A REPORT ON THE CUSTOMER RELATIONSHIP MANAGEMENT AT BANKS

A CASE STUDY ON DUTCH BANGLA BANK LIMITED, ZINDABAZAR, SYLHET, BANGLADESH

A report Submitted in partial fulfillment of the requirement for the Course Fundamentals of MIS Course Code: MGT-312 Bachelor of Business Administration Submitted by Nahida Rahman Chowdhury (Tumpa) ID No: 1001010097 Section: B Semester: 7th Bachelor of Business Administration

UNDER THE GUIDANCE OF MR. Md. Rahimullah Miah Lecturer Department of Business Administration Leading University, Sylhet, Bangladesh 17th April, 2012

Preface

Summer training is a very important part of an MBA (BA) curriculum. It provides an optimistic iconography for Future existence through which students are able to see the real industrial environment which gives an opportunity to relate theory with practice. I undertook two months training programme at Dutch Bangla Bank Limited (Sylhet) and worked on the project Customer Relationship Management at DBBL . This report is the knowledge acquired by me during this period of training.

DECLARATION
I Nahida Rahman Chowdhury (Tumpa), a student of Leading University, Sylhet and session (2010-2014) bearing ID No.:-1001010097 of BBA program hereby declare that the project report entitled CUSTOMER RELATIONSHIP MANAGEMENT at Bank, a case study on Dutch Bangla Bank Limited is the outcome of my own work and the same has not been submitted to any college for the award.

Date: Place: (Nahida Rahman Chowdhury)

To My Family

Letter of Transmittal

28 February 2008 Mr. Md. Rahimullah Miah Lecturer Department of Business administration, Leading University, Sylhet

Subject: Submission of report on Customer Relationship Management at Banks- A Case Study on Dutch Bangla Bank Limited, Zindabazar, Sylhet.

Dear Sir I feel immense pleasure in presenting to your good self, the term report as part of my course requirement. I found this report to be truly challenging in many aspects, indeed very interesting in relation to the various interpretational and engrossing exercises. Writing this report itself was truly comprehensive learning experience. The report mainly revolves around the customer relationship management at banks. I observed maintaining better relationship with customers is the key requirement for success. I have tried my level best to complete the report with respect to the desired requirements. However, if any explaining is required, I would be honored to oblige. Kindly accept this humble effort of bringing forward my research and findings on the subject matter.

Yours sincerely, Nahida Rahman Chowdhury (Tumpa) ID No: 1001010097 Section: B Semester: 7th Bachelor of Business Administration Leading University, Sylhet, Bangladesh.

Acknowledgments
Education is a progressive discovery of our ignorance.

Will Durant (1885-1981) U.S. author and historian

I would like to thank all those who helped me through the project phase of the BBA program. I would like to express my sincere appreciation to my supervisor, Mr. Md. Rahimullah Miah for his enlightenment of my knowledge of CRM and the Bank industry, valuable advice and kind support throughout the process of completion Most importantly, I would like to thank my parents and sister who were always there to motivate me. I would also like to thank my close friends at Sylhet for being around to discuss my ideas and giving me emotional support when I was stressed.

I would like to thank all the focus group members for giving their valuable time and thoughts to my project. I would like to thank all the customers and employees of DBBL for sharing their valuable thoughts which helped me shape this project. I would like to thank the academic and library staff at Leading University for their support throughout this year.

Lastly, Thanks to Almighty Allah and my family members for their tremendous support throughout my life. Thank You All

EXCUTIVE SUMMARY
Today, service organizations are shifting their focus from transactional exchange to relational exchange for developing mutually satisfying relationship with customers. Extended relationships are reported to have a significant impact on transaction cost and profitability, and customer lifetime value. Serving the customers, in true sense, is the need of the hour as the customer was, is and will remain the central focus of all organizational activities. The banking industry needs to be purely customer-centric and focus on the customer needs and duly fulfill them. The working of the customers mind is a mystery which is difficult to solve and understanding what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameter of customer relations satisfaction and their measurement. There are total 49 public sector and 27 Private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. Its a well known fact that no business can exist without customers. The purpose of this is study is to compare the public sector bank & private sector bank in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The data were collected by getting the questionnaire filled by the respondents who are using banking services. The project would contribute as a useful guide to banking, giving them some valuable information on what the customer expectations are and if they are duly met then service gaps shall not occur. This paper shall provide scope for banks to improve their overall service quality and strengthen their position in the industry.

INDEX
S.NO. 1. CHAPTERS Introduction of the subject Customer Satisfaction Benefits of Customer Satisfaction Customer Satisfaction Survey Customer Satisfaction Process Company Profile Introduction of the Company Management Profile Competitors Product and Services Future of Banking in India Achievements and Awards 3. Company Mission, Vision and Value Research Methodology Statement of the problem Objective Sample Size ,Methods and Data Collection Limitation of the Study 4. 5. 6. 7. Analysis And Interpretation Findings and Conclusion Suggestions Appendices Bibliography Customer Feedback Form PAGE NO. 7-15 8 9 11 13 16-31 17 18 20 22 28 30 31 32-37 34 35 36 37 38-48 49 52 54-56 55 56

2.

Chapter One Introduction

1.1

STATEMENT OF THE PROBLEM

This Study will help us to understand the consumers relationships management at banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer relationships towards banking services in general and Dutch Bangla Bank Limited in particular. 1.2 OBJECTIVE OF THE STUDY

The objective of this study is to compare the banks in terms of customer relationships and satisfaction and to find out the various reasons of customer dissatisfaction in these banks. To have an insight into the attitudes and behaviors of customers. To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumers

1.3

Significance of Study:-

Satisfied customers are central to optimal performance and financial returns. In many place in the world business organization have been elevating the role of the customer to that of a key stakeholder over the past 20 years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction(CS) as an important strategic success indicator. So in order to achieve better customer satisfaction it is must to maintain better customer relationships.

1.4

LIMITATION OF THE STUDY This study is geographically restricted to Sylhet city only. The sample size is small due to the specified reasons. Findings are based on sample survey through questionnaires method. Hence there is a scope for the respondents to be biased or, pretentious.

This paper is divided into seven chapters.

Chapter one is an introduction to the paper. Chapter two provides the reader with necessary literature available on CRM. Chapter three provides information on CRM and the Banking Sector. Chapter four discusses the research design including interviews and focus groups that have been used for primary research. Chapter five provides an overview of The Dutch Bangla Bank Limited . Chapter six Data Analysis Chapter seven is an analysis of the research findings addressing the research questions, one of which provides recommendations to improve better customer relationships. Chapter eight is a conclusion of the paper.

The following chapter provides the literature review.

Chapter 2: Literature Review

Modern marketers are rediscovering the ancient mantras for success in corporate world and blending them with contemporary marketing practices. Long term survival and competitive advantage can only be attained by establishing an emotional bond with the customers. A shift is taking place from marketing to anonymous masses of customers to developing and managing relationships with more or less well known or at least some identified customers (Gronroos, 1994).

This section shall provide general literature on CRM and its link with customer satisfaction, customer loyalty and business performance followed by literature on CRM and service quality in details. The gap model shall be introduced and literature on service guarantee, service recovery, and complaint management shall be provided. This would lead to the privacy issues related with CRM.

2.1

What is Customer Relationship Management?

Customer Relationship Management (CRM) is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high-quality customer data and enabled by IT (Buttle, 2004). CRM is a business strategy to identify, cultivate, and maintain long-term profitable customer relationships. It requires developing a method to select your most profitable customer relationships (or those with the most potential) and working to provide those customers with service quality that exceeds their expectations. (McDonald, 2002)

An organizations survival depends largely on harmonious relationships with its stakeholders in the market. Customers provide the life-blood to the organization in terms of competitive advantage, revenue and profits. Managing relationships with customers is imperative for all types and size of service organizations. A sound base of satisfied customers allows the organization to

move on the path of growth, enhance

profitability, fight out competition and carve a niche in

the market place. Bennett (1996) described that CRM seeks to establish long term, committed, trusting and cooperative relationship with customers, characterized by openness, genuine concern for the delivery of high quality services, responsiveness to customer suggestions, fair dealings and willingness to sacrifice short term advantage for long term gains. Schneider and Bowen (1999) advocated that service business can retain customers and achieve profitability by building reciprocal relationships founded on safeguarding and affirming customer security, fairness and self esteem. It requires that companies view customers as people first and consumers second. Trust, commitment, ethical practices, fulfillment of promises, mutual exchange, emotional bonding, personalization and customer orientation have been reported to be the key elements in the relationship building process (Levitt,1986; Gronroos, 1994; Morgan,1994; Gummesson,1994; Bejou et al,1998 ).

CRM refers to all business activities directed towards initiating, establishing, maintaining, and developing successful long-term relational exchanges (Heide, 1994; Reinartz & Kumar, 2003). One of the results of CRM is the promotion of customer loyalty (Evans & Laskin, 1994), which is considered to be a relational phenomenon, (Chow & Holden, 1997; Jacoby & Kyner, 1973; Sheth & Parvatiyar, 1995; cited by Macintosh & Lockshin, 1997). The benefits of customer loyalty to a provider of either services or products are numerous, and thus organizations are eager to secure as significant a loyal customer base as possible (Gefen, 2002; Reinartz & Kumar, 2003; Rowley & Dawes, 2000). Recent developments in Internet technology have given the Internet a new role to facilitate the link between CRM and customer loyalty (Body and Limayem, 2004). It is common knowledge that a dissatisfied and unhappy customer will share his unfortunate experience more than a satisfied customer. It is also observed that a fraction of unhappy customers choose to complain while others simply switch their loyalty to others service providers. Loss of customer is loss of business along with the opportunity for business growth and profitability. Feedback collection from the customer is essential for the supplier to ascertain customer satisfaction and scope for improvisation (Sugandhi, 2002).

The fundamental reason for companies aspiring to build relationships with customers is economic. For survival in the global market, focusing on the customer is becoming a key factor for companies big and small. Establishing and managing a good customer relationship is a strategic endeavor. Having a CRM software installed does not ensure a successful customer relationship. For this to happen business processes and company culture have to be redesigned to focus on the customer. CRM software can be only a tool to implement a customer strategy. It is known that it takes up to five times more money to acquire a new customer than to get an existing customer to make a new purchase. Improving customer retention rates increases the size of the customer base. Thus, customer retention is essential. (Baumeister, unknown).

2.2

Customer satisfaction, loyalty and business performance

The rationale for CRM is that it improves business performance by enhancing customer satisfaction and driving up customer loyalty (see figure 4). There is a compelling logic to the model, which has been dubbed the satisfaction-profit chain (Anderson and Mittal, 2000). Satisfaction increases because customer insight allows companies to understand their customers better, and create improved customer value propositions. As customer satisfaction rises, so does customer repurchase intention (Anderson, 1994). This in turn influences actual purchasing behaviour, which has a significant impact on business performance.

Customer Satisfaction

Customer Loyalty

Business Performance

Understanding customer requirements

Behavioural loyalty

Revenue growth

Attitudinal loyalty Meet customer expectations

Share of customer

Customer tenure Deliver customer value Figure 1: Customer satisfaction, customer loyalty and business performance

(Buttle, 2004)

Customer satisfaction has been the subject of considerable research and has been defined and measured in various ways (Oliver, 1997). Customer satisfaction may be defined as the customers fulfillment response to a consumption experience, or some part of it. Customer satisfaction I a pleasurable fulfillment response while dissatisfaction is an unpleasurable one (Buttle, 2004). Satisfaction and dissatisfaction are two ends of a continuum, where the location is defined by a comparison between expectations and outcome. Customers would be satisfied if the outcome of the service meets expectations. When the service quality exceeds the expectations, the service provider has won a delighted customer. Dissatisfaction will occur when the perceived overall service quality does not meet expectations (Looy, Gemmel & Dierdonck, 2003). Sometimes customers expectations are met, yet the customer is not satisfied. This occurs when the expectations are low (Buttle, 2005). For example, the customer expects the flight to be late and it gets late.

Customer satisfaction is considered to be one of the most important outcomes of all marketing activities in a market-oriented firm. The obvious need for satisfying the firms customer is to expand the business, to gain a higher market share, and to acquire repeat and referral business, all of which lead to improved profitability (Barsky, 1992). Studies conducted by Cronin and Taylor (1992) in service sectors such as: banking, pest control, dry cleaning, and fast food; found that customer satisfaction has a significant effect on purchase intentions in all four sectors. Similarly, in the health-care sector, McAlexander et al. (1994) found that patient satisfaction and service quality have a significant effect on future purchase intentions. (Kandampully and Suhartanto, 2000)

Customer loyalty can be defines as customer behavior characterized by a positive buying pattern during an extended period (measured by means of repeat purchase, frequency of purchase, wallet share or other indicators) and driven by a positive attitude towards the company and its products or services (Looy, Gemmel & Dierdonck, 2003).

Practitioners and researchers have not clearly identified a theoretical framework, identifying factors that could lead to the development of customer loyalty (Gremler and Brown, 1997). However, there is a consensus amongst practitioners and academics that customer satisfaction and service quality are prerequisites of loyalty (Gremler and Brown, 1997; Cronin and Taylor, 1992). Those technical, economical and psychological factors that influence customers to switch suppliers are considered to be additional prerequisites of loyalty (Selnes, 1993; Gremler and Brown, 1997). Recent studies also indicate that the firms image may influence customer enthusiasm: value, delight, and loyalty (Bhote, 1996). (Kandampully and Suhartanto, 2000)

Loyalty behaviors, including relationship continuance, increased scale or scope of relationship, and recommendation (word of mouth advertising) result from customers beliefs that the quantity of value received from one supplier is greater than that available from other suppliers. Loyalty, in one or more of the forms noted above, creates increased profit through enhanced revenues, reduced costs to acquire customers, lower customer-price sensitivity, and decreased costs to serve customers familiar with a firms service delivery system (Reicheld and Sasser, 1990). Yis Critical review of customer satisfaction (1990) concludes, Many studies found that customer satisfaction influences purchase intentions as well as post-purchase attitude (p. 104).

Customer loyalty can be viewed in two distinct ways (Jacoby and Kyner, 1973). The first views loyalty as an attitude. Different feelings create an individuals overall attachment to a product, service, or organization (see Fornier, 1994). These feelings define the individuals (purely cognitive) degree of loyalty. The second view of loyalty is behavioural. Examples of loyalty behaviour include continuing to purchase services from the same supplier, increasing the scale and or scope of a relationship, or the act of recommendation (Yi, 1990). The behavioural view of loyalty is similar to loyalty as defined in the service management literature. In brief, there are two dimensions to customer loyalty: behavioural and attitudinal (Julander et al., 1997). The behaviour dimension refers to a customers behaviour on repeat purchases, indicating a preference for a brand or a service over time (Bowen and Shoemaker, 1998). Attitudinal dimensions, on the other hand, refer to a customers intention to repurchase and recommend, which are good indicators of a loyal customer (Getty and Thompson, 1994). Moreover, a customer who has the intention to repurchase and recommend is very likely to remain with the company. (Kandampully & Suhartanto, 2000 and Hallowell, 1996)

Customer attitude being difficult to measure, for financial and practical purposes, customer retention is widely used as an indicator of customer loyalty. Researchers have combined both

views into comprehensive models of customer loyalty. Dick and Basu (1994) came up with a two-dimensional model of customer loyalty identifying four forms of loyalty according to relative attitudinal strength and repeat purchase behavior. The true loyal are those who have high levels of repeat purchase behavior and a strong relative attitude. Spuriously loyal customers tend to be more motivated by impulse, convenience and habit i.e. if the conditions are right. Latent loyalty applies to those customers who are loyal simply because they have no other choice. Lastly, there will always be some customers who shall not be loyal to any particular brand.

2.3

CRM Strategy

Customers are the lifeblood of the business and the way in which a bank can protect and increase its customer base and ultimately its profitability is to build strong customer relationships through the delivery of superior quality service and to meet customer needs better than the competitors. The CRM approach focuses on maximizing value for the customer and the bank.

Research has shown that the key drivers of customer loyalty are:

Positive staff attitude Honesty, integrity and reliability Proactive advice and deliver of promise Consistent delivery of superior quality service Simplicity and ease of doing business Good after-sales service A fair effective complaints resolution policy.

Chapter 3: CRM and the Banking Sector

Competition and globalisation of banking services are forcing banks to be productive and profitable. To retain High Net Worth individuals, banks should focus strongly on relationship management with customers. Innovative Customer Relationship Management (CRM) strategies and cutting edge software can help, to a great extent, in achieving the desired results. To provide customised services, banks are opening Personalised Boutiques which provide all the required financial needs of a customer. The entire service industry is now metamorphosed to become customer- specific. In this context, the management of customer relationship in financial services industry demands special focus. Gone are the days when customers at a bank did not mind the long serpentine queues and waited patiently for their turn with a token in their hand. In todays Internet era, no one has the leisure to wait. In this context, online banking is assuming a great significance. Today, banking is more customer-centric, unlike the yester when it was transaction-centric. Banks are increasingly focusing on the premise that customers choose on the service provider who differentiates through quick and efficient service. However, there is more to Customer Relationship Management (CRM) than just managing customers and analysing their behaviours. Banks are well aware that their success is predominantly dependent on the CRM strategies adopted by them. Service providers have recognised that good CRM bonds customers with the organisation for a longer term, resulting in increased revenues. With customers expectations becoming even more competitive, banks are coming up with a wide array of novel products and services every day. The challenge is for the banks to work towards ensuring that customers prefer their products and services over that of competing brands. The key to develop and nurture a close relationship with customers is by appreciating their needs and preferences and catering to their requirements. Leveraging on IT, to appropriately analyse and understand the needs of existing customers better, to ensure customer satisfaction, and

exploring the possibility of cross-selling products to gain a competitive advantage are the other issues drawing attention and interest. With the opening up of the economy, a number of private sector banks have joined the fray and are offering a plethora of products and services- rechristening themselves as Financial Boutiques. Knowledge dissemination has been propelled by electronic and mass media campaigns. Todays knowledgeable consumer is challenging the Indian retail banking industry to redefine itself. Thus in this current competitive scenario, for a bank to survive competition, succeed and make profit, there is hardly any option but to learn from and actively respond to consumers needs. Banks offering retail products need to reorient their strategy from a productcentric to a customer-centric approach to attract and retain High Net Worth Individuals (HNI) and profitable customers as well. The battle of the banks, for gaining a greater slice of the market share, is taking on a new dimension. In the current falling interest rate scenario, banks are finding it increasingly difficult to meet the high growth expectations. In order to bolster their top lines, banks are in pursuit of newer ways and means of achieving organic growth through strategies that enable acquisition of new customers and retaining the loyalty of the existing customers. Success of a banks strategy towards customer acquisition will depend on its ability to develop customer insights and translate these into effective operating models. Ensuring a good customer experience at every customer touch point is the cornerstone of a successful growth strategy. A good customer experience will drive customer acquisition and promote customer retention, which translates into increased profits. This, in other words, is the hallmark of a successful CRM strategy. Emphasis on CRM arises on account of the challenges confronting retail managers managing to sustain and achieve growth and profits. Bankers are conscious of the relative costs of acquiring new customers. As top management emphasizes on delivering results, most bankers resort to customer grabbing, rather that customer cultivation and creation, with the result that customer churn is the call of the day. Incidentally, bankers are fully aware that losing the existing customer and acquiring new customers is an expensive affair. Moreover, it acts as a drain on the existing resources of the bank, which can be better employed for growth initiatives. Therefore, the challenge for the banks

is to retain and deepen the profitability of the existing customer relationships, which is borne out by Nat Wests success. With the shift from a transaction-centric to a relationship-centric business approach, leveraging CRM has become sine qua non. Banks are adopting CRM to converge people, process and products more effectively to embark on the true relationship banking with the end result of accelerating the business momentum. Towards this end, experts propose various ideas and approaches to understand the fundamental marketing motivations driving the CRM trend in banks. To meet the challenging preferences of the customers and to stay ahead of competitors, bankers are bound to attract customers by providing a spectrum of services. Online banking, ATM banking and telebanking are just a few of them. Banks can enhance customer service by leveraging on technology, maintenance of efficient service delivery standards and business process reengineering. On their part, employees need to demonstrate certain service traits such as, putting on pleasing attire. At the end of the day, bankers should display a flair for cultivating a good relationship with customers through the mechanism of better customer service. Having understood the significance, it is prudent to plan for CRM in retail banks. To a large extent, the success of a CRM plan is dependent on the choice of the software. Towards this end, bankers should identify domain enterprise, credibility in the market, cost implementation and relationship with the vendor as factors on which vendor selection is based. The domains of software systems, multiply product database and tracking require specific CRM focus. Besides understanding the requirements for CRM implementations such as, the setting up of a CRM cell and conducting surveys at a periodic intervals to track their effectiveness, banks need to understand how CRM assists them n customer identification, acquisition and retention. As a part of the planning process, frontline executives in banks should thoroughly understand their organisational structure, infrastructure, as well as the product environment. In this context, the management initiatives for CRM assume importance. A top-down CRM focused approach that starts with the top management, percolating and permeating to all levels of the CRM is a necessity in the present business scenario. Initiatives, such as, introducing CRM audit by

independent teams to identify the existing lacunae, and plugging the loopholes in the CRM strategy as per the recommendations of the audit report, are required to be adopted by the banks for reaping benefits. It is observed that banks lose their best clients to competitors due to a variety of reasons. The rationale behind losing their best clients to other service providers such as non-brokerage houses and mutual fund houses needs to be analysed by banks. Experts opine that inefficient and improper service is one major reason. The remedies suggested by them are that banks should adopt customer relationship building approaches such as responding to complaints instantaneously, analyzing the attrition of the clients in a particular product, and rating of services across the network of branches, and the creation of a suggestion box to elicit the views and suggestion of their employees. Another dimension of the relationship building exercise is to obtain an electronic feedback from customers to understand the level of acceptance of existing products, which will facilitates in developing better products. Banks can gain a competitive advantage from CRM by becoming low-cost players in the market, achieving operational efficiency and maintaining customer loyalty. The ability to predict the products that customers are likely to purchase over a period of time, increased productivity of managerial executives, sales and customer service staff, and streamlining of business processes are some of the benefits retail banks obtain by taking to successful management of their customer relationships. Implementing the right CRM tools can enhance customer satisfaction leading to business growth. CRM enables organisations to motivate customers to initiate revenue-generating contacts. Several CRM issues such as, its effectiveness, application and challenges draw attention of the banking industry. Having witnessed the manner in which several global banks have benefited through CRM, the Indian retail banks too need to focus on and continuously invest in the customer relationship activities. The Indian banking scenario, which is still at an embryonic stage as far as the CRM domain is considered, needs to strive towards CRM implementation to meet the emerging demands of universal banking.

Chapter 4: Methodology and Research Design

4.1

Overview

Methodology can be defined as (i) a body of methods, rules, and postulates employed by a discipline, (ii) a particular procedure or set of procedures or (iii) the analysis of the principles or procedures of inquiry in a particular field, the common idea being the collection, the comparative study, and the critique of the individual methods that are used in a given discipline or field of inquiry (Wikipedia, 2006).

This chapter of the paper provides an overview of the research design (i.e. the case study) used for research about the Bank industry. The objectives of the research have been mentioned followed by a definition of research design and the qualitative approach of the case study. The researcher then presents his justification for choosing Ritz-Carlton Bank Company as his case example leading to methods of data collection for the research conducted along with each methods strengths and weaknesses. This chapter concludes with discussion on data analysis and the reliability and validity issues with data collection.

4.2

Research design

A research design can be explained as the detailed blueprint used to guide a research study toward its objectives (Aaker, Kumar and Day, 2003). Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project -- the samples or groups, measures, treatments or

programs, and methods of assignment -- work together to try to address the central research questions (Social research methods, 2006)

(i)Research Design:
The Research Design is descriptive.

(ii)Sample size:
The sample is selected on random basis. A sample of 100 respondents are used in the reasearch.

(iii)Data collection:
The data were collected from Primary source through questionnaires and interviews.

(iv)Data source:
Both Secondary and Primary sources of data have been used. The major type of information used in primary data. This is done through primary survey. The literature review is a secondary data type. The sources include books, periodicals, websites, printed literature etc.

Chapter 5: Organizational Profile

Dutch-Bangla Bank Limited (DBBL) is Bangladesh's most innovative and technologically advanced bank. DBBL stands to give the most innovative and affordable banking products to Bangladesh. Amonst banks, DBBL is the largest donor in to social causes in Bangladesh. It stands as one of the largest private donors involed in imporving the country. DBBL is proud to be associated with helping Bangladesh as well as being a leader in the country's banking sector

Mission Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's operation; because "man does not live by bread and butter alone".

Vision Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL's essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

Core Objectives Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques "Your Trusted Partner"

Chapter 6: Data Analysis and Interpretation

GRAPH Graphical representation of the people having bank account

NO 7%

BANK ACCOUNT
0%

YES 93%

Figure- 2 (Graphical representation of the people having bank account)

Analysis: - From the above table and graph it can be seen that only 7% of the people having
no bank account while the other 93% have theirs in different banks. This data is presented in both the table and graphical presentation.

Interpretation: So we can conclude most of the people have accounts in various banks for
having different reasons like, to have safety of money, to transact easily with others etc.

Graph (Transaction of different banks in the market)

Percentage
45 40 35 30 25 20 15 10 5 0 Sonali Bank AB Bank HSBC Bank DBBL Bank South East Bank Others Percentage

Figure: 3 (Transaction of different banks in the market)

Analysis: - From the former table and graphs we can see people have accounts like in Sonali
Bank 11% , in AB Bank 19%,in HSBC Bank 15%, in Dutch Bangla Bank 42%, in South East Bank 8% and in other banks there are only 5% accounts among all the respondents.

Interpretation: It is concluded here that Dutch Bangla Bank has its popularity of having a
large no. of accounts in the studied area for its best service in all sectors.

Graph Classification based on nature of A/Cs

Saving A/Cs

Current A/Cs

Fixed Deposits

Loans

Others

Figure:4 (Classification based on nature of A/Cs)

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products) Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

Graph Motive behind the Selecting of DBBL

60 40
No. of respondents

56 30 12 2

20 0
Motives
Brand name Customer service

Interest

Others

Figure: 5 (MOTIVE BEHIND THE SELECTING DBBL)

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for Brand name, secondly they prefer satisfaction, and then returns on investment. Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting.

Graph (Classification Based on level of customer satisfaction with the interest provided by DBBL)

YES

NO

Figure : 6 (Classification Based on level of customer satisfaction with the interest provided by DBBL)

Analysis: - The customers are satisfied largely on the interest rate of DBBL compare to any
other banks i.e. 82% which is elaborated in the above table and graphs.

Interpretation:
of DBBL.

so we can concluded that the customers are satisfied with the interest rate

Graph Classification based on the willingness of respondents to shift their A/Cs to other banks

Shift

Doesn't shift

Figure: 7 (Classification based on the willingness of respondents to shift their A/Cs to other banks)

Analysis: From this table it can be noted that the majority of consumers (92%) doesnt like to shift their A/Cs to other banks. Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.

Graph Classification based on satisfaction level of respondents

100

89

No. of respondents

50
11

Satisfied

Not satisfied

Figure: 8 (Classification based on satisfaction level of respondents)

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied. Interpretation: Most of the respondents are satisfied with the service offered by Oriental Bank of
Commerce. Presently the bank offers varieties of services and the customers are getting a good

rate of return from their deposits. Customers are getting good service from the bank.

GRAPH Classification Based on level of various types of account provided by banks.

50 40 30 20 10 0 SA CA FD LA INS

Figure: 9 (Classification Based on level of various types of account provided by banks)

Analysis: - It is seen that more customer have savings account like 47% in DBBL. Likewise
there are 23% current account , 17% fixed deposit ,5% loan and only 8% insurance.

Interpretation: So it is clear that there are more savings account in DBBL as compare to
other accounts and services.

Chapter 7: Findings and Recommendations

Findings
In Sylhet, there are number of banks, despite of the tough competition, the number of the new customers of HSBC Bank are increasing every year. Most of the respondents are having Saving A/Cs . Most of the respondents are satisfied with the service offered by DBBL . Majority of the customers rates good, very good and excellent because of the customer service offered by the bank . People are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting. Very few people are dissatisfied because of more time consuming transaction and less cooperative behavior. The reason can be increasing customer satisfaction and quality services offered by the bank.

RECOMMENDATIONS:
Due to the intense competition in the financial market, DBBL should adopt better strategies to attract more customers. Majority of the people find banking important in their life, so DBBL should employ the strategies to convert the want in to need which will enrich their business. The staff should be adequately trained to deal with the customer on one to one basis. Many public sector banks need to revive their infrastructure to have pace with the competing environment. Many of services need improvement in public sector banks e.g ATM facilities Staff should be adequately trained to encourage face to face dealing. Staff should be friendly and approachable. Clearly defined customer policy should be adopted by the banks. Customers needs should be anticipated in advance so that they can be helped out in a better way.

Treat your customers like your friends and theyll always come back Honor your promises.

Bibliography

Blattberg, Robert C., Gary Getz, and Jacquelyn S. Thomas, (2001), Customer Equity: Building and Managing Relationships as Valuable Assets, Boston: Harvard Business School Press. Rust, Roland T., Valarie A. Zeithaml, and Katherine Lemon (2000), Driving Customer Equity. New York: The Free Press. Swift, Ronald (2001), Accelerating Customer Relationships. Using CRM and Relationship Techniques. Upper Saddle River, NJ: Prentice Hall. Dyche, Jill (2002), The CRM Handbook. Upper Saddle River, NJ: Addison Wesley.

Appendices

Appendix I: Questionnaire
QUESTIONNAIRE Dear Respondent, I am student of Leading University, Sylhet and doing B.B.A VII sem. I have undertaken the project for which I intend to pose a questionnaire aimed at comparing the customer relationships in banking sector. Your cooperation is deeply solicited to provide the relevant information. I assure that information will be kept confidential. Name of Customer_________________________ Mob. No._______________

Name of the bank and type of account___________________________________________________ Please answer the questions and tick at the place that matches your option.

Customer Feedback Form

Name of Customer .....................................

Address.. A/C No......Age.SexContact no..

1. Do you have any bank account? Yes No

2. If yes, than in which bank you have done your transaction? SBI ____________ 3. Which type of account you have? SAVING A/C 4. Why you choose DBBL? Customer service Brand name interest others CURRENT A/C FIXED DEPOSIT A/C DBBL PNB AXIS ICICI Others

5. Do you satisfied with the interest provided by your bank? Yes No

6. Which bank provided better interest rate? Sonali HSBC DBBL AB Other SouthEast

7. Are you interested to sift the account to other bank? Shift Doesnt shift

8. Are you satisfied with the service provided by DBBL? Satisfied 9. Not satisfied

How you rate the insurance product of DBBL? Excellent Very good Good Average Poor

10. Which product of DBBL would you like? SA CA LA Insurance Other

Appendix II: Tables

Bank Account Yes No Total

Percentage 93% 7% 100%

TABLE:- 1 PERCENTAGE OF PEOPLE HAVING BANK ACCOUNT

TABLE-2 Transaction of different banks in the market Bank Sonali Bank AB Bank HSBC Bank Dutch Bangla Bank South East Bank Others Percentage 11 19 15 42 8 5

TABLE SHOWING MOTIVE BEHIND THE SELECTING DBBL SL.NO 1. 2. 3. 4. ATTRIBUTE Brand name Customer service Interest Others SCORE 56 30 12 2 RANK 1 2 3 4

TABLE : 3 SHARE OF DIFFERENT TYPES OF ACCOUNTS SL. No. NATURE OF ACCOUNTS NUMBER OF RESPONDEN TS PERCENTAG E OF RESPONDEN TS 78% 9% 4% 3% 6% 100%

1. 2. 3. 4. 5. Total

Saving A/Cs Current A/Cs Fixed Deposits Loans Others

78 9 4 3 6 100

TABLE :4

TABLE SHOWING MOTIVE BEHIND THE SELECTING DBBL SL.NO 1. 2. 3. 4. ATTRIBUTE Brand name Customer service Interest Others SCORE 56 30 12 2 RANK 1 2 3 4

TABLE- 5 THE CUSTOMERS SATISFACTION WITH INTEREST RATE OF DBBL

Satisfied Yes No Total

Percentage 82 18 100

TABLE:6 CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANKS

SL. No.

RESPONSES

NUMBER OF RESPONDENTS 8 92 100

PERCENTAGE OF RESPONDENTS 8% 92% 100 %

1. 2. TOTAL

Shift Doesnt shift

TABLE: 7 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY DBBL BRANCH SL. No. RESPONSE NUMBER OF RESPONDENTS 89 11 100 PERCENTAGE OF RESPONDENTS 89% 11% 100 %

1. 2. TOTAL

Satisfied Not satisfied

TABLE- 8

Which product of DBBL is beneficiary to Customer? Product Saving A/c (SA) Current A/C (CA) Fixed Deposit (FD) Loan A/C (LA) Insurance (INS) Total Percentage 47% 23% 17% 05% 08% 100%