CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES OF INDIAN PUBLIC AND PRIVATE SECTOR BANKS: AN EXPLORATORY STUDY

Keywords: Customer Experience, Banking Sector, CRM Parameters, Exploratory Factor Analysis, Customer Retention.

Abstract

The contemporary study focused on the impact of CRM parameters to identify the influencing factors towards customer satisfaction and customer loyalty. A sample of 1200 respondents chosen from public sector (SBI and of Andhra bank) and private sector banks (ICICI and HDFC) using multi-stage random sampling technique through a structured questionnaire. The study employed various statistical tools such as Percentage Analysis for demographical information, bank variables, and the CRM parameters. Mean Ranks for ranking the items and Reliability Analysis applied for obtaining reliable variables in constructing the CRM parameters. Exploratory Factor Analysis (EFA) was performed to identify highly influenced factors of CRM practices to improve level of satisfaction and loyalty in public and private banks. The explored results enlighten directions to the banking sector to provide some operational implications such as proactive involvement from personnel, and customized outreach in engaging customers to reduce the negative word-of-mouth (WOM) and increase the productivity of banks positively. These significant CRM strategies will reduce the attrition rate and improves customer retention in future.

JEL Classification Codes: G210, G410, O180, D100.

Author Biographies

Lalitha P S, Sri Venkateswara University, India

Research Scholar, Department of Management Studies, Sri Venkateswara University, Tirupati, India

Kiran Kumar Paidipati, University of Delhi, India

Assistant Professor, Department of Statistics, Lady Shri Ram College for Women, University of Delhi, New Delhi, India

Arvind Kumar, Jawaharlal Nehru University, India

Professor & Dean, Atal Bihari Vajpayee School of Management and Entrepreneurship, Jawaharlal Nehru University, New Delhi, India

References

Anabila, P., & Awunyo-Vitor, D. (2013). Customer relationship management: A key to organizational survival and customer loyalty in Ghana’s banking Industry. International Journal of Marketing Studies, 5(1), 107-117.

Al-Dmour, H. H., Algharabat, R. S., Khawaja, R., & Al-Dmour, R. H. (2019). Investigating the impact of ECRM success factors on business performance. Asia Pacific Journal of Marketing and Logistics, 31(1), 1355-5855.

Bankole, O. A., Ogundipe, C. F., Enitilo, O., Ogundepo, Y. O., Oghogho, V. O., & Eguabo, R. O (2020) Relationship Management and Customer Retention in the Banking Sector: A Case Study of Akure Metropolis, Nigeria. International Journal of Research in Social Science and Humanities 1(1), 21-28

Dubey, N. K., & Sangle, P. (2019). Customer perception of CRM implementation in banking context. Journal of Advances in Management Research, 16(1), 38-63. https://doi.org/10.1108/JAMR-12-2017-0118

Devendra, G. D. (2020). Current Scenario of Different Type of Services Marketing and Delivery in Customer Relationship Management. International Journal of Engineering and Management Research, 10(1), 30-32. https://doi.org/10.31033/ijemr.10.1.6

Hassani, H., Huang, X., Silva, E., & Ghodsi, M. (2020). Deep Learning and Implementations in Banking. Annals of Data Science, 7(3), 433-446. https://doi.org/10.1007/s40745-020-00300-1

Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariate Data Analysis, 5th ed., Prentice-Hall, Upper Saddle River, NJ.

Kirmaci, S. (2012). Customer relationship management and customer loyalty; a survey in the sector of banking. International Journal of Business and Social Science, 3(3).

Karahan, M., & Kuzu, Ö. H. (2014). Evaluating of CRM in Banking Sector: A Case Study on Employees of Banks in Konya. Procedia-Social and Behavioral Sciences, 109, 6-10.

Khan, H. U., Lalitha, V. M., & Omonaiye, J. F. (2017). Employees' perception as internal customers about online services: A case study of banking sector in Nigeria. International Journal of Business Innovation and Research, 13(2), 181-202.

Law, A. K., Ennew, C. T., & Mitussis, D. (2013). Adoption of customer relationship management in the service sector and its impact on performance. Journal of Relationship Marketing, 12(4), 301-330.

Mark, D. U., Grahame, R. D., & Kathy, H. (2003). Customer loyalty and customer loyalty programs. Journal of Consumer Marketing, 20(4), 294-316.

Malhotra, N.K. (2003). Marketing Research- An Applied Orientation, Pearson Education, Singapore.

Nguyen, N., Leclerc, A., & LeBlanc, G. (2013). The mediating role of customer trust on customer loyalty. Journal of Service Science and Management, 6(1), 96-109 http://dx.doi.org/10.4236/jssm.2013.61010

Nunnally, J.C. (1978). Psychometric Theory, New York: McGraw-Hill.

Singh, D. (2013). Service quality and customer satisfaction: a comparative study of an Indian public VS private bank. Malaysian Management Journal, 17, 59-75.

Vugec, D. S., Spremić, M., & Bach, M. P. (2017). IT governance adoption in banking and insurance sector: Longitudinal case study of cobit use. International Journal for Quality Research, 11(3), 691-716.
Published
2021-08-10
How to Cite
P S, L., Paidipati, K. K., & Kumar, A. (2021). CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES OF INDIAN PUBLIC AND PRIVATE SECTOR BANKS: AN EXPLORATORY STUDY. Indian Journal of Finance and Banking, 7(1), 1-12. https://doi.org/10.46281/ijfb.v7i1.1278
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper