Customer Relationship Management in Service Sector with reference to Retail Banking Industry in Pune City

Abstract

In the year 1991, India has adopted the policy of LPG i.e. Liberalization, Privatization and Globalization. Due to this critical step, India s economy was opened up for foreign companies and obviously the competition for Indian companies increased multifold. newlineToday, Indian retail banking industry encompasses not only public sector banks but also private sector, cooperative sector and foreign banks and it s needless to say that the competition for attracting greater share of customers is huge. newlineIn this situation, the commercial banks have to meet the expectations of the customers better than the competitors in order to remain competitive; newlineThis scenario has led the commercial banks to focus on Customer Relationship Management so that the customers become the lifelong, profitable partners. The CRM in retail banking provides a huge scope of research and this is an enticing element for the researcher to carry out this in depth study. newlineThrough this study, the researcher was very much interested to find out that, In retail banking industry, whether Customer Relationship Management as a whole and its individual components influence key Business performance variables like Customer Satisfaction, Customer Loyalty and Bank Profitability and if yes, what is the nature of this impact? newlineThis study is specific to Retail banking industry in Pune city of Maharashtra state of India. newlineBased on this broad interest area, following specific objectives were established: newline1) To check the existence and nature of impact of Customer Relationship Management as a whole on Customer satisfaction newline2) To check the existence and nature of impact of Customer Relationship Management as a whole on Customer loyalty newline3) To check the existence and nature of impact of Customer Relationship Management as a whole on Bank profitability newline4) To check the existence and nature of impact of all the individual components of Customer Relationship Management on Customer Satisfaction. newline5) To check the existence and nature of impact of all the individual components of Customer Relationship Manageme