Factors Influencing Customer Relationship Management Strategies in Public and Private Sector Banks in Salem District

Abstract

The customers are the lifeline of any business activity and it works vitally for development of the banking sector. The customers help to attract the potential accountholders for the banks in the future when they are satisfied. The             customer relationship strategies are significant for developing the accountholders base for the banks and enhance the number transactions carried out. The banking sector has to go through vigorous application of customer relationship strategies for retaining the existing customers. The competition among the public and private sector banks makes them to highlight the service differentiation to attract the customers. This study aims to examine the various factors of CRM strategies that are influencing the customers to be part of either public sector banks or private sector banks and it also aims to assess the satisfaction level of the customers towards the satisfaction level of CRM policies used by the banks. The study follows a research design of empirical method which is based on the empirical investigation of the customers of the bank. The study is conducted with the help of primary data and it is collected with the help of structured interview schedule. The sample of the study was fixed to 170 from the customers who are maintaining accounts in both private and public sector banks. The sample was selected using the judgement sampling techniques. The results of the study reveal that the customers are attracted towards factors of being Banking Friendly, providing Personalized Accountholders Support and Information handling practices of the banks which is extracted from the opinions of the accountholders.