A STUDY ON CUSTOMER RETENTION DURING TOUGH ECONOMIC CONDITIONS WITH SPECIAL REFERENCE TO STANDARD CHARTERED BANK

PRESENTED BY,
LAAVANYA. S 07UT27

BANKING
Banking Regulation Act of India, 1949 defines Banking as accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheques, draft, and order or otherwise .

STANDARD CHARTERED BANK (SCB)

British bank headquartered in London Operations - seventy countries Operates a network of over 1,700 branches and outlets Employs 73,000 people 90% of profits - Asia

STANDARD CHARTERED BANK (SCB)

Standard Chartered PLC - listed on both the London Stock Exchange and the Hong Kong Stock Exchange Consistently ranked in the top 25 among FTSE100 companies by market capitalization Standard Chartered Bank started its operation in India in 1858

HISTORY OF SCB
The Standard Chartered Group was formed in 1969 through a merger of two banks:
 The Standard Bank of British South Africa - 1863  The Chartered Bank of India, Australia and China - 1853

STANDARD CHARTERED - GLOBAL PRESENCE

America Africa Asia Middle-east Europe

SCB - POSITION TODAY

Leading player throughout the developing world Standard Chartered Bank is one of the three banks issuing banknotes for Hong Kong

PRODUCTS AND SERVICES OFFERED BY SCB

Personal banking Commercial banking Retail services Collection services

CUSTOMER RETENTION
Customer Retention is one of the most challenging and rewarding aspects of Business Equipment sales. The long-term investment in customer retention improves your business and allows your company to plan for growth into the future.

CUSTOMER RETENTION
Driving force behind Customer Relationship Management (CRM), relationship marketing and loyalty marketing Cost of retaining an existing customer is only about 10% of the cost of acquiring a new customer, so customer retention makes powerful, economic sense.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE The objective of the study is to strengthen the customer-bank bond and ultimately to retain the customers during the times of tough economic conditions The main objective is to highlight the importance of customer retention

OBJECTIVES OF THE STUDY

SECONDARY OBJECTIVES To study and understand the nature of banking services in detail To bring out the various perspectives of interaction, relationship and the bond towards customers To study about the awareness towards various banking services among the customers of Standard Chartered Bank with that of Indian Bank, SBI, IOB, ICICI Bank, HDFC Bank, and IDBI Bank

OBJECTIVES OF THE STUDY

SECONDARY OBJECTIVES To study and analyze the level of customer satisfaction and related problems among the customers of Standard Chartered Bank with that of Indian Bank, SBI, IOB, ICICI Bank, HDFC Bank, and IDBI Bank

LIMITATIONS OF THE STUDY

Since customer s attitude keeps changing, the findings may not be applicable over a period of time. Since the size of the sample is relative small, the outcome does not have appropriate representations. This study is limited to the customers of Standard Chartered Bank, Indian Bank, SBI, IOB, ICICI Bank, HDFC Bank, and IDBI Bank and so it cannot be generalized.

RESEARCH METHODOLOGY
The nature of the study undertaken is descriptive Descriptive research includes surveys and factfinding enquiries of different kinds The main purpose of the descriptive research is description of the state of affairs as it exists at present The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods

SAMPLING DESIGN
Population
 Here the population includes the customers of Private, Public and MNC banks

Sample Sampling Frame Sample size

SAMPLING DESIGN
Data collection technique Sampling technique Sources of data
 Primary data  Secondary data

Data Analysis tools

 Simple Percentage Analysis  Weighted Average Method

DATA ANALYSIS & INTERPRETATION

Banks preferred by the respondents
Banks
Private Bank Public Bank Scheduled Bank Foreign Bank Total

No. of respondents Percentage

42 37 7 14 100 42 37 7 14 100

DATA ANALYSIS & INTERPRETATION

Banks preferred by the respondents
45 40 35 30 25 20 15 10 5 0 Private Bank Public Bank Scheduled Bank Foreign Bank

DATA ANALYSIS & INTERPRETATION

Top 3 reasons for selecting the banks
Bank
IDBI ICICI HDFC SCB INDIAN BANK / SBI OTHERS

Reason 1

Reason 2

Reason 3
Internet facility Any where banking

Range of products & No. of ATMs services No. of ATMs No. of ATMs Phone banking Any where banking Any where banking Internet facility

Range of products & Proximity services Internet facility No. of ATMs Less interest rates Range of products & services Proximity & less interest rates Range of products & services

DATA ANALYSIS & INTERPRETATION

Years of relationship with the banks
Bank IDBI
3 4 5 3 12 5 3 3 6 10 1 2 1 1 8 0 2 1 0 4 1

<1 year
3

1-5 years
6

6-10 years
3

11-15 years >15 years

3 1

ICICI
2

HDFC
4

SCB 3 INDIAN BANK / SBI

0

OTHERS

DATA ANALYSIS & INTERPRETATION

Years of relationship with the banks
40

35 >15 years 11-15 years 25 6-10 years 20 1-5 years <1 year

30

15

10

0 IDBI ICICI HDFC SCB INDIAN BANK / SBI OTHERS

DATA ANALYSIS & INTERPRETATION

Products and services of the banks used by customers
Bank Fixed Current Savings Car Deposit a/c a/c loan a/c
5 3 5 3 9 8 9 9 2 16 8 6 5 1 14 3 4 5 1 6

Credit card
6 5 8 7 6

Personal Home Others loan loan

10 11 8 9 9 3 2 4 1 6 2 1 3 1 3

IDBI ICICI HDFC SCB INDIAN BANK / SBI

OTHERS 6

10

DATA ANALYSIS & INTERPRETATION

Products and services of the banks used by customers
60

50

OTHERS 40 INDIAN BANK / SBI SCB 30 HDFC ICICI 20 IDBI

10

0 Fixed Deposit a/c Current a/c Savings a/c Car loan Credit card Personal loan Home loan Others

DATA ANALYSIS & INTERPRETATION

Usage of channels of the bank
Channels Weekly Monthly Quarterly Half-yearly Yearly Never Internet banking ATM / Debit card 21 36 17 9 5 12

52

33

15

Credit card 4 Direct visit 12 to the bank

19 36

29 25

22 13

21 14

5 0

DATA ANALYSIS & INTERPRETATION

Usage of channels of the bank
60

50

40 Internet banking

30

ATM / Debit card

Credit card 20 Direct visit to the bank

10

0 Weekly Monthly Quarterly Half-yearly Yearly Never

DATA ANALYSIS & INTERPRETATION

Satisfaction scale towards the following attributes of the bank
Attributes Highly Satisfied
33

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied
0

Nature of service provided Clarity of information Ability to solve the queries

63

19

49

23

29

57

11

Response from 17 employees

39

44

DATA ANALYSIS & INTERPRETATION

Satisfaction scale towards the following attributes of the bank
70

60

50

Nature of service provided

40

Clarity of information

Ability to solve the queries 30 Response from employees 20

10

0 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

DATA ANALYSIS & INTERPRETATION

Suggestions for improving the products and services of the bank Factors
Improve customer relations Increase the no. of ATMs Improve services No barriers for minimum balance

No. of respondents
5 11 7 2

DATA ANALYSIS & INTERPRETATION

Suggestions for improving the products and services of the bank
12 10 8 6 4 2 0 Improve customer Increase the no. of Improve services No barriers for relations ATMs minimum balance

FINDINGS AND INFERENCE

Majority of the respondents are having personal loans, followed by current account and savings account in banks. Majority of the respondents having current account also have savings account in the same bank. Majority of the respondents of private sector and public sector banks have one to five years of relationship with the bank. Majority of the respondents of MNC / foreign banks have six to ten years of relationship with the bank.

FINDINGS AND INFERENCE

Majority of the respondents of this study did not enquire about the products and services of other banks before selection. Majority of the respondents of this study prefer banking with private banks than any other banks. Majority of the respondents of private sector banks prefer the banks for number of ATMs and the range of products and services offered by the bank.

FINDINGS AND INFERENCE

Majority of the respondents of foreign banks prefer the banks for phone banking facility and Internet banking facility. Majority of the respondents of public sector banks prefer the banks for number of anywhere banking facility, number of ATMs and less interest rates. It is found that the customers of Standard Chartered Bank prefer personal loans and credit cards as their major products / services of the bank.

FINDINGS AND INFERENCE

As far as the channels of the bank are concerned, the ATM / Debit card tops the list followed by the Internet banking. It is found that the nature of service provided by Standard Chartered Bank has a higher satisfaction scale than any other attribute. It is found that the respondents are dissatisfied with the clarity of information and the response from the employees of the banks.

FINDINGS AND INFERENCE

It is found that the majority of the customers of public sector banks experience frequent problems when compared to private sector banks and foreign banks. Majority of the customers of private banks and foreign banks are multi-bankers. Majority of the respondents stick on to the same bank where they have opened an account. Majority of the respondents of Standard Chartered Bank have suggested to increase the number of ATMs.

SUGGESTIONS
Clubbing up of products ATMs Usage of channels Less processing fee Services for non-account holders Care - satisfaction

BIBLIOGRAPHY
BOOKS
Philip Kotler, Kelvin Keller 2006. MARKETING MANAGEMENT. Twelfth edition. New Delhi: Prentice Hall of India Private Ltd. C.R. Kothari, 2005. RESEARCH METHODOLOGY Methods & Techniques, Second edition. New Delhi: New Age International Private Ltd. S.M. Jha SERVICE MARKETING Fourth revised millennium edition: Himalaya Publishing House. Christopher Lovelock, Jochen Wirtz 2003. SERVICE MARKETING. Fifth edition: Pearson Education.

BIBLIOGRAPHY
WEBSITES
www.standardchartered.com www.learnmarketing.net www.banknetindia.com

THANK YOU