The IIS University

Submitted by:- Gaurav Poddar

(MBA II trimester)
 What is Customer Loyalty?
 The term customer loyalty is used to describe
the behavior of repeat customers, as well as
those that offer good ratings, reviews, or
testimonials. Some customers do a particular
company a great service by offering favorable
word of mouth publicity regarding a product,
telling friends and family, thus adding them to
the number of loyal customers.
Brand loyalty implies that the consumer is
willing, at least on occasion, to put aside their
own desires in the interest of the brand.
 Do’s Don’ts
Do invite customers to participate Don't assume the customers are
going to ask for the ability to
participate in a company's
activities
Do find ways to bring customers Don't allow even one employee to
together regularly. be grumpy or haughty toward
customers.
Do remember that loyalty is built Don't treat your customers as if
over time through a collection of they were expendable
positive experiences.
They must feel good about their Don’t over do follow up activities
relationship with the company— like phone calls, promotional calls,
they must believe the company unnecessary mails etc
understands and values them,
listens to them, and shares their
underlying principles.
 Problem Definition:
 How the customer’s loyalty towards his banker
is being affected by the services being offered
by bank?

 Research Objective:
 To identify customer’s needs, wants and
expectations from the services offered by banks.
 To identify different types of services offered by
banks which influence customer’s loyalty.
 To analyze the bearing of each type of service
on customer’s loyalty and identify the crucial
services from the point of view of customers.
 Based on the analysis, making suggestions and
recommendations to improve the services to
maximize customer loyalty for banks.
 Research Design:
 Empirical Research Design.

 Sampling Design:
 Sampling
 Sample Size

 Data Collection Techniques

 Primary Data
 Secondary Data

 Interpretation and Report Writing

 Findings
 Recommendations
 Conclusion
 Respondent Distribution
State Bank
HDFC Bank of India
28% 35%

ICICI Bank
37%

Analysis
• Highest number of respondents were from ICICI Bank i.e. 37%.
• Marginally short than ICICI, respondents of SBI were 35%.
• The respondents of HDFC bank were 28%.
 Mode of Transactions
NET banking
10%

Phone
Banking 2%

Visiting
ATMs 42% Branch 46%

Analysis
• Branch visits of respondents came to be at 46% and ATM
transactions were at 42%.
• NET banking and phone banking still haven’t seen a liking

with respondents because only 2% of phone bankers and

 Frequency to Visit Branch by
respondents

Weekly
Daily 0%
16.00%

Monthly
45.00%
Fortnight
39.00%

Analysis
• Most respondents visit branch on a monthly basis i.e. 45%
respondents.
• Where as 39% respondents were fortnightly visitors to the
branch.
• Lastly there were 16% weekly visitors and no daily visitor was
 Perception towards staff of bank
Very
Dissatisfactory Very
2% Satisfactory
Dissatisfactory 12%
8%

Neither Satisfactory
Satisfactory Nor 27%
Dissatisfactory
Analysis 51%

• 51% felt no special treatment or “WOW” kind of behaviour from the bank’s
staff
• Only 27% respondents responded to be satisfied with the behaviour of the
bank’s staff
• A marginal of 12% said that they are highly satisfied
• 2% and 8% of very dissatisfied and dissatisfied
respectively
 Most appealing factors for respondents in
choosing their bank
Association Word of Financial
with other Mouth 3% Soundness
Agencies 9% 30%

Product
Performance
23%

Operational
Excellence Infrastructure
15%
20%

Analysis
• This question was designed to take the observation regarding
what factors influence a person before he chooses his bank.
Analysis
• This question is formed to know the customers view towards
their banking services.
Analysis
• This question was framed to know about in-house finance
facilities of banks.
Analysis
• This question was framed to review the attention of customers
by various modes of advertisement.
Analysis
• This is basically formed to know about the various choices of
customers i.e their competitors.
Analysis
• This was formed to make out free net banking services provided
by banks.
Analysis
• This question is framed to gain knowledge about facilities
through ATM Cards to the customers.
 From the survey above, we can observe the findings that
out of 11 service factors that were under consideration,
the following are the crucial ones:
 Product Performance.
 Queue handling at branch.
 Response time to solve customer query.
 Quality of operations
 Staff behavior.
 Most transaction by ATM’s.
 Most of the respondents felt no special treatment or
“WOW” kind of behavior from the bank’s staff, thus the
very need of feeling special as a customer is missing
which hinders the creation of a long term relationship of
a customer with his bank, leading to non creation of
customer loyalty.
 A marginal of respondents said that they are highly
satisfied with the behavior of the bank’s staff, thus bank
should leverage upon such customers as they are
perfectly poised to become a typical “loyal customer” in
future or long run.
 The factors like Financial Soundness of bank, its product
performance compared with competitors and operational
excellence are the main drivers for making a choice of bank
to make a deposit with, among the respondents.
 Customer loyalty is repeat purchasing behavior of a product
or services from the same provider.
 Customer loyalty is the level of commitment that a customer
shows towards a particular product or service.
 Customer loyalty is the long-term relationship between the
customers and the provider of the product or services.
 Service quality is identified as the main antecedent to
customer loyalty.
 Creating satisfied and loyal customers are the most focal
objectives of the loyalty programs, and creating satisfied and
loyal customers is a critical matter for many corporations
survival.
Customer Loyalty is very crucial for survival of any business in
the long run because the cost to make a new customer upon a
loss of existing customer is too high compared to maintain a
loyal customer and simultaneously convert the prospects into
customers.

The outcome of this research helped in understanding that

services like better product performance, efficient handling of
queues, faster response time to customer queries, exceptional
quality of operations and elegant hospitality treatment
showed by the employees/staff of the bank, are few of the
important services that are crucial from the point of view of
customers. Thus, banks should focus upon these points as well
as promoting/rewarding loyal customers who will stimulate the
prospects as well as the existing satisfied but not loyal
customers to be part of the loyalty club.
 The results are derived out of the sample of 50
respondents so when this project will be
compared with the result of a bigger sample
then chances are there that some findings may
change or new ones will be observed.
 This study was conducted in few part of Udaipur,
thus taking a similar sample but outside the
area of study for this project may result in
different outcomes.
 The result of this study was concluded by doing
factor analysis, so by using any other tool may
result in different outcomes.
 This study shall not match 100% with the
outcomes of the literature review because of the
difference in sample, tools and area of study.
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