Original Research Article DOI: 10.18231/2394-2770.2018.

0046

Customers’ perception of current CRM practices at SBI: A case study of State Bank
of India, Patna District, Bihar
Jasmine Kaur

Research Scholar, Dept. of Applied Economics & Commerce, Patna University, Patna, Bihar, India

*Corresponding Author:
Email: reach.kjasmine@gmail.com

Abstract
In the current era of economic revolution such as demonetisation and digitization banks are considered to be playing significant
role. To sustain in this challenging environment, it is crucial that banks maintain good reputation with their customers. The
survival of service organisations is imaginable only if they follow strong CRM (Customer Relationship Management) practices.
CRM consists of number of variables that can be studied to understand customers’ perception of service quality of these
organisations. Banks are also such organisations that entirely subsist on their relationship with their customers. Therefore, it is
extremely essential to understand if banks are following worthy CRM practices and whether customers are satiated with these
practices or not. It has been observed that certain issues are emerging in the market that may impact the reputation of SBI in
Patna. The key reason for these issues is the intense competition in the market between public and private sector banks.
Customers are known to be always right and they can effortlessly switch to different banks on account of any negative experience
if they come across. In addition to this, it has been identified that private banks are somehow able to attract customers due to their
constant run to improve their services and relationships with the customers to survive in the tough market. This factor seems to be
lacking in the case of public sector banks such as SBI. In the light of this scenario, a research has been conducted to find out the
satisfaction level of customers of SBI with its services. The research provides deep insight into the problems that customers are
currently experiencing and suggestions have been provided that may provide solution to the emerging issues in the bank.

Keywords: Customer relationship management, Customer satisfaction, Service quality.

Introduction however it is facing several challenges to maintain good

Economic revolution is essential to be brought in reputation with its customers. This takes place on
every sector and this revolution is not without account of number of issues that customers are
challenges that these sectors are facing. In view of this complaining about the bank. If bank takes strong
revolution, banks are also incorporating necessary initiatives to resolve these issues then SBI can become
changes into their existing systems more importantly a threat for other public as well as private sector banks.
their CRM practices. It is vital to maintain good Servqual model has been used to accomplish
customer base in the era of intense competition else this objectives of this research work as this model captures
revolution may hit banks hard. consumer expectation and perception of the service
Customers have numerous options available with quality. There are five dimensions that this model takes
them as private banks are entering into the markets into consideration and they are recognised to be
which are further posing challenges for public sector representative of service quality. These dimensions are
banks. Due to this reason customers’ expectations are immensely supportive in collecting enough data for the
also going high and they are expecting to have much research being done.
better experience and service quality with their bank.
Globalisation of businesses has changed the focus from Literature Review
being product oriented to being customer oriented. Customers are known to be the best judge when it
Providing excellent customer service is a tough comes to service quality. Their judgement is based
challenge for every organisation that especially deals upon several factors and some of these factors
directly with customers on day to day basis. (Responsiveness, Assurance, Tangibles, Empathy and
When customers are inquired about their Reliability) have been identified by Parsuraman, Berry
expectation from their bank, the first thing they think of and Zeithmal which are taken into consideration for
is effective customer relationship. This relationship conducting the research work of this paper. Their model
consists of different variables such as communication is popularly known as Servqual model. They believe
skills of employees of the bank, their knowledge of that ample amount of information regarding service
work, dealing behaviour, politeness etc. that have quality of organisations can be gathered based upon
countless impact on customers. It has been observed these factors (Nargundkar, 2009). Servqual surveys are
that customers do compare public and private sector conducted by the organisations to understand the
banks on the basis of the service quality given to them. quality of their relationship with their customers. These
Hence, it has been identified that even though SBI surveys are known as relationship surveys which assist
being a public sector bank has a large customer base, banks in analysing their relationship strengths and

Journal of Management Research and Analysis, July-September, 2018;5(3):293-297 293

Jasmine Kaur Customers’ perception of current CRM practices at SBI: A case……

weaknesses. These surveys are also worthwhile in 1. To comprehend if customers are satisfied with the
making comparison with competitors (Zeithaml, Bitner, current CRM practices of SBI in Patna
Gremler, & Pandit, 2011). CRM in banking sector is 2. To understand if the bank needs to incorporate
essential for the survival of the banks, however it is felt essential changes into current CRM practices that
that it is still at the evolutionary stage. Banks must take can enhance the reputation of the bank.
ideas from the customers to enrich their services
(Putney & Puney, 2013). CRM is known to be a process Research Methodology
that increases customer satisfaction. In today’s The research for this study is empirical as data has
competitive business environment if any competitor been collected to understand customers’ point of view
wants to enter into the market, then it has to focus on about the CRM practices of SBI. Observations were
satisfying customers. This represents successful made to come to conclusion. This data has assisted in
implementation of CRM (Shaon & S. M., 2015). framing important suggestions for the banks.
Banking sector is a customer-oriented sector and Sample size for research work is 134 customers of
therefore, research is needed in this sector to analyse SBI. 150 questionnaires were distributed out of which
customers’ needs and attitude in order to build long 134 were appropriately filled.
term relationship with them (Renuga & Durga, 2016). Variables tested for conducting research have been
The review of Literature has helped in developing taken from the service model developed by Parsuraman.
conceptual framework of the study. The model suggests to understand service quality of
organisations on the basis of the five factors mentioned
Objectives of the Study below in the diagram. Each factor carries two questions
Following objectives have been set which are achieved for customers. The input of customers have provided
with the help of this research: with ample data to perform data analysis and come to
conclusion.

Data Analysis and Results Q2 – Do you trust the information provided by the
Primary sources have been used to collect data for employees to their customers?
analysing the results. These sources are questionnaires,
discussions and interview of the customers which have
provided with satisfactory data to come to certain
conclusion. The data has been profoundly analysed to
understand the customers’ perception about the current
CRM practices of the bank. The data collected around
five dimensions of Servqual model has been
diagrammatically represented below.

Reliability
Q1 – Can you rely on the Employees of the Bank for
getting timely services?

Fig. 2

Assurance
Q3 – How Polite are the employees of the bank

Fig. 1

Journal of Management Research and Analysis, July-September, 2018;5(3):293-297 294

Jasmine Kaur Customers’ perception of current CRM practices at SBI: A case……

Q6 – Are equipment or facilities for customers used

by the bank visually appealing?

Fig. 3
Fig. 6
Q4 – Do you feel that employees are trustworthy in
terms of providing information about the products
Empathy
and services? Q7 - Do you feel that employees understand
customers’ needs appropriately?

Fig. 4
Fig. 7
Tangibles
Q5 - Are equipment installed in the bank up to Q8 – Have you ever received individualized
attention from the employees of the bank for
date?
resolving any issue?

Fig. 5 Fig. 8

Journal of Management Research and Analysis, July-September, 2018;5(3):293-297 295

Jasmine Kaur Customers’ perception of current CRM practices at SBI: A case……

Responsiveness 3. Employees’ willingness to help customers is also

Q9 – Do you believe that employees are willing to displaying negative response for this research
help for any query or issue? work. 47% of the customers feel that employees
are helpful. However, 50% of the customers do not
feel this way. Even though the gap is not quite high
but it can certainly hurt the image of the bank
while being compared with other banks. A small
percentage of negative response can impact banks
in a big way.
4. Similarly, 45% of the customers agree that they are
timely informed whenever bank introduces any
new service. On the other hand majority of the
customers (49%) say that they are never informed
about the introduction of new service. The reason
is that customers who do not use mobile banking or
net banking do not receive any notification of such
services.
Fig. 9 Suggestions
Better Understanding of Customers’ Needs: The
Q-10 Do you feel that customers are timely informed study conducted during the research work suggests that
for any new service that bank introduces? employees should pay more attention to understand the
need of their customers. This would improve the
satisfaction level of customers.
Individualised Attention: This factor would
enormously improve the image of bank. Those
customers who have big issues are looking to receive
individualised attention, so that they can be assured to
fast and appropriate resolution of their problems. Bank
should start emphasising on this dimension of CRM in
order to change the perception of its customers.
Employees’ Willingness to Help Customers: The
research has come up with a valuable suggestion that
employees should change their attitude towards helping
customers. It has been identified that customers
sometimes have to run from one counter to another in
Fig. 10 the bank in order to get to the right person. Such
circumstances are causing dissatisfaction among
Findings customers. Therefore, bank should implement this
1. The data collected with regards to understanding suggestion to eliminate the negative feelings of
customers’ needs by employees of SBI represents customers that may have damaging impact on SBI.
that 33% of the customers agree that their needs are Timely Information of New Services to all the
understood by the employees of the bank whereas Customers: It was found out while collecting data that
56% of the customers are of the negative view. those customers who do not use Mobile banking or Net
This shows that bank needs to work hard on this banking do not receive timely information about the
factor. If customers feel that their needs are not introduction of new services by the bank. Hence, they
appropriately understood by the employees of the remain oblivious of the benefits that their bank is
bank then it is going to have harmful effect on the offering to them. So, it is suggested that bank should
reputation of SBI. come with a different way to inform those customers
2. It has been identified with the help of questionnaire who are not using these services.
that only 30% of the customers agree that they
receive individualized attention for resolving any Limitations of the Study
issue. On the other hand 62% of the customers 1. The sample size used for the research work may
completely disagree of ever receiving personal not be sufficient.
attention for getting resolution of their problems. 2. The research is based in Patna only and other states
The gap is quite high and may pose serious of the country can be considered for data collection
challenges for banks to survive in the intense to attain better results.
competition prevailing in the economy.
Journal of Management Research and Analysis, July-September, 2018;5(3):293-297 296
Jasmine Kaur Customers’ perception of current CRM practices at SBI: A case……

Conclusion 5. Menon, V. S. (2013, May 17). Customer Service and its

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