A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT WITH REFERENCE TO ICICI BANK IN HYDERABAD

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A STUDY ON CUSTOMER RELATIONSHIP

MANAGEMENT WITH REFERENCE TO ICICI BANK IN HYDERABAD

L.Balaji

¹

, S.Mohana

²

, D.Subramanyam

³

1,2Assistant Professor, Department of MBA, SSITS, Rayachoty, Kadapa, A.P (India)

2Research Scholar, JNTU A, Anantapuramu, A.P (India)

ABSTRACT

CRM stands for Customer Relationship Management. It is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. The main objectives of this study are To study the satisfaction level of exit customers of ICICI bank services, To find out the factors which influence to buy the ICICI banks services, To indentify and the study of the problems faced by the customers of ICICI bank services and To assess of the role of customer relationship management in the purchase decision of ICICI bank services. This study is confined to the collection, analysis and interpretation of the customers’ needs and opinion on the various services of ICICI Bank and the performance of the organization. This study is conducted among the customers of Hyderabad.

Keywords: Customer, Information, Process, Relationship, Strategy, Service

I. INTRODUCTION

Customer Relationship Management is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can:

 Provide better customer service

 Make call centers more efficient

 Cross sell products more effectively

 Help sales staff close deals faster

 Simplify marketing and sales processes

 Discover new customers

 Increase customer revenues

It doesn't happen by simply buying software and installing it. For CRM to be truly effective an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. A recent (2001) survey of more than 1,600 business and IT professionals, conducted by

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The Data Warehousing Institute found that close to 50% had CRM project budgets of less than $500,000. That would appear to indicate that CRM doesn't have to be a budget-buster. However, the same survey showed a handful of respondents with CRM project budgets of over $10 million. What are some examples of the types of data CRM projects should be collecting?

 Responses to campaigns

 Shipping and fulfillment dates

 Sales and purchase data

 Account information

 Web registration data

 Service and support records

 Demographic data

 Web sales data

Customer relationship management is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Once simply a label for a category of software tools, today, it generally denotes a company- wide business strategy embracing all client-facing departments and even beyond. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs.

These tools have been shown to help companies attain these objectives:

 Streamlined sales and marketing processes

 Higher sales productivity

 Added cross-selling and up-selling opportunities

 Improved service, loyalty, and retention

 Increased call center efficiency

 Higher close rates

 Better profiling and targeting

 Reduced expenses

 Increased market share

 Higher overall profitability

 Marginal costing

 Creates communication

Tools and workflows can be complex to implement, especially for large enterprises. Previously these tools were generally limited to contact management: monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and at the sales pipeline it. Next came the advent of tools for other client-facing business functions, as described below. These technologies have

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been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure. Perhaps the most notable trend has been the growth of tools delivered via the Web, also known as cloud computing and software as a service (SaaS). In contrast with traditional on-premises software, cloud- computing applications are sold by subscription, accessed via a secure Internet connection, and displayed on a Web browser. Companies don’t incur the initial capital expense of purchasing software; neither must they buy and maintain IT hardware to run it on. Despite all this, many companies are still not fully leveraging these tools and services to align marketing, sales, and service to best serve the enterprise. Often, implementations are fragmented; isolated initiatives by individual departments to address their own needs. Systems that start disunited usually stay that way: Siloed thinking and decision processes frequently lead to separate and incompatible systems, and dysfunctional processes.

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,556 branches and 7,440 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

II. REVIEW OF LITERATURE

Robert A-Robincheaux (1996) in his journal customer relationship management is an integrated effort to identify maintain and build a network individual/ customers and to continuously strengthen the network for the benefit of the both and sides thought interactive, individual and value added contacts over a long period of time.

Philip kotler 1997 in his studying customer relationship is management of the process of building long term, trusting and win – win relationship with customers’ distributors’ dealers and suppliers.

Perter Drucker (2000) which emphasizes ―Customer Relationship Mangement‖ is basic purpose of an organization is to create customers and retain them.

Morgan and Hunt (2003) concluded that customer relationship management is all marketing efforts directed to words establishing, developing and maintaining successful relational exchanges.

Moller and Wilson (2008) denotes that customer relationship is about understating, creating and managing exchange relationship between economics partners, manufactures, service providers, various channel member and finally customers.

III. NEED FOR THE STUDY

Customer relationship management is very essential to every organization to maintain longer relations with the in customers. If one company not measures the customers satisfaction and needs of the customers, that cannot find the possible remedies to counteract the competition .CRM also helps to make appropriate strategies which are needed to sustain with environmental changes. Many studies were conducted to understand customer satisfaction levels and needs but there were no studies about ICICI Bank in this area.So I have been taken up this study.

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IV. OBJECTIVES OF THE STUDY

The specific objectives of the study are:

 To study the satisfaction level of exist customers of ICICI bank services.

 To find out the factors that influence to buy the services of ICICI bank.

 To indentify the problems faced by the customers of ICICI bank.

 To assess the role of customer relationship while purchasing the services of ICICI bank.

V. RESEARCH DESIGN AND METHODOLOGY

Research Design : Descriptive in nature

Research procedure : Survey method

Research instrument : A well designed and structured Questionnaire

 Sampling plan

Sample Size : 100 customers in ICICI bank Sampling procedure : Convenience sampling Statistical tools : Simple percentage

 Data Analysis

Data Sources : Data were collected from primary and secondary sources

Primary data : It were collected through Questionnaires, schedule, by direct Contact methods and through meetings

Secondary data : The secondary data were gathered from company records Websites Newspapers, Magazines

VI. STATISTICAL TOOLS

Percentages and averages were used to analyze the data gathered. Tables are also drawn where ever necessary.

VII. SCOPE OF THE STUDY

The study gives the information about the customer needs and customer satisfaction levels towards ICICI Bank services. The study was undertaken in the Hyderabad city only. The study was limited to 100 customers of ICICI Bank in Hyderabad. It is confined to the collection, analysis and interpretation of the Customers satisfaction levels and opinions on the various services of ICICI Bank and the performance of the organization.

VIII. LIMITATIONS OF THE STUDY



Sample size was limited to 100 because of limited time and thus enables to represent the whole

customers.

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

The study was limited to Hyderabad city only: if the same research would have been carried in other city the result could vary.

IX. DATA ANALYSIS AND INTERPRETATION

1. Table Showing The Number Of Respondents Dealing With Different Banking Services

R

Rooww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee

ICICIICCII 6600 660 0

H

HDDFFCC 2200 220 0

CICITTYY BBAANNKK 1155 115 5 O

OTTHHEERRSS 55 55

ToTottaall 11000 0 110000

60 % of the respondents are using ICICI Bank services, 20 % of the respondents are using HDFC Bank services, 15 % of the respondents are using CITY Bank services and remaining 5 % of the respondents are using Other Bank services.

2 2. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e M Me ed di ia a I In n K Kn no ow wn n A Ab bo ou ut t I Ic ci ic ci i B Ba an nk k

RoRoww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall

TVTV 3366 336 6

NeNewwss PPaappeerrss 3333 333 3 F

Frriieennddss//RReellaattiivveess 3311 331 1

36 % of the respondents known about ICICI through TV Advertisement, 33 % of the respondents known about ICICI through news papers, 31 % of the respondents known about ICICI through friends/Relatives.

3 3. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e A At tt tr ri ib bu ut te es s M Mo ot ti iv va at te ed d T To o P Pu ur rc c ha h as s e e I Ic ci ic ci i B Ba an nk k S Se e rv r vi ic ce es s

RoRoww LLaabbeellss NNoo.. OOff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall

SeSerrvviicceess 5500 550 0

PrPriiccee 1100 110 0

S

Saaffeettyy 3300 330 0

OtOthheerrss 1100 110 0

T

Toottaall 11000 0 110000

50 % of the respondents motivated to purchase the ICICI Bank services because of good services,30 % of the respondents motivated to purchase the ICICI Bank services because of Safety, 10 % of the respondents motivated to purchase the ICICI Bank services because of price and 10% of the respondents motivated to purchase the ICICI Bank services because of other attributes.

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4. 4 . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e O Op pi in ni io on n O Of f R Re es sp po on nd de e nt n ts s O On n S Se er r vi v ic ce es s O Of ff fe er re ed d

RoRoww LLaabbeellss NNoo.. OOff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall ExExcceelllleenntt 6655 665 5

G

Goooodd 2200 220 0

AvAveerraaggee 1100 110 0

PoPooorr 55 55

T

Toottaall 11000 0 110000

65 % of the respondents said that the services of ICICI Bank are Excellent, 20 % of the respondents said that the services of ICICI Bank are Good, 10 % of the respondents said that the services of ICICI Bank are Average and 5 % of the respondents said that the services of ICICI Bank are Poor.

5 5. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e O Op pi in ni io on n O On n B Ba an nk k E Ex xe ec cu ut ti iv ve e P Pe er rf fo or rm ma an nc ce e

RoRoww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall E

Exxcceelllleenntt 7700 770 0

GoGooodd 2255 225 5

PoPooorr 55 55

T

Toottaall 11000 0 110000

70 % of the respondents said that the performance of ICICI Bank Executives is Excellent, 25% of the respondents said that the performance of ICICI Bank Executives is Good and 5 % of the respondents said that the performance of ICICI Bank Executives is Poor.

6. 6 . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e O Op pi in ni io on n O Of f R Re es sp po on nd de en nt ts s O On n R Re es s po p on ns s e e D De el li iv ve er r y y T To o C Cu us s to t om me er r Q Qu ue er ry y O Or r Gr G ri ie ev va an nc ce e

R

Rooww LLaabbeellss NNoo..ooffss RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall TiTimmeellyy//PPrroommppttllyy 7700 770 0

S

Saaffeellyy 2255 225 5

InIn ccoonnddiittiioonn 55 55

70 % of the respondents said that they found the delivery process is to be timely/Promptly, 25 % of the respondents said that they found the delivery process is to be safely and 5 % of the respondents said that they found the delivery process is to be in condition.

7. 7 . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e O Op pi in ni io on n O Of f R Re es sp po on nd de en nt ts s O On n H Ho om me e L Lo oa an n A An nd d C Ca ar r L Lo oa an n O Of ff fe er rs s

R

Rooww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall ExExcceelllleenntt 5500 550 0

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G

Goooodd 3300 330 0

A

Avveerraaggee 1155 115 5

PoPooorr 55 55

T

Toottaall 11000 0 110000

50 % of the respondents said that the home loan and car loan offers are Excellent, 30% of the respondents said that the home loan and car loan offers are good, 15 % of the respondents said that home loan and car loan offers are Average and 5 % of the respondents said that the home loan and car loan offers are Poor.

8 8. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e S Sa at ti is sf fa ac ct ti io on n O Of f R Re es sp po on nd de en nt ts s W Wi it th h C Cl li ip p F Fa ac ci il li it ty y C Co on nv ve en ni ie en nc ce e

R

Rooww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall S

Saattiissffiieedd 11000 0 110000 DiDiss ssaattiissffiieedd 00 00

100 % of the respondents said that they are satisfied with cclliipp ffaacciilliittyy ccoonvnveenniieennccee.

9 9. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e N Nu um mb be er r O Of f R Re es s po p on nd de e nt n ts s W Wa an nt ti in ng g I In ns st tr ru um me en nt ts s P Pr ro ov vi id de e d d W Wi it th h S Se er rv vi ic ce es s

Row Labels No. of respondents PePerrcceennttaaggee ttoo ttootatall

Yes, we want change 10 10

No, it is OK 90 90

Total 100 100

90 % of the respondents said that they do not want any change the instrumentation being provided by the company and want as it is. But the remaining 10 % of the respondents are willing to have change in that at some choice, in terms of features as compared with the competitors.

10 1 0. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e O Op pi in ni io on n O Of f R Re es s po p on nd de e nt n ts s O On n A Av va ai il la ab bi il li it ty y O Of f S Se er rv vi ic ce e s s

E

Eaassyy AAvvaaiillaabbllee 9955 995 5 NoNott AAvvaaiillaabbllee 22 22 T

Too ssoommee eexxtteenntt 33 33 T

Toottaall 11000 0 110000

95 % of the respondents said that the services of ICICI Bank are easy available, 3% of the respondents said that the services of ICICI Bank are to some extent and 2 % of the respondents said that the services of ICICI Bank are not available.

1 11 1. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e N Nu um mb be er r O Of f R Re e sp s po on nd de en nt ts s W Wh ho o W Wa an nt t A Ad dd di it ti io on na al l F Fe ea at tu ur re es s I In n A Av va ai il la ab bi il li it ty y Of O f S Se er rv vi ic ce es s

R

Rooww LLaabbeellss No. of respondents PePerrcceennttaaggee ttoo ttoottaall

Yes 67 67

No 23 23

ToTottaall 110000 101000

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67 % of the respondents want some new features like net banking, mobile banking, online banking etc., to be included in services and remaining 23 % respondents do not want to any changes as the additional features concerned.

1 12 2. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e N Nu um mb be er r O Of f R Re es sp po on nd de en nt ts s W Wh ho o G Go ot t A At tt tr r ac a ct ti iv ve e O Of ff fe er rs s W Wh hi il le e U Us s in i ng g I Ic ci ic ci i D De eb bi it t A An nd d C Cr re ed di it t C Ca ar rd d

90 % of the respondents said that they got attractive offers while using ICICI Debit and Credit card and 10 % of the respondents said that they did not get attractive offers while using ICICI Debit and Credit card.

13 1 3. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e N Nu um mb be er r O Of f R Re es sp po on nd de en nt ts s K Kn no ow w T Th ha at t P Pr r oc o ce es ss si in ng g F Fe ee e A An nd d O Ot th he er r C Ch ha ar rg ge es s O Of f I Ic ci ic c i i S Se er rv vi ic ce es s A Ar re e N No om mi in na al l W Wh hi il le e C Co om mp pa ar r e e T To o C Co om mp pe et ti it to or rs s

RoRoww LLaabbeellss NNoo.. ooff RReessppoonnddeennttss PePerrcceennttaaggee ttoo ttoottaall Y

Yeess 8800 880 0

NoNo 2200 220 0

80 % of the respondents are known about the processing fee and other charges of ICICI Bank are Nominal while comparing to other competitors and 20 % of the respondents are do not know about the processing fee and other charges of ICICI Bank are Nominal while comparing to other competitors.

1 14 4. . T Ta ab bl le e S Sh ho ow wi in ng g T Th he e N Nu um mb be er r O Of f R Re es sp po on nd de en nt ts s W Wh ho o R Re ec co om mm me en nd d T Th he e I Ic ci ic ci i B Ba an nk k S Se er rv vi ic ce es s T To o O

Ot th he er rs s

YeYess 9900 990 0

NoNo 1100 110 0

T

Toottaall 11000 0 110000

80 % of the respondents told that they will recommend the ICICI Bank services to others. 10% of the respondents told that they were not ready to recommend the ICICI Bank services to others.

15. Showing The Opinion Of Respondents On Continuing Relationship With Icici Bank

R

Rooww LLaabbeellss NNoo.. oof f RReessppoondndeennttss PPeerrcceennttaaggee

AgAgrreeee 9955 9955

N

Neeiitthheerr aaggrreeee nnoorr DDiissaaggrreeee 33 33

DiDissaaggrreeee 22 22

T

Toottaall 110000 110000

R

Rooww LLaabbeellss No. of respondents PePerrcceennttaaggee ttoo ttoottaal l

Yes 90 90

No 10 10

TToottaall 101000 110000

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95 % of the respondents were agreeing to continue relationship with ICICI Bank. 3% of the respondents were neither agree nor Disagree and 2 % of the respondents were disagree to continue relationship with ICICI Bank.

X. SUGGESTIONS

 ICICI is suggested that to reduce its minimum balance of savings account.

 Management has to ensure some programmes to develop relations with the customers accordingly the reliability.

 The company has to provide well sort of training to employees. Hence they can serve the customers in a better manner.

 Management has to concentrate on value added services to enhance the features of the services.

 Company has to create awareness regarding the services of ICICI with relevant advertisements through T.V. and print media to the public.

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Discussing the Essence of CRM through a Phenomenological Approach," Brazilian Administration Review (BAR), vol. 6, pp. 34-49, 2009.

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