gaining the competitive edge through crm - Euroasiapub.org

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)GAINING THE COMPETITIVE EDGE THROUGH CRM – A STUDYON PRIVATE SECTOR BANKSYogita Narang*Atul Narang**Dr. Shalini Nigam**ABSTRACTCustomer relationship management (CRM), being disciplined and holistic approach inidentifying the tastes and preferences on individual basis to enhance relationship over thecustomer’s life, is the buzz word for competitive advantage and so the companies arespending enormous resources on it. In CRM every customer is viewed on his life time value,and the realization is loud and clear that not only customer retention but customersatisfaction is more important than just customer acquisition for a transaction. In real termsCRM is a philosophy and the software solution part is a mere tool to aid betterimplementation of the philosophy. CRM goes way beyond a software solution. The presentlevel of MIS covers, information needed for control, performance monitoring, decisionmaking etc. and encompasses activities in administrative offices like processing of statutoryreturns, monthly/quarterly performance reports from branches, credit information personnelinventory, profit and loss accounts, funds management, and branch maintenance etc. Thepurpose of this research is to study the comparative use of CRM in various private sectorbanks. The study analyzes the perceptions of the customers regarding the impact of CRM onservice quality and evaluates the impact of CRM on customer retention. The results bring outthe comparative ratings by customers, ICICI being rated first in implementation of CRM,HDFC rated first in service quality and customer retention. Keeping this challenge in mind itis an attempt to rediscover the power of upcoming Technologies of digital revolution in thefield of banking sector – the challenges and their impact on future economy..*Research Scholar, Dept of Management, Dayalbagh Educational Institute, Agra, INDIA,**Ast. Proferssor, Dept of Management, Anand Engineering College, Agra, INDIA,***Associate Professor, Dept of Mgt, Dayalbagh Educational Institute, Agra, INDIA,International Journal of Research in Finance & Marketinghttp://www.mairec org 12

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Key Words: Customer Relationship Management, Customer retention, service quality,competitive advantage, competitive strategy, Information TechnologyINTRODUCTIONCustomers Relations Management (CRM) helps in maintaining customer database andproviding better services. Over the last decade, firms across a wide variety of industries (forexample, banking, insurance, telephone, retailing and airlines to name a few) haveincreasingly focused on customer as opposed to a product or brand management strategy.With a customer management focus, these firms have changed from a transactional to arelationship orientation, where they differentiate customers as a function of the lifetime valueof the relationship to the firm (Blattberg and Deighton 1996; Peppers and Rogers 2001;Gupta et al. 2004). To implement such a customer relationship strategy, firms have not onlymade massive investments in information infrastructure to store and analyze customerinformation, but also changes in organizational structure, employee incentives, accountingand operations management practices to facilitate the implementation of the strategy (Day2003). Yet, despite such massive investments in Customer Relationship Management (CRM),the current state of the literature provides feeble information on the usage of CRM strategiesby some of the good MNC’s private sector banks in developing country.CRM and its evolutionCRM is the business buzzword on the Internet these days. Customer RelationshipManagement promises faster customer service at lower costs, higher customer satisfactionand from this, better customer retention and ultimately customer loyalty. Naturally, all this isdone in hope for more sales and profits. A management philosophy according to which acompany’s goals can be best achieved through identification and satisfaction of thecustomers' stated and unstated needs and wants. CRM is a computerized system foridentifying, targeting, acquiring, and retaining the best mix of customers. Customerrelationship management helps in profiling prospects, understanding their needs, and inbuilding relationships with them by providing the most suitable products and enhancedcustomer service. It integrates back and front office systems to create a database of customercontacts, purchases, and technical support, among other things. This database helps theInternational Journal of Research in Finance & Marketinghttp://www.mairec org 13

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)company in presenting a unified face to its customers, and improve the quality of therelationship, while enabling customers to manage some information on their own.The Customer is King. This mantra, although used for a long time, has not been put intopractice until recently. Forget the notion of royal treatment; customers were not even treatedwith dignity by most organizations. As recently as the 1970s and 80s, the concept ofcustomer support meant that organizations were doing a favor by answering a few questionsfor the customer on the phone – after putting them on hold for an hour! Standing in line tobuy something was common and expected. Remember when the customers had to go to theairports to buy tickets only because the airlines kept them there? Organizations simply losttouch with the realization – that they existed because of these customers.The 1990s brought two new concepts that challenged the prevailing business landscape:deregulation and the Internet. These forces brought down the barriers of entry resulting in anenvironment of intense competition. Stores faced competition from on-line start-ups.Traditional bricks-and-mortar banks fought for customers with online or virtual banks.Airline tickets were increasingly purchased from the convenience of your home. Theexplosion in information allowed consumers to compare features, and prices across multipleproviders. Products became commodities and prices could not be lowered further to ensuresurvival. Customer service became the only major differentiator in many cases. Customersreceived what they have always deserved – respect. The customer was now truly the king.Business customers, although always treated with more respect than individual consumers,were more or less ignored in the early stages of the Internet boom. The emphasis focused onexpanding the consumer base regardless of positive cash flow, revenues, and margins. Thedemise of many dot-coms brought an epiphany. Companies realized that they needed to focuson their enterprise customers. The advent of e-CRM applications was the first big step towardproviding better support to the strategic business customers. Although these solutionsprovided automated self-service to customers, they still treated all customers the same.Furthermore, the focus of these applications is more on improving call-center productivity.Clearly, these applications add value and help many organizations execute their CRMinitiatives. However, they are not effective in meeting the needs of an organization’s strategicInternational Journal of Research in Finance & Marketinghttp://www.mairec org 14

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)enterprise customers. Each enterprise customer has its own needs and craves personalizedsupport.More and more organizations and companies have realized that they need to put theircustomers front and center and to support a robust strategic customer care process, includingprofiling customers, segmenting customers, researching customers, investing in technology,and managing customers (Brown, 2000).The paradigm shift brought lots of discussions on “relationship marketing” since the 1980s(Berry, 1983; Håkansson, 1982). Relationship marketing aims to identify, maintain and buildup a network with individual customers and to continuously strengthen the network for themutual benefit of both sides through interactive, individualized and value-added contacts overa long period of time (Shani and Chalasani, 1992). However, relationship marketing focusesmainly on strategy, and lacks a holistic view of the business processes connected to it. CRMevolving from business processes emphasizes not only a comprehensive strategy, but also theprocess of acquiring, retaining and partnering with selective customers to create superiorvalue for the company and the customer (Parvatiyar and Sheth, 2000).Second, while companies and organizations are making efforts to keep pace with theparadigm shift in marketing, customer needs, expectations and behaviors are also changing.Customers do not only want services; they want “good” services, which possesscharacteristics like “ease of doing business, trust, responsiveness, web site navigability,problem resolution and all those other elements of good e-business that don't fit quite soneatly into a purely binary world” (Zemke and Connellan, 2001). Javalgi et al. (2006, p. 12)also pointed that “in today's hyper-competitive markets service firms must be marketoriented”. As “knowledge is key to nurturing customer relationships” (Lavender, 2004),“market research plays a critical role in generating the needed data on which a marketorientation can be developed and implemented, which, in turn, can enhance the practice ofCRM” (Javalgi et al., 2006). Therefore, CRM is considered as a means of supplementingERP systems to match customers' needs and increase their satisfaction.CRM has been explained in various ways and the same applies about the understanding of theorganizations and individuals about it.International Journal of Research in Finance & Marketinghttp://www.mairec org 15

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)As per a study by CRMGuru (www.crmguru.com) the following chart in Fig. 1 gives abreakup of what the customer understands about CRM:Fig.1: Source: “What is CRM?” Survey Results. www.crmguru.com: CRMGuru OnlineSurvey, 4400 Respondents, July 2003.So we can see that a major chunk of the respondents believe that CRM is about putting thecustomers at the heart of the business or employing a customer-centric approach. But whatdecides and drives the decision of how to approach the question of CRM implementationduring the whole lifecycle of a customer.Private Banking sectorIn 1994, the Reserve Bank of India issued a policy of liberalization to license limited numberof private banks, which came to be known as New Generation tech-savvy banks. Global TrustBank was, thus, the first private bank after liberalization; it was later amalgamated withOriental Bank of Commerce (OBC). Then Housing Development Finance CorporationLimited (HDFC) became the first (still existing) to receive an 'in principle' approval from theReserve Bank of India (RBI) to set up a bank in the private sector.At present, Private Banks in India includes leading banks like ICICI Banks, ING VysyaInternational Journal of Research in Finance & Marketinghttp://www.mairec org 16

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Bank, Jammu & Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, etc. Undoubtedly,being tech-savvy and full of expertise, private banks have played a major role in thedevelopment of Indian banking industry. They have made banking more efficient andcustomer friendly. In the process they have jolted public sector banks out of complacency andforced them to become more competitive.Dhanalakshmi BankThe foundation of Dhanalakshmi Bank Limited was laid down on 14th November 1927, inthe Thrissur district of Kerala. A group of innovative entrepreneurs had started the bank witha capital of Rs.11,000 and only 7 employees.HDFC BankHousing Development Finance Corporation Limited, more popularly known as HDFC BankLtd, was established in the year 1994, as a part of the liberalization of the Indian BankingIndustry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'inprinciple' approval from RBI, for setting up a bank in the private sector.ICICI BankICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financialinstitution, in 1994. Four years later, when the company offered ICICI Bank's shares to thepublic, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered madean equity offering in the form of ADRs on the New York Stock Exchange (NYSE)ING Vysya BankING Vysya Bank Ltd came into being in October 2002, when erstwhile Vysya Bank Ltd wasmerged with ING, a global financial powerhouse boasting of Dutch origin. Vysya Bank Ltd,one of initial banks to be set up in the private sector of India.Jammu & Kashmir BankThe origin of Jammu and Kashmir Bank Limited, more commonly referred to as J&K Bank,can be traced back to the year 1938, when it was established as the first state-owned bank inIndia. The bank was incorporated on 1st October 1938 and it was in the following year (moreprecisely on 4th July 1939) that it commenced its business, in Kashmir (India).International Journal of Research in Finance & Marketinghttp://www.mairec org 17

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Karnataka BankKarnataka Bank Limited is a leading private sector bank in India. It was incorporated on 18thFebruary 1924 at Mangalore, a town located in the Kannada district of Karnataka. The bankemerged as a major player during the freedom movement of 20th Century India.Karur Vysya BankThe Karur Vysya Bank Limited commonly known as KVB was set up by Late Shri M.A.Venkatarama Chettiar and the Late Shri Athi Krishna Chettiar, the two great visionaries in1916 in Karur, a textile town in the Tamil Nadu state of India.Kotak Mahindra BankKotak Mahindra Bank is one of India's leading financial private banking institutions. It offersbanking solutions that covers almost every sphere of life. Some of its financial servicesinclude commercial banking, stock broking, mutual funds, life insurance and investmentbanking.UTI BankAxis Bank was formed as UTI when it was incorporated in 1994 when Government of Indiaallowed private players in the banking sector. The bank was sponsored together by theadministrator of the specified undertaking of the Unit Trust of India, Life InsuranceCorporation of India (LIC) and General Insurance Corporation ltd.YES BankYes Bank is one of the top most private Indian banks. Awarded by the only Greenfieldlicense award by RBI in last 14 years, this bank is established and run by Rana Kapoor andAshok Kapur with the financial support of Rabobank Nederland, the world's single AAArated private BankReview of LiteratureInternational Journal of Research in Finance & Marketinghttp://www.mairec org 18

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)The literature on Customer Relationship Management in the context of the Banking Industryof developed countries points towards the wide use of all financial services under one roofleading to relationship banking and CRM concept.Brain and Company, USA in a specific study on CRM found that a customer becomes moreprofitable in the long run. Though the initial acquisition cost exceeds gross margin but thesubsequent retention costs are much lower which help in increasing the profits. The Researchfindings of Technical Assistance Research Project state that 95% of customers do notcomplain and give opportunity to competitors. On the other hand, a dissatisfied customer tellsaround 14 people about service failure, whereas the same customer tells only around sixothers when he receives excellent service.Bateman & Snell (2007) observed that CRM is a business process which results in optimizedprofitability and revenue generation, while achieving customer satisfaction. Often also knownas relationship marketing by marketing academicians, CRM is an information technologyassisted process that establishes a collaborative environment for businesses to analyze thebuying behaviour and product/service requirements of an individual or group of existing aswell as potential customers.Pisharodi, Angur and Shainesh (2003) in a study of success of CRM found that a processoriented strategic approach to connect the operational, informational and the organizationalcomponents of CRM are critical for the success of CRM application.Reinartz & Kumar (2002) pointed out that Managers need to be careful in differentiatingcustomer loyalty and customer profitability. Enterprises ought to understand the fact thatmanaging customers for loyalty is different from managing them for profits.As per the Research Note by Gartner Group (2001), more than 75% of enterprises engaged inCRM initiatives are incapable of putting together a comprehensive view of their customers.Further, it noted that market leadership would be attained by enterprises that achievemaximum value and customer satisfaction within each customer segment being served bythem.International Journal of Research in Finance & Marketinghttp://www.mairec org 19

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Parvatiyar and Sheth (2001) observed that CRM is a comprehensive strategy and process ofacquiring, retaining and partnering with selective customers to create superior value for thecompany with the customers. Day (2000) pointed out that the enterprise has to develop somekey marketing competencies for the smooth implementation of CRM. A relationshiporientation is the first such thing. Relationship orientation should permeate the mindset,values and norms of the organization. Further, the enterprise needs to continue to increase itsknowledge of the customers and ensure that it flows all over the organization. Finally there isa need for alignment and integration of processes. Ernst & Young (1999) observed thatenterprises investing on CRM solutions predominantly focus on technology. The challengelies in combining people, processes and technologies while implementing CRM Solutions.Davids (1999) observed that choice of relevant technology and implementation are keys tosuccessful customer relationship plans. The failure rate of CRM projects has been estimatedto be high. Groff et al (1998) observed that CRM facilitates better handling of the obstaclesof interweaving customer relationship strategy at all levels. It demands a holistic approachand process orientation.Reichheld & Sasser (1990) found that advancements in information technology, datawarehousing and data mining capabilities enable enterprises to manage individualizedrelationships with key customers. The benefits come by way of lower costs of customerretention, improved profitability and lower defection rates.Objective of the StudyThe main objectives of the study are:1. To analyze the extent of the implementation of CRM in MNC’s private sector banksoperating in India.2. To analyze the perceptions of the customers regarding the impact of CRM on servicequality.3. To evaluate the impact of CRM on customer retention.Research MethodologyInternational Journal of Research in Finance & Marketinghttp://www.mairec org 20

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)The study focuses on the CRM practices in private sector banks. For the purpose of analysis,the various dimensions of CRM have been formulated on the basis of the study carried out byN.O. Ndubsi and Chankok.Wah (2005) and further validated by J.G. Barnes in his book“Secrets of Customer Relationship Management”.Cronbach Alpha test has been used to validate the scale being used, giving the score of 0.89,leading to the inference that the scale is highly reliable. Likert’s 5 – point scale is used for thedata collection and for its suitability to establish the range and variation in the perceptions(Below 4: Poor; 4 to 5.5: Average; 5.6 to 7: Good; 7.1 to 8.5: Very Good: 8.6 to10:Excellent)Five aspects of service quality have been used to measures the gap between customerexpectations and experience, developed by Zeithamal, Parsuraman and Berry (1988) value,trust, commitment, communication and conflict handling. Lickert Scale 1 to 5 have been usedas 1 stands for strongly agree and 5 for strongly disagree. 1 to 13 - item scale developed byParasuraman, Berry and Zeithaml in 1996 in the Research paper entitled “Behavioralconsequences of service quality” for measuring customer retention have been used.Ten Private Sector banks have been taken for studying the sample for this study (Table-1).These banks have been chosen because they have a good market share and latest technology.The representative sample has been collected from the 10 Banks situated in Delhi and NCR.500 questionnaires were distributed among the customers of ten banks covered for the studybut 359 responses were received back from the customers of the above mentioned banks.Hypothesis formulationHypothesis 1Null Hypothesis: There is no difference in the CRM implementation in all private sectorbanks.Alternate Hypothesis: There is a difference in the CRM implementation in all private sectorbanks.Hypothesis 2International Journal of Research in Finance & Marketinghttp://www.mairec org 21

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Null Hypothesis: There is no relationship between CRM and service Quality.Alternate Hypothesis: There is a relationship between CRM and service quality.Hypothesis 3Null Hypothesis: There is no impact on customer retention using CRM in private sectorbanks.Alternate Hypothesis: There is an impact on customer retention using CRM on private sectorbanks.Analysis and InterpretationExtent of CRM Implementation in Private sector BanksThe first objective of this study is aimed at understanding the extent to which the CRM isimplemented by the different Private Sector banks. For this purpose, the customer’sperceptions about the CRM have been measured. The five dimensions on which CRM hasbeen perceived by the customer are value, trust, commitment, communication and conflicthandling. Table 2 depicts the customer’s perceptions of the implementation of CRM in thebanks where ICICI topped with 8.44 mean score and Karur Vaishya scores lowest with 3.94score. As it depicts, the overall mean score of CRM implementation is 5.17. This shows thatCRM implementation is average i.e. satisfactory. It shows that Private Sector Banks are usingCustomer Relationship Management technique but not aggressively to enhance theirCustomer base.Perceptions of customers regarding the Impact of CRM on Service QualityCustomers’ perceptions regarding the impact of CRM on service quality have also beenstudied which are based on the five-dimension model. For the purpose of this study, CRMhas been considered as the independent and service quality as the dependent variable. Therelationship between the two has been studied with the help of regression analysis as shownin Table-5. The results reveal the strength of the relationship between CRM and servicequality, and shows that 18% of the total variance in service quality is explained by CRM assuggested by the R2 value.International Journal of Research in Finance & Marketinghttp://www.mairec org 22

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)This indicates that service quality is a complex variable and is a function of many moreunderlying variables. Also, the beta values of CRM (0.432) are significant at 5% level ofsignificance as suggested by the t value as depicted in Table-6 & 7. This suggests that there isa positive relationship between CRM and Service Quality. From the analysis, it can beinferred that CRM has a moderate influence on service quality and thus appropriate stepshave to be taken by the private banks on this front.CRM and Customer RetentionThe next objective of the study is to analyze the impact of CRM on customer retention. Theanalysis of results obtained reveals the strength of the relationship between CRM andCustomer Retention. It can be observed that 63% of the total variance in customer retention isexplained by CRM as suggested by the R2 value shown in Table -8. The beta values of CRM(0.79) are also significant at 5% level of significance as suggested by the t value (Table-9 &10). This further suggests that there is a positive relationship between CRM and CustomerRetention. This leads to the rejection of the Null Hypothesis and acceptance of alternateHypothesis that CRM has a positive impact on customer retention.ConclusionInformation technology and the communication networking systems have a crucial bearingon the efficiency of money, capital and foreign exchange markets and have manifoldimplications for the conduct of monetary policy. In India, banks as well as other financialentities have entered the world of information technology and computer networking withINFINET.Like every other industry the financial services sector is also witnessing a plethora ofchanges. Facing umpteen challenges, the industry despite its phenomenal growth, haswitnessed a slump in some areas. The main reasons are changes, vast competition, increasedcosts, decreased efficiency, inadequate client relationships and poor sales processes.Something vital is needed to cut through the waves and make the sector boom. Organizationsneed to basically better their relations with their customers in an effort to sustain them.The financial services industry is now looking at customer focus as a means by which it canachieve lost profits. An acute focus on customer relationship management – CRM is beingInternational Journal of Research in Finance & Marketinghttp://www.mairec org 23

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)given. Adopting this strategy has slowly resulted in financial firms, venture capital, privateequity, investment banking institutions etc, achieving an increase in overall productivity.The dilemma that most financial institutions face is that they do not store their valuablecustomer data in a comprehensible or easily assessable manner. In an attempt to be moreprofitable, the banks have become competitive and more customer – oriented. This neworientation has compelled them to take a more pragmatic approach for conducting thebusiness. The CRM is one such tool which helps in meeting the customer’s expectationsaccording to their changing needs.While analyzing the CRM Implementation in private sector banks, it was found that fewPrivate Sector Banks have been able to implement the CRM practices. This indicates thatPrivate Sector Banks have been quite innovative in understanding their customers and inbuilding good relations with them but these will have to improve the level of efforts neededto keep customers satisfied. Further, it has been observed by analyzing the service qualitydimensions that trust and empathy of Private Sector Banks scored the least. Highest scores interms of assurance has been obtained. This indicates that the banks are in a dire need to makeproper strategies to improve their working and handling of the customers. This will make thebanks more efficient in serving the customers and in maintaining the long term relations withthem. The analysis of the results received on customer retention suggests that the banks areequally affected by the kind of CRM initiatives they undertake to retain the customers. Thebanks are now under tremendous pressure to retain the older customers because of thecompetition in the Banking Sector. This would not only ensure better customer relations butalso loyalty among them, which is very critical and important in today’s competitive world.CRM for financial services is actually benefiting the financial services sector. Obtaining,maintaining and basically utilizing a customer database in an effort to maximize or improvecustomer relationships will go a long way in increasing overall productivity. A failure tofocus on these relationships can prove detrimental while knowing and indulging yourcustomer preferences can go a long way in securing and raising profitability.REFERENCESInternational Journal of Research in Finance & Marketinghttp://www.mairec org 24

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Anand, S (2008), Customer Relationship Management in Indian Banks, Journal ofProfessional Banker, Dec. 2008 pp 66-70.Bholanath Dutta, CRM in Financial Services Marketing, Journal of Marketing Mastermind,Sept 2008.Davids M (1999), How to Avoid the 10 Biggest Mistakes in CRM, Journal of BusinessStrategy, Nov-Dec 1999, pp22-26.Day GS (2000), Managing Market Relationship, Journal of the Academy of MarketingScience Vol. 28 (1), pp – 24-30.Ed Thompson et al (2005), Organisations are beginning to think about CRM again,Management update, November, 2005.Kimberly, C et al (2005), CRM Marketing Strategies and Technologies Mature, Managementupdate, November, 2005.Parvatiyar A and Sheth JN (2001), Conceptual Framework of Customer Relationship inCustomer Relationship Management – Emerging Concepts, Tools and Applications, TataMcGraw Hill, New Delhi, pp. 3-25.Pisharodi R et al (2003), Relationship Strategy, Effectiveness and Responsiveness in ServicesMarketing, Journal of Relationship Marketing, Vol 2, No. 1, 2003 pp. 3-22. Rajiv Joshi,Customer Relationship Management: Free and Open Source CRM Software for SMEs,Journal of Marketing Mastermind, Dec. 2008.Sarangapani, A (2008), Customer Relationship Management in Banking Sector, Journal ofProfessional Banker May 2008 pp 39-47.Shainesh G and Sheth JN (2006), Customer Relationship Management – A StrategicPerspective, Macmillan India, New Delhi, pp 16-29.Sisodia R.S and Wolfe D.B (2000), Information Technology: Its Role in Building,Maintaining and Enhancing Relationships, in Handbook on Relationship Marketing, SagaPublications, pp 526-563.William, B (2005), Best Practices for CRM Deployment, The Forrester, December, 2005.www.dmnews.com/Datamonitor-suggests-orcle-SAP-likely-to-remain-atop-CRMmarket/article/98266.www.opensourcestrategic.com/ofbiz/index.php.www.atosorigin.com/enus/Services/Solutions/Systems_Integration/Solutions/CRM/.International Journal of Research in Finance & Marketinghttp://www.mairec org 25

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)www.crm – review.com/software 2. Php.ANNEXURETable 1:List of the Sample Banks1 ICICI BANK2 HDFC BANK3 DHANLAXMI BANK4 KARNATAKA BANK5 J& K BANKKOTAK MAHINDRA6BANK7 YES BANK8 AXIS BANK9 ING VYASA10 KARUR VAISHYA BANKTABLE-2Crm implementation in private sector banksIMPLEMENTATIONOF CRM (MEANVALUE)CUSTOMER RANKINGICICI BANK 8.44 IHDFC BANK 6.53 IIDHANLAXMI BANK 5.06 IIIKARNATAKA BANK 4.96 IVJ& K BANK 4.95 VKOTAK MAHINDRA BANK 4.74 VIYES BANK 4.73 VIIInternational Journal of Research in Finance & Marketinghttp://www.mairec org 26

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)AXIS BANK 4.37 VIIIING VYASA 4.18 IXKARUR VAISHYA BANK 3.94 XOVERALL MEAN 5.19TABLE- 3Service Quality Analysis in Private sector BanksPERCEPTION OFSERVICE QUALITY CUSTOMER RANKINGHDFC BANK 5.88 IICICI BANK 5.24 IIING VYASA 5.18 IIIYES BANK 4.64 IVAXIS BANK 4.34 VKOTAK MAHINDRA 4.22 VIKARNATAKA BANK 4.04 VIIJ & K BANK 3.64 VIIIKARUR VAISHYA BANK 3.54 IXDHANLAXMI BANK 3.54 XOVERALL PERCEPTIONMEAN 4.42TABLE-4Customer retention perception by private sector banksNAME OF BANK MEAN VALUE CUSTOMER RANKINGHDFC BANK 6.67 IKOTAK MAHINDRA 5.64 IIICICI BANK 5.4 IIIYES BANK 5.2 IVING VYASA 4.9 VInternational Journal of Research in Finance & Marketinghttp://www.mairec org 27

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)AXIS BANK 4.89 VIKARNATAKA BANK 4.87 VIIDHANLAXMI BANK 3.2 VIIIKARUR VAISHYA BANK 2.9 IXJ & K BANK 2.6 XOVERALL MEAN 4.627TABLE-5Model SummaryModel R R SquareAdjusted RSquareStd. Error ofthe Estimate1 .432 a .186 .184 .90388a. Predictors: (Constant), CRMTABLE-6ANOVA bModelSum ofSquares Df Mean Square F Sig.1 Regression 66.785 1 66.785 81.745 .000 aResidual 291.667 357 .817Total 358.453 358a. Predictors: (Constant), CRMb. Dependent Variable: SQTable-7Coefficients aUnstandardizedCoefficientsStandardizedCoefficientsModelB Std. Error BetatSig.1 (Constant) 3.187 .112 28.356 .000CRM .186 .021 .432 9.041 .000International Journal of Research in Finance & Marketinghttp://www.mairec org 28

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)Coefficients aUnstandardizedCoefficientsStandardizedCoefficientsModelB Std. Error BetatSig.1 (Constant) 3.187 .112 28.356 .000CRM .186 .021 .432 9.041 .000a. Dependent Variable: SQTable-8Model SummaryModel R R SquareAdjusted RSquareStd. Error ofthe Estimate1 .797 a .635 .634 1.73211a. Predictors: (Constant), CRMTable-9ANOVA bModelSum ofSquares df Mean Square F Sig.1 Regression 1863.876 1 1863.876 621.247 .000 aResidual 1071.077 357 3.000Total 2934.953 358a. Predictors: (Constant), CRMb. Dependent Variable: CRTable-10Coefficients aUnstandardizedCoefficientsStandardizedCoefficientsModelB Std. Error BetatSig.1 (Constant) .755 .215 3.506 .001International Journal of Research in Finance & Marketinghttp://www.mairec org 29

IJRFM Volume 1, Issue 3 (July, 2011) (ISSN 2231-5985)CRM .982 .039 .797 24.925 .000a. Dependent Variable: CRInternational Journal of Research in Finance & Marketinghttp://www.mairec org 30