Jithupriya Project Final

A DISSERTATION REPORT ON
“A STUDY ON CUSTOMER RELATIONSHIP

MANAGEMENT OF HDFC BANK IN KARNATAKA”-A
CASES STUDY IN KARNATAKA
A report submitted to the University of Mysore, In fulfilment of the
requirement for the award of MBA-Agri-Business Management
Submitted by
JITHUPRIYA.N.M
4th semester,
MBA Agri-business Management
Reg.No;19ABM008
Under the Guidance of
Dr.H.M.CHANDRUSHEKAR
MFAMM..,P,hD,UGC-PDRA,
Associate Professor
MBA Agri-Business Management
INSTITUTE OF DEVLOPMENT STUDIES
University of Mysore Manasagangothri ,Mysore-570006
OCTOBER – 2021
1
DECLARATION
I Ms.JITHUPRIYA.N.M.do hereby declare that the Dissertation Report
entitled “ A STUDY ON CUTOMER RELATIONSHIP
MANAGEMENT OF HDFC BANK IN KARNATAKA”-A CASE
STUDY IN KARNATAKA” KARNATAKA” The Report Complied by
me under the Guidance of Dr, H.M.CHANDRASHEKAR Professor MBA
Agri- Business Management at Institute of Development Studies, University
of Mysore, Mysore -570006.
I further declare that this Dissertation report is original one and has not
been reproduced or submitted to this or any other University before for
award of any Degree or Diploma.
Place:Mysore
(JITHUPRIYA.N.M)
Date :- 30/10/2021 Candidate
2
UNIVERSITY OF MYSORE
INSTITUTE OF DEVELOPMENT STUDIES
‘LeelaVihar’ Manasagangotri, Mysore-570006
Phone No. 0821-2149339

Date: 30-10-2021
CERTIFICATE
This is to certify that the Dissertation Report entitled “A STUDY ON

CUSTOMER RELATHIONSHIP MANAGEMENT OF HDFC BANK
IN KARNATAKA” has been prepared by Ms. Jithu priya.N.M in
fulfilment of the requirement for the award of Degree of Master of Business
Administration in Agri- Business Management in Institute of Development
Studies, University of Mysore, Mysore under my guidance and Supervision,
and I am satisfied with her earnest endeavours in preparing this Dissertation
Report.
Dr.CHANDRASHEKHAR.H.M.
(Guide)
3
UNIVERSITY OF MYSORE
INSTITUTE OF DEVELOPMENT STUDIES
‘LeelaVihar’ Manasagangotri, Mysore-570006
Phone No. 0821-2149339

Date: 30-10-2021
CERTIFICATE
This is to certify that Ms Jithupriya.N.M bearing Roll. No.19ABM008 has

successfully completed the Dissertation report on “CUSTOMER
RELATIONSHIP MANAGEMENT IN HDFC BANK IN
KARNATAKA” – A CASE STUDY IN KARNATAKA” Under the
guidance of Dr.H.M.CHANDRASHEKAR Associate Professor, MBA Agri-
Business Management at Institute of Development Studies, University of
Mysore, Mysore -570006.
This Dissertation Report is submitted to the University of Mysore in

partial fulfilment of the requirement award of Master of Business
Administration in Agri-Business Management during 2020 - 2021.
Director
4
ACKNOWLEDEMENT
I wish to express my sincere gratitude to my guide Dr. H.M. Chandrashekar,

Institute of Development Studies, University of Mysore, Manasagangotri,
Mysuru, whose experienced ideas, able guidance, inspiring encouragement
and valuable suggestions execution and completion of this Dissertation
Report
I want to place a records my sincere thanks to Prof…Dr.H.M.

Chandrashekar, Director, Institute of Development Studies, University of
Mysore, Mysuru.
I express my heart full thanks to my family and friends, who gave

encouragement, moral support and financial assistance to bring out this
Project Successfully.
I express my special thanks to all teaching faculty, non-teaching staff,

Research Scholars’ and my class mates of Institute of Development Studies.
A large measure of gratitude must be expressed to all the respondents who

have respond and filled my questionnaire, and Mysuru District peoples.
My heartily thankful to my beloved parents and my brother for their support

and constant advice for me to bring out this report.
Finally I thank those well-wishers who directly and indirectly helped me in

accomplishing my study.
JITHU PRIYA.N.M
5
CONTENT
SI NO. Subject Page No
1. "Customer Relationship 11
Management"
2. REVIEW OF LITERATURE 18
3 Business Strategy 39
4 Methodology 52
5 Analysis,Discussion & Conclusion 53
Bibliography 64
6
Abstract
The objective of this paper a frame work on the customer relationship management
practices, banks. CRM is a process or methodology used to learn more about customer's
needs and behavior in order to develop stronger relationships with them. The aim of the
study (SBI, ICICI, Central Bank of India, HDFC bank) strategic implementation of CRM
in selected banks to detect and analyze the benefits , problems success and failure as well
as identify implementations on banking competition factors and develop better
understating of the impact of CRM best practices as well as provide a greater
understanding of the formation. The banking landscape has changed significantly. The
descriptive research methodology is adopted in this study. The current study is based on
both primary and secondary data.
Keywords: CRM, Banking,

Customer’s loyalty
1. Introduction
CRM stands for Customer
Relationship Management.
It is a process or
methodology used to
7
learn more about customers‟
needs and behaviors in order
to develop stronger
relationships
with them. There are many
technological components
to CRM, but thinking about
CRM in
primarily technological
terms is a mistake. The more
useful way to think about
CRM is as a
process that will help
bring together lots of
pieces of information
about customers, sales,
8
marketing effectiveness,
responsiveness and market
trends. CRM helps
businesses use
technology and human
resources to gain insight into
the behavior of customers
and the value
of those customers.
National Conference on
Marketing and Sustainable
Development October 13-14,
2017
ISBN 978-1-943295-10-4
330
9
Customer Relationship
Marketing or Management
(CRM) is an inevitable
practice in the
banking sector in foreign
countries. In India many
banks are emphasizing on
the issue. But
for proper knowledge the
adoption process hampers to
a great extent. In such
comportment,
our course teacher has
approved the following
issue. The issue of the
research is “Customer
10
Relationship in Banking
Sector” specifically this
paper has to work on
specific organizations,
and mainly selected banks
are SBI, ICICI, Central
Bank of India, HDFC bank
from banking
sector These banks are
taken to find out how
strategically retaining and
valuating their
customer by which methods
and strategies of CRM.
2. Advantages of CRM
11
Using CRM, a business can
 Provide better customer
service
 Increase customer
revenues
 Discover new customers
 Cross sell/Up sell
products more effectively
 Help sales staff close
deals faster
 Make call centers more
efficient
 Simplify marketing and
sales process
12
3. Objectives of the
Study
 To know the CRM
practices in select banks at
Hyderabad.
 To study the benefits
CRM in select banks at
Hyderabad.
 To know the CRM
customer relationship in
terms of customer retention,
customer value,
customer loyalty and
customer channels.
13
 To understand the level
of awareness of CRM
strategy to customers
4. Methodology
Data Source: Primary and
secondary data.
Primary data collected
with the help of structured
questionnaire Secondary
data can be
obtained from various
sources such as financial
statement, sales reports,
earlier research
14
reports, referred text books
and company websites.
Sample Method:
Convenience sampling
method
2017
ISBN 978-1-943295-10-4
331
Sample Size: 50 banks and
thousand customers
Research Techniques:
Survey method (face to face
interaction)
15
5. Findings of the
Study
After the completion of the
study in State Bank of India,
ICICI Bank, Central Bank
of India,
HDFC Bank at Hyderabad
city, the collected data is
compiled and interpretation
is made to
carry out the result and
discussion.
1. 91% customer utilizing
any services of bank out of
1000 Respondents.
16
2. Customers used product
as ATM card with 50% SBI
Bank, 40% ICICI Bank,
45% CBI
Bank and 40% HDFC Bank
out of 250 customers each
bank.
3. Customers prefer
Government bank with
95% SBI Bank, 70%
ICICI Bank, 90% CBI
bank.
4. Customers need to
borrow money for things
17
other than cars, home
appliances and home
purchase etc., then
customers take loan amount
as <5 Lac with 55% SBI
Bank,50% ICICI
Bank, 50% CBI Bank and
65% HDFC Bank out of 250
customers each bank.
5. Customers prefer to
invest our saving as Fixed
Deposit with 50% SBI
Bank, 40%ICICI
18
6. Customers using value
added product as Debit
cards with 60% SBI Bank,
50% ICICI
7. Customer’s visit their
bank branch once a 1 month
with 50% SBI Bank, 40%
ICICI Bank,
55% CBI Bank and 40%
HDFC Bank out of 250
8. Customers believe that
private banks provide
19
superior services than
government banks
with 95%SBI Bank, 70%
ICICI Bank, 90% CBI
out of250
9. Customers satisfied with
bank services with 90%
SBI Bank, 70% ICICI
Bank, 80%CBI
bank.
10. The unsatisfied
customers recommendation
20
customers services with
80% SBI Bank,60%
ICICI Bank, 70% CBI Bank
and 55% HDFC Bank out of
250 customers each bank.
11. Banks are keep a track
of the key (frequent and
profitable) customers with
80% SBI
customers each
bank.
1. Introduction
21
It is a process or
methodology used to
to develop stronger
relationships
CRM in
CRM is as a
22
trends. CRM helps
businesses use
and the value
of those customers
1. Introduction
23
It is a process or
methodology used to
to develop stronger
relationships
CRM in
CRM is as a
24
trends. CRM helps
businesses use
and the value
of those customers
1. Introduction
It is a process or
methodology used to
25
to develop stronger
relationships
CRM in
CRM is as a
26
trends. CRM helps
businesses use
and the value
of those customers
. Introduction
It is a process or
methodology used to
27
to develop stronger
relationships
CRM in
CRM is as a
28
trends. CRM helps
businesses use
and the value
of those customers.

1. Introduction
It is a process or
methodology used to
29
to develop stronger
relationships
CRM in
CRM is as a
30
trends. CRM helps
businesses use
and the value
of those customers.
2017
ISBN 978-1-943295-10-4
330
31
practice in the
the issue. But
comportment,
32
from banking
valuating their
33
service
revenues
deals faster
efficient
sales process
34
Study
 To know the CRM
Hyderabad.
Hyderabad.
 To know the CRM
customer value,
customer channels.
35
of awareness of CRM
4. Methodology
secondary data.
data can be
earlier research
36
Sample Method:
method
1. Introduction
It is a process or
methodology used to
37
to develop stronger
relationships
CRM in
CRM is as a
38
trends. CRM helps
businesses use
and the value
of those customers.
2017
ISBN 978-1-943295-10-4
330
39
practice in the
the issue. But
comportment,
40
from banking
valuating their
41
service
revenues
deals faster
efficient
sales process
Study
42
 To know the CRM
Hyderabad.
Hyderabad.
 To know the CRM
customer value,
customer channels.
of awareness of CRM
43
4. Methodology
secondary data.
data can be
earlier research
Sample Method:
method
44
1. Introduction
It is a process or
methodology used to
to develop stronger
relationships
CRM in
45
CRM is as a
trends. CRM helps
businesses use
and the value
46
of those customers.
2017
ISBN 978-1-943295-10-4
330
practice in the
the issue. But
47
comportment,
from banking
48
valuating their
service
revenues
49
deals faster
efficient
sales process
Study
 To know the CRM
Hyderabad.
Hyderabad.
50
 To know the CRM
customer value,
customer channels.
of awareness of CRM
4. Methodology
secondary data.
51
data can be
earlier research
Sample Method:
method
1. Introduction
52
It is a process or
methodology used to
to develop stronger
relationships
CRM in
CRM is as a
53
trends. CRM helps
businesses use
and the value
of those customers.
54
2017
ISBN 978-1-943295-10-4
330
practice in the
the issue. But
comportment,
55
from banking
valuating their
56
service
revenues
deals faster
efficient
57
sales process
Study
 To know the CRM
Hyderabad.
Hyderabad.
 To know the CRM
customer value,
58
customer channels.
of awareness of CRM
4. Methodology
secondary data.
data can be
59
earlier research
Sample Method:
method
2017
ISBN 978-1-943295-10-4
331
Sample Size: 50 banks and
thousand customers
60
Research Techniques:
Survey method (face to face
interaction)
5. Findings of the
Study
After the completion of the
study in State Bank of India,
ICICI Bank, Central Bank
of India,
HDFC Bank at Hyderabad
city, the collected data is
compiled and interpretation
is made to
carry out the result and
discussion.
61
1. 91% customer utilizing
any services of bank out of
1000 Respondents.
2. Customers used product
as ATM card with 50% SBI
45% CBI
bank.
3. Customers prefer
Government bank with
95% SBI Bank, 70%
ICICI Bank, 90% CBI
62
bank.
4. Customers need to
borrow money for things
other than cars, home
appliances and home
purchase etc., then
customers take loan amount
as <5 Lac with 55% SBI
Bank,50% ICICI
5. Customers prefer to
invest our saving as Fixed
63
Deposit with 50% SBI
Bank, 40%ICICI
6. Customers using value
added product as Debit
cards with 60% SBI Bank,
50% ICICI
7. Customer’s visit their
bank branch once a 1 month
with 50% SBI Bank, 40%
ICICI Bank,
64
8. Customers believe that
private banks provide
superior services than
government banks
with 95%SBI Bank, 70%
ICICI Bank, 90% CBI
out of250
9. Customers satisfied with
bank services with 90%
SBI Bank, 70% ICICI
Bank, 80%CBI
65
bank.
10. The unsatisfied
customers recommendation
customers services with
80% SBI Bank,60%
ICICI Bank, 70% CBI Bank
and 55% HDFC Bank out of
250 customers each bank.
11. Banks are keep a track
of the key (frequent and
profitable) customers with
80% SBI
66
customers each
bank
67
INDUSTRY PROFILE
The Indian paint industry, estimated to be around Rs. 21,000 Cr industry, has
been growing at a rate of above 15% for the past few years. The organized
players cater to about 65% of the overall demand, whereas the unorganized
players take care of the remaining 35% in value terms.
The industry consists of two segments, namely decorative segment &
Industrial segment.
In the domestic market, Decorative segment accounts for 70% of the total
demand for paints whereas industrial segment accounts for remaining 30%.
Growth of the paint industry has been consistent with the growth of Indian
GDP. Paint industry growing at a rate of 1.5 to 2 times of Indian GDP.
The top 5 companies make up more than 80% sales of the organized market.
Top 5 companies in India market are
1) Asian Paints Ltd. (Rs. 6500 Cr)
2) Kansai Nerolac Paints Ltd.(Rs. 3000 Cr)
3) Berger Paints Ltd. (Rs. 2200 Cr)
4) Akzonobel India Ltd. (1100 Cr)
5) Shalimar Paints (Rs. 500cr)
68
NEED OF THE STUDY
In today’s intensely competitive, rapidly changing & highly complex
business environment characterized by diminishing customer loyalty, the
need to be market focused & customer centric is more critical than any other
time in past. Firms use technology as a key tool to enhance the information
flow within their business units, helping their employees better understand
the ever changing and increasing need and wants of their customers.
It is certain that the internet will continue to change the ways customers and
organizations interact with one another in terms of speed and ease. This fact
requires that the integration of internet technology into CRM activities occur
at all levels throughout the organization. Thus, it would be wrong to say that
keeping its customer satisfied is in the best interests of the organizations.
The purpose of this study is to bring insight and deeper understanding into
the objectives, strategies and the expected benefits of CRM initiatives by the
organization.
Importance of CRM :
1.Better service to customers: CRM provides more avenues for customers to
communicate and explain their needs to the organization through
numberous contact points. Customers get increased satisfaction and a
feeling of being special and important because of the increased
personalization of services and customization of goods offered to them
HDFC Bank.
2. Customization of market offerings : Companies can customize a product
or service depending on the data available with the firm. The firm can
facilitate customer-company interaction through the company contact
centre and web site. such interactions help develop customized product.
69
3.Reduction in the customer defection rate:
CRM emphasizes on training and development of the employees to
become more customer oriented. Due to CRM training and development,
employees show care and concern towards the valuable customers;
therefore, the customer defection rate may be reduced to a great extent.
4.Increase and improvement in long-term relationships:
Some firms treat their customers as partners. Firms solicit the help of the
customers to design new products or to improve their services. If the
customer gets involved with the firm, they are more likely to remain with
the firm.
5. Increase in customer equity: CRM increases customer equity. Firms focus
the marketing efforts more on the most valuable customers (MVCs). The
main aim of CRM is to produce high customer equity is the sum of
lifetime values of all customers. More focus on MVCs will enable a firm
to increase the customer equity.
6. Competitive advantage:
The firms that adopt CRM get competitive advantage in the market. They
can face the competition with much ease. Competitive advantage helps in
generating higher returns on investment.
7. Building and maintaining corporate image:
The image of the firm also gets enhanced. Loyal customers become
evangelists. The evangelists spread a good word about the company and
its products. This enables a firm to get additional customers to its fold.
8. Higher return on investment:
Due to CRM , a company gains a position to generate higher returns on
investment. This company also makes money through cross selling. The
higher return on investment increases the shareholders’ value.
70
CHAPTER-1
"Customer Relationship Management"
Introduction:-
The biggest management challenge in the new millennium of liberalization
and globalization for a business is to serve and maintain good relationship
with the king –The customer.
In the past producers took their customers for granted, because at that time
the customers were not demanding nor had alternative source of supply or
suppliers. But today there is a radical transformation. The changing business
environment Is characterized by economic liberalization, increasing
competition, high consumer choice, demanding customer, more emphasis on
quality and value of purchase etc.
All these changes have made today’s producer shift from traditional
marketing to modern marketing. Modern marketing calls for more than
developing a product, pricing it, promoting it and making it accessible to
target customer. It demands building trust, a binding force and value added
relationship with the customers.
The process of developing a cooperative and collaborative relationship
between the buyer and seller is called customer relationship management
shortly called CRM.
CRM (customer relationship management):-

CRM (customer relationship management) is an information industry term
for methodologies, software, and usually Internet capabilities that help an
enterprise manage customer relationships in an organized way. For example,
an enterprise might build a database about its customers that described
relationships in sufficient detail so that management, salespeople, people
71
providing service, and perhaps the customer directly could access
information, match customer needs with product plans and offerings, remind
customers of service requirements, know what other products a customer had
purchased, and so forth.
According to one industry view, CRM consists of :
• Helping an enterprise to enable its marketing departments to identify
and target their best customers, manage marketing campaigns and
generate quality leads for the sales team.
• Assisting the organization to improve telesales, account, and sales
management by optimizing information shared by multiple
employees, and streamlining existing processes (for example, taking
orders using mobile devices)
• Allowing the formation of individualized relationships with
customers, with the aim of improving customer satisfaction and
maximizing profits; identifying the most profitable customers and
providing them the highest level of service.
Providing employees with the information and processes necessary to know
their customers understand and identify customer needs and effectively build
relationships between the company, its customer base, and distribution
partners
AIMS OF CRM :
The CRM is a new technique in marketing where the marketer tries to
develop long term relationship with the customers to develop them as life
time customers. CRM aims to make the customer climb up the ladder of
loyalty.
The company first tries to determine who are likely prospects . the people
who have a strong potential interest in the product and ability to pay for it.
The company hopes to convert many of its qualified prospect into first time
72
customers and then to convert those first time customers into repeat
customers. Then the company tries to convert these repeat customers into
clients – they are those people who buy only from the company in the
relevant product categories. The next challenge for the company is to convert
these clients into advocates. Advocates are those clients who praise the
company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the
customer sand the clients work actively together to discover ways of getting
mutual benefit. Thus in CRM the key performance figure is not just current
market share but share of lifetime value by converting customers into
partners.In CRM the company tries to identify that small percentage (20%)
of key account holders whose contribution to the company revenues is high
(80%). So from this point of view,CRM is also known as KEY ACCOUNT
MANAGEMENT.
Why – Customer Relationship Management:-

• A satisfied customer in 10 years will bring 100 more customers to the
company.
• It costs 7 times more to attract a new customer than to serve an old
one.
• 20% of the company’s loyal customer’s account for 80% of its
revenues. (Pareto’s principle).
• The chances of selling to an existing customer are 1 in 2; the chances
of selling to a new customer are 1 in 16.
Benefits of Customer Relationship Management:-

A Customer Relationship Management system may be chosen because it is
thought to provide the following advantages:
• Quality and efficiency
73
• Decrease in overall costs Decision support
• Enterprise ability
• Customer Attentions
• Increase profitability
• Improved planning
• Improved product development
Customer service :
CRM software provides a business with the ability to create, assign and
manage requests made by customers. An example would be Call Centre
software which helps to direct a customer to the agent who can best help
them with their current problem. Recognizing that this type of service is an
important factor in attracting and retaining customers, organizations are
increasingly turning to technology to help them improve their clients’
experience while aiming to increase efficiency and minimize costs. CRM
software can also be used to identify and reward loyal customers which in
turn will help customer retention. Even so, a 2009 study revealed that only
39% of corporate executives believe their employees have the right tools
and authority to solve client problems.
Increase in customer retention

Customer satisfaction ratings improved
Service calls deflected from call center to online forum
Reduction in overall customer service costs
Marketing:
CRM systems for marketing help the enterprise identify and target potential
clients and generate leads for the sales team. A key marketing capability is
74
tracking and measuring multichannel campaigns, including email, search,
social media, telephone and direct mail.
Metrics monitored include clicks, responses, leads, deals, and revenue.
Alternatively,Prospect Relationship Management (PRM) solutions offer to
track customer behavior and nurture them from first contact to sale, often
cutting out the active sales process altogether.
In a web-focused marketing CRM solution, organizations create and track
specific web activities that help develop the client relationship. These
activities may include such activities as free downloads, online video
content, and online web presentations
Product- or company-related postings
Positive product comments, reviews
Visitors following link from social channel to online store’s URL
Visitors referred to website from online friend
Sales:-
Sales Force Automation (SFA):
Involves using software to streamline all phases of the sales process,
minimizing the time that sales representatives need to spend on each phase.
This allows a business to use fewer sales representatives to manage their
clients. At the core of SFA is a contact management system for tracking and
recording every stage in the sales process for each prospective client, from
initial contact to final disposition. Many SFA applications also include
insights into opportunities, territories, sales forecasts and workflow
automation.
More sales lead with expressed interest or need
Increase in referrals
Reduce cost per lead acquired
75
Key social influencers identified and engaged (invited to write a blog, for
instance, or otherwise participate in a company’s online community)
Overall increase in online sales and/or online customers
High response rate to coupon or promotion offered on Facebook or other
social channel
Increased purchasing from social channel visitors vs. regular online visitors
Product development:-
New ideas for future products or services generated via contests or “crowd
sourcing,” in which online groups brainstorm and then vote on best ideas
Responses to online surveys to vote on new product features or upgrades
Horizontal vs. Vertical:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a
horizontal CRM solution, companies may use industry templates to overlay
some generic best practices by industry on top of the horizontal CRM
solution.
Horizontal CRM vendors may also rely on value added reseller networks of
systems integrators to build vertical solutions and sell them as 3rd party add-
ons or to come in and customize the solution to fit into a particular scenario.
Vertical CRM vendors focus on a particular industry. As a general rule of
thumb in CRM, it is ten times more costly to build a vertical solution from a
horizontal software program than it is to find a particular vertical solution
that is already tailored to your business model and industry.
76
How to introduce CRM in the company:-
Four key steps for putting one to one marketing program to work–
Step 1: Identify your customers:
To launch a one to one initiative the company must be able to locate and
contact a fair number of customers or at least a substantial portion of its
valuable customers. It is crucial to know the customer details as much as
possible, not just their names or address, but their habits, preferences and so
forth.
Step 2: Differentiating your customers;-
Customers are different in two principal ways; they represent different levels
of value and have different needs. Once the company identifies its customers
differentiating them will help the company to focus its efforts to gain the
most advantage with the most valuable customers.
Step 3: Interacting with the customer:-
Interaction is also a crucial component of a successful CRM initiative. It is
important to remember that interaction just not occur through marketing and
sales channels, customer interact in many different ways with many different
areas of the organization so to foster relationship all the areas of the
organization must be accessible to the customer.
Step 4: Customize your enterprise’s behaviour:-
Ultimately to lock a customer into a relationship a company must adapt some
aspect of its behaviour to meet customer’s individually expressed needs this
might mean mass
Customizing a manufactured product or it might involve tailoring some
aspect of the service surrounding the product.
Challenges:-
Successful development, implementation, use and support of customer
relationship management systems can provide a significant advantage to the
77
user, but often there are obstacles that obstruct the user from using the
system to its full potential. Instances of a CRM attempting to contain a large,
complex group of data can become cumbersome and difficult to understand
for ill-trained users. The lack of senior management sponsorship can also
hinder the success of a new CRM system. Stakeholders must be identified
early in the process and a full commitment is needed from all executives
before beginning the conversion. But the challenges faced by the company
will last longer for the convenience of their customers.
Additionally, an interface that is difficult to navigate or understand can
hinder the CRM’s effectiveness, causing users to pick and choose which
areas of the system to be used, while others may be pushed aside. This
fragmented implementation can cause inherent challenges, as only certain
parts are used and the system is not fully functional. The increased use of
customer relationship management software has also led to an industry-wide
shift in evaluating the role of the developer in designing and maintaining its
software. Companies are urged to consider the overall impact of a viable
CRM software suite and the potential for good or bad in its use.
Significance of the study:-

The CRM (customer relationship management) is an integrated effort to
strengthen the network of relationship for the mutual benefit of both the
parties. The biggest management challenge in the new millennium of
liberalization and globalization for a business is to maintain good
relationship with the king – the customer. This study is of great significance
because
• A 5% increase in the customer retention will increase the profit up to
125%.
• It costs seven times more to attract a new customer than to serve an
old one.
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• 20% of the company’s loyal customer’s account for the 80% of its
revenues.
• To study on customer relationship management would enable the
researcher to know about the CRM practices adopted in the Paint
industry.
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CHAPTER - 2
REVIEW OF LITERATURE:-
With the available literature we can summarize CRM in the words of various
authors as follows-
Customer Relationship Management marketing can be defined as “an
integrated effort to identify, maintain and build up a network with the
individual customers and to continuously strengthen the network for the
mutual benefit of both parties ,through interactive, individualized and value
added contracts over a long period of time.
1. Bennett (1996) describes that CRM seeks to establish a long-term,
(Bennet,2014) committed, trusting and cooperative relationship with
customers, characterized by openness. Genuine concern for the
delivery of high quality services, responsiveness to customer
suggestions, fair dealings and willingness to sacrifice short-term
advantage for long-term gains.
2. Knox et al.(2003) address that CRM is a strategic designed to
improve stakeholder value (the value the customer receives. The
value the organization receives, and the customer retention and its
economics) through developing appropriate relationships with key
customers and customer segments and through channel and media
integration (channel and media suitability,channel and media
structure, and multichannel and multimedia integration).CRM unites
the potential of IT and relationship marketing to deliver profitable,
long-term relationships.
3. Sasser (2005) The Harvard business Review survey the importance
of customer relationship management on the customer retention
strategy.
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4. It has been observed by Hedley et al.(2006) that 2015 will present
tremendous challenges to that retail banking industry. Customers
will become increasingly individualistic and ,at the same time, more
controlling in their relationships with banks. For banks, traditional
segmentation approaches and go-to-market techniques will become
obsolete. How retail banks compete in the marketplace will also
change dramatically.
5. Bargal et al. (2008) added that banks will have to adopt diversified
services,open their branches at the shopping canter, install their web
system, implement proper training system, and define high
performance system to improve the behaviour of the employees,
offer proper customer complaint.
6. Sekran: The research books examine the importance of conceptual
frame work and the concept used in research methodology.
7. Varde (4 Aug, 2009): The research article deals with major
approaches (Collective & Selective) being utilized in bank marketing
including principal as pects of Bank Marketing.
8. Gronholdt (2000). The TOM Journal lock into the relationship
between customer satisfaction and loyalty: cross-industry
differences.
9. Barnes (12 july 2009) this website suggested that A
Multidimensional concept and several definition which facilitate in
developing the basic concepts related to C.R.M.
10. Trout (1986) The reaearch article investigate that US as the over
communicated society in terms that it is bombarded with
advertisements in shape of managerial implication.
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Conceptualization:-
A firm in paint industry has to maintain good relations with its customers.
They have to retain the customers for a long time to avail the benefit of their
relations. The customer relationship management is one of the effective tools
to identify, establish and maintain relationship with the customers.
Objectives of Customer Relationship Management:-

1. To study the current practices of CRM.
2. To find out the impact of CRM on the profitability of the
organization.
3. To study the factors affecting the CRM practices.
4. To study the role of information technology in CRM.
5. Improving customer loyalty, achievement of long-term and
productive partnership.
6. Improving sales activity and measuring the results.
7. Replacing individual approaches with sales system.
8. Measuring marketing returns.
9. Uses existing customer relationship to grow revenue.
10. Produce unique business experience for the customer.
Specific Objectives in HDFC BANK:

The customer satisfaction is also know why they preferred HDFC Bank and
factor influencing there satisfaction level. As Customer is very important for
the company ther contribute profitability for company but it is not necessary
that every customer generate revenue for company ; hence the scope of the
project is to identify the non profitable were cross sold to them during the
course o the project,thus generating revenues or the bank.
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Therefore customer satisfaction is very necessary as when the customer
delighted he switch to more product and service.Thus we can see that the
scope of this research was very wide and comprehensive.
Research Methodology
A research design is simply a plan for study in collecting and analyzing the
data. It helps the researcher to conduct the study in an economical method
and relevant to the problem. Research methodology is a systematic way to
solve a research problem. The methodology should combine economy with
efficiency.
Research design
The study conducted here is exploratory cum descriptive.
Scope of the study

The scope of the study is confined to Company.
Collection of the data

The objective of the project are such that both the primary and secondary
data is required to achieve them.
There are two types of data.
Primary data – The primary data is that data which is collected for the first
time. These data are basically observed and collected by the researcher for
the first time. I have used primary data for my project work.
The primary data was collected to measure the customer satisfaction
regarding HDFC bank.The primary data was collected by means of direct
personal interview method through structured questionnaire and analysis was
done on the basis of respons reciveds from the customers.
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Secondary data – secondary data are those data which are primarily
collected by the other person for his own purpose and now we use these for
our purpose secondly. The purpose of collecting secondary data was to
achieve the Objective of studying the recent trends and development taking
place in customer relationship management.
Research Approach: The survey was done by a method of fieldwork to
collect the required primary data meeting individuals and getting their
responses through Questionnaire, either in writing or verbally to know about
their knowledge, beliefs,behaviour, preference and satisfaction and so on.
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Customer Relationship Management (CRM)
What is CRM?
CRM stands for Customer Relationship Management. It is a process or
methodology used to learn more about customers' needs and behaviours in
order to develop stronger relationships with them. There are many
technological components to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more useful way to think about CRM
is as a process that will help bring together lots of pieces of information
about customers, sales, marketing effectiveness, responsiveness and market
trends.
CRM helps businesses use technology and human resources to gain insight
into the behaviour of customers and the value of those customers.
CRM Software Sales Force Automation Contact management Contact
management software stores, tracks and manages contacts, leads of an
enterprise. Lead management Enterprise Lead management software enables
an organization to manage, track and forecast sales leads. Also helps
understand and improve conversion rates. ECRM or Web based CRM Self
Service CRM Self service CRM (eCRM) software Enables web based
customer interaction, automation of email, call logs, web site analytics, and
campaign management. Survey Management Software Survey Software
automates an enterprise's Electronic Surveys, Polls, Questionnaires and
enables understand customer preferences.
Customer Service Call Centre Software 10 Help Desk Software Partner
Relationship Management Contract Management Software Contract
Management Software enables an enterprise to create, track and manage
partnerships, contracts, and agreements. Example: Upside Software,
Accruing Software, diCarta, I-Many. Distribution management Software
Thanks to the expanding global workforce, heightened competition, and the
continued need to cut costs and drive productivity, companies today are
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facing a new array of challenges. Many organizations have employees
working out of the office, whether it’s your traveling salesperson, or workers
in other states, countries, or from home. Collaborating as a unified team
(Workforce Collaboration) has never been more crucial and sharing
information with a teammate in the next cubicle is only a small piece of the
puzzle. That’s where Business Software and Customer Relationship
Management (CRM) applications come in. CRM programs enable
businesses to centrally access and manage customer information.
Whether information is being shared amongst a large group, such as in a call
center or simply between a few employees in a small business, it has to be
accurate and reliable. In order to retain customers, their information needs to
be recorded securely and correctly. Most people have encountered the
reverse of this scenario and know how infuriating it can be when companies
have poor organization and communication among their workers. To ensure
your customers are satisfied, you need to stand above the rest and have an
information hub where all workers have access to vital information about
customers. This will help you achieve proper customer service, sales,
marketing, and to unite all departments of your business.
CRM’s make Workforce Collaboration easier than ever! Of course, not all
team members should have access to the same information, and that’s why
certain CRM applications enable you to share information with your team
members securely and with necessary territorial controls. That means team
leaders can view more information and each department will see all relevant
information. This ensures excellent Project Management for any
organization, which is12 vital to your success. CRM applications help all
companies reduce the time and complexity it takes to report individual sales
activities.
Without a CRM, your workers will require an extra 64 to 70 hours per week!
For instance, it will take 4-6 hours to consolidate, view, and analyse
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information about all customer contacts and engagements, current
opportunities, probability of success, etc. Another 8-10 hours to get accurate
activity reports from staff (not including the time it takes them to create
those reports). Add 2-4 hours to find key potential prospects so that you
target the right customers, or weed out the poor prospects. Finally, add on
another 1/2 hour or so to research each customer regarding past history,
needs, etc. Any company that needs Process Improvement will find that in
order to be more effective and cost efficient, a system of Sales Force
Automation must be implemented.
Certain CRM systems can significantly reduce wasted time and increase
sales. Not only is Sales Force Automation important to sales teams,
companies are increasingly required to automate common practices and
processes. Sending emails to clients, entering vital information, and other
crucial steps are automated with popular CRM applications to reduce wasted
time of manually performing mundane tasks. CRM applications make
Project Management easier for company leaders with simple ways to
monitor and measure individual and team success.
Workers perform best when they have a clear-cut way to measure their
success and see improvement. Of course, by measuring success, rewards can
be given to enhance team morale! Employees that are struggling to perform
can be encouraged and further trained to boost productivity. Everyone in the
business world is13 competitive, especially sales people; that's the point of
quote as and commissions. When reps see how their doing against their
quota, or even against other reps, that is encouragement to do better.
With handy tools in CRM applications, your company can effectively
improve Workflow by targeting a) prospects for new business and b)
existing customers for repeat business. This is a crucial tool to reduce wasted
time and eliminate bothering the wrong customers. Your team will be able to
quickly divide lead lists into groups that you create such as by ZIP code or
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last date of purchase. This enables your sales team to slice and dice their
customer data to find the best approach. Creating "data policies" is a great
way to do that. For example, if a new prospect is introduced and there is data
indicating their interest in "Trucks," a completely different selling process
can start for that prospect.
As times have changed, a simple phone call or visit isn’t always enough.
CRM applications will provide you with multiple ways to communicate to
customers such as email marketing campaigns. By combining CRM Sales
Force Automation data management and email campaigning in one
application, you can specify your lead, prospect, and account targets,
embedded personal information into each email, and measure results across
your sales cycle. Your CRM will make it easier to target the right customers
with email lists and to make sure your message isn’t viewed as spam by
filters or customers! Newsletters make excellent campaigns to provide your
reader with information that will help them improve their situation in an
unobtrusive way.
Meanwhile, it positions you as a reputable source of useful information. The
better your content is, the better your chance that they will forward the
newsletter to colleagues14 and peers or look forward to the next email from
you. Your CRM will assist you in your email campaign efforts by offering
simple templates in HTML form and providing you with statistics such as:
who opened the email, who clicked on your link from the email, who
unsubscribed, etc. Creating automated call back lists for customers who
appeared to be interested (clicked on links, opened email, etc.) is a highly
successful tool.
A CRM application will enable your organization to build on customer data
with information relating to: opportunities, products, services, projects,
customer feedback, referrals, accounting, and more. A Sales Force
Automation CRM will automate processes that used to take days and will
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simplify it! The answer to the problems associated with the expanding global
workforce is through Web Collaboration technologies. This means operating
a successful CRM and Business Software system for your company. You can
be sure to: - Win Customers: Nothing will be left to chance. From the first
contact through first sale, everything is tracked. - Work Together: It doesn’t
matter where you employees are in the office, state, country, or world, they
will have the information they need to close more deals. - Work Smarter:
Working smarter is better than harder. It helps cut wasted time, efforts, and
money! You have the reporting data you need to make great decisions.
BANKING STRUCTURE IN INDIA

Scheduled banks in india
(A)scheduled commercial bank
Public sector bank Private sector Foreign bank Regional rural
bank in India bank
(28) (27) (29) (102)
 Nationalized  Old
bank private
 Other public banks
sector  New
bank(IDBI) private
 SBI and its bank
associates
(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative Banks (31)
Banks (55)
Here we more concerned about private sector banks and competition among
them. Today, there are 27 private sector banks in the banking sector: 19 old
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private sector banks and 8 new 17 Private sector banks. These new banks
have brought in state-of the-art technology and Aggressively marketed their
products. The Public sector banks are Facing a stiff competition from the
new private sector banks. The banks which have been setup in 1990s under
the guidelines of the Narasimham Committee are referred to as
NEW PRIVATE SECTOR BANKS.

• Superior Financial Services
• Designed Innovative Products
• Tapped new markets
• Accessed Low cost NRI funds
• Greater efficiency
INDIAN BANK INDUSTRIES

The Indian banking market is growing at an astonishing rate, with 19 Assets
expected to reach US$1 trillion by 2010. An expanding economy, middle
class, and technological innovations are all contributing to this growth. The
country’s middle class accounts for over 320 million people. In correlation
with the growth of the economy, rising income levels, increased standard of
living, and affordability of banking products are promising factors for
continued expansion.
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The Indian banking Industry is in the middle of an IT revolution, Focusing
on the expansion of retail and rural banking. Players are becoming
increasingly customer - centric in their approach, which has resulted in
innovative methods of offering new banking products and services. Banks
are now realizing the 20 importance of being a big player and are beginning
to focus their attention on mergers and acquisitions to take advantage of
economies of scale and/or comply with Basel II regulation. “Indian banking
industry assets are expected to reach US$1 trillion by 2010 and are poised to
receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in
Celent's banking group and author of the report. “The banking industry
should focus on having a small number of large players that can compete
globally rather than having a large number of fragmented players."
UPCOMING FORGIN BANKS IN INDIA
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By 2009 few more names is going to be added in the list of foreign banks in
India. This is as an aftermath of the sudden interest shown by Reserve Bank
of India paving roadmap for foreign banks in India greater freedom in India.
Among them is the world's best private bank by EuroMoney magazine,
Switzerland's UBS.
The following are the list of foreign banks going to set up business in India :-
• Royal Bank of Scotland
• Switzerland's UBS
• US-based GE Capital
• Credit Suisse Group
• Industrial and Commercial Bank of China
WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
HDFC is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets. Since its inception in
1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan
portfolio covers well over a million dwelling units. HDFC has developed
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significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission : to be a “
World Class Indian Bank.” We realized that only a single minded focus on
product quality and service excellence would help us get there. Today, we
are proud to say that we are well on our way towards that goal
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COMPANY PROFILE
STRONG NATIONAL NETWORKS
HDFC BANK
MARCH 2015 MARCH 2016 MARCH 2018
Citied 228 316 327
Branches 535 684 761
ATMs 1323 1605 1977
Source ;
As of March 31, 2018, the Bank’s distribution network was at 761 Branches
and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in
320 cities as of March 31, 2017. March 2015 March 2016 March 2018 Citied
228 316 327 Branches 535 684 761 ATMs 1323 1605 197726 Against the
regulatory approvals for new branches in hand, the Bank expects to further
expand the branch network by around 150 branches by June 30, 2018.
During the year, the Bank stepped up retail customer acquisition with deposit
accounts increasing from 6.2 million to 8.7 million and total cards issued
(debit and credit cards) increasing from 7 million to 9.2 million.
Whilst credit growth in the banking system slowed down to about 22% for
the year ended 2017-18, the Bank’s net advances grew by 35.1% with retail
advances growing by 38.6% and wholesale advances growing by 30%,
implying a higher market share in both segments. he transactional banking
business also registered healthy growth With cash management volumes
increased by around 80% and trade services volumes by around 40% over
the previous year.
Portfolio quality as of March 31, 2019 remained healthy with gross
nonperforming assets at 1.3% and net non-performing assets at 27 0.4% of
total customer assets. The Bank’s provisioning policies for specific loan loss
provisions remained higher than regulatory requirements.
TECHNOLOGY USED IN HDFC BANKS
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In the era of globalization each and every sector faced the stiff competition
from their rivals. And world also converted into the flat from the globe.
After the policy of liberalization and RBI initiatives to take the step for the
private sector banks, more and more changes are taking the part into it. And
there are create competition between the private sector banks and public
sector bank.
Private sector banks are today used the latest technology for the different
transaction of day to day banking life. As we know that Information
Technology plays the vital role in the each and every industries and gives the
optimum return from the limited resources.
Banks are service industries and today IT gives the innovative Technology
application to Banking industries. HDFC BANK is the leader in the
industries and today IT and HDFC BANK together 28 combined they
reached the sky. New technology changed the mind of the customers and
changed the queue concept from the history banking transaction. Today there
are different channels are available for the banking transactions.
We can see that the how technology gives the best results in the below
diagram. There are drastically changes seen in the use of Internet banking, in
a year 2001 (2%) and in the year 2008 ( 25%). These type of technology
gives the freedom to retail customers.
Centralized processing units Derived Economics of scale

Electronic straight through Reduced transaction cost
processing
Data warehousing ,CRM Improve cost efficiency,cross sell
Innovative technology Application Provide new or superior products
HDFC BANK is the very consistent player in the New private sector banks.
New private sector banks to withstand the competition from public sector
banks came up with innovative products and superior service.
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Branches 43%
ATM 40% Phone
Banking 14%
Internet 2%
Mobile 1%
Branches 17%
ATM 45%
Phone Banking 12%
Internet 25%
Mobile 1%
( % customer initiated Transaction by Channel )
HDFC BANK PRODUCT AND CUSTOMER SEGMENTS
96
97
WHOLESALE BANKING
98
CHAPTER-3
BUSINESS STRETEGY
HDFC BANK mission is to be "a World Class Indian Bank", benchmarking
themselves against international standards and best practices in terms of
product offerings, technology, service levels, risk management and audit &
compliance. The objective is to build sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy
growth in profitability, consistent with the Bank's risk appetite. Bank is
committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance.
Continue to develop new product and technology is the main business
strategy of the bank. Maintain good relation with the customers is the main
and prime objective of the bank.
HDFC BANK business strategy emphasizes the following :

• Increase market share in India’s expanding banking and financial
services industry by following a disciplined growth strategy focusing
on quality and not on quantity and delivering high quality customer
service.
• Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating
costs.
• Maintain current high standards for asset quality through disciplined
credit risk management.
• Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
99
• Continue to develop products and services that reduce bank’s cost of
funds.
• Focus on high earnings growth with low volatility.
INSIDE HDFC BANK

FIVE “S” , PART OF KAIZEN
WORK PLACE TRANSFORMATION
Focus on effective work place organization Believe in
“ Small changes lead to large improvement ”
Every successful organization have their own strategy to win the race in the
competitive market. They use some technique and methodology for smooth
running of business. HDFC BANK also aquired the Japanese technique for
smooth running of work and effective work place organization. Five ‘S’ Part
of Kaizen is the technique which is used in the bank For easy and systematic
work place and eliminating unnecessary things from the work place.
BENEFIT OF FIVE “S”

• It can be started immediately.
• Every one has to participate.
• Five “ S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage are made visible.
LABELLING ON FILE
100
101
COLOUR CODING OF FILES
In the HDFC BANK each department has their different color coding apply
on the different file. Due to this everyone aware about their particular color
file which is coding on it and they save their valuable time.It is a part of
kaizen and also included in the system of the Five ‘S’. Logic behind it that
.the color coding are always differentiate the things from the similar one.
HUMAN RESOURCES
The Bank’s staffing needs continued to increase during the year particularly
in the retail banking businesses in line with the business growth. Total
number of employees increased from 14878 as of March31,2006 to 21477 as
of March 31, 2007. The Bank continues to focus on training its employees
on a continuing basis, both on the job and through training programs
conducted by internal and external faculty.
The Bank has consistently believed that broader employee ownership of its
shares has a positive impact on its performance and employee motivation.
102
The Bank’s employee stock option scheme so far covers around 9000
employees.
RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where and
where to spent money. And balanced between these two things rupee earned
and rupee spent are required for smooth running of business and financial
soundness. This type of watch can control and eliminate the unnecessary
spending of business. In this diagram it include both things from where Bank
earned Rupee and where to spent.
HDFC BANK earned from the ‘Interest from Advances’ 51.14 % , ‘Interest
from Investment’ 27.12 %, bank earned commission exchange and
brokerage of 15.25 %. These are the major earning sources of the bank. Bank
also earned from the Forex and Derivatives and some other Interest Income.
Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and
14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss
on Investment , Tax.
103
As we discuss above that balancing is must between these two for every
organization especially in the era of globalization where there are stiff
competition among various market players.
RECENT DEVELOPMENT
The Reserve Bank of India has approved the scheme of amalgamation of

Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May
23, 2008. All the branches of Centurion Bank of Punjab will function as
branches of HDFC Bank with effect from May 23, 2008. With RBI’s
approval, all requisite statutory and regulatory approvals for the merger have
been obtained.
The combined entity would have a nationwide network of 1167 branches; a

strong deposit base of around Rs.1,22,000 cores and net advances of around
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Rs.89,000 cores. The balance sheet size of the combined entity would be
over Rs.1,63,000 cores.
Merger with Centurion Bank of Punjab Limited
On March 27, 2008, the shareholders of the Bank accorded their consent to a
scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC
Bank Limited. The shareholders of the Bank approved the issuance of one
equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity
shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is
subject to receipt of Approvals from the Reserve Bank of India, stock
exchanges and Other requisite statutory and regulatory authorities. The
shareholders Also accorded their consent to issue equity shares and/or
warrants convertible into equity shares at the rate of Rs.1,530.13 each to
HDFC Limited and/or other promoter group companies on preferential basis,
subject to final regulatory approvals in this regard. The Shareholders of the
Bank have also approved an increase in the authorized capital from Rs.450
cores to Rs.550 cores.
Promoted in 1995 by Housing Development Finance Corporation (HDFC),
India's leading housing finance company, HDFC Bank is one of India's
premier banks providing a wide range of financial products and services to
its over 11 million customers across hundreds of Indian cities using multiple
distribution channels including a pan-India network of branches, ATMs,
phone banking, net banking and mobile 49 banking. Within a relatively short
span of time, the bank has emerged as a leading player in retail banking,
wholesale banking, and treasury operations, its three principal business
segments.
The bank's competitive strength clearly lies in the use of technology and the
ability to deliver world-class service with rapid response time. Over the last
13 years, the bank has successfully gained market share in its target
customer franchises while maintaining healthy profitability and asset quality.
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As on March 31, 2008, the Bank had a network of 761 branches and 1,977
ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a
net profit of INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the
corresponding year ended March 31, 2007. As of March 31, 2008 total
deposits were INR 1007.69 billion, (Rs.100,769 cores) up 47.5% over the
corresponding year ended March 31, 2007. Total balance sheet size too grew
by 46.0% to INR 1,331.77 billion (133177 cores). Leading Indian and
international Publications have recognized the bank for its performance and
quality.
Centurion Bank of Punjab is one of the leading new generation private sector
banks in India. The bank serves individual consumers, small and medium
businesses and large corporations with a full range of financial products and
services for investing, lending and advice on financial planning. The bank
offers its customers an array of wealth management products such as mutual
funds, life and 51 general insurance and has established a leadership
'position'. The bank is also a strong player in foreign exchange services,
personal loans, mortgages and agricultural loans. Additionally the bank
offers a full suite of NRI banking products to Overseas Indians. On 29th
August 2007,
Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post
obtaining all requisite statutory and regulatory approvals. This merger has
further strengthened the geographical reach of the Bank in major towns and
cities across the country, especially in the State of Kerala, in addition to its
existing dominance in the northern part of the country. Centurion Bank of
Punjab now operates on a strong nationwide franchise of 404 branches and
452 ATMs in 190 locations across the country, supported by employee base
of over 7,500 employees. In addition to being listed on the major Indian
stock exchanges, the Bank’s shares are also listed on the Luxembourg Stock
Exchange
106
ACHIVEMENT IN 2018
107
SWOT ANALYSIS
STRENGTH
• Right strategy for the right products.
• Superior customer service vs. competitors.
• Great Brand Image
• Products have required accreditations.
• High degree of customer satisfaction.
• Good place to work
WEAKNESSES
• Some gaps in range for certain sectors.
• Customer service staff need training.
• Processes and systems, etc
• Management cover insufficient.
• Sectorial growth is constrained by low unemployment levels and
competition for staff56
• Lower response time with efficient and effective service.
• Dedicated workforce aiming at making a long-term career in the field.
OPPORTUNITIES
• Profit margins will be good.
• Could extend to overseas broadly.
• New specialist applications.
• Could seek better customer deals.
• Fast-track career development opportunities on an industry-wide
basis.
• An applied research centre to create opportunities for developing
techniques to provide added-value services.
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THREATS
• Legislation could impact.
• Great risk involved
• Very high competition prevailing in the industry.
• Vulnerable to reactive attack by major competitors
• Lack of infrastructure in rural areas could constrain investment.
• High volume/low cost market is intensely competitive.
COMPETITIVE SWOT ANALYSIS WITH ICICI BANK
109
PROJECT ON PLASTIC MONEY
I give the project on Plastic Money to bank. The objective behind this project
is to increase the rich customers list in a bank. Plastic Money title itself says
the use of Credit Card and Debit Card in day to day transaction of the
business. I prepared the presentation on it and submitted to bank and Bank
already started work on this project. Idea behind this project is to sale the
bulk product. Target customer Of this project are two parties one is
Wholesaler and second is Retailer. Due to this idea bank also sell their swipe
machine to wholesaler and create brand image in the market.
The idea behind this, bank give the credit card swipe machine to wholesalers
and retailers use the credit card of the bank. Bank gives the 50 days credit to
their credit card holders. So here retailers can get benefit of long credit
period and on the other side wholesalers can get the benefit of same day
payment. As a result bank got the wide list of customers of wholesalers and
retailers.
POWERPOINT PRESENTATION ON PLATIC MONEY

Use of Plastic Money Target customers are Wholesalers and Retailers Bulk
sales surely possible66 IDEA We sale our product to wholesalers and
Retailers and create group transactions. Credit Card and Debit Card as a
medium of transaction. Both the parties get benefit from it Bank got the new
customers as a result. Idea behind it, to convenience both the parties and
create the group transaction between them so bank can got the maximum
benefit from it. Each wholesaler has more than 15 to 20 retailers, so by this
way bank sell the bulk products.
How it works Meet to wholesale first Collect details of their Retailers
Convince both the parties and showing them a benefits from it. Force to
open a bank account in H DFC Bank to both the parties. This power point
slide shows the how idea works behind this project. Meet the wholesaler first
110
and get the details about their retailers and convince both parties and shows
the benefit of using this type of transaction by plastic money. 68 Benefit to
Bank Bulk product selling Because wholesalers and retailers are in a group
Indirect way to marketing Bank always find those customers which are more
involve in the banking transaction. These type of group transaction between
the wholesalers and retailers maintain the well account in a bank.
111
CHAPTER-4
METHODOLOGY
BUSINESS STRETEGY:- HDFC BANK mission is to be "a World Class

Indian Bank", benchmarking themselves against international standards and
best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance. The objective is to build sound
customer franchises across distinct businesses so as to be a preferred
provider of banking services for target retail and wholesale customer
segments, and to achieve a healthy growth in profitability, consistent with
the Bank's risk appetite.
Bank is committed to do this while ensuring the highest levels of ethical
standards, professional integrity, corporate governance and regulatory
compliance. Continue to develop new product and technology is the main
business strategy of the bank. Maintain good relation with the customers is
the main and prime objective of the bank.
HDFC BANK business methodology emphasizes the following:-

Increase market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and
not on quantity and delivering high quality customer service. · Leverage our
technology platform and open scalable systems to deliver more products to
more customers and to control operating costs. Maintain current high
standards for asset quality through disciplined credit risk management.
Develop innovative products and services that attract the targeted customers
and address inefficiencies in the Indian financial sector. Continue to develop
products and services that reduce bank’s cost of funds. Focus on high
earnings growth with low volatility
112
CHAPTER-5
ANALYSIS & DISCUSSION
The office of HDFC BANK is blessed by brilliant and skilled professionals
and team leader who have the responsibility of handling the Financial
Corporate Consultants. HDFC Bank can play an important role in73 this
stage by helping to establish a clear understanding of the market, to improve
the perception of individual or group of people it my provide new
dimensions to this sector . It is taken for granted that most research needs are
tactical and specific, but a few business issues exist in a vacuum. Because
we understand and have worked for years throughout the business processes,
we can supply insights and strategic solutions that are more relevant and
actionable. Whether we provide research in just one area or guide innovation
from concept inception through market introduction, we're committed to
success and profits... yours.
Analysis:-
The customers of the COMPANY are the direct industries & wholesalers. It
is because for the decorative segment the number of retailers is very large as
compared to the wholesalers. So it is not possible for the company to
approach to the retailers. There fore the company sells to the wholesalers and
then wholesalers sell to the retailers.
Customers are encouraged to give suggestions and complaints so that the
company can improve its working and services. If the customer’s complaints
are not resolved the customers will be dissatisfied and the company may lose
its customers.
Different customers have different requirements. So the company customizes
its product accordingly to satisfy the customers. It also gives more choice to
the customers.
113
To get the information about the customers and to measure the satisfaction
the company conducts surveys through Business development sales persons.
The company gives credit facility to its customers to increase the sales
volume. If the company do not sell on credit the customers may switch over
to other companies. The company maintains frequent communication with
the customers. As soon as the product is ready or a new product is launched
the information is provided to the customers. Communication is also
necessary to maintain the interest of the customers in the company.
The company gives concession to its regular customers so as to retain it’s
most valuable and profitable customers.
The company regularly reviews the business process in order to eliminate
non value-adding activities, to reduce the cost and to make the whole work
efficient and effective. Ifthe internal customers are not satisfied and there is
lack of coordination among thedepartments then it will affect the external
customers also.
Limitations of Customer Relationship Management:-

1. Time constraint is unavoidable limitation of my study.
2. Financial problem is also there in completing this project in a proper
way.
3. Inadequate disclosure of information is also the problem.
4. The study is only for the HDFC Bank confined to a particular location
and a very small sample of respondents. Hence the findings cannot be
treated as representative of the entire banking industry.
5. The study can also not be generalized for public and sector banks of
the country.
6. Respondents may give biased answers for the required data. Some of
the respondents did not like to respond.
114
7. Respondents tried to escape some statements by simply answering
“neither agree nor disagree” to most of the statements. This was one of
the most important limitation faced, as it was difficult to analyse and
come at a right conclusion.
8. In our study we have included 50 customers of bank because of time
limit.
115
Recommendations:-
 There should be more and more emphasis given by the company for
satisfying the customer up to an apex limit and by providing the utility
of every penny of his money.
 There should be more use of information technology.
 The company should be flexible to bend its rules and procedures in
the clients favour.
 The company can communicate and develop stronger customer
bonding by providing social and financial benefits.
 Reliability is an obvious place to start. Customers of the bank want to
know their resources are safe and within trustworthy institutions. A
way to ensure this peace of mind would be to take steps to ensure
bank employees are well trained, so each bank as sociate is able to
offer complete and complete and comprehensive information at all
times.Consistent policies combined with a knowledgeable staff will
foster a high degree of institutional cohesion and reliability.
 The five-dimensional structure could possibly serve as a meaningful
framework for tracking a bank “S Service quality performance over
time and comparing it against the performance of competitors. Items
on some dimensions should be expanded if that is necessary for
reliability.
 Thus, the banking industries must continuously measure and improve
these dimensions in order to gain customer”loyalty.
116
Findings:-
 The customers of COMPANY are industries & Distributors
throughout India. The needs of the customers are clearly defined and
the products are customized according to the needs of the customers.
 Customer’s comments and complaints are welcomed and resolved
quickly and positively. Comments and complaints are taken through
face to face interviews. The company conducts customer satisfaction
surveys.
 The company provides credit facility to its customers up to 90 days. If
the customers pay within 21 days they are given 5% cash discount for
distributors.
 Sales persons of the company maintain frequent and informative
communication with the customers. Business process is regularly
reviewed to eliminate non value-adding activities.
 The average sale per customer has increased by 10% and customer’s
response to the marketing activities is also improving. Customer
retention is also improving. The factors which have an impact on the
CRM are – organization culture, support from top management,
interpersonal skill of the sales personals and working environment of
the company.
 As score for Assurance is at second place after responsiveness, so the
customer of HDFC bank are very confident and feel safe while
transacting with the bank. Moreover the employees of the bank have
proved to be trustworthy. Employees are also educated enough to
answer all the questions.
 In HDFC bank, the score of Responsiveness is highest so they are
focusing on prompt service,employees are willing to help the
customers and say the exact time when the services will be performed.
117
Employees at bank give their customers first preference and are
always ready to help them. Overall HDFC bank “S responsiveness
dimension of service quality is the highest.
CONLUSION
From this study it can be concluded that the customer relationship
management in Company is satisfactory. The company is using various
CRM practices like customization of the product, maintaining interaction
with the customers regularly and providing good quality product etc.
Customer relationship management has a certain impact on the profitability
of the company. Average sale per customer has increased 15% over the last
two years.
Customer response rate towards marketing activities is also improving.
There are various factors affecting the customer relationship management
like working environment of the company, support from top management
and coordination among the departments of the company. Information
technology is not used as much as it should be. The company is using
traditional tools of CRM like quantitative research, personal interviews. The
company should modern tools like data mining, contact center, e-CRM and
web based survey tools.
118
HDFC Bank, the banking arm of HDFC is expected to go on stream. The
bank already has good number of employees on board and is recruiting Sales
executives heavily to take the headcount to many more. It is on the brim of
increasing its customers through its attractive schemes and offer. The project
opportunities provided was market segmentation and identifying75
prospective customers in potential geographical location and convincing
them to open an account so that new Business Opportunities of the bank can
be explored. Through this project, it could be concluded that people are not
much aware about the various products of the bank and many of them not
interested to open an account at all. Services was considered as unsought
good which require hard core selling, but in changing trend in income and
people becoming financially literate, the demand for banking sector is
increasing day by day.
According to my findings Company’s promotional activities for recruiting
sales executives are also very less. So, at last the conclusion is that there is
tough competition ahead for the company from its major competitors in the
banking sector. Last but not the least I would like to thank HDFC Bank for
giving me an opportunity to work in the field of Marketing. I hope the
company finds my analysis relevant.
119
Future Prospect
• To approach in right direction with a clear site & adopt new,
innovative ideas
• To increase its customer base in market & rise market share
• To increase market value with new schemes & services
• To expand its branches in almost all cities.
120
ANNEXURE
Questionnaire
1. Who are your customers?
a) Dealer
b) Industry
2. Are your customer’s needs clearly defined?
a) Yes
b) No
3. Do you conduct customer satisfaction surveys?
a) Yes
b) No
4. Do you communicate results of your customer satisfaction surveys
regularlythroughout the company?
a) Yes
b) No
5. Do you actively seek out customer comments and complaints?
a) Yes
b) No
6. How do you get customer comments and complaints?
a) Face to face .
b) Toll free numbers, formal surveys.
c) Others means
7. How do you get information about the customers?
a) Face to face interviews
b) Surveys.
c) Any other means.
121
8. Do you analyze channel effectiveness? In which channel is most effective
inserving the customer?
a) Yes
b) No
9. Do you provide credit facility to your customers?
a) Yes
b) No
10. Do you give concessions to your regular customer?
a) Yes
b) No
11. Do you take feedback from your customers?
a) Yes
b) No
12. Do you customize your product or services according to the customer?
a) Yes
b) No
13. Do you have a concept of “internal service”?
a) Yes.
b) No.
14. Do you communicate with your customers frequently?
a) Yes.
b) No.
c) Any other means.
15. Do you regularly review the business process to eliminate non value-
adding activities and improve customer satisfaction?
a) Yes
b) No.
122
16. Is the working environment is conducive to the well-being and morale of
all employees?
a) Yes
b) No.
17. How much is the role of computers in serving the customers?
a) Plays a big role
b) Not much role to play
c) No role to play.
18. Do you have centralized database for customer information?
a) Yes
b) No such database.
19. Does the staff have access to the customer database?
a) Yes
b) No
20. Is there commitment from top management to support the customer-
focused service concept?
a) Yes
b) No
21. Is there any improvement in average sale per customer?
a) Yes
b) No
22. Is there any improvement in customer response rate to the marketing
activities?
a) Yes
b) No
23. Is there any improvement in customer retention and loyalty?
a) Yes
b) No.
123
REFERENCE:-
1. Guidance from Branch Manager HDFC Bank, Manager, HDFC Bank.
2. www.scribd.com
3.www.managemanteparadise.com
124

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A DISSERTATION REPORT ON

“A STUDY ON CUSTOMER RELATIONSHIP

MBA Agri-business Management

Under the Guidance of

INSTITUTE OF DEVLOPMENT STUDIES

University of Mysore Manasagangothri ,Mysore-570006

Phone No. 0821-2149339

This is to certify that the Dissertation Report entitled “A STUDY ON

Phone No. 0821-2149339

This is to certify that Ms Jithupriya.N.M bearing Roll. No.19ABM008 has

This Dissertation Report is submitted to the University of Mysore in

I wish to express my sincere gratitude to my guide Dr. H.M. Chandrashekar,

I want to place a records my sincere thanks to Prof…Dr.H.M.

I express my heart full thanks to my family and friends, who gave

I express my special thanks to all teaching faculty, non-teaching staff,

A large measure of gratitude must be expressed to all the respondents who

My heartily thankful to my beloved parents and my brother for their support

Finally I thank those well-wishers who directly and indirectly helped me in

SI NO. Subject Page No

5 Analysis,Discussion & Conclusion 53

Keywords: CRM, Banking,

Keywords: CRM, Banking,

CRM (customer relationship management):-

Why – Customer Relationship Management:-

Benefits of Customer Relationship Management:-

Increase in customer retention

Horizontal vs. Vertical:-

Significance of the study:-

Objectives of Customer Relationship Management:-

Specific Objectives in HDFC BANK:

Scope of the study

Collection of the data

BANKING STRUCTURE IN INDIA

(B) Scheduled Cooperative Banks

NEW PRIVATE SECTOR BANKS.

INDIAN BANK INDUSTRIES

UPCOMING FORGIN BANKS IN INDIA

WE UNDERSTAND YOUR WORLD

Centralized processing units Derived Economics of scale

( % customer initiated Transaction by Channel )

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

HDFC BANK business strategy emphasizes the following :

INSIDE HDFC BANK

BENEFIT OF FIVE “S”

RUPEE EARNED - RUPEE SPENT

The Reserve Bank of India has approved the scheme of amalgamation of

The combined entity would have a nationwide network of 1167 branches; a

COMPETITIVE SWOT ANALYSIS WITH ICICI BANK

POWERPOINT PRESENTATION ON PLATIC MONEY

BUSINESS STRETEGY:- HDFC BANK mission is to be "a World Class

HDFC BANK business methodology emphasizes the following:-

Limitations of Customer Relationship Management:-

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