A Literature Review on Customer Relationship Management in Banks

Analysis

Love Kumar Patwa and Kush Kr. Patwa’s (2014) paper, “An Analytical Study of CRM Practices in Public and Private Sector Banks in the State of Uttar Pradesh” (Pacific Business Review International, Vol. 6, Issue 7, pp. 60-69), examines the relative Customer Relationship Management (CRM) performance and evaluates its collision on customer retention between the private and public banks of Uttar Pradesh. Stratified random sampling technique is used for present study for administrating the questionnaire. The sample had been collected from the 04 banks situated in Uttar Pradesh. The researchers have considered two public (UBI & OBC) and two private (AXIS & ING VYSYA) sector banks for the study. The sample size of the study is 328 respondents. It was found that the private sector banks have been able to implement the CRM practices more effectively when compared to their public sector counterparts. This indicates that strategically speaking, the private sector banks have been more innovative in understanding their customers and in building good relations with them. The analysis of the results received suggest that the banks (public and private) are equally affected by the kind of CRM initiative they undertake. The banks are now under tremendous pressure to retain the older customers because of the competition in banking sector. This would not only ensure better customer relations but also loyalty among them, which is very critical and important in today’s competitive world. The banks can do this by building a strong relationship with the customers.