Chapter -III Relationship Marketing Strategies Adopted by...

Chapter -III

Relationship Marketing

Strategies Adopted by the

Indian Banking Sector

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RELATIONSHIP MARKETING STRATEGIES ADOPTED BY THE

INDIAN BANKING SECTOR

3.1 CRM PRACTICES IN BANKS

3.1.1 ICICI and CRM

With Finacle, the bank currently has the ability to process 0.27 million cheques

per day and manage 7000 concurrent users.

The bank has successfully leveraged the power of Finacle and has deployed the

solution in the areas of core banking, consumer e-banking, corporate e-banking and

CRM. With Finacle, ICICI Bank has also gained the flexibility to easily develop new

products targeted at specific segments such as ICICI Bank Young Stars- a product

targeting children, Women's Account addressing working women and Bank@campus

targeting students.

The CRM initiatives in India’s ICICI Bank hold together its compelling story of

growth. Its growth in customer base, channels, and product and service offerings. The

ICICI bank is one of the private sector bank which is providing the customer value

added services. They are not only able to satisfy the customer but they are successful in

building a never-ending relationship with the customer. They are able to retain them

and carry business with them to benefit both the organization and the customer.

Customer preferences and needs are very well understood by this bank. With the help

of technology they are able to develop brand equity in the market and differentiate

themselves from the competitors. On the 19th of January 2000, a click and mortar made

an announcement that offered a clear but early measure of the impact of the "e" in e-

business. On that day the ICICI Bank released performance figures related to its

previous year’s dotcom initiatives. The company reported a staggering 500% increase

in Internet customers during the period from March 31, 1999 to December 31, 1999 –

from 4000 to 24,000 customers in 9 months. While the absolute number of 24,000 or

the growth of 500% might not mean much, it does speak volumes of the nascent

potential. ICICI Bank and the ICICI Group as a whole has been striding purposefully

down the e-pathway. The group prefers to call it a "clicks and bricks" strategy that

provides multiple access points to its customers. For its traditional customers there are

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the lean and mean brick and mortar branches propped by ATMs, call centers and direct

selling agents. Internet banking and WAP enabled services take care of the Supply and

technology savvy professionals of today. The rise in Internet banking customers is a

result of the Infinity, Internet banking facility launched by the bank. The facility,

initially made available to NRIs and later to resident Indians permits online opening of

accounts, bills payment, account information.

Call centers

ICICI Bank is certainly juggling some interesting numbers. Its Bombay call

centre handles 25 different products, for 10 million customers, with 620 positions. Now

ICICI Bank’s branch network handles less than half of all transactions – a shift which

has taken an axe to the company’s cost-to-serve. ICICI appreciated early on that by

centralizing their service infrastructure, and centralizing their service expertise, they

created a new level of service for customers.

The call centre has played a leading role in transforming the bank’s value

proposition for its customers: The call centre also provides an opportunity to shift the

qualitative nature of the relationship between bank and customer to a new level. Much

of the extra leverage with customers that the call centre brings is tactical. A customer is

a lot more receptive to up selling and cross selling when they’re phoning ICICI. The

humble call centre is ICICI Bank’s means of shifting away from a market share based

product-as-commodity mindset, to those stresses the importance of deepening exiting

customer relationship.

ICICI used to spend a lot of energy trying to make sales. Now their emphasis

has changed – they spend their energy to get to know the customer better. It is when a

customer feels comfortable with the relationship they have with ICICI that they are

likely to deepen their commercial relationship with them. The call centre is there new

tool to getting to know the customer better. The speed of the shift away from the branch

as the primary means of interacting with the bank shows the receptiveness of Indian

consumer behavior to the use of new channels.. The technology usage is far higher in a

call centre compared with any other environment. The call centre is a cheaper channel

than the branch, and often it is more convenient for the customer. This convenience can

be supported by technology to provide a higher level of service than was possible

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previously. All the products and process are unified in the single call centre – allowing

the customer to get a seamless service. So ICICI is therefore able to truly take a

customer centric customer view. ICICI is able to get a customer who has been rejected

from taking a credit card; they immediately offer a debit card.

The bank takes people who are first class graduates with a lot of yearning to

learn. Following a selection process that includes telephone, personality and literacy

tests, there is a post-recruitment process embracing a continuous learning program.

E-marketing

The e-initiatives of the ICICI group have not been limited to customer

servicing. The marketing activities for its various products are also taking the online

route. In April 2000, through tie-ups with Orange and Airtel, ICICI started offering

limited WAP based services for customers on the move. A month later, on its way

towards a full-fledged online mobile commerce service, the company commenced

offering services like balance updation, request for cheque book, details of last 5

transactions, request for statement etc. Corresponding services are also available for the

bank’s credit card customers. On the anvil are personal banking services, payment

services for utilities, travel and ticketing information etc.

Modus Operandi

The group has leveraged on a number of tie-ups to come up with its various

offerings. For its Internet banking offering the ICICI Bank uses Infinity from Infosys,

for its credit card business it uses Vision Plus from PaySys, USA. For WAP services

the tie-up with cellular service providers Orange and Airtel helps reach out to these

users, while the WAP technology is being implemented by the in-house ICICI Infotech

Services. To leverage the Net for its marketing initiatives, ICICI Bank and Satyam

Infoway have jointly set up a ".COM" company to promote banking products on the

Net. The bank has also entered into agreements with leading corporate like BPL,

Rediff.com, Usha Martin and Tata Communications for B-to-C solutions in a bid to

further strengthen its Internet banking product offering and services Payment systems

are perhaps the bane of any financial services company looking to move online.

Security and privacy are issues that every bank looking to move online is grappling

with. The ICICI Group has come up with its own answer to the problem. ICICI joined

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hands with a consortium led by Compaq to take the lead in offering a solution to the

Indian e-commerce community. This consortium offers a B2B and B2C e-commerce

payment gateway within India. The B2C payment gateway will help the Internet

shopper, the web merchant and the banks to engage in e-commerce, while the B2B

payment gateway will facilitate virtual transactions in the corporate world. CRM has

been envisioned by the bank to support its goals in sales, customer service, and

analytics. Already, about 30.40% of the bank’s home loans are cross-sold to existing

customers. Similar ratios have also been reported in the sale of insurance policies.

Ratios of about 50.60% have been seen out of the credit cards and personal loans

business. The bank’s stated intention is to take these ratios to as high as 60.75%. ICICI

Bank states that these high levels of relationship maximization are made possible by

how its CRM system is able to "know and understand the customer better”, which

customer is most suitable for what kind of product and at what point in time.

ICICI Bank’s CRM capability is built on a “Teradata” data warehouse that

integrates data from multiple sources, including the Oracle database and various flat

files. The system provides users with information about each customer’s checking

accounts, fixed deposits, credit cards, and other financial information. The bank has

taken on the end-to-end proposition of SAS for enterprise intelligence, which offers a

credible integrated approach to analytics, including data detection, data cleansing, data

preparation, event detection, reporting and business intelligence, and campaign

analysis. The bank estimates that it is able to track more than 1,200 parameters

concerning demographics, transactions made, channel usage, and product relationships.

Through Behavior Explorer and views, business users develop customer profiles and

run adhoc queries. Analysts then use the information to guide product development and

marketing campaigns that are intended to address each individual’s total requirements,

instead of just pushing a product. The success of cross-selling to existing customers has

also been enabled by the bank’s growing capabilities in lead management. The home

loans business unit, for example, has built a lead management system rolled out to

about 700 users. The system is able to allocate leads, schedule meetings, provide a

record of all interactions with the customer, and give reminders for customer follow-

ups. A lead generation tool has also been developed in-house to capture and route

Product applications made over mobile phones.

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CRM working of ICICI BANK

CRM, according to ICICI consists of following approaches:

[A] Getting personalized information on customers.

[B] What is the value of the relationship?

[C] Customized offerings to the customers

[D] Converting a prospective customer into a true customer.

[A] GETTING PERSONALIZED INFORMATION ON CUSTOMERS

The bank collects all the information about the customers for processing. ICICI

bank has mainly 4 service offerings viz: loan account, saving account, current account

and fixed deposits. Moreover, the bank has many customers in each category. So, they

collect the data on one server and thus the company gets the personalized information

on each customer by asking them to fill the information in customer application form.

[B] WHAT IS THE VALUE OF THE RELATIONSHIP?

After the collection of the personalized information on every customer, the

department checks out the value of the relationship with each and every customer.

Later, they decide how to approach the customer for knowing what his needs and wants

are? After this is done, the company offers him the customized product.

[C] CUSTOMIZED OFFERINGS TO THE CUSTOMER

The step which comes after deciding the value of the customer is that the

company offers the person the customized product. Moreover, they also practice a

concept called cross- selling over here. Cross – selling refers to offering another

product from the service offering of the bank to the customer which he has not gone

for.

[D] CONVERTING A PROSPECTIVE CUSTOMER INTO A TRUE

CUSTOMER.

The last approach of CRM according to ICICI bank is that they try to convert

the prospective customer into a true customer. Right from the moment the inquiry

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comes, they follow- up the customer and then make him to come to the bank

occasionally and then regularly.

The processes for delivering CRM-The tools and the processes are as follow –

• Customer application form

• Centralized software where the whole data is collected.

• Wide range of offering

• Cross – selling and

• Feedback forms

Different Channels for Access Services

Bank Branch ATM Phone Banking

Internet Banking Insta Banking Mobile Banking

Call Centre

3.1.2 HDFC and CRM

HDFC Bank is making all possibilities come true for its customers. The bank

offers targeted messaging and other customized services using NCR’s 'Aptra e-

Marketing' software. The bank runs one-to-one (customized) and one-to-all targeted

messaging via all self-service channels like the ATM, mobile banking and Internet

banking. Most banks do not have clean data of the customer with regards to residential

address and other details. This implementation helps HDFC Bank with a more thorough

analysis of the change in customer demographics and thus, plans their campaigns better

after being equipped with a thorough data repository in the data warehouse.

Along with targeted messaging, the bank is also offering fast ATM services.

HDFC Bank has launched ‘favorite transaction’ that allows the customer to set a

particular amount for withdrawal so that every time he visits the ATM he will not be

accessing the same screens. This has reduced the number of screens the customer must

access while using the ATM machine for withdrawing cash. Till now, the customer had

to access 9 screens, which has now been reduced to five screens, which has in turn

resulted in a reduction of 40 percent in the time taken to complete a transaction. The

customer also has the option to undo the 'favorite transaction' and go on with the

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regular screens. HDFC bank with a daily turnover of 300 transactions per day per

ATM, which adds up to about one million transactions per day. As part of the first

phase, HDFC Bank has made its ATMs across Pune, Nashik and Ahmednagar faster by

allowing customers to save their 'favourite transactions’’ on ATMs. In fact,

approximately 25 percent of Pune-based customers have already used the 'favorite

transaction' feature. HDFC is globally the first bank to use the entire suite of offerings

from Aptra e-Marketing; it has deployed everything except the call centre suite they

have been powered by the data warehousing, data mining, modeling and analytics

abilities and have structured data in the CRM to implement this software. The major

benefits from the implementation is saving about 40 percent of the transaction time at

the ATMs, ability to personalize communication via self-service channels enabling

active engagement with the customer, which further enhances the ability of the CRM

for analytics.

HDFC has revamped its corporate website in line with its communication

philosophy. The new improved, interactive, and user-friendly website is in sync with its

need-based communication strategy of helping individuals through their decision of

selecting the right plans that fit their needs.

• Protection: Need for a sound income protection in case of unfortunate demise of

an individual.

• Investment: Need to ensure long-term real growth of an individual’s money.

• Saving: Need to save for the milestones and protect an individual’s savings too.

• Retirement: Need to save for a comfortable life post retirement

The other salient features of the website are:

• Caters to all types of Internet users - advanced, moderate and new users

• Faster and convenient navigation (e.g. no need to use 'back page button;' access

to relevant and important links available on every web page)

• Key information at your fingertips. e.g. structured flow of key product

information and their features

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• Enhanced interactivity through user interaction and involvement (tools and

calculators)

• Modular structure making the website 'future ready' with flexibility to

accommodate restructuring and additional content in future

• Uses flash and other advanced software to provide a better surfing experience

to the user, but through its intelligence moves to a classic mode if the user does

not have the requisite software to view the same.

• Compatible with all browser s i.e. Internet Explorer 6 and above, Firefox

Mozilla, Safari, Opera and Google Chrome

• And compliant with W3C.

For HDFC, the CRM activities span three segments: Back-office, which enables

all transactions. For instance, a transfer of funds will involve recording the transfer

request, debiting and crediting the account appropriately and the transformation by

telex or demand draft. The back office enables the core activities of banking

transactions. Distribution of the bank's products and services in the market. That is,

enabling customer interaction through the Internet, ATMs, and the mobile phone.

HDFC's corporate customers need not visit the bank for many of their transactions

either. PC-based corporate banking lets authorized personnel in corporates open letters

of credit or pay suppliers and integrate the transaction with the ERP system. The third

sort of automation enables the business intelligence and CRM aspects of a bank's

business. HDFC Bank can analyze channel profitability. Say, determine which type of

customer access which channel the most, and evaluate the cost-benefits of offering a

service to customers. For cash management, they use a package from a Pune company

called CashTech. There Depository systems run on software provided by Mumbai-

based Kalpataru. For loans, that uses Nucleus Software. To provide round-the-clock

service and support to its customers, HDFC Bank has Unix-based systems from Sun

Microsystems as hosts for its banking software. It is in the process of moving the

application to a mainframe-class UNIX machine (the E10000 from Sun) .Many other

systems run on Intel-based Compaq or IBM hardware with Microsoft NT or Windows

2000 as the Operating platform. The systems are run on a centralized basis with the

branches accessing them via telecommunication lines (leased lines from the DoT). All

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departments within the organization were automated simultaneously. they work on a

centralized database, the addition of new branches and new cities made very little

impact on the day-to-day operations of the other existing branches. Every server at

HDFC Bank had its own direct attached storage that led to distributed storage upgrades

and inefficient use of storage. The storage sub-systems were not highly available and

resilient. Thus, to provide scalable, reliable storage systems, and a SAN environment

for all their applications, HDFC Bank opted for a solution from Hitachi Data Systems.

Playing in a dynamic market, where there is a constant need to innovate and stay ahead

of competition, HDFC Bank's objective is to build sound customer franchises across

distinct businesses, so as to become the preferred provider of banking services for

target retail and wholesale customer segments

HDFC Bank operates in an automated environment in terms of information

technology and communication systems. All the bank's branches have online

connectivity, which enables it to offer funds transfer facilities to its customers. Multi-

branch access is also provided to retail customers through the branch network and

ATMs. In terms of software, the corporate banking business is supported by Flexcube,

while the retail banking business by Finware, both from i-flex Solutions. The core

banking software is running on both IBM AIX and SUN solaris. The BI is running on

HP servers. It has various other banking applications on Microsoft and solaris servers.

The bank has prioritized its engagement in technology and the Internet as one of its key

goals and has already made significant progress in web-enabling its core businesses.

They have roughly more than 150 TB of storage on Hitachi technology. They

have their own production servers running on enterprise storage and entire test and

development servers on modular storage. Every server in the organization had its own

direct attached storage. This led to distributed storage upgrades and inefficient use of

storage. The organization has ordered around 75 TB of enterprise class storage and

about 30 TB of modular and SATA Storage for use by applications due to growth in the

business and addition of new applications to support existing and new business areas.

HDFC bank is using all ERP, CRM with BI, OLTP/RDBMS, e-mail from Lotus, core

banking, treasury management etc.; the complete capacity with production and test

development is more than 150 TB.

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HDFC Bank's customer philosophy is based on four core values-operational

excellence, customer focus, product leadership, and people.

3.1.3 THE CRM AT SBI

The need for system automation became critical at SBI. The challenge was to

meet the demanding service and fulfillment levels of the growing. SBI was on the

lookout for a technology solution that was easy to implement, cost-effective and robust

to expand its presence in the insurance sector and achieve a higher degree of service

differentiation. Although the organization had a centralized system, most of the work

was done manually. They had client/server architecture in place. But it was not

integrated with the legacy systems.

Early on, the top management realized that technology was a crucial driver for

product and service delivery. Although using the extensive SBI group platform for

cross-selling products and services was a viable option, reaching and engaging the

customer cost effectively required a technology backbone. Earlier, they had little

enterprise software to support its business and the processes were carried out in an ad

hoc manner.

Benefits

• Reduction in TAT (Turn Around Time).

• SBI can now integrate and manage content, campaigns and merchandising to

patrons via the Web.

• Streamlined product delivery and support processes with a single contact point

on the Web.

• Site offers a one-stop-shop for customer's needs.

There were hiccups as various centres had problems connecting to the CRM

portal, which have been solved. They are using multiple types of connectivity, leased

lines that terminate at the central data centre in Mumbai, broadband connections, dial-

up connections, telephone lines, etc. The type of connectivity depends on the number of

users in that particular branch and the kind of work being done there. They have their

mail server and other functionalities on the portal too.

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The development tool, WebLogic Workshop, is Java-based, allowing people at

SBI to develop and customize applications at a faster pace. Applications running on the

system permit the management of content, merchandise and campaign-related details.

The company has even moved its internal applications to the portal. Thus, even when a

staff member is working internally, he is working with an interface of a browser/portal.

What used to be on a client/server environment is now on the portal..

Functions like cash management, proposal details and issuing policies all

happen on the portal. Having deployed WebLogic, SBI is able to run its cycle-all its

processes right from claims processing to CRM-on the portal. Some features of the

system are load balancing, effective code deployment and clustering support (24x7).

Plans are afoot to use the portal for providing self-service to customers, partners and

employees. One can just come in, log on to the portal, and access any kind of

information.

SBI implemented the system in a different manner. With this initiative, SBI has

derived quite a few benefits. For instance, it has been able to reduce the Turn Around

Time (TAT). “Because of this initiative they could spot a few processes that would

otherwise never be realized. They have outsourced some routine work which was done

centrally and was manual. Now, irrespective of the location of the work, it’s done

through the portal and they are able to manage it better.

Saving time and money

Process improvements are evident. All of this happened with minimal system

changes without adding to the existing infrastructure The solution has also brought

down by 50 percent the time taken for specific processes like cash management. With a

view to understanding the data quality gaps and to develop a road map to closing them,

SBI engaged Spectrum Business Support Ltd's Data fix Solutions team (now Datafix

Technologies Pvt. Ltd.) to undertake a Data Quality Study and Audit (DQ Audit).

Data Quality Consulting and Audit.

Define Data Quality Audit Project Scope identifying DQ dimensions, gaps and

parameters to be studied.

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Data Quality Study including defining Business Rules and Domain Rules for

conducting the DQ Audit.

DQ Audit Process and presentation of results including listing of DQ problems

that would likely hamper SBI's information management and Customer Relationship

Management strategy.

Data De-duplication Pilot

• Pre-cleansing 3.3 million records data sourced from the Core Banking

application.

• De-Duplicating the records to arrive at Unique IDs.

• Identifying key customer relationship metrics based on unique individual and

household Ids.

SBI is equipped to develop a blue-print for their Customer Quality Initiatives to

create long-term competitive advantage. State Bank of India (SBI), India’s largest

financial services conglomerate has contracted to implement Anti Money Laundering

(AML) software AMLOCK from 3i Infotech Ltd .it helps the bank in managing its

government clients better. Cash@WillTM helps SBI improve revenue, maximize

profits, optimize costs, and establish efficient management systems to accelerate

growth.SBI is now using Nucleus Software’s Cash@WillTM for Drafts, Income Tax

Refund Orders (ITRO), Multi City Cheque (MCC) and Collections services. The

implementation was done in a phased manner where Payments and Collections

modules implemented initially were subsequently replaced by the newer version of

Cash@WillTM. Nucleus' Cash@WillTM will power the cash management product of

State Bank of India. It supports the bank in handling of government business like

ITRO, SBI rights issue. Nucleus Cash Management Solution Cash@WillTM built on

new generation technologies of Oracle empowers banks to offer their corporate

customers optimized cash management services, dramatically improving funds

collection and inflow forecasting, payment dispatch and funds utilization.

3.1.4 PUNJAB NATIONAL BANK AND CRM

PNB chose Spectrum Business Support's Insight solutions (now part of Insight

Technologies Pvt. Ltd.) to provide the Data-cleansing and Deduplication solution for

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the first 4.3 million records from branches. The following tasks were done by the

Ixsight team, using Scrubbix for Data-cleansing and Deduplix for Data Deduplication:

• Data Cleansing and Deduplication of Migrated Data.

• Generating exception reports of bad quality data based on various data quality

dimensions like invalidity, inaccuracy, missing values, precision etc.

• Developing onscreen validation routines which could be used by the Branches.

• Measuring success of validation and incorporating corrections back into the

system.

• Data De-duplication by identifying Unique Individuals and Households.

• Generating various Customer segmentation reports which could be used by

PNB's think tank.

The following key customer discoveries were part of the analysis:

- Top 20% of customers.

- Geographical and Demographic segmentation.

- Data Quality Analysis.

- Loyalty scores based on house holding.

November 2008, 4 months ahead of schedule, it implemented industry-leading

Finacle core banking solution from Infosys across its operations running a flexible, and

scalable database platform from Oracle and innovative and cost-effective Sun SPARC

enterprise servers from Sun Microsystems. With its pan India presence, PNB offers a

wide variety of banking services through its branches including 249 extension counters

– the largest amongst Nationalized Banks. With an increasingly dynamic business and

regulatory environment, PNB sought to not only achieve automation, but also centralize

operations, standardize branch processes, achieve high scalability for future business

growth, provide flexibility of creating innovative banking products to its lines of

business, and at the same time, reduce overall costs.

The visionary zeal and the futuristic view of the Bank’s top management in the

year 2000-2001 incubated the idea of introduction of a Centralised Banking solution.

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The bold and innovative thought culminated into the CBS architecture with Finacle

application on Oracle Database and Sun hardware platform with Solaris Operating

System. In 2001-2002, PNB embarked upon a transformation journey unparalleled in

the country in terms of scale and technology. The solution’s scalability has also enabled

the bank’s scalability to be the best in the country with the number of peak transactions

at 3.5 million. Finacle core banking platform also provides the bank with exceptional

agility for product innovation and improved flexibility of operations. With seamless

integration of delivery channels such as ATM and internet banking solutions, PNB is

able to provide 24X7 services to customers at a reduced transaction cost. Sun SPARC

enterprise M series and energy efficient Chip Multi-Threading (CMT) systems running

the Solaris Operating System delivered higher performance and scalability, enabling

PNB’s architecture to scale seamlessly. Periodic consolidation of servers and storage by

Sun Professional Services also delivered important benefits – optimizing compute and

storage utilization, reducing power, cooling and space costs significantly over a period

of time.

Sun technologies also ensured continuous availability of the banking platform

with the Disaster Recovery Site established by the bank and as part of test drills, the

Bank has successfully operated out of its alternative data centre (DRS). PNB’s choice

of the Oracle Database has provided the bank’s CRM infrastructure with robustness,

management features, security and scalability as well as performance requirements to

service 3.5 million transactions and 22500 concurrent users – a significant achievement

in the Indian banking industry.

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3.2 FACTORS OF RELATIONSHIP MARKETING :

The findings of the study obtained from the analyses of responses given by the

respondents. In this section, findings related to various research problems have been

presented. The findings have been organized around following two sections:

1. Descriptive Statistics.

2. Factor Analysis.

A1. Interpretation of factor analysis on to identify the factors of Relationship

Marketing influencing customer relationship in banking Sector.

Formal statistics are available for testing the appropriateness of the factor

model. Barlett’s test of sphericity is used to check the Hypothesis. Another useful

statistics is the KMO measure of sampling adequacy and Chi Square test. This index

compares the magnitudes of the observed correlation coefficients to the magnitudes of

partial correlation coefficient. Small values of KMO statistics indicate that the

correlation between the pairs of variables cannot be explained by other variable and

that factor analysis may not be appropriate. A value greater than 0.50 is must for doing

factor analysis, Very high Chi Square value is desirable to good results.

From table 1, it is evident that the KMO value is 0.687 which is higher than the

critical minimum value i.e. 0.50. Also, Chi Square value is very high i.e. 991.7 which is

quite high to justify the condition to proceed with factor analysis.

From above analysis, it is evident that our data is fit for Factor Analysis.

Table 3.1: KMO and Bartlett’s Test of Sphericity

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .687

Bartlett's Test of Sphericity Approx. Chi-Square 9.917E3

Sig. .000

Next step is to determine the method of factor analysis. There are two methods

of factor analysis. One is Principal Component Analysis (PCA) in which total variance

in the data is considered. The diagonal of the correlation matrix consist of unities, and

full variance is brought into the factor into the matrix. PCA is recommended when

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minimum number of factors are to be determined that will account for maximum

variance in the data.

In Common Factor Analysis, the factors are estimated based on the common

variance. Communalities are inserted in the diagonal of the correlation matrix. This

method is appropriate when primary concern is to identify the underlying dimensions

and common variance is of interest.

We need to determine the minimum factor with that account for maximum

variance in the data, therefore for our set of data Principal Component Analysis is

suitable method.

First six factor account for 72.33% variance. Number of factor decided should

represent minimum 60% variance.

Component matrix or factor matrix as given in table 2 contains the coefficients

used to express the standardized variables in terms of factors. These coefficients, the

factor loading, represent the correlation between factors and variables. A coefficient

with large absolute value indicates that the factor and variable are closely related. The

coefficient of the factor matrix will be used to interpret the variables.

Table 3.2 is initial un-rotated matrix, indicates the relationship between the

factors and individual variables, it sometimes results in factors that cannot be

interpreted easily because the factors are correlated with many variables. In table 3.2,

there are few factors which are correlated with more than one factor. With such

equation, it is not possible to interpret the factors. For simplification of this problem,

factor matrix is rotated and transformed into a simple matrix form which is easy to

interpret.

Table 3.2: Un-rotated Component Matrix.

Variables COMPONENTS

1 2 3 4 5 6

I am really closer to some of the employees than to bank itself.

.443

My bank offers greater deposit rate than normal. .583

Today, it is more difficult and complicated to do banking. .506

I feel my money is safe with the bank. .601

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My bank provides free credit card with savings bank accounts.

.491

I would not like to avail all new services stated by my bank in future.

.389

My bank helps me to sort out any problem in doing with Internet Banking.

.612

I feel that the bank does not cares about me. .403

I am treated with respect by the bank staff. .497

Doing banking with internet banking is more difficult. .516

Phone banking is more convenient. .445 .496

My bank does not provides me overdraft facility with savings/current account

.512

Further discounts on services by my bank help me to deal with the same bank.

.492

My bank keeps on providing information about its new schemes regularly.

.511

My bank does not offers me a free Demat Account. .475

My bank does not offers me a concessional rate of interest on term loan.

.553

My bank does not updates itself with the changing environment.

-0.558

My bank wishes me on various occasions. .497

Manager does not pays attention to my complaints, if any. -0.613

My bank does not offers me flexible timing/convenient banking hours.

.472

Bank manager is always available to help in a crisis. .512

I can rely on my bank for changing future requirements. .482

Bank does not includes me in its priority list of the customers

-0.511

I feel good when bank wishes me on special occasions. .446

I get the feeling that bank really cares about me. .513

My bank provides free demand draft on savings bank Account.

.487

My bank offers zero (0) balance facility to my family members accounts.

.514

Moving my account to another bank is not worth. .482

My bank provides all information regarding terms & conditions about the product before delivering.

.446

96

My bank provides cheque collection facility from home/work place.

.511

My bank provides cash deposit or withdrawal facility from home/work place.

.525

I refer banks’ service to my friends and relatives. .448

My bank does not provide facility of a locker on concessional rate.

.522

I would like to buy more financial products from the same bank in future.

.447

My bank helps me to sort out any problem in doing Phone Banking.

.426

I always share “new services” with my friends and relatives offered by the bank.

.499


.513

I want my bank should offer more innovative products in future.

.474

Bank Provides adequate parking facility. .448

Bank staff is always well dressed. .456

Front desk employees have adequate knowledge about banking services.

.447

Décor/Layout of the bank is up to mark. .512

Bank uses advanced computers /information technology to serve its clients.

.523

Bank/Branch holds monthly meeting with its customers. .485

Location of the branch is approachable. .462

Location of ATM is always at accessible place. .427

Bank provides proper sitting arrangement to its customers. .422

Service counters are well labelled by bank. .458

ATM of the bank provides Bill payment, money transfer facility with ease.

.488

The purpose of rotation is that each variable should give us significant loading

with one factor only (if possible). If several factors have high loading with more than

one factor, interpretation become difficult as we have seen above in table 3.2 of un-

rotated component matrix. Rotation does not affect the commonalities and the

percentage of total variance explained. The variance explained by each the individual

factor is redistributed by rotation. We have used “VARIMAX” procedure which is

97

most common method of rotation used in factor analysis. This is an orthogonal method

of rotation that minimizes the number of variables with high loadings on a factor and

hence increasing the interpretability of a factor.

Table 3.3: Rotated component Matrix

Variables COMPONENTS

1 2 3 4 5 6

I am really closer to some of the employees than to bank itself.

.458

My bank offers greater deposit rate than normal. .778

Today, it is more difficult and complicated to do banking. .477

I feel my money is safe with the bank. .463

My bank provides free credit card with savings bank accounts.

.658

I would not like to avail all new services stated by my bank in future.

.691

My bank helps me to sort out any problem in doing with Internet Banking.

.584

I feel that the bank does not cares about me. .497

I am treated with respect by the bank staff. .512

Doing banking with internet banking is more difficult. -0.526

Phone banking is more convenient. .816

My bank does not provides me overdraft facility with savings/current account

-0.481 -0.512

Further discounts on services by my bank help me to deal with the same bank.

.669

My bank keeps on providing information about its new schemes regularly.

.558

My bank does not offers me a free Demat Account. -0.449

My bank does not offers me a concessional rate of interest on term loan.

-0.609

My bank does not update itself with the changing environment.

.534

My bank wishes me on various occasions. .578

Manager does not pays attention to my complaints, if any. -0.479

My bank does not offers me flexible timing/convenient banking hours.

-0.551

Bank manager is always available to help in a crisis. .548

I can rely on my bank for changing future requirements. .664

98

Bank does not includes me in its priority list of the customers

-0.452

I feel good when bank wishes me on special occasions. .611

I get the feeling that bank really cares about me. .489

My bank provides free demand draft on savings bank Account.

.664

My bank offers zero (0) balance facility to my family members accounts.

.473

Moving my account to another bank is not worth. .695

My bank provides all information regarding terms & conditions about the product before delivering.

.583

My bank provides cheque collection facility from home/work place.

.611

My bank provides cash deposit or withdrawal facility from home/work place.

.623

I refer banks’ service to my friends and relatives.


-0.497

I would like to buy more financial products from the same bank in future.

.577

My bank helps me to sort out any problem in doing Phone Banking.

.498

I always share “new services” with my friends and relatives offered by the bank.

I want my bank should offer more innovative products in future.

.662

Bank Provides adequate parking facility. .712 .587

Bank staff is always well dressed. .564

Front desk employees have adequate knowledge about banking services.

.427

Décor/Layout of the bank is up to mark. .719

Bank uses advanced computers /information technology to serve its clients.

.419

Bank/Branch holds monthly meeting with its customers. .501 .485

Location of the branch is approachable. .689

Location of ATM is always at accessible place. .614

Bank provides proper sitting arrangement to its customers. .592

Service counters are well labeled by bank. .704

ATM of the bank provides Bill payment, money transfer facility with ease.

.598

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

99

Table 3.3 shows the rotated component matrix having crystal clear relationship with

each factor has with different variables. The factors are summarized as below:

Factor 1 – Variables:

1. My bank offers greater deposit rate than normal. (0.778)

2. My bank provides free credit card with savings bank accounts. (0.658)

3. Further discounts on services by my bank help me to deal with the same bank.

(.669)

4. My bank does not offer me a free Demat Account. (-0.449)

5. My bank does not offer me a concessional rate of interest on term loan. (-

0.609)

6. My bank provides free demand draft on savings bank Account. (0.664)

7. My bank does not provide facility of a locker on concessional rate. (-0.497)

Rotated component matrix having crystal clear relationship with each factor has

with different variables. The correlation between factor Financial Benefits and its

variables shows different factor loadings i.e. .778, .658, .669, -0.449, -0.609, .664, -

0.497. Factor loading 0.778, 0.658, 0.669 & 0.664 shows that providing greater deposit

rate, discount on services, providing free credit card and demand draft shows clearly

providing banking services on discounted prices which clearly show providing

financial benefits. Negatively associated variables shows a correlation with a factor.


1. I would not like to avail all new services stated by my bank in future. (0.691)

2. My bank wishes me on various occasions. (0.578)

3. I can rely on my bank for changing future requirements. (0.664)

4. I get the feeling that bank really cares about me. (.489)

5. Moving my account to another bank is not worth. (0.695)

6. I would like to buy more financial products from the same bank in future.

(0.577)

7. Bank/Branch holds monthly meeting with its customers. (0.501)

8. I want my bank should offer more innovative products in future. (0.662)

Name to the factor 1: - Financial Benefits

100


with different variables. The correlation between factor Long term Contract and its

variables shows different factor loadings i.e. 0.691, 0.578, 0.664, 0.489, 0.695, 0.577,

0.501, 0.662. Factor loading 0.691, 0.664, 0.695 & 0.662 shows availing new services

in future, changing future requirements, and providing innovative product in future

clearly shows dealing with bank in coming future, which clearly shows long term

contact with bank.


1. I am really closer to some of the employees than to bank itself. (0.458)

2. I feel that the bank does not care about me. (0.497)

3. I am treated with respect by the bank staff. (0.512)

4. My bank does not update itself with the changing environment. (0.534)

5. Manager does not pay attention to my complaints, if any. (-0.479)

6. Bank manager is always available to help in a crisis. (0.548)

7. Bank does not include me in its priority list of the customers. (-0.452)

8. I feel good when bank wishes me on special occasions. (0.611)

9. My bank offers zero (0) balance facility to my family members accounts.

(0.473)

10. My bank provides cheque collection facility from home/work place. (0.611)

11. My bank provides cash deposit or withdrawal facility from home/work place.

(0.623)

12. Bank uses advanced computers /information technology to serve its clients.

(0.419)


with different variables. The correlation between factor Proactive marketing and its

variables shows different factor loadings i.e. 0.458, 0.497, 0.512, 0.534, -0.479, 0.548, -

0.452, 0.611, 0.473, 0.611, 0.623, 0.419. factor loading 0.611, 0.611 and 0.623 shows

bank wishes his customers on various occasions, providing cheque collection facility

Name to the factor 2: - Long Term contract

Name to the factor 3: - Proactive Marketing

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from home/work place and cash deposit or withdrawal facility from home/work place

depicts that bank works on new marketing techniques, so banks bank are providing that

techniques which is new in market and these new techniques are not used by service

industry, so it is clear that banks are working on Proactive Marketing techniques.

Negative factor loading -0.479 and -0.452 shows negative correlation between

factor and its variables, it means manager pay attention to customer complaints and

bank is maintaining priority list of the customers. It means banks are working on new

techniques of marketing like proactive marketing.


1. My bank helps me to sort out any problem in doing with Internet Banking.

(0.584)

2. My bank keeps on providing information about its new schemes regularly.

(0.558)

3. My bank provides all information regarding terms & conditions about the

product before delivering. (0.583)

4. My bank helps me to sort out any problem in doing Phone Banking. (0.498)

5. Front desk employees have adequate knowledge about banking services (0.427)

6. Bank/Branch holds monthly meeting with its customers. (0.485)


with different variables. The correlation between factor Knowledge Building

Programme and its variables shows different factor loadings i.e. 0.584, 0558, 0.583,

0.498, 0.427, 0.485. Factor loading 0.584, 0558 and 0.583 shows bank helps its

customers in doing banking with internet banking, providing information about new

schemes and inform its customers regarding all term and conditions about the product

shows providing knowledge or increasing knowledge of its customers depicts the factor

as a Knowledge Building programme.


1. Today, it is more difficult and complicated to do banking. (0.477)

Name to the factor 4: -Knowledge Building Programme

102

2. Doing banking with internet banking is more difficult. (-0.526)

3. Phone banking is more convenient. (0.816)

4. My bank does not provide me overdraft facility with savings/current account. (-

0.512)

5. My bank does not offer me flexible timing/convenient banking hours. (-0.551)

6. Bank Provides adequate parking facility. (0.712)

7. Location of the branch is approachable. (0.689)

8. Location of ATM is always at accessible place. (0.614)

9. ATM of the bank provides Bill payment, money transfer facility with ease.

(0.598)


with different variables. The correlation between factor Convenience and its variables

shows different factor loadings i.e. 0.477, -0.526, 0.816, -0.512, -0.551, 0.712, 0.689,

0.614, 0.598. Factor Loading 0.816, 0.712, 0.689, 0.614 and 0.598 shows convenience

about phone banking, adequate parking facility, branch location is easily approachable,

ATM is at accessible place and provides bill payment, and money transfer facility with

ease shows all banking operations having importance of convenience while dealing

with bank


1. I feel my money is safe with the bank. (0.463)

2. Bank staff is always well dressed. (0.587)

3. Décor/Layout of the bank is up to mark. (0.719)

4. Bank provides proper sitting arrangement to its customers. (0.592)

5. Service counters are well labelled by bank. (0.704)


with different variables. The correlation between factor Visibility and its variables

shows different factor loadings i.e.0.463, 0.587, 0.719, 0.592, and 0.704. Factor

loading0.719, 0.704, 0.592, and 0.587 shows decor/layout of the bank, well labelled

Name to the factor 5: - Convenience

Name to the factor 6: - Visibility

103

counter, proper sitting arrangement and well dressed staff all these variables depicts

about the visibility as a factor.

RELIABILITY ANALYSIS:

Scale validation is mandatory while doing factor analysis. It is measured

through Chrombach alpha. The desired value of Alpha should be above 0.60 (Malhotra

6e). From table, it can be seen that the alpha value is .759 which is good enough to

satisfy the condition and justifies the correctness of the scale used.

Table 3.4: Reliability Statistics through Chronbach’s Alpha

Chronbach’s Alpha Chronbach’s Alpha Based on Standardized Items N of Items

.759 .759 16

Component matrix or factor matrix as given in table 4 contains the coefficients

used to express the standardized variables in terms of factors. These coefficients, the

factor loading, represent the correlation between factors and variables. A coefficient

with large absolute value indicates that the factor and variable are closely related. The

coefficient of the factor matrix will be used to interpret the variables.

3.3 Managers Output

By review of literature, we have defined various statements, which by making

or applying factor analysis, we find six factors of relationship marketing, these are:

1. Financial benefits.

2. Long term contact.

3. Pro-active Marketing.

4. Knowledge Building Programme.

5. Convenience.

6. Visibility

Based on the above factors, we have prepared the questionnaire for the

managers on the basis of statements recorded for customer survey. So to identify

104

relationship marketing strategies adopted by Indian banking sector or to find which

sector is aggressive in which area, we compare mean values of both public sector as

well as private sector banks by taking statements on factor wise analysis.

STANDARD DEVIATION: It (represented by the symbol sigma, σ) shows how much

variation or "dispersion" exists from the average (mean, or expected value). A low

standard deviation indicates that the data points tend to be very close to the mean; high

standard deviation indicates that the data points are spread out over a large range of

values.

For considering mean value, lesser the value of mean shows strongly Agree

and higher value represents strongly disagree.

FACTOR 1:- FINANCIAL BENEFITS

Table: 3.5: Factor of relationship marketing- Financial benefits (Managers

view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN

Private Sector Banks

S.D

Public Sector Banks

Bank provides higher rate of interest than its competitor.

100 2.21 1.06 3.29 0.90

Bank offers free credit card with savings/current accounts.

100 3.65 1.28 2.92 1.3

Bank provides free Demat account with various other accounts.

100 3.68 1.23 2.57 1.19

Bank provides locker facility on discounted rates to its existing customers.

100 3.99 1.17 2.84 1.21

It is easy to retain customers for longer period of time by providing more discounts on services.

100 2.13 .92 1.87 1.06

Explanation of above table:

1. Bank provides higher rate of interest than its competitor:- It is very clear that

Managers/employees of public sector bank says some positive words in this

regard as compare to private sector banks. Mean (2.21) value of public sector

105

bank is towards (agree) & mean value (3.29) value of private sector bank is

towards (disagree). So public sector banks are having upper hand in this regard.

2. Bank offers free credit card with savings/current accounts: - It is clear from the

analysis that Managers/Employees of public sector bank does not have positive

words in this regard as compared to private sector banks. Mean value (3.65) of

public sector bank is towards (Strongly disagree) and mean value (2.92) of

private sector bank is towards (Sometimes). So both public as well as private

sector banks have denied for providing this facility to customer free of cost. But

private sector bank have slightly upper hand in this regard as compared to

public sector banks.

3. Bank provides free demat account with various other accounts:- It is clear from

the analysis that Managers/Employees of public sector bank does not have

positive words in this regard as compared to private sector banks. Mean value

(3.68) of public sector bank is towards (disagree) and mean value (2.57) of

private sector bank is towards (Sometimes). So both public as well as private

sector banks have denied for providing this facility to customer free of cost. But

private sector bank have slightly upper hand in this regard as compared to

public sector banks. So it is suggested to both public as well as private sector

banks that they should insist customer for free demat account, this helps bank to

implement cross selling initiative and earn brokerage charges.

4. Bank provides locker facility on discounted rates to its existing customers: - It is

clear from the analysis that Managers/Employees of public sector bank do not

have positive words in this regard as compared to private sector banks. Mean

value (3.99) of public sector bank is towards (disagree) and mean value (2.84)

of private sector bank is towards (Sometimes). So both public as well as private

sector banks have denied for providing lockers on discounted rates. As it is

experienced that managers of public sector banks said that there is a non

availability of lockers in their branches for more customers, so there is no

reason of giving discounts on locker services. So it is suggested to public sector

banks that they should increase the number/availability of lockers in their

banks.

5. It is easy to retain customers for longer period of time by providing more

106

discounts on services: - It is clear from the analysis that managers/employees of

both public as well as private sector bank have positive words in this regard.

Mean value (2.13) of public sector bank is towards (agree) and mean value

(1.87) of private sector bank is towards (agree). So employees of both public

sector as well as private sector banks agree that they should give some special

discount on services to their existing customers, to retain them for a longer

period of time.

FACTOR 2:- LONG TERM CONTACT

Table: 3.6: Factor of relationship marketing- Long term contact (Managers view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN


S.D

Public Sector Banks

Bank wishes his customer on different

occasions. 100 3.43 0.87 2.24 1.01

Does your bank organise any

seminar/customer meet. 100 1.83 0.99 2.75 1.25

Do you listen to the complaints of your

customers 100 1.62 0.77 1.70 0.84

Do your customer feel that their bank

really cares about them 100 2.23 1.05 1.89 0.87

Relationship managers make an effort to

build long term relation with customer. 100 1.77 0.79 1.54 0.60

Customers rely on their bank for changing

future requirements. 100 2.84 0.86 1.76 0.86


1. Bank wishes his customer on different occasions: - It is very clear that

Managers/employees of public sector bank do not have positive words in this

regard as compared to private sector banks. Mean value (3.43) of public sector

bank is towards (disagree) and mean value (2.24) of private sector bank is

towards (agree). So it is clearly shown from the analysis that private sectors

banks are ahead from public sector banks in this regard. So public sector banks

107

has to work in this matter, because wishing their existing customer can enhance

customers dealing with bank for a longer period of time.

2. Does your bank organise any seminar/customer meet:- Mean value (1.83) of

public sector bank is towards (agree) and mean value (2.75) of private sector

bank is towards (sometimes). So public sector banks have slightly upper hand as

compared to private sector banks. So it is suggested to organise

seminar/customer meet on regular basis, which helps bank to give knowledge to

their customers about new products and to enlarge long term dealing with

customers.

3. Do you listen to the complaints of your customer: - Mean value (1.62) of public

sector bank is towards (agree) and mean value (1.70) is also towards (agree). So

it is clear from the analysis that both public as well as private sector banks are

listing to the complaints of the customers. So this activity has to be properly

executed and resolve the customer concerns, so to maintain longer dealing of

the customers with the bank.

4. Do your customers feel that their bank really cares about them: - It is clear from

the analysis that managers/employee of both public as well as private sector

banks are having almost same view in this regards. Mean value (2.23) of public

sector bank and mean value (1.89) of private sector bank is towards (agree) on 5

point likert scale. So banks should maintain their environment in their banks, by

doing this they can enhance customers dealing with bank for longer period of

time.

5. Relationship managers make an effort to build long-term relation with

customers: - Mean value (1.77) of public sector and mean value (1.54) of

private sector banks of both type of sector of banks is towards (agree). So

employees/managers of both public as well as private sector bank agree on this

point that relationship managers really make efforts to build longer term

relations with customers. And it also clear from the previous findings that

relationship marketing strategies are not properly implemented in both public as

well as private sector banks. So it is advisable for both types of banks that they

should consider or implement this strategy in their bank properly for longer

period of contact with customers.

108

6. Customers rely on their bank for changing future requirements: - It is clear from

the analysis that private sector banks are having upper hand as compared to

public sector banks. Mean value (2.84) of public sector bank is towards

(sometimes) and mean value of private sector bank is towards (agree) on five

point likert scale. So it is clear that managers of public sector bank also think

that that they are behind as compared to private sector banks in terms of

providing new-era banking to their customers properly. So it is advisable for the

public sector banks that they should work in this area by enhancing use of

technology and giving training about new –age banking to their employees.

FACTOR 3:-PROACTIVE MARKETING

Table: 3.7: Factor of relationship marketing- Proactive marketing (Managers view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN


S.D

Public Sector Banks

Does your bank offer zero balance facility on

customers’ family accounts. 100 3.16 1.32 2.54 1.32

Is your bank providing cheque collection

facility from customers’ place of

residence/work.

100 4.14 1.14 3.02 1.18

Is your bank providing the facility of cash

deposit or withdrawals from customers’ place

of residence/work.

100 4.31 0.93 3.17 1.05

Are some of the employees maintaining

personal relations with customers to deliver

their product/services.

100 2.41 0.90 2.30 1.10

Is your bank maintaining any priority list of its

customers. 100 3.26 1.18 2.76 0.86


1. Does your bank offers zero balance facility on customers family accounts:- Mean

value (3.16) of public sector bank is towards (sometimes) and mean value (2.54) of

private sector bank is (well between agree and sometimes) on five point likert scale.

So it is clear from the analysis that both public as well as private sector banks are

109

not considering this strategy as a marketing strategy. So it is suggested to both type

of bank that they should introduce this as a new marketing strategy in their banks

properly.

2. Is your bank providing cheque collection facility from customers’ place of

residence/work: - It is clear from the analysis that private sector bank has slightly

upper hand in this regard. Mean value (4.14) of public sector bank is towards

(disagree) and mean value (3.02) of private sector bank is towards (sometimes) on

the five point scale. So it is clear that both types of banks are not considering this as

a marketing strategy, or this type of new initiative in their banks. So banks has to

consider this as marketing strategy, because new banks are using this as very well

and today’s busy world customer does not have a time and by this customer get

attraction and avail this service.

3. Is your bank providing the facility of cash deposit or withdrawal from customers’

place of residence/work: - It is clear from the analysis that private sector bank has

slightly upper hand in this regard. Mean value (4.31) of public sector bank is

towards (disagree) and mean value (3.17) of private sector bank is towards

(sometimes) on the five point scale. So it is clear that both types of banks are not

considering this as a marketing strategy, or this type of new initiative in their banks.

So banks has to consider this as marketing strategy, because new banks are using

this as very well and today’s busy world customer does not have a time and by this

customer get attraction and avail this service.

4. Are some of the employees maintaining personal relations with customers to deliver

their product/services: - Mean value (2.41) of public sector and mean value (2.30)

of private sector banks is towards (agree) on five point likert scale. It is clear from

the analysis that both type of banks are positive in this regard. And it is also clear

that, if employees are maintaining personal relations with customers to deliver their

products, they can indulge them with their bank for longer period of time. So it is

very important for the bank, that they should encourage their employees for this.

5. Is your bank maintaining any priority list of its customers: - Mean value (3.26) of

public sector bank is towards (sometimes) and mean value (2.76) of private sector

bank is also towards (sometimes). It is clear from the analysis that

managers/employees of both banks have mix response in this regard. So it is

110

suggested to both type of banks, that they maintain priority list of its customers on

branch wise and assigned a relationship manager to them, so that proper care of

preferred customers is to be taken properly. This type of new marketing strategies

to be implemented by the both type of banks to cater its customers.

FACTOR 4:-KNOWLEDGE BUILDING PROGRAMME

Table: 3.8: Factor of relationship marketing- Knowledge building

programme (Managers view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN


S.D

Public Sector Banks

Front desk employees do not have adequate

knowledge about the banking services. 100 1.96 0.83 2.03 1.11

Does your bank help the customers to work with

technology driven banking. 100 2.06 0.92 1.78 0.91

Does your bank make you and the customer

aware about its new scheme. 100 1.76 0.81 1.69 0.78

Do the bank employees explain term and

conditions to the customers about a product

before delivering.

100 2.81 0.72 3.31 0.89


1. Front desk employees do not have adequate knowledge about the banking services:

Mean value (3.21) of public sector banks and mean value (3.11) of private sector

bank is towards (sometimes). It is clear from the analysis that managers of both

type of banks are not fully convinced with the statement, they are of view that front

desk employees are not having full knowledge about banking services. So banks

should work in this area, banks should arrange time to time training programmes of

their employees.

2. Does your bank help the customer to work with technology driven banking:- Mean

value (2.06) of public sector banks and mean value (1.78) of private sector bank is

towards (agree). So it is clear from the analysis that both private as well as public

sector banks are working in this matter well as per the employees/managers say. So

111

banks have to continue this in their banks. So more and more customers will use

banking products with new technology like phone banking, Mobile Banking,

Internet banking, ATM Services, RTGS, Online shares purchase/sale etc. So that

customers visit in the branch is to decreased, by which bank can reduce its cost per

transaction.

3. Does your bank make you and the customers aware about its new schemes:- Mean

value (1.76) of public sector banks and mean value (1.69) of private sector bank is

towards (agree), so it is clear that both public as well as private sector banks have

positive words in this regard, so banks has to continue this in their banks, by

informing customers about new schemes, banks can retain its existing customers for

longer period of time.

4. Do the bank employees explain term and conditions to the customers about a

product before delivering:- Mean value (2.81) of public sector bank is towards

(sometimes) and mean value (3.31) of private sector bank is towards (between

sometimes and disagree). So it is clear from the analysis that banks are not

explaining term and conditions to the customers about the product before delivering

the product. So it is suggested to both type of banks that they should explain all

things to the customers before delivering the products, so that no confusion would

be created afterwards. So customers will not leave the bank by any

miscommunications.

FACTOR 5:-CONVENIENCE

Table: 3.9: Factor of relationship marketing- Convenience (Managers view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN


S.D

Public Sector Banks

Bank provides adequate parking facility to

its customers. 100 2.85 1.12 2.98 0.98

Does your bank offers flexible

timing/convenient banking hours to its

customers.

100 3.19 1.17 2.21 1.25

It is very difficult to do banking through

internet. 100 2.26 1.24 3.68 1.02

112


1. Bank provides adequate parking facility to its customers:- Mean value (2.85) of

public sector bank and mean value (2.98) of private sector bank is towards

(sometimes). So it is clear from the analysis that both public sector as well as

private sector bank does not give any positive response in this regard, managers

give mix response, So it is suggested to both type of banks that while opening

any new branch, they should consider about providing proper parking facility,

because it is very much important now a days, by providing this convenience to

customers banks can retain its existing and attract new customers with their

bank.

2. Does your bank offers flexible timing/convenient banking hours to the

customers:- Mean value (3.19) of public sector bank is towards (sometimes) and

mean value (2.21) of private sector bank is towards (agree). So it is clear from

the analysis that private sector bank has upper hand in this regard as compared

to public sector banks. So it is suggested to public sector banks that they should

work in this regard, because it is very important for the banks to cater the needs

of working class customers, they can do their banking after their working hours

or on Sundays. So banks should assign some special branches in particular city

to cater more and more customers.

3. It is very difficult to do banking through internet: - Mean value (2.26) of public

sector bank is towards (agree) and mean value (3.68) of private sector banks is

towards (disagree). So it is clear that managers of public sector banks find it

difficult to do banking through internet as compared to private sector banks. It

is so because most of the employees in public sector banks are more than 40

years of age. So this age group is not using internet more. So it is suggested to

public sector banks that they should train their managers/employees about E-

banking. So if managers are comfortable in doing banking with internet, then

only they should make sure about their customers will feel easy to do banking

with internet.

113

FACTOR 6:- VISIBILITY

Table: 3.10: Factor of relationship marketing- Visibility (Managers view point)

STATEMENTS

N MEAN

Public Sector Banks

S.D

Public Sector Banks

MEAN


S.D

Public Sector Banks

Decor/layout of the bank is up to mark. 100 2.18 0.97 1.43 0.60

Bank provides proper sitting arrangement to its customers.

100 2.68 1.17 2.12 1.25

Service counters are well labelled by bank. 100 2.49 1.24 2.33 1.02


1. Decor/layout of the bank is up to mark: Mean value (2.18) of public sector bank is

towards (agree) and mean value (1.43) of private sector bank is towards (strongly

agree). So it is clear from above analysis that managers of private sector banks feel

more that decor/layout of the bank is up to mark . as managers of public sector

banks also has positive words in this regards, but some managers are having

concern, so public sector banks scores less as compare to private sector banks. So

public sector bank has to work in this regard.

2. Bank provides proper sitting arrangement to its customers: Mean value (2.68) of

public sector bank is towards (less than sometimes) and mean value (2.12) of

private sector bank is towards (agree). So it is clear that private sector banks have

upper hand in this regard. So it is suggested to public sector banks that they should

work in this regard, so that customer feel ease in the branch while doing banking

transactions.

3. Service counters are well labelled by bank: - Mean value (2.49) of public sector

banks and mean value (2.33) of private sector bank is towards (agree). So most of

the managers of both public sector as well as private sector banks have positive

words in this regard. Labeling a counter makes easy for a customer to go to right

counter directly, by which they can save their time while doing transactions in the

bank and it is also an advantage to bank that they deal more and more customers in

same time.

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