Crm Banking Sector Essay Example for Free

Crm Banking Sector Essay A study of customer perception of CRM initiatives in the Indian Banking Sector Vanisha Oogarah-Hanuman Lecturer Faculty of Law and Management University of Mauritius Sharmila Pudaruth Lecturer Faculty of Law and Management University of Mauritius Vinod Kumar Research Scholar Department of Management Studies School of Management Pondicherry University Victor Anandkumar Reader Department of Management Studies School of Management Pondicherry University ABSTRACT Purpose: To investigate the front-end effectiveness of CRM strategies in the banking sector in India by studying the customer perception of CRM initiatives. This is an empirical research which is descriptive in nature and relied mainly on primary data collected through a structured questionnaire to study the perception of Indian customers. Findings: Banks operating in India have failed to impress their customers on their CRM efforts. Various CRM initiates and dimensions measured in this study report unfavorable response. This under-performance has occurred in spite of technological developments and new processes in place Practical implications: The findings will have useful implications for Banks operating in India in order to think in line with the customers’ response. The study emphasizes the importance of retaining profitable customers for a lifetime and the growing importance of CRM in order to better satisfy customers in the Indian Banking Industry. Originality/value: Crucial aspects pertaining to CRM in the Indian banking sector had been under-researched and the aim of the present study is to have a broadened investigation of the CRM initiatives adopted by Indian banks. The study provides a discussion on the concept of CRM in the Indian banking sector and proposes recommendations to assist the banking sector on how to nurture profitable, long-term relationships with the customers Volume:01, Number:04, August-2011 www. theinternationaljournal. org Page 1 1. Introduction In today’s banking environment, it is becoming difficult to build and maintain strong and lasting relationships with customers. In fact, the challenges of building strong customer relationships have become even greater for banks with the emergence of e-business, diffusion of innovations and agile new competitors in the banking sector. The introduction of Customer Relationship Management has provided banks with a driving philosophy, a reoriented information system and a communication tool that helps to create invaluable and knowledge based relationships. Therefore, banks are developing a continuing long-term business relationship with customers and they are shifting their focus from market share to mind share of customers. The literature review has focused on the importance of CRM in the banking sector and the importance of maintaining profitable relationships with banking customers, which in turn leads to profitability through customer loyalty. Close relationship with customers will require a strong coordination between IT and marketing departments to provide a long-term retention of selected customers. Accordingly, this paper will aim to investigate important attributes which customers value as far as customer relationships in the Indian banking sector is concerned. No doubt, considerable literature on CRM is available worldwide but there is limited research throwing light over the importance of CRM in the Indian banking sector. Therefore, the paper reviews pertinent literature on CRM in the banking sector. Then, the methodology employed to collect and analyse data is outlined. Then the findings are discussed, implications are described and the paper further makes strategic recommendations towards enhancing customer relationships in the Indian banking sector. Directions for future research are also proposed in the arena of customer relationship management and banking sector. 2. The Indian Banking Sector and CRM The economic reforms initiated by the Government of India roughly about a decade ago have changed the landscape of several sectors of the Indian economy [1]. The Indian banking sector is no exception. The economic reforms have also generated new and powerful customers (huge Indian middle class) and new mix of players (public sector units, private banks, and foreign banks). The emerging competition has generated new expectations from the existing and the new customers. The new rules of competition require recognition of the importance of consumers and the necessity to address the needs through innovative products supported by new technology. Perceptions and expectations of the customers have undergone a sea change, with the innovative and modern banking services offered to the customers. This necessitates banks to include a customer-oriented approach whereby they build, maintain and manage longstanding relationships with their profitable customers in order to gain sustainable competitive edge. 3. Conceptual background Over the past two decades, the literature has argued that businesses across all sectors will have to change their approach to marketing, which should now be carried out through relationships, networks, and interactions [2, 3, 4, 5, 6, 7]. Such a marketing approach is very Volume:01, Number:04, August-2011 www. theinternationaljournal. rg Page 2 different from the more traditional one based on transactions affecting the Four Ps (product, price, place and promotion). 3. 1. CRM in the Banking sector Customer relationship management (CRM) has been as important to the banking industry at the start of the 21st century as it has been to any other industry. Many banks have used CRM tools to acquire more customers and to improve relationships with them. A key aspect in banks embracing technological platforms and delivery systems is the impact this will have on bank-customer relationships. Therefore, in order to achieve banking excellence, meeting customer needs and offering innovative products is not sufficient in itself. The balance between relatively high costs of relationships with customers and the need to maintain profit growth needs to be finely tuned, if marketing is not to revert back to a transactional paradigm [8]. Likewise, increased customer expectations have created a competitive climate whereby the quality of the relationship between the customer and the institution has taken a greater significance [9, 10]. The development of effective customer relationships is widely advocated as a key element of marketing strategies in the service sector (Ennew, 1996). Therefore a binding and long-term customer relationship seems to be necessary for many banks to react to the changed conditions and to guarantee the continuity. For many customers, a strong banking relationship is as vital as any other business relationship they maintain. This gives CRM-driven banks an advantage in that customers want the benefits of a solid relationship. Common benefits for customers of banks using CRM include wider access with branch locations, Internet and ATMs; access to service and support; discount credit rates and enhanced savings; and other customization opportunities. Attracting new customers should be viewed only as an intermediate step in the marketing process. Developing close relationships with these customers and turning them into loyal ones are equal aspects of marketing. Thus relationship marketing ought to be perceived as attracting, maintaining, and in multi service organizations, enhancing customer relationships [12, 13, 14, 15]. Another important facet of CRM is customer selectivity. As several research studies have shown not all customers are equally profitable for an individual company [16]. 3. 2. Role of Service Providers in the Banking Sector Although CRM has become widely recognized as an important business approach, there is no universally accepted definition of CRM. Swift defined CRM as an ‘enterprise approach to understanding and influencing customer behaviour through meaningful communications in order to improve customer acquisition, customer retention, customer loyalty, and customer profitability’ [17]. Kincaid viewed CRM as ‘the strategic use of information, processes, technology, and people to manage the customer’s relationship with your company (Marketing, Sales, Services, and Support) across the whole customer life cycle’ [18]. Parvatiyar and Sheth defined CRM as ‘a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer [19]. 3. 3. Customer Loyalty, Customer Retention and Customer Relationships Customer satisfaction and loyalty are some key elements of business success and profitability. The more satisfied the customer, the more loyal the customer and the more Volume:01, Number:04, August-2011 www. theinternationaljournal. org Page 3 durable the relationship. And the longer this lasts, the more profit the company stands to make and the higher the market share. Getting existing customers to provide referrals should be one of the effective ways to add new business [20]. A referral from a customer can often open the gates and allow a salesperson access to previously unreachable prospects. Huntley found that when the quality of relationship is high, customers are more willing to recommend the sellers offerings to colleagues and they purchase more from the seller [21]. Maintaining high-quality relationships with customers appears to increase their willingness to provide referrals [22]. Customer satisfaction and loyalty are highly correlated [23], but they form two distinct constructs [24]. Customer satisfaction with a bank relationship is a good basis for loyalty [25, 26], although it does not guarantee it, because even satisfied customers switch banks [27]. One important reason for switching is pricing [28, 29]. Hence, banks have launched customer loyalty programmes that provide economic incentives. Although the effectiveness of loyalty programmes has been questioned [30, 31, 32], research has shown that they have a significant, positive impact on customer retention and share of customer purchases [33, 34]. In a similar vein, Reinartz and Kumar suggest that customers can be grouped according to share-of-wallet and profitable lifetime duration, and that each customer group should be targeted with a specific strategy [35]. By adopting such a customer focused strategy, organisations can maximise the lifetime value of each customer by anticipating needs and offering timely solutions [36]. Likewise, according to Hartfeil, ‘Products are not profitable; customers are, and we analysed our customer base, segment by segment, we found that each required a different strategy to maximize its profitability to the bank [37]. For instance, every customer (both business and personal) is assigned to a banker at National Australia Bank Ltd whereby bankers are required to actively manage their portfolios according to volume of business, interest margin spread, fee income, profitability, customer retention, and the acquisition of new customers [38]. While ample literature is available on generic CRM today, hardly any information is forthcoming on the gains from CRM initiatives in the Indian banking sector. There is scarce literature on how the customers respond to the CRM measures adopted by the banks. This research has attempted to study the customer perceptions pertaining to the CRM initiatives adopted by the banks in India. Thus it helps to investigate the front-end effectives of CRM strategies in the banking sector. 4. Research Methodology This is a descriptive study using primary data collected through an experience survey. The data collection instrument used was a 3-part structured questionnaire using a 5-point Likert Scale. Part-1 was pertaining to the relationship building aspect of CRM and it had 19 questions which were framed using the relevant variables identified from literature review. Part-2 focused specifically on the interaction with the customer service representatives. Part-3 was concerned with customer perceptions on complaint handling and his/her behavioural intentions. Necessary demographic details were also collected to serve as categorizing variables. Prior to data collection, a pilot test was conducted to ensure comprehensiveness, clarity and reliability of the questionnaire. The pretesting of the questionnaire was done among 10 customers randomly, resulting in some minor modifications of the wordings of some survey Volume:01, Number:04, August-2011 www. theinternationaljournal. rg Page 4 items. The method used to administer the questionnaire was through a personal interview so as to obtain more accurate, reliable and valid information and to make the respondents at ease by maintaining a social rapport with them. The target population to be sampled was the individual customers of the Indian banking sector. Owing to the need for a relatively large sample size while at the same time keeping the research costs down, the sample size of this study amounted to 150 customers and the quota sampling technique was adopted based on the net profit and market share figure as shown in Table-1 below.

Use of Metaphors, Exaggeration, and Alliteration in Beowulf :: Epic of Beowulf Essay

Use of Metaphors, Exaggeration, and Alliteration in Beowulf The epic poem Beowulf, written in Old English by Christian monks around 750 AD, is a wonderful adventure story about a warrior who kills ferocious monsters. The use of description and imagery enlivens the story, making it possible for a reader to really see in his or her mind the characters and events. Metaphors, exaggeration, and alliteration are three devices that together allow the reader to experience this poem which is quite different than most other poetry. A metaphor is a figure of speech in which a word or phrase that ordinarily means one thing is applied to another thing to suggest a likeness between the two. Metaphors are used extensively throughout the poem to paint a more colorful picture in the listener's mind. These metaphors are used in phrases called "kennings". A kenning is a descriptive, poetical expression used instead of a simple name for a person or thing. Beowulf is hardly ever called by his actual name. Instead there are many kennings referring to him, such as: "Prince of the Weders", "The Son of Ecgtheow", "The Geatish hero", and "The Lord of the Seamen". These kennings describe Beowulf to us in a more interesting way than just stating the hard facts. Without these kennings Beowulf would be less interesting and we would learn less about him. Anybody would say that describing or referring to a person by his or her name over and over again is boring. So the use of kennings and metaphors is very important in this long epic poem. Exaggeration is another device to make Beowulf a more interesting, entertaining, and dramatic poem. For example, even though this story is a fantasy, it is hard to believe that the character of Beowulf would be able to kill a monster like Grendel with his bare hands. Exaggerating Beowulf's bravery makes the story more exciting. Another exaggeration used to convince us how great our hero is, is the passage, "Over all the world, or between the seas, / Or under the heaven, no hero was greater." (671-672). This dazzles the listener with Beowulf's bravery. His bravery is again exaggerated when he jumps in the swamp wearing heavy armor to fight and kill Grendel's mother. It's unlikely even a strong warrior could win a battle with a she-monster in an underwater cave with a broken sword. But it adds to the excitement. In the line "The head of Grendel, with heavy toil; / Four of the stoutest, with all their strength, / Could hardly carry on swaying spear / Grendel's head to the gold-decked hall. Use of Metaphors, Exaggeration, and Alliteration in Beowulf :: Epic of Beowulf Essay Use of Metaphors, Exaggeration, and Alliteration in Beowulf The epic poem Beowulf, written in Old English by Christian monks around 750 AD, is a wonderful adventure story about a warrior who kills ferocious monsters. The use of description and imagery enlivens the story, making it possible for a reader to really see in his or her mind the characters and events. Metaphors, exaggeration, and alliteration are three devices that together allow the reader to experience this poem which is quite different than most other poetry. A metaphor is a figure of speech in which a word or phrase that ordinarily means one thing is applied to another thing to suggest a likeness between the two. Metaphors are used extensively throughout the poem to paint a more colorful picture in the listener's mind. These metaphors are used in phrases called "kennings". A kenning is a descriptive, poetical expression used instead of a simple name for a person or thing. Beowulf is hardly ever called by his actual name. Instead there are many kennings referring to him, such as: "Prince of the Weders", "The Son of Ecgtheow", "The Geatish hero", and "The Lord of the Seamen". These kennings describe Beowulf to us in a more interesting way than just stating the hard facts. Without these kennings Beowulf would be less interesting and we would learn less about him. Anybody would say that describing or referring to a person by his or her name over and over again is boring. So the use of kennings and metaphors is very important in this long epic poem. Exaggeration is another device to make Beowulf a more interesting, entertaining, and dramatic poem. For example, even though this story is a fantasy, it is hard to believe that the character of Beowulf would be able to kill a monster like Grendel with his bare hands. Exaggerating Beowulf's bravery makes the story more exciting. Another exaggeration used to convince us how great our hero is, is the passage, "Over all the world, or between the seas, / Or under the heaven, no hero was greater." (671-672). This dazzles the listener with Beowulf's bravery. His bravery is again exaggerated when he jumps in the swamp wearing heavy armor to fight and kill Grendel's mother. It's unlikely even a strong warrior could win a battle with a she-monster in an underwater cave with a broken sword. But it adds to the excitement. In the line "The head of Grendel, with heavy toil; / Four of the stoutest, with all their strength, / Could hardly carry on swaying spear / Grendel's head to the gold-decked hall.

Jan and Ken Case Study Essay

1. Using the chapters on language and emotions to help frame your answer, suggest two ways that Ken could open this conversation more productively. For instance, clearly expressing his emotions and using â€Å"I† language. Ken could have tried opening the conversation more productively by saying something like, â€Å"Jan, do you have a few minutes? (This acknowledges to Jan that ken feels that her time is valuable), I would appreciate if we could talk about a problem that I am having. I believe that Shannon is upset with me, and does not want to speak to me. I was wondering if you told Shannon about Katie and me (trying not to be accusatory, so that Jan will not become defensive), 2. How do you perceive Jan’s effort to convince Ken to forgive her? Based on what you have learned in this chapter, suggest two ways she might more effectively seek Ken’s forgiveness. Jan attempt to get Ken to forgive her is full of defensiveness and self interest. Jan could more effectively seek and obtain Ken’s forgiveness by acknowledging ken’s point of view. Jan would be more effective in seeking ken’s forgiveness if she did not seem to be so defensive, and she tried to see the situation from his perspective. Jan also needs to demonstrate that she has a desire to restore the well-being of their friendship. Jan repeated saying, â€Å"I’m sorry, okay?† is not helping the situation at all. She needs to show some genuine remorse. 3. The conversation so far seems to be framed in a win-lose orientation to conflict. Each person wants to be right, to win at the expense of the other. How can Jan and Ken move their conflict discussion into a win-win orientation? Ken and Jan can move their conflict discussion to win-win orientation by identifying what they need out of this situation. They both have problem that need to be addressed. Ken’s problem is more recent and Jan’s issue seems to have been smoldering for a while. Ken needs to be  able to†¦

Macbeth Newspaper Article

Last night in Scotland, chaos erupted at the Macbeths castle during what was supposed to be a peaceful celebration banquet. Macbeth’s behavior was strange and uncharacteristic. A guest at the party, Lennox, said he had never seen Macbeth act in such distraught manner and thought something must have been terribly wrong.Lady Macbeth tried to soothe party guests by saying â€Å"Sit down, worthy friends. My husband is down in an empty seat and explained to his guests often like this, and he has been since he was a  child. † that he could not because the seats were all filled.Many lords are wondering at this point if Even the king himself told his guests that he has a Macbeth is up for the task at hand of ruling this strange disorder and they should not be alarmed by Kingdom after such a display of inappropriate his behavior. behavior. When questioned by Macbeth’s cousin Ross, Lady Perhaps Macbeth was confused by the absence Macbeth dismissed the entire party claimi ng her of h is friend Banquo.As he said â€Å"We would husband was unwell and needed to get some rest. have all the nobility of Scotland gathered under one roof, if only Banquo were here. I hope it Many insiders reported that the early dismissal turns out that he’s late out of rudeness, and not seamed suspicious and are now wondering if in fact because something bad has happened to him. † the monarchy is in jeopardy.A party guest who wished to remain At this point there is no further information anonymous claimed  that the king was confirming the incident, however, there will be a hallucinating when Macbeth refused to sit further review of the situation and close monitoring of down in an empty seat and explained to his the kings medical status.Scotland Times Banquo does not show up for the Banquet and Macbeth’s behavior was really strange. Lady Macbeth had to send everyone home early Macbeth Was Not Himself During His Banquet guests that he could not because t he seats were all filled.

Essay on Georgraphy Practise

Essay on Georgraphy Practise Essay on Georgraphy Practise There are many sources of clean energy that are renewable and considered to be sustainable to reduce CO2 emission. The future of power lies with alternative power sources that are harness natural processes without harming the environment or depleting environmental resources to create energy. The three main strategies are the following wind power, biomass energy and photovoltaic (PV) solar power will help decide what will help reduce CO2 the emission and the average surface temperature in the future. (These new resources of energy provide an alternate ‘cleaner’ source of power, helping to negate the effects of certain forms of pollution.) One of the primary pathways for carbon dioxide takes place between the atmosphere and the oceans. Carbon dioxide also exchanges through photosynthesis in plants and through respiration I n animals. Which is linked to the three strategies. Photovoltaic (PV) solar power: is the conversion of sunlight into electricity. This power source is a great help to reduce CO2 emission as it enhance sustainability, reduces pollution, lower the costs of mitigating climate change. Wind energy: Wind power is the harnessing of wind through turbines to create electricity. Wind power is plentiful, renewable, widely distributed, clean, produces no greenhouse gas emissions during operation and uses little land use. The overall cost per unit of energy produced is similar to the cost for new coal and natural gases installations. One main problem with this type of power is that turbines destroy natural

What the sub-editor saw - Emphasis

What the sub-editor saw What the sub-editor saw Hello, Im Cathy, and Im a sub-editor (scourge of the newsroom, pedant and dictionary botherer). As such, my job is to spot inaccuracies, correct typos, clean up grammar and write headlines. I spend most of my time working at the broadsheets, where the copy is of very high quality. Even so, there are still plenty of opportunities for words to go crazy and cause mayhem, as they have a way of doing. Ill be keeping an eye out while Im on my rounds, and reporting in to Emphasis from time to time on the mistakes I find. After all, what better way to learn than from the mistakes of others? (Far less painful than ones own!) This week From triplets to tautology, the wrong Teresa to the wrong Labour politician, heres a round-up of a few corkers I spotted this week. Youve probably heard the nursery rhyme As I was going to St Ives, I met a man with seven wives; each wife held seven sacks, each sack had seven cats Well, I was reminded of that when I spotted this sentence, which features a common tautology (tautology: using multiple words to describe the same thing). Farhana Shaukat, a mother of three triplets, gave a clue as to why the pupils were queuing up outside. They get bored with the holidays, she said. Three triplets? So how many were going to St Ives three or nine? Triplets only has one meaning: three children born at the same time. The addition of three is unnecessary, but surprisingly common (along with the other favourite two twins). Its not a big mistake, by any means. But its worth avoiding even if only for the reason that some stickler will always pick you up on it otherwise (erm, yes, thats me). Health risk Moving on swiftly, we go from an extraneous word to a missing word and this time, an important one. This is a good example of how one word can completely change the meaning of a sentence. And its so easy to do, especially when youre in full flow and thinking faster than you can write. The following was very nearly published as the headline to a piece on the 10-year anniversary of 9/11. Spot the missing word. World Trade Centre attacks left rescuers and bystanders with raised risk of physical and mental health, Lancet reveals Its not only missing words that can cause mischief letters can be equally troublesome. The following sentence has a letter missing. Can you spot it? The inquiry, ordered by Teresa May, is being carried out by Her Majestys Inspectorate of Constabulary. Its an h. The home secretary is a Theresa, not a Teresa. Pah! you say. Thats just a typo, nothing to sweat over. And yes, thats fair. But a Teresa May does exist, and she has a profession that our Theresa probably wouldnt appreciate being associated with. Ahem. (Shes a porn star.) Lets play spot the letter again, in a similarly scandalous vein. This time, though, youre looking for an extra one, not a missing one. Ready? This month a 51-year-old officer will answer police bail after being arrested on suspicion of misconduct in a public officer over alleged unauthorised leaks from the Operation Weeting phone-hacking inquiry. Misconduct in a whaaat? Madre mia! That should, needless to say, read misconduct in a public office. Brown, in the farmhouse, with the Okay, thats more than enough smut. Back to serious things. This final example is one of those mistakes that is terrifyingly easy to make when youve been working on something at length and suddenly your brain turns bad and attacks you. This came at the end of a very long and detailed story on Alistair Darlings new book, in which the words Brown and Darling occurred many times over, and always in the right place until That weekend, Brown reveals that he held a secret meeting with Miliband at a farmhouse in Essex. Grammatically, its fine. No typos, no dodgy apostrophes. So whats the problem? Simply that its wrong. It was Darling, not Brown, who revealed and attended the secret meeting and the scary truth is that no spellcheck can pick up that kind of (potentially libellous) mistake. The moral of the story? Proofread, proofread and proofread. Ideally, ask someone else to proofread for you and dont feel bad if they pick up errors. None of the mistakes Ive mentioned above were made through ignorance or stupidity simply through human error. We all make em. The best protection is knowing it. This is a guest blog post by Cathy Relf, a freelance sub-editor.

Action Research Reflection Paper Example | Topics and Well Written Essays - 500 words

Action Reflection - Research Paper Example It is important to do careful planning before starting with action research. This prevents the group to divulge from what needs to be done, saves time and prevents giving rise to any disappointments and dissatisfactions. While researching for a problem, it should be made sure that the problem is both to the point and meaningful (Donna Kalmbach Phillips, 2009). In the data collection phase, the data should be organized in such a way that it becomes easy to deduce trends from it. Based on the data interpretation, a plan for change should be developed. It is important to implement one action at a time. But several actions are implemented simultaneously, it will be difficult to assess which action was responsible for the outcome and hence, the reflection will become difficult.Action research process has two main goals: Stimulating Learning and Making a difference. Action research as a process is both collaborative as well as participative and hence it is often called â€Å"Collaborative Enquiry†. This process can be adopted across all levels of education. Because of the flexibility this process offers, it can also be adopted in work setting. This process helped me reflect on what I did and also improved team communication. This process leads to empowering of all the team members. With the help of action research process, I discovered that being participative; open to change, and being a good communicator as three essential skill sets which can help me grow not even personally but professionally as well.