrated view of the customer provides the bank an opportunity to understand its customers well and accordingly cater to their needs with individualized offering. Bank employees should show courtesy towards customers in providing timely services at bank. CRM is to be described and used as an enterprise-wide strategy in the bank. It should involve all the areas of the bank to work in synchronization towards a common goal of stronger and long-term customer relationships.

THANK YOU