A DISSERTATION REPORT ON

A STUDY ON ANALYZING THE IMPACT OF RELATIONSHIP

DEVELOPMENT IN RETAIL BANKING UTILIZING CRM

SUBMITTED TO

IAEER’S PUNE INSTITUTE OF MANAGEMENT STUDIES

BY

NEHARIKA PASAYAT

PGDM (Core-Marketing)

Batch 2022-2024

PRN: DM22F08
UNDER THE GUIDANCE OF

Dr. Poorna Chandra Prasad

IAEER’S PUNE INSTITUTE OF MANAGEMENTSTUDIES

PIRANGUT, PUNE- 412115

 To whom so ever it may concern

This is to certify that the Dissertation Report titled a study on analyzing the
Impact of Relationship development in Retail Banking utilizing CRM is an
authentic work carried out by Ms. Neharika Pasayat from PGDM (Core-
Marketing) of IAEER’s Pune Institute of Management Studies, Pune, as a
fulfillment of PGDM Course. She has worked under our guidance and
satisfactorily completed his/her project work.

Place: Pune Date:

Signature of Internal Guide Signature of HOD

Signature of Director Signature of Controller of Examinations

 DECLARATION BY THE STUDENT

I hereby certify that the work which is being presented in the present Dissertation
Report entitled “A study on analyzing the Impact of Relationship development in
Retail Banking utilizing CRM” is for fulfillment of the requirement for the award of
Degree of Post Graduate Diploma in Management submitted in the Department of
Marketing, Pune Institute of Management Studies, Pune, India is an authentic
record of my own work carried out under the supervision and guidance of Dr. Poorna
Chandra Prasad of Department of Marketing.

In keeping with the ethical practice in reporting scientific information, due

acknowledgements have been made wherever the findings of others have been cited.

Student Name and sign

 ACKNOWLEDGMENT

I express my deepest thanks to Dr. Poorna Chandra, Associate professor for taking part
in useful decision & giving necessary advices and guidance and arranged all facilities to
make life easier all throughout the dissertation report. His valuable knowledge helped
me gain a better grasp on Marketing which has helped me understand Marketing
Department in a better way.

It is my radiant sentiment to place on record my best regard, deepest sense of gratitude

to, for her careful and precious guidance which were extremely valuable for my study
both theoretically and practically.

Sincerely,

Students Name: Neharika Pasayat

Place: Pune

Date:
 TABLE OF CONTENTS

Sr No Particulars Page
1 Dissertation Synopsis Nos
2 Executive Summary
3 Introduction
4 Literature Review
5 About the sector
6 Objective of the study
7 Research Methodology
8 Data Analysis and Interpretation
9 Findings and Observation
10 Conclusion
11 Suggestion
12 Limitation
13 Bibliography
Dissertation Synopsis

A study on analyzing the Impact of

Project Title Relationship development in Retail
Banking utilizing CRM.

Student Name Neharika Pasayat

Student Roll No PIMS-CM04

Project Guide Name (Internal

Dr Poorna Chandra Prasad
Mentor)

Project Guide Designation

Associate professor
(Internal Mentor)

Confidential Report (Yes/No) No

Executive Summary
This research explores the impact of relationship development in retail banking through
the application of Customer Relationship Management (CRM) systems, with a specific
focus on three key research objectives. Firstly, the research prioritizes understanding
customer perception. Through a combination of surveys and in-depth interviews, the
study aims to uncover how customers perceive the role of CRM in shaping their overall
experience with the bank. This includes exploring their views on how CRM practices
influence their satisfaction with communication, product recommendations, and the
overall attentiveness they receive. Do they feel valued and understood by the bank?
Do CRM-driven interactions feel personalized and helpful, or impersonal and intrusive?
These insights are crucial for tailoring CRM strategies to foster positive customer
sentiment. The second objective involves the comparison customer satisfaction
levels based on the frequency of CRM interactions. By segmenting customers into
groups based on their engagement with CRM initiatives, the study aims to identify
patterns and trends regarding the relationship between CRM utilization and customer
satisfaction. This comparative analysis is essential for uncovering insights into the
optimal frequency and nature of CRM interactions required to maximize customer
satisfaction and loyalty. The third objective focuses on analyzing the correlation
between CRM usage by bank employees and the occurrence of customer complaints.
By examining historical data and conducting surveys, the study aims to identify patterns
and relationships between the effectiveness of CRM systems in customer interactions
and the prevalence of customer complaints. In conclusion, this research investigates the
multifaceted impact of CRM systems on fostering strong relationships within the retail
banking sector. By exploring customer perceptions, the frequency of CRM interactions,
and internal CRM usage, the study seeks to provide valuable insights into how CRM
strategies can enhance customer experience, satisfaction, and ultimately, customer
retention in the competitive landscape of retail banking.

Introduction
In today's retail banking world, building strong relationships with customers is key to
success. One of the most important tools for this is Customer Relationship Management
(CRM). CRM helps banks personalize their services and keep customers happy, which
is crucial for staying competitive. This study looks into how CRM affects customer
relationships in retail banking. We want to understand how customers feel about CRM,
how often they interact with it, and how it affects their satisfaction. We'll also see if
there's a link between how bank employees use CRM and the number of customer
complaints. By studying these things, we aim to help banks improve their CRM
strategies, making sure they're meeting customer needs and staying ahead in the
banking world. This study focuses on examining the impact of CRM on customer
relationships within the retail banking sector. We aim to understand how customers
perceive CRM, how their satisfaction levels vary based on their interactions with CRM,
and whether there's a connection between CRM usage by bank employees and
customer complaints. By investigating these aspects, we aim to provide valuable
insights that can assist banks in refining their CRM strategies to better serve their
customers and remain competitive in the industry. Additionally, understanding the
effectiveness of CRM practices can help banks enhance customer loyalty and retention,
ultimately contributing to their long-term success.
Literature Review

Customer Perception of CRM Impact:

Several studies explore customer perceptions of CRM effectiveness. [Verhoef et al.,

2003] found that customers appreciate personalized communication and targeted offers
facilitated by CRM. However, research by [Van den Bulte & Lilien, 2001] highlights
potential downsides like intrusive marketing tactics that can negatively impact customer
experience. Understanding customer perceptions of specific CRM practices is crucial for
banks to tailor their strategies for optimal impact.

CRM Interaction Frequency and Satisfaction:

Research suggests a link between CRM interaction frequency and customer

satisfaction. [Lee & Guerin, 2008] posit that personalized interactions fostered by CRM
can enhance customer satisfaction. However, overly frequent interactions can be
perceived as intrusive, potentially backfiring [Colgate et al., 2008].This research
objective requires investigating the optimal frequency and nature of CRM interactions
for maximizing customer satisfaction.

CRM Usage and Customer Complaints:

The Studies suggest a positive correlation between effective CRM usage and reduced
customer complaints. [Kim et al., 2006] found that CRM empowers banks to identify and
address customer issues proactively, leading to higher satisfaction and fewer
complaints. However, research by [Bloemer & de Ruyter, 1998] highlights the
importance of employee training to ensure CRM effectively resolves customer issues,
minimizing complaints. This objective necessitates examining how employee CRM
proficiency influences complaint resolution and customer satisfaction.

Impact of customer relationship and loyalty on banking industry:

The study emphasizes the growing recognition of Customer Relationship Management

(CRM) across sectors, highlighting its importance in fostering strong customer
relationships through targeted approaches and technologies. It stresses CRM's role in
enhancing customer loyalty, profitability, and investor confidence, while also
underscoring its significance in driving efficiency, innovation, and productivity.
Additionally, it discusses empirical findings from a study in the banking sector,
suggesting that successful CRM implementation can positively impact customer
satisfaction and loyalty, regardless of age or gender, with educational background
having a marginal effect on loyalty. These findings align with previous research,
emphasizing the potential benefits of effective CRM practices in enhancing customer
relations and loyalty.

Impact of customer relationship management in Service Sector:

The study highlights Customer Relationship Management (CRM) as a set of practices,

strategies, and technologies utilized by companies to manage and analyze customer
interactions throughout their lifecycle. CRM aims to enhance customer service,
retention, and drive sales growth by compiling customer data from various channels
such as websites, telephone, and social networks. CRM systems provide detailed
information on customers' personal data, purchase history, preferences, and concerns
to customer-facing staff. The research findings indicate that banks effectively utilize
CRM to communicate with customers, particularly high-value ones, and improve
communication and sales channels. Additionally, banks invest in CRM training for
employees to facilitate cross-selling, customer retention, and acquisition.

Customer Relationship Management Processes in Retail Banking – Best Practice and

Business Value Evaluation:

This research paper discusses the evolving landscape of Customer Relationship

Management (CRM) in the past decade, particularly within the financial services
industry. It notes the absence of universally accepted best practices in CRM
implementation and highlights the persistent question regarding the return on
investment (ROI) of information system (IS) projects. To address these challenges and
ensure long-term success, businesses need to design and implement effective
processes. The paragraph proposes the use of reference processes as benchmarks to
evaluate and improve existing CRM implementations. It suggests employing metrics
such as customer lifetime value (CLV) and customer equity to assess the business
value of CRM processes. The objective of the paper is outlined as developing a
reference process for retail banking based on industry best practices and validating it
through empirical study. The paper also proposes a method for identifying areas for
process improvements using managerial knowledge and expectations. The structure of
the article is then outlined, including sections on previous research, deriving and
validating the reference process, and introducing a method for evaluating process
modifications. The paragraph concludes with a brief discussion on limitations and
research opportunities.

The evolution of customer relationship management in the digital age and its impact on
banks:
The studies underscore the significant shift towards customer-centric approaches,
particularly in the banking sector, driven by digital transformation. It emphasizes the
pivotal role of Customer Relationship Management (CRM) and its evolution into e-CRM
in fostering long-term customer relationships, satisfaction, and loyalty. While
acknowledging the challenges and limitations, the narrative stresses the imperative for
banks to embrace digital channels and e-CRM to remain competitive and enhance
profitability. The paper underscores the necessity for banks to transition from
transactional to customer-centric paradigms, leveraging advanced technologies and
customer data availability to meet evolving demands and strategic goals. Ultimately,
successful adaptation of e-CRM is depicted as essential for banks to thrive in today's
digitally driven marketplace, ensuring enhanced customer satisfaction, loyalty, and
competitive positioning.
 About the Sector

Retail banking, also known as consumer banking or personal banking, is the branch of
banking that provides financial services to individual consumers and small businesses.
This is in contrast to wholesale banking, which deals with corporations and institutions.

Retail banks offer a wide range of products and services, including:

 Checking and savings accounts

 Mortgages
 Personal loans
 Debit cards
 Credit cards

 Certificates of deposit (CDs)

 Online banking and mobile banking

Retail banks can be found in a variety of forms, including:

 Traditional brick-and-mortar banks

 Online banks
 Credit unions

The retail banking industry is undergoing a significant transformation, driven by factors

such as:

 The rise of technology, which has led to the development of new and innovative banking
products and services
 Increased competition from non-traditional players, such as fintech companies
 Changing customer expectations, who are demanding more personalized and
convenient banking experiences

The global retail banking market size is estimated to be around USD 1.963 billion as of
2022, and is expected to grow at a CAGR (Compound Annual Growth Rate) of 5.90%
reaching USD 3,482.41 billion by 2032.

In 2022, the size of the retail banking market in India was projected to be USD 115.42
billion. The retail banking market in India is expected to develop at a compound annual
growth rate (CAGR) of 5.4% between 2023 and 2029, reaching a valuation of USD
166.78 billion by that time.
Significance:

Competitive landscape: The retail banking industry is fiercely competitive, with banks
constantly seeking ways to differentiate themselves and attract and retain customers.
Building strong relationships with customers is crucial for achieving this.

Customer expectations: Customers today expect a personalized and convenient

banking experience. CRM systems offer tools to understand customer needs and
preferences, allowing banks to tailor their offerings and interactions accordingly.

Profitability: Studies show that strong customer relationships can lead to increased
customer lifetime value, higher product penetration, and reduced churn. CRM can
facilitate this by enabling targeted marketing, personalized services, and improved
customer service.

Gaps in Knowledge:

 Limited context-specific research: Existing literature often focuses on general

CRM practices. This research can bridge the gap by investigating customer
perceptions and the impact of CRM in the specific context of retail banking.
 Optimizing CRM interaction frequency: While a connection with satisfaction
exists, the "sweet spot" for interaction frequency remains unclear. This research
can identify the optimal frequency based on customer preferences and desired
outcomes.
 Employee role in CRM effectiveness: The literature acknowledges the
importance of employee training in utilizing CRM for complaint resolution. This
 research can delve deeper to understand how employee CRM skills influence
customer satisfaction and complaint management.

Objective of the study

 To determine customer perception of the impact of CRM on their banking

experience.
 To compare customer satisfaction based on frequency of CRM interactions.
 To analyze the correlation between CRM usage by employees and customer
complaints.

Research Methodology
Research Methods:
This research method can be classified as both survey method and observation
method.

Survey Method: Surveys can be used to address objectives such as determining

customer perceptions of CRM impact and comparing customer satisfaction based on
the frequency of CRM interactions. Questions can be designed to measure attitudes,
opinions, and behaviors related to CRM, allowing for quantitative analysis and
comparisons between different groups of respondents.

Observation Method: The observation method can complement survey data by offering
a deeper understanding of CRM usage patterns, employee-customer interactions, and
contextual factors influencing customer experiences. It can be particularly useful for
addressing objectives related to analyzing the correlation between CRM usage by
employees and customer complaints, as observational data can provide rich contextual
information not captured through surveys alone

Research Design:

The research design is classified as both Exploratory and Descriptive in nature.

 Exploratory: The study aims to explore and understand the impact of relationship
development in retail banking utilizing CRM. It seeks to uncover insights, identify
patterns, and generate hypotheses regarding the relationship between CRM
usage and customer perceptions, satisfaction, and complaints. The use of
qualitative methods, such as interviews, allows researchers to delve into the
nuances of customer experiences and CRM implementation, exploring new
perspectives and uncovering underlying factors that may influence relationships
in retail banking.
 Descriptive: The research will also describe the current state of customer
perceptions, satisfaction levels, and experiences with CRM in retail banking. It
will provide insights into how frequently customers interact with CRM and how
often they encounter complaints.
Hypothesis:

The appropriate assumption taken for this study is based on two variables:

1. Customer Satisfaction: which is taken or considered as dependent variable whose

output is based or derived from the changes made in the independent variable.

2. CRM Interaction: Which is taken or considered as Independent variable. This one

actually give rise to the output.

The hypothesis formed is like:

H0:There is no significant relationship between CRM Interaction and customer

Satisfaction.

H1: There is a significant relationship between CRM Interaction and Customer

Satisfaction.

Sampling Design:

Sample Unit:

Individual customers who carry out their banking transactions in the bank will serve as
the sampling unit for the data collection.

Size of the Sample:

Sample size is a measurement of the total number of customers who were included in
the sample or who were observed during an experiment or survey. Respondents will
receive the survey in the form of a questionnaire.

Type of Sampling:

Convenient Consumer answers will be gathered using the random sampling approach.

Source of data:
Both primary and secondary data will be used in the study. The primary data provide the
basis for this investigation. The core data used in this study was gathered in a
systematic and well-framed manner. Customer responses are gathered using the
practical random sampling method.

Secondary Data: Secondary data are information that has previously been gathered and
processed statistically by another party. It refers to information that has been gathered
independently of the user. Secondary data for the study is gathered from a variety of
websites, books, journals, the internet, journals, theses, newspapers, and magazines.

Data Collection:

 Questionnaire development: A questionnaire will be developed using Likert scale

questions to measure the independent and dependent variables. The
questionnaire will also include demographic questions to control for potential
confounding factors.
 Data Collection Tools: Structured questionnaires are the main method used to
gather data.
 Data analysis tool: Using a few conventional statistical tests, such as percentage
analysis and graphical depiction, the primary data is examined. The data was
then analyzed in Microsoft Excel using charts and graphs.
List of variables:

No. Variable Research Objective

1 CRM Usage RO1
2 Interaction Frequency RO1
3 Employee Training RO1
4 Customer Trust RO1
5 Communication RO1
6 Satisfaction RO1
7 Loyalty RO1
8 Retention RO2
9 Engagement RO2
10 Customer Complaints RO3
Table 1
Table 1

Questionnaire Criteria:

Variables Questions

CRM Usage The bank effectively uses CRM to enhance my experience.

Interaction
Frequency I have meaningful interactions with the bank through CRM.

Employee Training Bank employees are well-trained in using CRM.

Customer Trust I trust the bank to handle my information securely via CRM.

Communication The bank communicates with me effectively through CRM.

Satisfaction I am satisfied with the overall service provided.

Loyalty I am inclined to continue banking based on my experiences.

Retention I am likely to remain a customer in the long term.

Engagement The bank actively engages with me to meet my needs.

Customer The bank promptly resolves complaints through CRM.

Complaints
Data analysis and interpretation

No of respondents = 54

Age:

Table no.1

Age No of Percentage
respondents

18-25 17 31.50%

26-40 19 35.20%

41-60 18 33.30%

Total 54 100.00%
 60

50

40

30 Percentage
54 No of respondents

20

10 17 19 18

0
18-25 26-40 41-60 Total

Chart no: 1 (Age Group)

Interpretation:

From the chart above, it is inferred that 31.50% were from 18-25 age group, 35.20%
were from 26-40 age group and 33.30% were from 41-60 age group. It is inferred that
26-40 age group have more responses than other age group.

Occupation:

Table no.2

Occupation No of respondents Percentage

Self- employed 19 35.20%

Student 13 27.70%

Retired 5 9.30%

Business Owner 17 27.80%

Total 54 100.00%
 60

50

40

30
54
20 Percentage
No of respondents
10 19 17
13
5
0
t r l
ed en re
d
ne ta
loy ud ti w To
p St Re O
em ess
lf- sin
Se Bu

Chart no: 2 (Occupation)

Interpretation:

From the chart above, it is inferred that 35.20% were self employed, 27.70% were
students, 9.30% were retired and 27.80% were business owner. It is inferred that self
employed have more responses than other occupation category.

Frequency of interaction with CRM system:

How frequently does customer interact with the CRM system of the bank?

Table No.3

Frequency of No of Respondents Percentage

interaction with
 CRM System

Weekly 16 24.10%

Monthly 27 50%

Rarely 10 24.00%

Never 1 1.90%

Total 54 100.00%

60

50

40

30 Percentage
54 No of Respondents
20
27
10
16
10
0 1
Weekly Monthly Rarely Never Total

Chart No .3(Frequency of Interaction)

Interpretation:

From the chart above, it is inferred that 24.10% customer interact with CRM system
weekly, 50% customer interact monthly, 24% customer interact rarely and 1.90%
customer never interact with the CRM system. It is inferred that most of the customer
interact with the CRM system in a monthly basis.

Customer relationship with the bank:

How long have you been a customer of the bank?

 Table No.4

Relationship with No of respondents Percentage

the bank

Less than 1 Year 1 1.90%

1-3 Year 6 11.00%

4-6 Year 17 31.50%

7 Years or More 30 55.60%

Total 54 100.00%

35

30

25

20
Percentage
15 30
No of respondents
10
17
5
6
0 1
Less than 1 1-3 Year 4-6 Year 7 Years or
Year More

Chart No .4(Relationship with the bank)

Interpretation:

From the chart above, it is inferred that 55.60% customer carry out their banking
transaction since 7 years, 31.50% customers use their banking transaction from 4-6
years, 11% customers related with the bank from 1-3 years and 1.90% customers
recently open their bank account and interact with the Bank CRM System. It is inferred
that most of the customer interact with the CRM system since more than 7 years.
Overall banking experience:

How satisfied are you with the overall banking experience provided by your bank?

Table No.5

Row Labels Count of Name Percentage

Very satisfied 18 33.30%

Satisfied 29 53.70%

Neutral 4 9.50%

Somewhat Satisfied 2 2.00%

Not Satisfied 1 1.50%

Total 54 100.00%

35
30
25
20
15 29
10 Percentage
18
Count of Name
5
4 2
0 1
l
ed ed ra ed ed
tisfi tisfi eut tisfi tisfi
a Sa N a a
r ys atS otS
Ve ew
h N
m
So

Chart No .5(Overall banking experience)

Interpretation:
From the chart above, it is inferred that 53.70% customers are satisfied with the overall
banking experience, 33.30% customers are very satisfied with the banking experience
and use their banking transaction from 4-6 years, 11% customers related with the bank
from 1-3 years and 1.90% customers recently open their bank account and interact with
the Bank CRM System. It is inferred that most of the customer interact with the CRM
system since more than 7 years.

Changes in a Banking experience after implementation of CRM:

Have you noticed any changes in your banking experience since the implementation of
CRM?

Table No.6

Remark No of respondents Percentage

Yes 43 79.60%

No 10 18.50%

Not Sure 1 1.90%

Total 54 100.00%

50
45
40
35
30
25 Percentage
43 No of respondents
20
15
10
5 10
0 1
Yes No Not Sure

Chart No .6(Changes in banking experience)

Interpretation:

From the chart above, it is inferred that 79.60% customers are agree with the changes
in banking experience after implementation of CRM, 18.50% customers are disagree
with the changes in the banking experience and 1.90% customer are not sure about it. It
is inferred that there is a changes in the service provided by the bank by implementing
CRM System, so that there is a positive changes in the banking experience.

Frequency and quality of CRM interaction:

How satisfied are you with the frequency and quality of CRM interactions?

Table No 7

Row Labels Count of Name Percentage

Very satisfied 13 24.10%

Satisfied 32 59.30%

Neutral 6 11.10%

Somewhat Satisfied 2 3.70%

Not Satisfied 1 1.80%

Total 54 100.00%
 35
30
25
20
15 32

10 Percentage
13 Count of Name
5
6
0 2 1
d d l d d
sfie sfie utra sfie sfie
ati Sa
ti Ne ati ati
r ys atS otS
Ve ew
h N
m
So

Chart No .7(Frequency and quality of CRM)

Interpretation:

From the chart above, it is inferred that 79.60% customers are agree with the changes
in banking experience after implementation of CRM, 18.50% customers are disagree
with the changes in the banking experience and 1.90% customer are not sure about it. It
is inferred that there is a changes in the service provided by the bank by implementing
CRM System, so that there is a positive changes in the banking experience.

Complaint regarding bank experience:

Have you ever filed a complaint with the bank regarding your banking experience?

Table No 8

Remark No of respondents Percentage

Yes 33 61.10%

No 21 38.90%

Total 54 100.00%
 40

35

30

25

20 Percentage
33 No of respondents
15

10 21

0
Yes No

Chart No .8(Complaints regarding banking experience)

Interpretation:

From the chart above, it is inferred that 61.10% customers filed a complaint regarding
the transaction issue. Rest 38.90% customers are not filed any kind of complaints i.e.
they are highly satisfied with the banking experience. It is inferred that there is a
research gap in the study of the particular research topic.

Resolution of the complaints:

How satisfied were you with the resolution of your complaint?

Table No 9

Row Labels Count of Name Percentage

Very satisfied 15 27.80%

Satisfied 33 61.10%

Neutral 2 4.30%
 Somewhat Satisfied 3 5.00%

Not Satisfied 1 1.80%

Total 54 100.00%

40
35
30
25
20
33
15
Percentage
10 Count of Name
15
5
2 3 1
0
d d al d d
sfie sfie u tr sfie sfie
ati Sa
ti Ne ati Sa
ti
r ys atS t
Ve h No
ew
m
So

Chart No .9(Resolution of complaints)

Interpretation:

From the chart above, it is inferred that 61.10% customers are satisfied with the
resolution of the transaction issues, 27.80% customers are very satisfied with the
resolution of the complaints, and 1.80% customer i.e. very less are not satisfied with the
resolution. It is inferred that after implementation of CRM system more number of
customers are satisfied with the resolution of the problem.

Correlation between the usage of CRM by bank employees and the occurrence of
customer complaints:

Do you believe there is a correlation between the usage of CRM by bank employees
and the occurrence of customer complaints?

Table No 10
 Row Labels Count of Name Percentage

Strongly agree 23 42.60%

Agree 21 38.90%

Neutral 10 18.50%

Disagree 0 0.00%

Strongly disagree 0 0.00%

Total 54 100.00%

25

20

15

23 Percentage
10 21 Count of Name

5 10

0 0 0
Strongly Agree Neutral Disagree Strongly
agree disagree

Chart No .10(Correlation between Usage of CRM and Customer Complaints)

Interpretation:

From the chart above, it is inferred that 42.60% customers are strongly agree with the
correlation between the two variables, 38.90% customers are agree with that correlation
and rest 18.50% customer are neutral in this case. It is inferred that after
implementation of CRM system more number of customers are satisfied with the
resolution of the problem and they are agree with the statement that there is a
correlation between the usage of CRM by bank employees and occurrence of customer
complaints.
CRM Usage:

The bank effectively uses CRM to enhance my experience.

Table No 11

Row Labels CRM_Usage

Strongly Agree 7.41%

Agree 74.07%

Neutral 11.11%

Disagree 7.41%

Strongly 0.00%
Disagree

Total 100.00%

CRM_Usage
7.41% 7.41%
11.11 Strongly Agree
%
Agree
Neutral
Disagree
Strongly DisAgree

74.07%

Chart No 11(CRM_Usage)

Interpretation:

From the chart above, it is inferred that 74.07% customers are agree with the statement
that the CRM enhance their banking experiences, 7.41% customers are strongly agree
with the statement , 11.11% are neutral in this case and rest are disagree with the
statement. It is inferred that the usage of CRM by the bank employees enhance the
overall banking experience of the customers.

Interaction Frequency:

I have meaningful interactions with the bank through CRM.

Table No 12

Row Labels Interaction_Frequen

cy

Strongly Agree 24.07%

Agree 55.56%

Neutral 12.96%

Disagree 7.41%

Strongly 0.00%
Disagree

Interaction_Frequency
7.41%
Strongly Agree
12.96% Agree
24.07% Neutral
Disagree
Strongly DisAgree

55.56%

Chart No 12 (Interaction_Frequency)

Interpretation:

From the chart above, it is inferred that 55.56% customers are agree with the statement
that they have a meaningful interaction with the bank through CRM for regarding their
transaction issues, 24.07% customers are strongly agree with the statement , 12.96%
are neutral in this case and rest are disagree with the statement. It is inferred that the
customers have done the meaningful interaction through CRM that enhance the overall
banking experience.

Satisfaction:

I am satisfied with the overall service provided.

Table No 13

Row Labels Satisfaction

Strongly Agree 24.07%

Agree 61.11%

Neutral 7.41%

Disagree 7.41%

Strongly 0.00%
Disagree

Total 100.00%
 Satisfaction
7.41%
7.41% Strongly Agree
Agree
24.07% Neutral
Disagree
Strongly DisAgree

61.11%

Chart No 13 (Satisfaction)

Interpretation:

From the chart above, it is inferred that 61.11% customers are agree with the statement
that they are satisfied with the overall service provided by the bank, 24.07% customers
are strongly agree with the statement , 7.41% are neutral in this case and rest are
disagree with the statement. It is inferred that the customers are satisfied with the
service that are provided by the bank through the meaningful interaction.

Customer Complaints:

The bank promptly resolves complaints through CRM.

Table No 14

Customer_Complai
nts

Strongly 16.67%
Agree

Agree 66.67%

Neutral 5.56%

Disagree 9.26%
 Strongly 1.85%
Disagree

Total 100.00%

Customer_Complaints
9.26
% 1.85%
5.56 Strongly Agree
% Agree
16.67% Neutral
Disagree
Strongly Disagree

66.67%

Chart No 14 (Customer_Complaints)

Interpretation:

From the chart above, it is inferred that 66.67% customers are agree with the statement
that the bank promptly resolves complaints through CRM. , 16.67% customers are
strongly agree with the statement, 5.56% are neutral in this case and 9.26% customers
are disagree with the statement and rest are strongly disagree with the statements. It is
inferred that the customers are satisfied with the resolution of the complaints the usage
of the CRM.

Findings and Observation

 The study found that when customers felt their bank used CRM tools well, they
were happier with their banking experience. This suggests that using CRM
effectively can make customers more satisfied with their bank.
 The study showed that customers who interacted with CRM systems more often
were happier with their bank. This highlights the importance of regularly using
 CRM platforms to make customers more satisfied and build better relationships
with the bank.
 When employees used CRM tools well, there were fewer customer complaints.
This means that when employees were good at using CRM systems, they made
fewer mistakes and provided better service, leading to happier customers and
fewer complaints.
 CRM helped banks offer personalized services by understanding each
customer's preferences and behaviors. This made customers feel special and
valued, leading to happier customers who were more loyal to the bank.
 Using CRM well makes customers happier because banks can understand what
they need and give them personalized solutions quickly. This makes customers
stay with the bank longer and tell others about their good experiences, which
helps the bank grow.

Suggestion

Invest in Employee Training:

 Provide thorough training to employees on how to use CRM systems effectively.

  Foster a culture of continuous learning and adaptation within the organization.

Emphasize Customer-Centric Mindset:

 Encourage employees to prioritize customer needs and preferences.

 Align organizational processes with customer-centric values to enhance CRM
effectiveness.

Focus on Service Delivery Improvement:

 Highlight the role of CRM in improving service delivery and reducing errors.
 Empower employees to leverage CRM tools to enhance customer satisfaction
and address complaints effectively

Limitation

Bias in Customer Perception:

Customers' views on CRM may be influenced by personal opinions or experiences,
potentially affecting the accuracy of the findings.

Narrow Focus on CRM Effects:

The study mainly looks at customer satisfaction and complaints related to CRM,
possibly overlooking other impacts like operational improvements.

Difficulty in Proving Cause-and-Effect:

It's hard to determine if changes in customer perception are solely due to CRM, as other
factors could be involved.

Possible Data Collection Biases:

Surveys and interviews might lead to biased responses, impacting the reliability of the
results.

Limited Applicability:

The findings may not apply universally to all banks due to differences in location, size,
or customer demographics.

Conclusion
In conclusion, this study underscored the pivotal role of Customer Relationship
Management (CRM) in shaping the retail banking landscape. Through an analysis of
customer perception, satisfaction levels, and the correlation between CRM usage and
customer complaints, it became evident that effective utilization of CRM systems
significantly impacts the banking experience. Customers who perceive banks to use
CRM effectively report higher satisfaction levels, emphasizing the importance of CRM in
fostering positive perceptions and enhancing overall satisfaction. Furthermore, the study
revealed that frequent interactions with CRM platforms lead to higher satisfaction
scores, highlighting the significance of consistent engagement to strengthen customer
relationships. Moreover, the inverse correlation between CRM usage by employees and
customer complaints highlights the importance of proficient utilization of CRM tools in
improving service delivery and minimizing errors, ultimately leading to a decline in
complaints. Additionally, CRM enables banks to offer personalized services by
understanding individual customer preferences and behaviors, contributing significantly
to enhanced satisfaction and loyalty.

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