A Study on Customer Relationship Management Practices in Selected Commercial Banks: With Special Reference to Hyderabad City, Telangana State, India

Abstract

The concept of relationship marketing gained prominence in the early 1990s, especially  within the domain of service marketing. Banks began to realize that retaining and rewarding existing customers was more profitable than acquiring new ones. At the core of Customer Relationship Management (CRM) lies the goal of both acquiring customers and retaining them over the long term. Consequently, banks have shifted their focus toward achieving total customer satisfaction, ensuring that customers not only feel satisfied but also delighted with the services offered.

This study aims to evaluate the level of customer satisfaction with CRM practices in selected commercial banks. A structured questionnaire was used to conduct a sampling survey among 150 customers from two prominent banks—State Bank of India (SBI) and ICICI Bank. The data were analyzed using various statistical tools, including percentage analysis, Likert scale analysis mean scores, ranking methods, correlation, and chi-square tests.

The findings reveal that effective CRM practices significantly enhance customer satisfaction and strengthen relationships with both existing and potential customers. By efficiently managing customer information and streamlining the delivery of banking products and services, CRM contributes to faster, more reliable service, ultimately fostering customer loyalty and retention. Therefore, it is essential for banks to emphasize CRM practices, ensuring customers receive high-quality, personalized service. Enhancing customer satisfaction through user-friendly modern banking services can transform the overall banking experience into one of ease and delight for the customer.