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CHAPTER-III

A CONCEPTUAL FRAME WORK OF CRM

3.1 INTRODUCTION

Customer Relationship Management (CRM) is a comprehensive strategy

and process of acquiring, retaining and partnering with selective customers to

create superior the company and the customer.

It is implicit in the above definition: the purpose of CRM is to improve

marketing productivity. Marketing productivity in achieved by increasing

marketing efficiency and by enhancing marketing effectiveness. In CRM,

marketing efficiency is achieved to co-operate and collaborative processes to

help in reducing transaction costs and overall development costs for the

company. Two important processed of CRM include proactive customer

business development and building partnering relationship with most important

customers. These led to superior mortar value creation (Sivakumar: 2001).

In the global economic scenario, new trade blocks are emerging and

international competition is zooming. It involves replacement of sheltered

culture of industry and business by competitive world wide environment and

the organizations have to reconsider everywhere their traditional strategies and

methods of operation. In the emerging scenario, the LPG strategy has brought

sea changes in the banking sectors that have started rocking the bottom lines of

many Indian public sector banks. Globalization is transforming the financial

services industry significantly by shifting the advantages from the providers of

financial services to the users. With the revolution of information technology

the traditional role of the banks which used to be that of „Money Lending‟ has

assumed broader dimensions. With competition gaining ground, banks are

trying to adopt innovative approaches to retain their existing business. One of

the recent innovations in the service industry, particularly in the banking sector,

in many part of the world is “Customer Relationship Management” (CRM). It is

in this context, that the customer service has to be critically analyzed and with

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the appropriate strategies drawn up, not only to attract new customers but also

to retain the existing one.

3.2 CUSTOMER RELATIONSHIP MANAGEMENT

Relationship marketing some times is referred to as CRM. CRM is a

relationship process which an organization can cultivate with its customer

segment in such a way that it could benefit both the customer and

organizations. The growing expectations of the customers, fast changing

preference and opportunities available to him as a consumer has made him the

king in true sense. Customer satisfaction is a growing concern for the banks that

want to grow in this competitive world of today.

The concept of CRM is now gaining wide acceptance and is recognized

as a powerful tool for business development and to have an edge over the

competitors on account of the universal traits of human behavior. Organizations

has focused earlier on their products as the starting point and then looked

around for customers to sell it. But the approach of CRM is different – it starts

with the customer not the totality of customers because every customer is an

individual and thus exact customer has to be dealt individually to find out what

they want and accordingly design the products as per their need and supply. In a

nut shell, CRM is about growing endurable relationship with profitable

customers.

In financial services, nationalized as well as new generation private banks and

foreign banks introduced customer friendly products and services like (Francis:

2005).

Account Statements

ATM (automated teller machines)

Any Where Banking

Credit Card/ Debit Cards/ Smart Cards

Corporate Banking Terminals

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EFT (electronic funds transfer)

ECS( electronic clearing systems)

Electronic Data Interchange

Home Banking

Internet Bank

INFinet (Indian financial network)

Integrated Payment and Settlement Systems (IPSS)

Internet Banking

Mobile Banking

MICR Cheques

Online Banking

Point of sale terminal

Real Time Gross Settlement (RTGS)

SPNS (shared payment network system)

Tele-Banking

Universal Banking

24 hours Banking

24 hours toll-free customers call centers

CRM focuses on customer retention by adopting a customer oriented

strategy to delight their customers rather than just aiming at their satisfaction. It

makes the use of the relevant technology available for the purpose. But it

should be remembered that proper planning and care is exercised before its

implementation to see that the steps are taken for the customer oriented attitude

to percolate throughout the organization. This alone can guarantee its success,

especially in view of the large investment that the CRM technology entails. The

technology helps only in enhancing the relationship with the customers by

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offering guidance and easy access to the analyzed information about customer

and other related matters.

CRM adoption is very popular with financial institutions world over

than any other type of industry. Some new generation banks in India have

already adopted it. But the Indian PSBs do not seem to have given a thought to

it yet. May be it is time now for those in authority to give a thought about its

suitability to the Indian public sector banks and then plan its proper

implementation if they would help these banks to improve their customer

orientation.

Customer orientation is the attitude of a concern towards its business

wherein it places emphasis on listening to customers with a view to maximize

their satisfaction with the concern and its products. Such a concern aims at

maximizing the long term satisfaction of a customer even at the expense of

losing immediate sale. In contrast, a „Sale Oriented‟ organization encourages

opportunistic means with a focus on immediate sales even at the cost of long

term customer satisfaction. (Hugar: 2008)

Thus, a customer oriented organization is the one which

Constantly thinks and talks about its customers

Continuously assesses its customers‟ perception

Resolves priority issues in favour of its customers.

Gives in, compromise, and adds value to its customers.

Makes amendments to customers for avoiding poor treatment

Employs “whatever it takes” policy to satisfy special needs.

Redesigns the processes, redeploys the resources when they get in the

way of service quality.

The Indian public sector banks have treaded a unique path since their

time of inception. They were born in a competitive regime. After

nationalization they faced a totally regulated, non-competitive atmosphere with

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a social responsibility at their heart. Now, they are trudging the path of

regulated-competitive regime with the knowledge that nothing less than a

strong global competition environment seems to have made them to forget what

exactly a customer-oriented organizations.

3.3 IMPLEMENTING CRM

Implementing CRM is the most important factor. This is not a simple matter.

If you attempt to implement a CRM package without knowing how implementations

work, it is likely that you will face problems throughout the project and you could be

in for a fait and a big one at that it could even be a job termination.

Implementation on a larger scale is not covered here as they are more

complex in scope and methodology. They have a different set of problems and

often a larger team.

3.3.1 CRM implementation steps

3.3.1.1 Pre-Implementation

The timeframe on this one varies from several weeks to several months

according to the depth of preliminary work that your company needs to do, for

example, in this timeframe, the decision is made to go with E-crm

implementation.

Your selection criteria must be sharp and you must have some reference

to help you to identify the established customer and new customer. Some of the

criteria for the selection one:

Scalability of software

Toolset flexibility for customization

Stability of the existing CRM application with legacy systems and

internet systems.

Level of technical support available during and after the implementation

Upgrade support.

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3.3.1.2 The Commencement Meeting

This meeting should take two or three days during which the customer

and the partner decide what responsibilities are assigned to and to whom. The

team members meet each other and the chemistry for the implementation is

established.

3.3.1.3 Project Manager

The project manager is responsible for all aspects of the implementation on

including cost control, quality and testing, and customer satisfaction. Since, the

PM may be managing several projects simultaneously and usually may not be

available the required time. If there is a problem, the PM is the person to whom

consult and the one who is expected to work out the solution.

The project manager represents consulting services partner or systems

integration. If there are changes in the Statement of Work (SOW). They should

be a change management process in the place which is approved by both the

customer and the implementation services company.

3.3.1.4 Implementation Leader

This person is also the technical leader. He is responsible for dedicated

to only the one project at a time. However, he does not resolve the problems of

the project. This has been done by the project manager‟s team.

3.3.1.5 Project Manager

The project manager owns the project from the customer‟s point of

view. That means the PM is in relationship with the partner‟s PM. This

project manager filters any suggested changes in the Statement of Work

(SOW), prior to a discussion with the partner PM on changes. This PM is also

the one who approves the pricing for the change. We should not do any changes

free of cost.

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3.3.1.6 Administrating or Networking Staff

People, who are maintaining and setting up the network, should ensure

that there is no significant downtime or problems during the implementation

period. Actually, that has to do this all the time. Because a good deal of an

implementation process involves working the bugs out of it, the stress on the

system can be great.

3.3.1.7 Integration Professional

This expert is a charge of integration of CRM with other information

systems. This person has to have specialized skills to interact with the other

information systems.

3.4 BANKER-CUSTOMER RELATIONSHIP

Banking is basically a service industry. Its main functions include

interalia, acceptance of deposit from economic units having surplus in their

budgets and making available the same to economic units having deficits in the

current budgets. Traditionally, a banking institution was considered purely on

business concern aiming at maximum private profit while performing its

functions.

The commercial banks as financial intermediaries‟ creators and

purveyors of credit can help in accelerating the process of economic

development of the country by encouraging domestic savings and by

mobilizing such saving for productive investments.

Thus, one of the Indian banking systems in the context is therefore, “to

develop the banking habit among the population in the country”. This is the

dynamic role which the Indian Banking system is expected to play in the

context of development of country (Chaudhary: 2002)

From the basic functions of accepting deposits and lending loans the

banks in India have evolved to a higher level where they see for themselves an

increasing role in nation-building. Banks have also become customer-centric

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with an attractive range of services and products. With the universal banking

concept catching up, the customer has also become more demanding.

Banks are also increasingly trying to extend credit to rural areas through

micro financing to support agricultural activities. To top up income, banks have

moved away from their regular avenues of asset generation to fee-based

incomes generated through activities such as bancassurance and wealth

management for customers. So you are no longer insurance, mutual fund and

stock broking services for a nominal fee.

But it will be increasing customer demands and come as challenges.

Stability in banking sector directly depends on a sustainable monetary and

credit policy. The recent hike in interest rates by RBI to check the follow of

credit money has become a challenge for banks as they have to manage the

rising deposit costs to remain profitable. A buoyant economy has ensured that

banks continue to witness a strong demand for credit. (Sreevalsan Menon:

2006)

There are many challenges before a banker today. The rising interest

rates and the subsequent narrowing margins are going to pose problems for

banks and they will have to manage their cost structure efficiently. It‟s a tight-

rope walk for bankers today who in no way can compromise on services.

Getting deposits is another difficult task. Today, people have so many

avenues of investment away from banking sector like a booming stock market,

one are more area is required. However, we would focus on deposit services to

attack them back.

Nothing is as difficult as managing the customer expectation. The

challenge is to bring back personal customers to branches where they can get

personalized financial services. Branches must become a place where they can

spend some time, voluntarily, and learn a lot about personal finance. The

technology enabled the customer to be away from banks but now, he needs to

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be brought back. Other challenges include competition and finding the best

people. (Rajan Ghotgalkar: 2006)

The role of banks in the intermediation of financial needs of different

classes of customers has undergone significant changes. For the sake of

convenience, banks‟ various roles vis-à-vis their customers can be broadly

categorized as (i) accept of deposits (ii) credit providers (iii) providers of

payments and remittance services (iv) provider of foreign exchange services (v)

facilities in circulation of currency notes/coins, and (vi) providers of financial

instruments.

Technology emerged as the backbone of banking operations,

revolutionizing service delivery through new platform and channels. But it

became evident gradually, these developments created more challenges for the

customer in terms of service quality, non-human interface, unsolicited

marketing of products, ever-increasing fine-prints on documents etc. all of

which got compounded on account of basic financial unawareness on the part

of the ordinary customer.

The committee focused on the inadequacy in banking services available

to common person and looked into the need to (i) benchmark the current level

of service (ii) review the progress periodically (iii) enhance the timeliness and

quality (iv) rationalize the processes taking into account technological

developments, and (v) suggest appropriate incentives to facilitate change

ongoing basis. Following the committee‟s recommendations, various important

customer service regulations were issued, notable among them being the

survivor/ nominee of a deceased depositor, simplifying the KYC requirements,

collection of cheques and facilitating operations in bank accounts.

Simultaneously, a series of measures within as well outside the banks to

improve the quality of customer service.

All the banks were advised to constitute a customer service committee

of the board with a view to strengthening the corporate governance structure in

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the banking system and also bring about ongoing improvements in the quality

of customer service provided by the banks. (Shyamala Gopinath: 2008)

The new delivery channels and improved access to customer

information have changed the equation between the banks and customers.

Telebanking is a well-known example in this regard. Internet banking which is

in an embryonic stage in Indian banking is another example. In the absence of

these gadgets, traditionally, customers were getting reasonably speedily and

accurate service. In the new era of on-line interaction, the direct access to

account information has more or less resolved the customer concerns both, on

speed and accuracy. Computing earlier was used to process the transaction

based data in the customer accounts. It is now possible for banks to exploit the

information for a variety of purposes. They can seize an opportunity to market

and sell their on-line like fast moving consumer goods. Additional financial

services like bancassurance can be extended to existing customers and

prospects. The targeted approaches of this kind can facilitate micro marketing

to satisfy the needs of individual customers. Relevant new product offerings

based on the available information and knowledge can be made by the banks

hereafter.

Human tendency is to believe in what is seen. The technological

facilities is the interaction between banker/customer from remote places as

well. Trust in this business relationship is the core of banking. Reciprocally,

bankers and customers should be having more faith in each other than before.

Security measures are provided by technology but they are a supplement and

not substitute to the reciprocal confidence.

Banks obtain the data information in an integrated form irrespective of

the delivery channel. Its providers have thus become the information vendors.

The knowledge created at banks is not only helpful in excelling in customer

service but can also, in the long run, cause minimization of marketing

expenditure. As such, the whole fabric of banker-customer has undergone and

will undergo a change. The emphasis is more on sharing and partnering.

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Customer service in banks means satisfying the needs of customers, at

the right time, and in a right manner. It is necessary that bankers tailor their

services to the needs of customers and not vice versa. A large portion of

customer‟s complaints arises because of the disparity between customer

expectation and bank services.

Products offered by banks have been changing over years, particularly in

recent years. These products are getting refined and revised in the light of

customer need, but not promptly enough or adequately and hence

dissatisfaction arises. There are abnormal delays in receiving payments and

customers have to wait indefinitely without anybody attending to them properly

at the counter. Even the issue of cheque book takes twenty to thirty minutes

because the officer is always busy with cheques, vouchers and registers.

Updating of pass book also long time.

3.5 ELEMENTS IN DELIVERY OF CUSTOMER SERVICES

Delivery system for customer services comprises of five elements:

Speed

Timeliness

Accuracy

Courtesy

Concern

3.6 CAUSES FOR CUSTOMER DISSATISFACTION

There are various reasons caused by customer dissatisfaction. They are:

Delay and inaccuracy in putting through transactions;

Delay and inadequacies in correspondence;

Delayed, faulty and unhelpful decision-making;

Absence of elementary discipline;

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Undue emphasis of staff in observance of rules and procedures;

Inconvenience associated with credit appreciation;

Lack of uniformity in bank charges;

Customers being viewed as a faceless unit; and

General attitude of unconcern and apathy for clients.

3.7 DIMENSIONS IN IMPROVING CUSTOMER SERVICES

Banks should carry out their activities to improve customer services

based on these facets:

Motivation and Orientation Staff

Systems and Procedures

Management Methods

Handling of Complaints

3.7.1 Employee Motivation and Orientation

Bank employee should have the knowledge of various schemes. They

should be in a position to understand the customer‟s requirements and

recommend appropriate schemes. Training of the staff counts in areas like

prompt cash payments and receipts at the counter, efficient pass book and

statements service, prompt collection and remittance services and patient

attention to complaints. Training for bank personnel should be highly practical

and meaningful. Acquiring correct attitude towards customers is also very

necessary to provide efficient customer services. A Customer Relations forums

are enabled to interact with customers provide scope for promoting better

understanding of customer related issues.

More human contacts with customers offer twin benefits of better

employee happiness and better customer services. The campaign for opening

new accounts may be conducted by the employees or when a customer comes

to the bank for talks with the manger, the concerned employee may be called to

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the cabin, introduced to the customer and the problem may be discussed jointly.

Good customer attention and the service for will flow only when people

working in banks or satisfied lot. In performing an activity the employee has to

be enabled to perceive its inter linkages with other related activities which

together make a total function. The work environment in the bank, where a

person spends about 8 to 9 hours in a day has to be happy one, if the employee

has to be motivated to work. The most important factor in this regard is the

leadership provided by the branch manager and the overall of commitment

created by him.

3.7.2 Systems and Procedures

The banking industry is facing severe strains in the area of customer

services, internal control, over accounting and utilization of financial as well as

human resources. The system and procedures designed decades ago in a totally

in a different environment had not been kept pace with the changing

environment and responded to the changing demands. The systems and

procedures should be simplified also.

3.7.3 Computerization and Mechanization

The greatest challenge before the banking sector today is the changing

profile of the bank customers especially in urban or metropolitan areas. The

customers in such areas are not only getting progressively younger but also

more sophisticated and familiar with computer and modern technology. The

growing volume of business and the number of clientele and raising personnel

costs, leave no alternative but to work towards improving efficiency with the

aid of new media and computers in the years to come.

Adoption of modern technology is not just for the purpose of

sophistication or even as a showpiece, but for achieving a clear goal of bringing

about significant improvement in customer service and internal accounting.

Accounting efficiency is the cornerstone of any financial organizations like a

bank, where errors could be detrimental to the image of the bank. Clearing is

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another area in which customer complaints continue to persist. Computerization

is of a prime importance for the smooth working of trade and commerce and

particularly of imports and exports.

Introduction of computers for front office banking at some of the large

banking centers will result in immediate and the visible improvement in the

customer service. Time required for cashing of chques and other instruments

will be reduced. Issue of demand drafts and other instruments will be speeded

up. Pass book could be maintained up to date and also printed legibly.

Statement of accounts could be provided in timely fashion. The general ledger

sheet is also available in the same day. It is possible to have the transactions of

different branches also recorded at same regional computers‟ centers of the

bank for safety reasons. Payroll and portfolio management are two other areas

for timely processing of information. Credit card system, traveler cheque

system and foreign exchange system can be computerized. Advances in

communication technology have new dimensions for bringing together

computers to form large computer networks. Computer network facilitate a

large amounts of data across the communication facilities like telephones,

coaxial cables or satellites at very high rate and great accuracy.

The Indian bank has already been progressed in this direction by

securing a station for SWIFT network. This is wholly dedicated to transfer of

data between the numbers of financial institutions in a worldwide basis.

Similarly, some of the banks are exploring the possibility of expecting funds‟

transfer by developing communication links at the metropolitan cities within

the country. In course of time, Electronic Funds Transfer (EFT) between

computer of different banks and customers. Computerization in banks will have

to be taken up in a phased manner.

3.7.4 Management Methods

Once, the largest segments are identified by applying market

segmentation approach, schemes need to be formulated to meet the needs of

largest customers. The deposit scheme could be a loan linked or otherwise. A

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recurring deposit scheme would not be suitable for agriculturist. A scheme

which facilitates them to save unequal amounts even at irregular intervals

during a fixed total period would be suitable and the interest paid as regular

monthly return to the farmers would be helpful for him. Another target group

can be retired employees. Retired employees generally do not prefer to take risk

and they are mostly bothered about prompt service, accuracy and attention

when they visit branch premises. Banks are having pension or provident fund

schemes.

The State Bank of India is having „perennial pension plan‟ and also

introduced „Educated‟ for parents or guardians of students to offer financial

assistance for the education of their children, MEDICAID is the another

scheme of SBI which assists government pensioners with loans to meet their

medical expenses to provide customer credit for purchasing customer durable.

SBI has „Small Saving Bit Purchase‟ scheme and „The Big Buy‟ scheme. These

schemes help clients to acquire high value consumer durables like Scooter, TV

sets, Air-conditioners and cooking ranges etc. even for purchasing computer the

SBI has „Computer Loan‟ scheme. The majority of the recommendations made

by the working group on customer service in banks were implemented in most

banks. Bank management is also been alive to the situation and in the past a

great deal of time and effort has spent in the area of improving banking

services.

3.8. NEW ERA IN CUSTOMER SATISFACTION

Introduction of Ombudsman scheme is another step in this direction. It

is a mechanism for redressal of customer grievances in a quick and less

expensive manner. The OMBUDSMAN attends to customer‟s complaints

related to certain key areas which remain unresolved at the bank level and

facilitate satisfaction of such complaints. On exercise of powers conferred

under Banking Regulation Act, 1949, the Reserve Bank of India announced the

OMBUDSMAN Scheme, on June 14th 1995 covering all the scheduled

commercial banks in India. This scheme was further extended to 134 scheduled

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primary co-operative banks on June 17th 1995. Regional Rural Banks have

been kept out of the purview of the scheme for the time being. So, ombudsmen

have been appointed for all states of India.

Indian banks‟ association has favoured ombudsman for banks for

redressal of bank customer grievances so that customer complaints are

heard and speedily dispensed by ombudsman who should be a retired high

court judge. This saves the customer the delay involved in going for long

drawn litigation. The appointment of ombudsman is expected to result in

improved customer service and provides quality and speedy redressal of

grievances.

3.8.1 Benefits of OMBUDSMAN Scheme

The scheme of the Banking. Ombudsman is a landmark event in the

Indian banking industry. The changed banking scenario calls for fair and

effective redressal of complaints when things go wrong or some dissatisfaction

arises. The customer satisfaction has become the first and the foremost aspect in

bankers‟ success.

It is inexpensive

Ombudsman is an independent authority from banks themselves and

his decisions are binding on banks.

Ombudsman is only a one man team because in most of the disputes

neither the complainant nor the banks represented, though they can be

represented.

Ombudsman functions informally. It does not rely upon the cases put

up to it by the relevant parties.

The awards of the OMBUDSMAN are binding on the banks, but the

complainant, if he does not accept the ombudsman‟s decisions, retains the right

to proceed through the court in the usual way.

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3.8.2 Complaints concerning the deficiency in services

The banking ombudsman will look into complaints regarding deficiency

in service such as:

Non-payment delay in the payment or collection of cheques, drafts or

bills.

Non-acceptance of small denomination notes and for charging

commission.

Non-issue of drafts.

Non-adherence to prescribed working hours by branches.

Failure to honour guarantee or letter of credit commitments by banks.

Claims in respect of unauthorized or fraudulent withdrawals from

deposit account etc.

Complaints pertaining to operations in any account, such as delays, non-

credits of proceeds to parties accounts, non-payment of deposit non-

observance of RBI directives, applicable to rate of interest on deposits

etc.

Delays in receipt of export proceeds, handling of export bills, collection

of bills etc. provided the said complaints pertain to the bank‟s operations

in India.

NRI complaints in relation to their remittances from abroad, deposits

and other bank related matters.

3.8.3 Complaints concerning loans and advances

Non-observance of RBI directives on interest rates.

Delays in sanction or non-observance of prescribed time schedule for

disposal of loan applications.

Non observance of any other directions or instructions of RBI, as may

be specified for this purpose.

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3.8.4 Handling customer complaints

Customer complaints falling under the purview of OMBUDSMAN may

be broadly classified into two categories:

Complaints concerning the deficiency in service and

Complaints concerning non-observance of the RBI directives on interest

rates, delay in sanction or delayed disposal of loan applications in

particular and other directives in general”.

3.9 EFFICIENCY: THE CORNER STONE OF CUSTOMER SERVICE

Efficiency is one of the pearls of wisdom relating to excellent customer

service. To this opinion of a manager of SBI is quoted below.

Though all the ingredients in behavioral science are important still on a

deeper analysis it boils down to mainly efficiency and the rest is plain common

sense. This becomes especially true for our front line staff. A careful thought

about what makes us efficient is very simple. If these aspects are taken care of

by us most of our customers as well as profit figures of the bank will be happier

and healthier.

1. To start with “be in your desks in time”. If these aspects are unnecessary

hurry, which often results in mistakes (some times very costly) and

heated arguments with customers.

2. “Start work immediately”. Often, though we are at our desks on time

still we waste time in unnecessary gossip with our colleagues. The result

is a long queue at the counter. Once a long queue is formed, it requires

fast services.

3. Greater effort to clear the rush, due to human tendency of feeling the

pressure.

4. “Customer‟s time is important.” Dispose him off as quickly as possible.

Sometimes he may like a cup of tea or glass of water but most of the

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time he will be interested in getting his work finished quickly and

correctly.

5. While working we often hear many customers talking and making wild

accusations against all and sundry. Don‟t involve yourself in unwanted

arguments. The arguments will delay the work and cause additional

amount of stress.

6. “Listen to the customer‟s requirements”‟ it is a well-known fact that

many customers are unsure of what they have to do. Therefore, we are

often flooded with requests to see whether the voucher/form filled by

them is correct. It takes less time to satisfy the request than replying,

“Go to the Enquiry Counter.”

7. “Follow rules to help the customer and not to harass them.” Rules are

made for the orderly conduct of the work; they should not be used to

avoid and delay the work. Most of the complaints received in the bank

are those, which if handled with little more concern and a desire to help

the customer, would not have occurred at all.

8. “Tyr to find a solution to customer‟s problems.” The customer generally

is not aware of the banking processes. If he has a problem he should be

guided suitably in a manner and language understood by the customer.

If the above simple rules of work were to be followed by us it will

increase our efficiency thereby enhancing our image and respect among

customers as well as our own colleagues and superiors. Work place will get

transformed into a playful and enjoyable place”.

Source: Harish Kher: Customer Care October-2004.

3.10 CUSTOMER EXPECTATIONS

Bank is a service industry. A natural question to ask is- “what does a

customer expect from Bank”? Customer expectations transcend beyond

“products”. It is therefore, imperative for banks to adopt specific systems and

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procedures as well as thought to manage the customer‟s expectations. His

expectations are broadly as follows.

1. He is received and listened to properly

2. He is properly guided and doubts cleared.

3. Bank personnel are present at their desks/counters well in time.

4. The premises are clean and well organized.

5. There is warmth and understanding

6. His letters/ queries are promptly attended to and communicated.

3.10.1 Customer Service in the Bank:

The bank has over the years institutionalized a certain set of guidelines,

systems and procedures to be followed, to show that they care for the

customers. The following structured forms are put in place towards this end.

1. Customer day- 15th of every month.

2. Customer relations programme- monthly/quarterly.

3. Customer service committee meeting-monthly/quarterly.

4. Branch management committee meeting- at desired frequency

5. Customer service improvement plan

6. Customer‟s grievances redressal mechanism at branch/Zonal Office

7. Customer service audit for compliances with Goiporia committee

recommendations.

8. Complaint cum suggestion box

9. Upkeep of premises

10. Customer conveniences

11. Convenient layout for smooth work flow

12. Motivate frontline staff for providing excellent customer service

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13. Update job cards and arrange of periodical briefing

14. Improve skill/knowledge and reorient attitude of staff through structured

on-site training

3.10.2 Complaint Management:

It is well documented that complaints are only a feedback for

improvement. A customer cares to complain because he wants to continue with

the bank. If not he would rather quietly move over to some other bank. Every

complaint is an opportunity to reinforce bank‟s commitment to the customer,

which results in greater customer royalty. The major areas under complaints

are:-

1. Delay in collection is the single largest component (22 percent)

2. This is closely followed by opening/ operation/ transfer of accounts

and delays in remittances

3. Staff misbehavior accounts for 4 percent of the complaints.

3.10.3 Complaints can be managed by:

1. Identifying and followed up complaint prone branches.

2. Conducting survey of branches on complaint management and

redressal system.

3. Identifying and rewarding complaint free branches.

4. Taking steps to achieve zero complaint status.

3.11. TEN COMMANDATIONS OF CUSTOMER SERVICE

1. A customer is the important person in any business.

2. A customer is not dependent on us; we are dependent on him

3. A customer is not an interruption in our work; he is the purpose of it.

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4. A customer does us a favour when he calls; we are not doing him a

favour by serving him.

5. A customer is a part of our business-not an outsider

6. A customer is a human being with feelings and emotions

7. A customer is not someone to argue with; nobody ever won an argument

with a customer

8. A customer is one who brings us his needs; our job is to fulfill those

9. A customer comes back only if an organization is courteous to him and

gives him a good treatment.

10. A customer is the life-blood of any business.

94

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