What is customer relationship management?

Customer relationship management (CRM) is an approach of managing company’s

interaction with current and future customers. It often involves using technology to organize,
automate, and synchronize sales, marketing, customer service, and technical support.
“CRM is concerned with the creation, development and enhancement of individualised
customer relationships with carefully targeted customers and customer groups resulting
in maximizing their total customer life-time value”.

CRM is “the development and maintenance of mutually beneficial long-term

relationships with strategically significant customers”.
CHARACTERISTICS:

CRM is a customer-oriented feature with service response based on customer input, one-to-
one solutions to customers' requirements, direct online communications with customer and
customer service centres that are intended to help customers solve their issues. It includes the
following functions:

Sales force automation, which implements sales promotion analysis, automates the
tracking of a client's account history for repeated sales or future sales, and coordinates
sales, marketing, call centres, and retail outlets.
Data warehouse technology, used to aggregate transaction information, to merge the
 information with CRM products, and to provide key performance indicators.
Opportunity management which helps the company to manage unpredictable growth and
demand, and implement a good forecasting model to integrate sales history with sales
projections.
 CRM systems that track and measure marketing campaigns over multiple networks,
tracking customer analysis by customer clicks and sales
ORIGIN OF CRM
Customer relationship management was originated in early 1970s.

CRM came as a process that dealt with relationships with customers surpassing the
whole business.

As said by Father of management “The true business of every company is to make and keep
customers”
IMPACT ON CUSTOMER SATISFACTION

The implementation of CRM is likely to have an effect on customer satisfaction for at least
three reasons:

Firstly, firms are able to customize their offerings for each customer. By accumulating
information across customer interactions and processing this information to discover hidden
patterns, CRM applications help firms customize their offerings to suit the individual tastes of
their customers. This customization enhances the perceived quality of products and services
from a customer's viewpoint, and because perceived quality is a determinant of customer
satisfaction, it follows that CRM applications indirectly affect customer satisfaction.

Secondly, CRM applications enable firms to provide timely, accurate processing of customer
orders and requests and the on-going management of customer accounts. For example,
Piccolo and Applegate (2003) discuss how Wyndham uses IT tools to deliver a consistent
service experience across its various properties to a customer. Both an improved ability to
customize and a reduced variability of the consumption experience enhance perceived
quality, which in turn positively affects customer satisfaction.

Thirdly, CRM applications also help firms manage customer relationships more effectively
across the stages of relationship initiation, maintenance, and termination

TYPES:

Call centers

As well as tracking, recording and storing customer information, CRM systems in call centres
codify the interactions between company and customers by using analytics and key
performance indicators to give the users information on where to focus their marketing and
customer service. The intention is to maximize average revenue per user, decrease churn and
decrease idle and unproductive contact with the customers.CRM software can also be used to
identify and reward loyal customers over a period of time.

Growing in popularity is the idea of gratifying customer service environments. The repetitive
and tedious act of answering support calls all day can be draining, even for the most
enthusiastic customer service representative. When agents are bored with their work, they
become less engaged and less motivated to do their jobs well. They are also prone to making
mistakes. Gratification tools can motivate agents by tapping into their visceral need for
reward, status, achievement, and competition.

Business-to-business

According to a Sweeney Group definition, CRM is "all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions with
customers, prospects, and business partners throughout the enterprise". It assumes that
CRM is involved in every B2B transaction.
Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve
customer management conditions. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.

Social media
Balaam (2010) presented evidence of a significant increase in the use of social networking
sites, especially among young people. This has caused companies to use these sites to draw
attention to their products, services and brands, with the aim of building up customer
relationship.
 ABOUT PROJECT
The project was carried out for understanding the customer behaviour in Current
Account of Jammu and Kashmir Bank, South branch and its market potential.

JAMMU AND KASHMIR BANK was established in the year 1938, they are old players in
banking sector, and the bank has two principle client segments –customer and asset
management. The bank follows value such as – Integrity, teamwork, respect,
professionalism,
& Mission. The segment of bank we are considering here is- Corporate banking. The product
out of which I have chosen for research is Current Accounts. This research helps us in
finding out the customers view regarding the product and Services offered by the JAMMU
AND KASHMIR BANK and awareness by promotion and also identifying the market
potential of the product offered by the JAMMU AND KASHMIR BANK.
The project was carried out in south city of Kashmir with an objective of knowing CRM
level of bank with bank services and does customers aware about the different types of
Current Account with various schemes, Services and different offers provide by the bank.
The total sample size taken was one hundred (100) from various markets of the Kashmir. The
research shows that the market potential for the bank is very good and so many customers are
not aware of the services provided by the bank which are not provided by other banks. On
the other hand we have also the existing customers of JAMMU AND KASHMIR BANK
Who are satisfied with the working style of bank, but want continuous updates about the new
service schemes and other products of bank. They want that bank should do promotional
activity as – Advertising, so that they can be updated while sitting at home. The researcher
used the method of questionnaire to know all feedback.
 BRIEF ABOUT COMPANY PROFILE

TYPE PRIVATE
INDUSTRY BANKING, FINANCIAL SERVICES

FOUNDED 1S T OCTOBER 1938

HEADQUARTERS RESIDENCY ROAD, SRINAGAR ,KASHMIR,
INDIA
KEY PEOPLE MR. PARVEZ AHMAD (Chairman & CEO)
PRODUCTS CREDIT CARDS,DEBIT CARDS,CONSUMER
BANKING, CORPORATE BANKING, FINANCE &
INSURANCE
TOTAL INCOME 7,178.66 Cr. (2017)

TOTAL ASSETS 82,018.67 Cr

WEBSITE www.jkbank.net, www.jkbank.co.in
UNIQUE CHARACTERSTICS AND SERVICES

J&K Bank carries out banking business of the Central Government. In spite of a government equity
holding of 53 per cent, Jammu & Kashmir Bank (J&K Bank) is regarded as a private sector bank J&K
Bank is the one and only banker and lender of last resort to the Government of J&K Plan and non-
plan funds, taxes and non-tax revenues are routed through the J&K Bank J&K Bank claims the
distinction of being the only private sector bank that has been designated as agent of RBI for banking
The services of J&K Bank are utilized for the purposes of disbursing the salaries of Government
officials J&K Bank collects taxes pertaining to Central Board of Direct Taxes, in Jammu & Kashmir
 HISTORY OF JAMMU AND KASHMIR BANK

Entire banking in the state of Jammu and Kashmir was performed by traditional
money lenders till 1920-30 and that too at exorbitant interest rates. At the same time
Grind lays bank and Imperial bank of India.
The role of these banks was reduced to the acceptance of deposits, as they could
not grant loans and advances to the people of the state owing to the statutory
limitations. Under this scenario banks could not ameliorate the financial and social position
of people of the state. To overcome this critical situation , then Maharaja of State
conceived an idea of setting up of a State bank in the State. After prolonged
exercises and deliberations the assignment for establishment of “The Jammu &
Kashmir Bank Limited” was given to the late Sir Sorabji N Pochkhanwala
formulated a scheme on 24.09.1930, suggesting establishment of a semi State bank
with participation in capital by State and public under the control of State

Government. Thus the bank was formally incorporated on 1st of October 1938 and
commenced business from 4t h of July 1939 at its registered office, Residency Road,
Srinagar, Kashmir.
In its formative years, the bank had to encounter several serious problems, particularly
around the time of independence, when out of its Total of 10 branches two branches
of Muzaffarabad and Mirpur fell to the other side of line of control (Now Pak
Administered Kashmir) along with cash and other assets in 1947. However, State Govt.
came to its rescue with the assistance of Rs. 6.00 lacks to meet the claims. The
bank steadfastly overcame its difficulties and kept growing. Following the extension
of Central Laws to the State of Jammu & Kashmir, the bank was defined as a Govt.
company as per the provisions of Indian Companies Act 1956.The Bank had its first
full time Chairman in 1971 was a turning point for the bank on conferment of
scheduled bank status and witnessed remarkable progress in all vital fields of
operations. Reserve Bank of India Declared the bank as ‘A’ class bank in 1976. In
recognition of dominant role and exalted performance, RBI entrusted the Bank as its
agent for performing the general banking business of the Central Govt., especially
in maintaining currency chest and Collection of taxes.
In recognition of its excellent customer service, fair business practices, overall
operational efficiency, overall performance, etc the bank has been felicitated by the
following awards during the last few years:
 
 Asian Banking Awards – 2004

 
India’s Fastest Growing Bank – Business Standard

 
The Best Bank – Rediff.com & PWC Survey

 
Excellence Award – Institute of Economic Studies

 
Ranked as No. 1 on Safety Parameters – Business Standard Survey

 
Ranked as No. 2 on Profitability front - Business Standard Survey




Jamnalal Bajaj Uchit Vyavahar Puraskar 2002 – Council for Fair Business Practices dated
26t h March 2003.

Best Private Sector Bank Award – Financial Express. Presented by Dr. Bimal
th
Man, Governor Reserve Bank Of India on 4 April 2003.

Best Universal Bank Award – Financial Express, Presented by Dr. Bimal
Man, Governor, Reserve Bank of India on 4t h April 2003. Rating Agency – “
DUN & BRADSTREET”
 
 Asian Banking Award 2011 for the Customer Convenience programme

 
Asian Banking award – 2013 for its “ Development Project Financing
Programme” , contributing significantly development of tourism Industry
of the Jammu & Kashmir.
 PRODUCT & SERVICES

Travelers Cheques


Credit Card


Home Loan


Personal Loan


Foreign Currency Cash


Foreign Currency Demand Drafts


Cheque Deposits


Remittances


Trade Services


Mutual Funds


Insurance

SWOT ANALYSIS OF J&K BANK

STRENGTHS
 
 Support of various promoters
 
 High level of services
 
 Knowledge of Indian Markets
 
Brand name
WEAKNESSES
 
 Minor hindrances
 
Lags modernization

OPPORTUNITIES
 
 Growing Indian banking sector.
 
 People are becoming more service oriented in the global market.
 
Adding new Branches and ATMs.

THREATS

From various competitors:- Foreign bank-govt. banks


Future market trends.


Employees strike
 Mission Of The Bank

Mission have been set to remain a financially strong, sound, growth oriented and profitable
bank with main focus towards providing convenient, reliable, cost effective and personalized
services to all its customers and globally competitive and foray with the business of banking.
The objectives of bank shall provide ‘Value Maximization’ to all its share holders i.e. its
customers and employees.

Vision Of The Bank

To make J&K Bank a good player built on trust by world-class people and service.

Understanding the needs of customers and offering them superior products and service. 


 Leveraging technology to service customers quickly, efficiently and conveniently.
 
 Providing an enabling environment to foster growth and learning for our employees. 
 
 And above all, building transparency in all our dealings. 

 The success of the company will be founded in its unflinching commitment to 5 core
values – 


 Integrity, 
 Customer First, 
 Boundary less, 
 Ownership and 
Passion
 INTRODUCTION
Jammu and Kashmir Bank Limited was incorporated on 1st October, 1938 and commenced
its business from 4th July, 1939 in Kashmir (India). The Bank was the first in the country as a
State owned bank. The bank had to face serious problems at the time of independence when
out of its total of ten branches two branches of Muzaffarabad and Mirpur fell to the other side
of the line of control (now Pak Occupied Kashmir) along with cash and other assets.
Following the extension of Central laws to the state of Jammu & Kashmir, the bank was
defined as a government company as per the provisions of Indian companies act 1956.

Today, Jammu & Kashmir Bank is one of the fastest growing banks in India with a network
of more than 857 branches/offices spread across the country offering world class banking
products/services to its customers. The Bank recently bagged three very prestigious awards
for following fair business practices and commitment to social obligations. According to the
extended Central laws of the state, Jammu & Kashmir Bank was defined as a govt. Company
as per the provision of Indian companies’ act 1956. In the year 1971, the Bank received the
status of scheduled bank. It was declared as "A" Class Bank by RBI in 1976. Today the bank
has more than 857 branches across the country and has recently become a Billion Dollar
Company. Jammu and Kashmir bank was incorporated in 1938 as a limited company and
governed by the Companies Act and Banking Regulation Act of India. It was regulated by
the Reserve Bank of India and SEBI. Listed on the National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE) 53 per cent owned by the Government of J&K. Rated "P1+"
by Standard and Poor- CRISIL connoting highest degree of safety. Four decades of
uninterrupted profitability and dividends.

INFRASTRUCTURE
 
 It is the fastest growing bank with 875 branches across the country.
 
 All the branches of J&K bank are computerized.
 
Anywhere banking, Tele- Banking and SWIFT facilities available.

Internet banking, SMS and mobile banking is being provided by this bank.
 
ATMs connected globally to all Master- Card networked ATMs.


Mobile ATM services are available- first of its kind in Northern India.
  
 J&K Bank Global Access Debit Cards: Cirrus and Maestro enabled.
 
 It is live on RTGS System of RBI.
 
 Credit Cards also available.
 
It has Electronic Fund Transfer (EFT) System available.

Brand Identity:
The new identity for J&K Bank is a visual representation of the Bank’s philosophy and
business strategy. The three coloured squares represent the regions of Jammu, Kashmir and
Ladakh. The counter-form created by the interaction of the squares is a falcon with
outstretched wings – a symbol of power and empowerment. The synergy between the three
regions propels the bank towards new horizons. Green signifies growth and renewal, blue
conveys stability and unity, and red represents energy and power. All these attributes are
integrated and assimilated in the white counter-form.
Product profile:-
Products/services provided by Jammu and Kashmir bank areas under:

Saving Bank Deposits:

1. Savings Bank Deposit Scheme.
2. Millennium Deposits Scheme.
3. Flexi Deposits Scheme.
4. Fixed Deposits Scheme.
5. Child Care Scheme.
6. Cash Certificates.
7. Super Earner Deposits Scheme.
8. Recurring Deposits Scheme.
9. Recurring plus Account.
10. Smart Saver Scheme.
11. Depositors Pension Scheme.
12. c
13. Mehendi Deposit Certificate.
Current Accounts:

1. Gift Cheque Scheme.

2. Platinum Current Account.
3. Gold Current Account.
4. Premium Plus.
5. Current Account.
6. Premium Current Account.
7. Basic Current Account.

Loans:

1. Housing Loan Scheme.

2. Education Loan Scheme.
3. Car Loan Scheme.
4. Car Loan for Used Car.
5. Commercial Vehicle Finance.
6. Commercial Vehicle Finance (Used Vehicles).
7. Two Wheeler Finance.
8. Consumer Loan.
9. Consumption Loan.
10. Personal Loan to Pensioners Mortgage
11. Loan for Trade & Service Sector
12. Loans against Mortgage of Immovable Property
13. Fair Price Shop Scheme.

Specialized Finance Schemes:

1. Help Tourism (For Kashmir valley only).

2. All Purpose Agri Term Loan.
3. Fruit Advances Scheme (Apple).
 4. Saffron Finance.
5. Roshni Financing Scheme.
6. Craft Development Finance.
7. Dastkar Finance.
8. Giri Finance Scheme.
9. Khatamband Craftsmen Finance.
10. Commercial Premises Finance.
11. Laptop/PC Finance.

CREDIT CARDS
1. Global Access Card
2. Empowerment Credit Cards

Types of Empowerment Cards

 Blue Empowerment Card

 Silver Empowerment Card

 Gold Empowerment Card

INSURANCE
The Bank diversified its operations when it ventured into the insurance business, both
life and non-life segments.
 
 Life Insurance Segment.
 
 MetLife India Insurance
 
 Non-Life Insurance Segment
 
Bajaj Allianz General Insurance Co. Ltd

CHANNELS OF DISTRIBUTION: -
The Bank has continued to expand its distribution network to augment its geographical reach
and maintain business growth momentum. This has helped the Bank particularly in the
acquisition of low-cost retail deposits. Out of total branches (including extension counters
and service branches), 544 branches are in semi urban and rural areas. This reach
will help carry on the growth of momentum particularly in generating low cost deposits and
credit disbursement to agriculture, artisan and SME sectors. The ATM network of the Bank
has increased to more than 1205, and today constitutes the largest ATM network in J&K. The
Bank’s branch network (excluding extension counters and service branches) as on 31st March
2018 was as under:

Area Branches
Metro 62
Urban 265
Semi urban 87
Rural 443
Total 857

BOARD OF DIRECTORS

 Mr. Parvez Ahmad - Chairman & CEO

 
Mr. Pushap Kumar Tickoo - Executive President


Mr. Abdul Rashid Sheigan - President


Mr. Vinay Kumar – Vice - President
 CHAPTER
II
LITERATURE
&
REVEIW
Peter C. Verhoef (2003) Scholars have questioned the “effectiveness of several customer
relationship management strategies”. The author investigates the differential effects of
customer relationship perceptions and relationship marketing instruments on customer
retention and customer share development over time. Customer relationship perceptions are
considered evaluations of relationship strength and a supplier’s offerings, and customer share
development is the change in customer share between two periods. The results show that
affective commitment and loyalty programs that provide economic incentives positively
affect both customer retention and customer share development, whereas direct mailings
influence customer share development.

Wang and Lo (2004) found that “CRM model is based on two perspectives”. The first one,
measures the factors related to customer behaviour such as: repurchasing, cross and up selling
and customer acquisition rate, and the second one measures the relationship quality, such as
customer satisfaction and customer loyalty (Wang and Lo, 2004). Data were collected from
400 randomly selected customers of two security china’s company. According to the
emphasizing customer equity-base view, findings explores that emotional and functional
behaviour of customers has positive impact on customer satisfaction and customer satisfaction
has positive effect on customer behaviour based CRM. Finally, the result of this study shows
that customer behaviour based CRM have a positive effect on customer and brand loyalty.

E.W.T. Ngai, (2005) To review the “academic literature on customer relationship

management (CRM)”, provide a comprehensive bibliography and propose a method of
classifying that literature A range of online databases were searched to provide a
comprehensive listing of journal articles on CRM. Six hundred articles were identified and
reviewed for their direct relevance to CRM. Two hundred and five articles were subsequently
selected. Each of these articles was further reviewed and classified. The review and
classification process was independently verified. All papers were allocated to the main and
sub‐categories based on the major focus of each paper.

Adrian Payne, PennieFrow (2005) In this article, the authors develop a“ conceptual
framework for customer relationship management (CRM)” that helps broaden the
understanding of CRM and its role in enhancing customer value and, as a result, shareholder
value. The authors explore definitional aspects of CRM, and they identify three alternative
perspectives of CRM. The authors emphasize the need for a cross-functional, process-
oriented approach that positions CRM at a strategic level. They identify five key cross-
functional CRM processes: a strategy development process, a value creation process, a
multichannel integration process, an information management process, and a performance
assessment process.

Kumar, V. (2010), “Customer relationship management (CRM)” refers to building one-to-

one relationships with customers that can drive value for the firm. This manuscript discusses
proven CRM strategies that companies can use as means of effective customer management
(CM). The continuing evolution of CM is made possible by understanding the interactive
relationships that develop between firms and customers and among customers themselves.
Firms will increasingly be able to customize marketing messages to larger target audiences on
the basis of the customer's expected response and the customer's value to the firm.

Cabãu Liviu-Gabriel (2012) this article is considered to be a “landmark in both academic

and business area, regarding the Customer Relationship Management (CRM)”. Based on
previous research found in the literature, the paper aims to clarify the concept of CRM.
Critical research results are reflected in the formulated responses on the following aspects of
CRM: CRM context, CRM definition, CRM importance and objectives, CRM failure and
CRM research. Finally, the article presents the main findings and some conclusions related to
the current research.

Thomas Dotzel, Venkatesh Shankar and Leonard L Berry. (2013) this research “evaluates
the effect of customer relationship management (CRM)” on customer knowledge and
customer satisfaction. An analysis of archival data for a cross-section of U.S. firms shows
that the use of CRM applications is positively associated with improved customer knowledge
and improved customer satisfaction. This article also shows that gains in customer knowledge
are enhanced when firms share their customer-related information with their supply chain
partners.