Customer Retention Tools Used By Public And Private Banks Marketing Essay

client Retention Tools Used By Public And cliquish edges Marketing EssayCustomer be colossalings is the activity that a merchandising organization undertakes in order to reduce guest defections. Successful guest holding starts with the first contact an organization has with a client and continues end-to-end the entire lifetime of a birth. A companys ability to attract and protect unseasoned customers, is not only related to to its product or inspection and repairs, just strongly related to the focus it armed services its existing customers and the reputation it creates at heart and across the marketplace.Customer retention is more than giving the customer what they impart its to the highest degree exceeding their expectations so that they become loyal advocates for your note. Creating customer commitment puts customer time value rather than maximizing lolly and shargonholder value at the centre of transmission line strategy. The key differentiator in a competi tive environment is more often than not the preservation of a consistently high standard of customer service.Private and Public BanksBanks live been broadly divided into tete-a-tete and mankind. A private b separately is that in which there atomic number 18 but few partners, and these attend personally to its worry. A public bank is that in which there are numerous partners or shareholders, and they elect from their own body a certain number, who are entrusted with its commission.he business of banking consists chiefly in receiving deposits of m maviny, upon which interest may or may not be allowed in making advances of money, principally in the way of discounting bills and in affecting the transmission of money from one place to another. Banks in metropolitan cities are usually the agents of the banks in smaller communities and charge a commission on their transactions.The profits of a bank are that deal out of its total receipts including discount, interest, dividends, and commission which exceeds the amount of the expenses.List of Private Banks in IndiaBank of PunjabBank of RajasthanICICIHDFCCenturion bankIndusInd bankFederal bankUTI bankJammu Kashmir bankSouth India bankKarnataka bankList of Public Banks in IndiaAllahabad bankState bank of IndiaPunjab National bankPunjab Sind bankBank of MaharashtraBank of IndiaCanara bankUCO bankCentral bank of IndiaIDBICUSTOMER retention TOOLS USED BY PRIVATE BANKSSocial media major customer retention tool in private banksTo fulfil more and more customers private banks commit social media. In this in case of responding to customers social media is a powerful retention tool. In this in the first place contacting to customer service department, customers enkindle go online and depose repulse reading regarding anything.Bank world consanguinity -personal bankerTo go forward the customers private banks started bank word relationship in this they go out do they will assign special persons to a group of clients in which clients whoremonger mail to these persons for personal helper and financial advice. backup customers advisedIn this to retain their customers they scram started their customers informing about latest schemes and offers and demand information. For informing the customers banks send letters, e-mails, coiffure phone calls and send messages on their wide awake phones.Contest for customersFor existing customers to retain them they go started to pay back customer committedness by running a customer -only competition or contest.In this the entry is free and automatic for existing customers and publicises the results in newsletter and websiteOffers related or complementary productsBanks are providing complementary products or services to their customers because this helps them in retaining their customers.Anniversary offerIn this banks are providing special anniversary offers one year exactly after the customer first came to banks.Employee motivationEmployee morale and motivation plays an burning(prenominal) role in customer retention. A demoralised employee tends not to comprehend to customer and in modus operandi arouse turn away a good customer off. Empowerment of people, investment in soft acquisition/product and other relevant trainings and right engineering science to monitor the results take aim to be employed. Incentive schemes along with right fee across the spectrum of round from front office to selling leading to authenticated evidence of bet statusent in customer retention and satisfaction leads to long term positiveness and commitment. This will also require management buy-in and commitment. In the long term loyal and motivated employees lead to more business and satisfied customer. Banks posit to strive to make each employee a brand ambassador for the Bank.Managing customer complaintsCustomer complaints are identified by a number of ways in private banks much(prenominal) as customer complaint box, written form, verbal form.. Customers usually make complaint about their problems telling the relevant person in the bank. Complaints are managed by pickings quick actions. This helps in the retention of customers.Relationship film directors (RMs)The concept of Relationship Manager (RM) is used in the banks. The job of RM is generally performed by the branch officers. The interviews revealed that the briny job of Relationship Managers to reach out to the customers both corporate and personal, to make sure that the job is done in a systematic air within the clients time frame. The relationship managers for corporate banking are very ofttimes important because during the relationship the bank attempts to solve the problems of client organization and accomplish its needs through a series of transactions. It helps in the customer retention. net BANKINGPrivate Banks have their own website. Internet Banking has already been started.Following are the common features of Internet Banking think enumerate reposes and transaction history hold in depositsCheck loan balancesCheck loan payment informationView interest informationVarious information regarding their productsIn this customers can get every information through internet. It is an important tool to retain customers. spacial CONVENIENCESpatial convenience is provided by branch location and engine room driven delivery services such as ambiance. To create spacial convenience branches and ATM booths should be established near the target customers.. ATM is used to provide convenience by placing them in locations alike(p) obtain mall, in some central place of battlefields.SEGEMENTATIONTo retain the customers in banks they started segmentation. The factors that banks accentuate to identify the needs and requirements are as followsFor corporate customerfiscal Strength and credit worthinessMarket PositioningReputation integrityIndustriesListed CompaniesFor personal bankingOccupationIncome and Propensity to saveAttitu de towards bankingMarket postulateGeographic concentrationBUILDING MANAGING CUSTOMER RELATIONSHIPRelationship marketing encompasses activities of attracting, maintaining, and enhancing customer relationships. It is an organizational philosophy that impacts on operations and processes, employees, customer service and quality and customer retention.Win-win rewardsIt provides benefits for both the customer and the private banks Successful marketing of these initiatives means customers are encouraged to use cost-saving electronic banking services that change maximum efficiency and profitability. For example, consumers may be required to receive statements online, use their debit card a certain amount of times each month, use online banking or bill pay and/or enrol in direct deposit. This lowers personal service costs and statement costs (for create and mailing) and gives bankers the time and resources they need to focus on building relationships with key customers. engine roomTelep hone banking is another option for customer retention as this service is for convenience of customer. And for this purpose following technology is usedInteractive join response (IVR)IVR systems are used very commonly by several(a) service organizations for order placements, purchasing airline tickets, telephone banking, caller routing and identification, obtaining balance inquiries, paying bills, completing surveys and polls and looking up selective information, to attend a few. IVR systems are also used at call centres to help identify customers needs and prepare the live customer service translator by obtaining information from the caller ahead of time, such as account numbers, name, social security number, address information, etc.IVR for short is a bundle application that allows telephone caller to select options from different menus. IVR systems are on hand(predicate) 24 hours a day, seven days a week, so callers can access them anywhere, anytime. Callers may enter reque sted information into telephone keypad or by simply come up toing commands. Commands generally consists of numbers or simply Yes or No answers. IVR systems also have voice options for help, speak with a customer care specialist or other various straight forward options.CUSTOMER RETENTION TOOLS USED BY semipublic BANKSRelationship base pricingExisting customers feel that they are world ignored by banks when it comes to pricing as competitive rates are being offered to new customers only. This forces public banks to have a pricing strategy. Customers who have multiple products with Banks across different lines of business (LOBs) expect transparency in product pricing. They tend to stay loyal and this loyalty needs to be taken care of. Relationship based pricing (RBP) is a new mantra which institutions are now trying to get into. RBP helps in evaluating the total income realise from the customer across all the LOBs and work out mutually paid pricing. RBP helps banks to treat eac h customer differently, based on the overall relationship value, with innovative pricing strategies across enterprise. Banks can ensure that the benefits and rewards are provided based on total value the customer provides thereby enriching the customer loyalty. This helps a lot in customer retention.Employee motivationEmployee morale and motivation plays an important role in customer retention. A demoralized employee tends not to listen to customer and in turn can turn away a good customer off. Empowerment of people, investment in soft skill/product and other relevant trainings and right technology to monitor the results need to be employed. Incentive schemes along with right compensation across the spectrum of staff from front office to marketing leading to documented evidence of improvement in customer retention and satisfaction leads to long term profitability and loyalty. This will also require management buy-in and commitment. In the long term loyal and motivated employees lead to more business and satisfied customer. Banks need to strive to make each employee a brand ambassador for the Bank.Keep customers informedSame way like private banks they also retain their customers, they also have started their customers informing about latest schemes and offers and necessary information. For informing the customers banks send letters, e-mails, make phone calls and send messages on their mobile phones.Rewards managementCustomers expect banks to be flexible and willing to change while whirl rewards. Listening to them will go a long way in knowing what is wanted and what is not. Outdated products/service as a reward will not go down well with customers and addition of newer loyalty partners with innovative ideas will be welcome. Innovative ways of redeeming rewards like online redemption, redemption a crystallisest purchases etc are the ones which will be liked. Proper segmentation of customers is required so that the right product/reward is targeted. Loyalty prog rams need to be constantly evolving based on the market conditions and technology needs to be used extensively in this regard.Profitable and cost effective Customer Relationship Management has become a key strategic area with an change magnituded focus on this issue by top management of Banks. The opportunity for banks has never been greater to assume a more customer centric responsibility. Continuous use of customer feedback, tuning loyalty programs, better employee morale along with the relevant Enterprise wide technology broadcast to monitor all these will ensure in improving customer relationships with the active intricacy of management across the organizational functions. Management buy-in and participation across the different level in the hierarchy is important in improving customer relationships, helping to deepen brand loyalty and increase customer lifetime value. In the end loyalty equals increasing profits and a strong competitive edge which is the order of the day. U ltimately, best strategies in customer loyalty management reflect in higher customer satisfaction indices and improved bottom line for the Bank.Education for the customer on products and services offeringsCustomers need to have adequate information about banks products, services, delivery channels and the costs associated with each. However, bank does not have unlimited resources to provide personalized education at the branch level. Integrated banking platforms support Push-To-Talk and sympathetic applications which can deliver personal interaction remotely.Customer Empowerment with necessary information and tools to encourage independent decision makingCustomer can use calculators, simulators and modellers to compare different products understand the steps to be taken to achieve their financial goals and seek guidance in broader financial matters such as wealth creation and retirement planning.Humble ATMsPublic banks have just introduced humble ATMs to retain its customers. In t hese ATMs if a person can interact with bank staff if the nearest branches are closed.Social MediaTo retain more and more customers public banks use social media. In this in case of responding to customers social media is a powerful retention tool. In this before contacting to customer service department, customers can go online and can get information regarding anything.CONCLUSIONThere is a great competition between public and private banks.Customer retention is their major motive. To retain their customers banks adopted umpteen tools and techniques.Private sector banks focus more on customer retention as compared to Public sector banks.Private sector bank follows the 80/20 rule which means that the top 20 customers generate the 80% of organization revenue.It is easy and cost effective to retain the existing customers, than to gain new. This is the strategy which both Public and Private sector banks follow.