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CUSTOMER SATISFACTION
The Industrial Credit and Investment Corporation of India, ICICI
was formed on January 5, 1955 at the initiative of the World Bank, the
Govt. of India and representatives of Indian industry. The principal
objective was to create a development financial institution for providing
medium-term and long term project financing to Indian business. The
funds were obtained through a variety of Govt. sponsored and Govt.
assisted programmes until the late 1980’s. With the liberalization of the
financial sector in 1990’s ICCI transferred business from a development
financial institution to a diversified services group offering a wide variety
of products and services to broader spectrum of clients.
About ICICI
ICICI is one of the leading financial institution of the country. Its
main business is to lend money to corporates and project finance. Now
ICICI has moved on to become a universal bank. ICICI is the first Indian
company to get listed on New York Stock Exchange (NYSE).
Shareholding Pattern
Govt. holding (through LIC, GIC, UTI etc.) 31%
Foreign holding 48%
1/3 Govt. stake denotes safety
½ Foreign stakes denotes highly competitive management and robust
growth.
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ICICI Group Structure
ICICI PARENT
COMPANY
ICICI
BANK
46%
I-Sec
100%
ICICI
PFS
100%
ICICI
InfoTech
100%
ICICI
Capital
100%
ICICI Web-
trade
100%
The ICIC group comprises of:
ICICI Banking Corp. Ltd. (ICICI Bank): a commercial bank that
provides both retail and wholesale products.
ICICI Securities and Finance Co. Ltd. (I-Sec): an investment bank that
offers a wide range of fee-based services with the support of ICICI
Brokerage Services Ltd.
ICICI Credit Corporation Ltd. (I-Credit) a non banking finance
company that provides a retail distribution channel for the group retail
products, supported by ICICI Capital Services Ltd.
HOW DO CUSTOMERS FORM THEIR EXPECTATION ?
Customer forms their expectation from past experience,
advertisements, word-of-mouth, friend and associates advice, markets and
competition information and promises. If marketers raise expectation too
high, the buyer is likely to be disappointed. However, the company sets
expectations too low, it won’t attract enough buyers (although it will
satisfy those who do buy ).
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TOTAL CUSTOMER SATISFACTION
Some of today’s most successful companies are expectation and
delivering performance to match. These companies are arriving for TCS-
total customer satisfaction.
A customer decision to be loyal or to defect is the sum of many
small encounters with the company.
For customer’s orientated companies, customer satisfaction is both a
goal and a marketing tool.
TOOLS FOR TRACKING & MEASURING CUSTOMER
SATISFACTION
1) Complaints and Suggestion Systems
A customer-centered organization makes it easy for its customers to
deliver suggestion and complaints. Some customer-centered
companies establish hot lines with toll-free telephone numbers.
Companies are also adding Web pages and e-mail to facilitate two-
way communications. These information flow provide companies
with many good ideas and enable them to act quickly to resolve
problems.
2) Customer Satisfaction Surveys
Studies show that although customers are dissatisfied with one out
of every 4 purchases, less than 5% of dissatisfied customers will
complain. Most customers will buy less or switch supplies.
Complaint levels are thus not a good measure of customer
satisfaction. Responsive companies measure customer’s satisfaction
directly by conducting periodic surveys. They send questionnaires or
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make telephone calls to a random sample of recent customers. They
also solicit buyer’s views on their competitors’ performances.
In this project questionnaire has been used as a tool for
tracking and measuring satisfaction.
3) Ghost Shopping
Companies can hire persons to pose as potential customers to report
on strong and weak points experienced in buying the company’s and
competitors products. These mystery shoppers can even test whether
the company’s sales personal handle various situations well. Not
only should companies hire mystery shoppers, but managers
themselves should leave their offices from time, enter company and
competitor sale situations where they are unknown, and experience
first-hand the treatment they receive as “customers”.
4) Lost Customer Analysis
Companies should contact customers who have stopped buying or
who have switch to another suppliers to learn why this happened.
Not only is it important to conduct exit interviews when customers
first stop buying, but it is also necessary to monitor the customer
loss rate. If it is increasing, this clearly indicates that the company is
failing to satisfy customers.
ATTRACTING CUSTOMERS
In the past, many companies took granted. Their customers may not
have many alternative source of supply, or all suppliers were equally
deficient in service, or the market was growing so fast that the company
did not worry about satisfying its customers. Clearly things have changed.
Today’s customers are harder to please. They are smarter, more
price conscious, more demanding, less forgiving and approached by
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competitors with equal or better offers. The challenge according to Jeffery
Gitomer is not to produce satisfied customers but to produce loyal
customers.
Companies seeking to grow their profits and sales have to spend
considerable time and resources searching for new customers. Customers
acquisition requires substantial skills in :
Lead generation
Lead qualification
Account conversion
To generate leads, the company develops ads and place them in media that
will reach new prospects; it sends direct mail and makes phone calls to
possible new prospects; its sales person participate in trade shows where
they might find new leads; and so on. All this activity produces a list of
suspects. The next task is to qualify on their financial standing and so on.
The prospect and work be graded as hot, warm and cool. The sales people
first contract the hot, warm and cool. The sales people first contact the hot
prospects and work on account conversion, which involves making
presentations, objections and negotiating final terms.
COMPUTING THE COST OF LOST CUSTOMERS
It is not enough to be skillful in attracting new customers, the
company must keep them. Too many companies suffer from high customer
churn- namely, they gain new customers only to lose many of them. It is
like constantly adding water to a leaking pot. Today’s companies must pay
closer attention to their customer defection rate ( the rate at which they
lose customers ).
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STEP TO REDUCE CUSTOMER DEFECTION RATE
There are four step in trying to reduce the defection rate. They are as
follows.
1) First the company must define and measure its retention.
2) Then the company must distinguish the cause of customer attrition
and identify those than can be managed better. Not much can be
done about customers who leave the region or go out of business,
but much can be done about customers who have because of poor
service, shoddy products or high prices. The company needs to
examine the percentage of customers who defect for these or
different reasons.
3) Next, the company needs to estimate how much profit it loses when
it loses customers. In the case of an individual customer, the lost
profit is equal to the customer’s lifetime value- that is, the present
value of the profit stream that the company would have realized if
the customer had not defected prematurely
4) Lastly the company needs to figure out how much it would cost to
reduce the defection rate. As long as the cost is less than the cost is
less than the profit, the company would spend that amount to reduce
the defection rate. Finally, nothing beats plain old listening. to
customers.
NEED FOR CUSTOMER RETENTION
Unfortunately, most marketing theory and practice center on the art
of attracting new customers rather than on retaining existing ones. The
emphasis traditionally has been building relationships on preserving and
selling rather than caring for the customer.
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The key to customer retention is customer satisfaction. A highly satisfied
customer:
♦ Stays loyal longer
♦ Buys more as the company introduce new product and upgrade
existing products.
♦ Talks favorably about to company and its products.
♦ Pays less attention to competing brands and advertising and is less
sensitive to price
♦ Offer product or serve ideas to the company.
♦ Costs less to serve than new customers because transactions are
reutilized.
Thus a company would be wise to m4easure customer satisfaction
regularly. The company could phone recent customers and enquire how
many are very satisfied, satisfied indifferent and very dissatisfied. If might
lose as much as 80% of the very dissatisfied customers, maybe about 40%
of the very dissatisfied customers, about 20% of the indifferent customers
and maybe 10% of the satisfied customers. But it may lose only 1 or 2% of
its very satisfied customers. The moral: Try to exceed customer
expectations, not merely meet them.
Some companies think they are getting a sense of customer satisfaction by
tallying customer complaints. But, 95% of the dissatisfied customers don’t
complain; many just sop buying. The best thing a company can do is to
make it easy for the customer to complain. Suggestion forms, company
toll-free numbers and e-mail address serve this purpose. Listening is not
enough, however. The company must respond quickly and constructively
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to the complaints. Because loyal customers account for a substantial
amount of company’s profits, a company should not risk losing a customer
by ignorance a grievance or quarreling over a small amount. Winning back
lost customers is an important marketing, activity and often cost less than
attracting first-time customers.
Today, more and more companies are recognizing the importance of
satisfying and retaining current customers. Following are some interesting
facts bearing on customer retention:
Acquiring new customer can cost five times more than the cost
involved in satisfying and retaining current customers.
The average company loses 10% of its customers each year.
The customer project rate trends to increase over the life of the of
the retained customer
A 5 % reduction in the customer defection rate can increase profits
by 25% to 85% depending on the industry.
WAYS TO STRENGTHEN CUSTOMER RETENTION
There are two ways to strengthen customer retention. One is to erect
high switching barriers. Customers are less inclined to switch to another
company when this would involve high capital costs, high search costs, or
the loss of loyal-customer discounts. The better approach is to deliver high
customer satisfaction. This makes it harder for competitors to overcome
switching barriers by simply offering lower prices or switching
inducements.
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Suspect
Prospect Disqualified Prospect
First-time Customers
Repeat Customers
Inactive Ex-Customer
Clients
Members
Advocates
Partners
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CUSTOMER DEVELOPMENT PROCESS
To understand customer relationship marketing, the involved in
attracting and keeping customers must be considered. The main step in the
customer-development process can be explained as:
The starting point is suspects, everyone who might conceivable buy
the product or services. The company looks hard at the suspects to
determine who are the most likely prospects-the people who have a strong
potential interest in the product and the ability to pay for it. Disqualified
prospect are those the company rejects because they have poor credit or
would be unprofitable. The company hopes to convert many of its
qualified prospects into first-time customers. Both first-time and repeat
customers may continue to buy from competitors as well. The company
treats very specially and knowledgeably. The next challenge is to turn
clients into members, by starting a membership program that offers a
whole set of benefits to customers who enthusiastically recommend the
company and its products and service to others. The ultimate challenge is
to turn advocates into partners where the customer and the company work
together actively.
Some customers will inevitable become inactive or drop out for
reasons of bankruptcy, moves to other locations, dissatisfaction and so on.
Here the company’s challenge is to reactive dissatisfied customers through
customer win-back strategies. It is often easier to retract ex-customers,
because company knows company knows their names and histories than to
find new ones.
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CUSTOMER LOYALTY
The task of creating loyalty is called relationship marketing.
Relationship
marketing embraces all those steps that companies undertake to know and
serve their
value customers better. Development more loyal customers increases
revenue. However, the company has to spend more to build greater
customer loyalty. How much should a company invest in relationship
building so that the costs do not exceed the gains? For this there is need to
distinguish five different levels of investment in customer-relationship
building:
1) Basic Marketing
The salesperson simply sells the product.
2) Reactive Marketing
The salesperson sells the product and encourages the customers to
call if he or she has questions, comments or complaints.
3) Accountable Marketing
The salesperson phones the customer a short time after the sale to
check whether the product is meeting expectations. The salespersons
also ask the customers for any product or service-improvement
suggestion and any specific disappointments.
4) Proactive Marketing
The company salespersons contact the customers from time to time
with suggestion about improved product uses or helpful new
products.
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5) Partnership Marketing
The company works continuously with the customer to discover ways to
perform better.
Most companies practice only basic marketing when their market
contain many customer and their unit profit margin are small. At the other
extreme, in the market with few customers and high profit margin most
companies will move towards partnership marketing.
The best relationship marketing going on today is driven by
technology. Companies are using e-mail, web sites, call centers, database
software to foster continuous contact between company and customers.
Integrate the telephone along with Web technology and an extremely
powerful mean of attracting and retaining customers is obtained.
TOOLS FOR CONVERTING NEUTRAL AND SATISFIED
CUSTOMERS INTO HIGHLY SATISFIED/LOYAL CUSTOMERS
There are some specific marketing tools that a company can use to
develop stronger customer bonding and satisfaction. Berry and
Parasuraman have distinguished there value-building approaches:
1) Adding Financial Benefits
Two financial benefits that companies can offer are frequency
marketing programs and club marketing programs. Frequency marketing
programs (FMPs) are designed to provide rewards to customers who buy
frequently and/or in substantial amounts. Frequency marketing is an
acknowledge of the fact that 20% of a company’s customers might
account for 80% of its business. Typically, the first company to introduce
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an FMP gains the most benefit, especially if competitors are slow to
respond. After competitions respond, FMPs can become a financial
burden to all the offering companies.
Many companies have created club membership programs to bound
customers closer to the company. Club membership can be open to
everyone who purchases a product or service, or it can limited to an
affinity group or to those willing to pay a small fee. Although open clubs
are good for building a database or snagging customers from competitors,
limited membership clubs are more powerful long-term loyalty builders.
Fees and membership conditions prevent those with only a fleeting
interest in a company’s product joining. Limited customers clubs attract
and keep those customers who are responsible for the larger portions of
business.
2) Adding Social Benefits
Here company personnel work on increasing their social bonds with
customers by individual and personalize customer relationships. In
essence, thoughtful companies turn their customers into clients.
Donnelly, Berry and Thompson draw this distinction.
Customers may be nameless to the institution; clients cannot be
nameless. Customers are served as part of the mass or as part of larger
segment; clients are served on an individual basis… Customers are
served by anyone who happens to be available; clients are served by the
professional assigned to them.
Some companies take steps to bring their customers together to meet
and enjoy each other.
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3) Adding Structure Ties
The company may supply customers with special equipment or
computer linkages that help customer’s mange their orders, payroll,
inventory and so on. For example Milliken & Company, provides sale
leads, sales training etc to its loyal customers
TOTAL QUALITY MANAGEMENT
One of the major value customers expect from organizations is high
product and services quality. Today’s originations view the task of
improving product and services quality as their top priority. If companies
want to stay in the race, let alone be profitable, they have no choice but to
adopt quality management (TOM)
“Total quality management (TQM) is an organization wide
approach to continually improving the quality of all the organization of all
the origination’s process products and services.”
There is an intimate connection among product and service quality,
customer satisfaction and company profitability. Higher levels of quality in
higher levels of customer satisfaction while supporting higher prices and
(often) lower costs. Therefore quality improvement programs (QIPs)
normally increase profitability. The well-known PIMS studies show high
correlation between relative product quality and company profitability. A
customer that satisfies most of its customer’s need most of the time is
called a quality company.
Quality has been defined differently by different authors. Various
expect have defined it as “fitness for use”, “conformance to requirements”,
“freedom from variations” and so on. The American Society for Quality
Control’s definition, which has been adopted world wide.
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“Quality is the totality of feature and characteristics of a product or
services that bear on its ability to satisfy sated or implied needs”
Total quality is the key value creation and customer’s satisfaction.
Total quality is everyone’s job, just as marketing is everyone’s job
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COMPANY PROFILE
ICICI Bank is India’s second largest bank with total assets of about
Rs. 2,513.89 bn at March 31.2006 and profit after tax of Rs.25.40 bn for
the year ended March 31,2006 (Rs. 25.04 bn in fiscal 2005). ICICI Bank
has a network of about 950 branches and extension counters and over 3300
ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance to offer products
internationally. ICICI currently has subsidiaries in the United Kingdom,
Canada and Russia, branches in Singapore and Bahrain and representative
offices in the United States, China, United Arab Emirates, Bangladesh and
South Africa.
ICICI Bank’s equity shares are listed in India on the stock Exchange,
Mumbai and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).
As required by the Stock Exchanges, ICICI Bank has formulated a Code
of Business Conduct and Ethics for its directors and employees.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was its wholly-owned subsidiary. ICICI’s
share holding in ICICI Bank was reduced to 6% through a public offering
of shares in India in fiscal 1998, an equity offering in the form of ADRs
Listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of
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Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001
and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development of India and
representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-
term project financing to Indian businesses. In 1990, ICICI transformed its
business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian
company and the first bank or financial institution from non-Japan Asia to
be listed on the NYSE.
After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of
ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group’s
universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity’s access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking
services.
The merger would enhance value for ICICI Bank shareholders through a
large capital base and scale of operations, seamless access to ICICI’s
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strong corporate relationships built up over five decades, entry into new
business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI
and its subsidiaries. In October 2001, the boards of Directors of ICICI and
ICICI Bank approved the merger of ICICI and two of its wholly owned
retail financial subsidiaries, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by
the High Court of Gujarat at Ahmadabad in March 2002, and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April
2002, Consequent to the merger, the ICICI group’s financing and banking
operations, both wholesale and retail, have been integrated in a single
entity.
AN OVERVIEW OF BANKING INDUSTRY
The Indian banking history can be broadly categorized into nationalized
(Government owned) private banks and specialized banking institution.
The reserve bank of India acts as a centralized monitoring any
discrepancies and shortcoming in the system. Since the nationalization of
banks in 1969, the public sector or the nationalized banks have required a
place of prominence and has since then seen tremendous progress. The
need to become highly customer focused has forced the slow moving
public sector banks to adopt a fast track approach. The unleashing of
products and services through the net has galvanized the players at all level
of banking and financial institutions market grid to look a new at their
existing port folio offering.
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The liberalize policy of government of India permitted entry to private
sector in the banking; the industry has witnessed the entry of new
generation private banks. The major differentiating parameter that
distinguishes these banks from all the other banks in the Indian banking is
the level of service that is offered to the customer. Verify the focus has
always been centered on the customer. Understanding his needs.
Preempting him and consequently delighting him with various
configurations of benefits and a wide portfolio of products and services.
These banks have generally been established by promoters of repute or by
high value of domestic financial institutions. The popularity or these banks
can be gauged by the fact that in a short span of time. These banks have
gained considerable customer confidence and consequently have shown
impressive growth rates. Today, the private banks corner almost 4% share
of the total share of deposit. Most of the banks in this category are
concentrated in the high growth urban areas of metros (that account for
approximately 70% of the total banking businesses. With efficiency being
the major focus, these banks leveraged on their strength and competencies
viz. management, operation efficiency and flexibility, superior product
positioning a higher employee productivity skill.
The private banks with their focused business and services portfolio have
an reputation of being niche player in the industry, A strategy that has
allowed these banks to concentrate on few reliable high net worth
companies and individuals rather than career to the mass market. These
well chalked out integrates strategy plans have allowed most of these
banks to deliver superlative level at personalized service. With the re serve
bank of India allowing these banks to operate 70% of their business to
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urban areas, this statuary requirement has translated into lower deposit
mobilization costs and higher margins relative to public sector banks.
Existing products and services are changing way for value added ones
thanks to the one gunmanship game among competing banks, sparked off
soaring consumer demand. For example, cash management products may
soon morph from its current form into products that use payment gateways
and alternate settlement mechanism for quicker movement of money
across manufacturers, suppliers, distributors and customers.
Banks are increasingly finding that most viable way of differentiating
themselves will be successfully manage customer relationship and enhance
the overall customer experience. In future, the market space will see banks
and non-banks striving to seek opportunities for profit, in the wake of
products communization.
The high interest rate spread is often sought to be justified due to the high
level of non-performing asset (NPAs). But it is the bureaucracy and the
high level of expenses that are the underlying region, the cycle in which
public sector banks are caught in vicious. Excess bureaucracy leads to
inefficiency. Inefficiency leads to higher costs. Higher costs to leads to
higher lending rates. Higher lending rates increase the risk for borrowers.
Increased risk translates into higher NPAs. NPAs add to transaction costs,
etc!
Having provided for NPAs in their lending rates, banks should act quickly
to liquidate NPA at whatever valuation they can get and book the profit on
NPAs. The legislative framework has traditionally prevented banks form
liquidation on NPAs aggressively to facilitate a quick recovery. Successive
governments have undertaken considerable legislative reform to expedite
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this process. The setting up of debt recovery tribunals to deal with NPAs
has helped the process considerable. The recent passage of the
Securitization Act, which enables banks to seize and liquidate the assets of
defaulting borrowers, has also resulted in favorable recovery climate for
banks.
The global experience of securitization is that between 20 to 30% of the
principles out standing in an account is recovered. There is no reason to
expect the Indian experience to be any better. The ideal solution to an
BPAs is a negotiated settlement, backed up by the threat of the
securitization Act.
Public sector banks are reluctant to negotiate a settlement. As they fear this
could lead to an allegation of corruption and to investigation by the CBI,
CAG or CVC. A proposal for negotiated settlements must pass though the
bank’s bureaucracy, which can take months, even years, by which time the
vrale of security often, deteriorates to zero. Private Banks follow flexible
recovery policies. Their objective is to quickly settle NPA s so that those
funds can be deployed profitable elsewhere. To achieve this corrective,
they pursue4 settlements aggressively and make it worthwhile for the
borrower to settle. Public sector banks should be encouraged to enter into
negotiated settlement. If the value of the security held by the bank is less
than the principle outstanding in an account, the bank should encourage
negotiating a settlement based on the value of security.
To induce dynamism and vibrancy to the banking sector, the government
must strive to introduce competition India’s experience with competition
has been that it has resulted in lowering cost, improving service, expansion
of the sector etc. the experience of the telecommunication sector is a prime
21
example. A policy to increase competition by issuing banking licenses to
new entrants should be put in place. Once an organization revives a
banking license, it should be put in place. Once an organization receives a
banking license, it should be free to set up as many branches as it deems
necessary, without having to approach the Reserve Bank of India (RBI) for
individual branch licenses.
To unlock the true potential of public sector banks, talent and resources
from private sector should be drawn by diluting government equity share
holding is necessary if India hopes to build a first world banking industry.
This will unlock great shareholder value for the government, whose fund
can be utilized to retire public dept or to invest in social infrastructure.
Banks are making huge profit and reforming of the financial sector is in
full steam. We should seize this opportunity to modernize and globalize
the banks to give the best deal to the common man.
RETAIL BANKING
Retail banking group (RBG) has emerged as the fastest growing segment
within ICICI BANK LIMITED. Within RBG, retail channel and liability
group mobilize the much needed resources at highly competitive rates
through Deposits and Bonds and retail assets and products group deploys
the available resources through various channels like home Loans,
Personnel Loans, Consumer Durables Loans, Commercial vehicle Loans
etc. in the retail assts.
Across the world retail banking has been the high volume low value
business proposition. Enormous amount of resources are required to
acquire and service customer in terms of infrastructure and operation.
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Given the current stage of evolution of the Indian market. We have
adopted an organization model that continuous to focus on product and on
achieving market leadership in various product segments. In order to
enable closer attention and dedicated service, and tat the same time
facilitate the widening and deepening of customer relationships two
customer centric groups private banking and salary accounts group and
trusts, Association, Society and Club (TASC) and household group has
been created.
Small enterprises group which includes all clients with net worth up to Rs.
250.00 million and cumulative credit exposure up to 100.00 million has
been categorized into geographical and industry- based cluster groups,
corporate linked small enterprises, standalone small enterprises and
emerging corporate the SEG segment has strong synergies with the retail
business in terms of customer profile and servicing is done through
technology platform and retail branches.
LEARNING AREAS
ACCOUNT OPENING
Processing of form
Footfall entry Survey
Five “S”
Collecting form of HSBC IPOs
Issuing of MAT form
Customer queries regarding (PIN, ATM. ADDRESS CHANGE)
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Providing information such as
Balance inquiry in FINANCE
Dispatch of PIN, ATM CARD, CHEQUE BOOK in E-
SEARCH
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PRODUCTS OF ICICI BANK
“7 Ps” of Banking Product
Successful marketing strategy for any banking would depend on the skill with
which it weaves all these ‘7Ps’ in marketing effort. Simply put, it is not
enough for a bank to have a ‘right product’. It also need s ‘right pricing’ for
the product made available at ‘right place and delivered by ‘right people’
using ‘right process’ and packaged in ‘right way’.
PODUCT: Marketer believes that people do not buy products but solutions.
The implication for the marketers is to crate products that meet expectation of
the customers. New product development should involve conducting
marketing research on consumer’s expectation and buying behavior. So in
banking sector, bank product also need to carry value addition to attract
buyers, as well as require customization to suit different target audience.
PRICE: driven competition is one of the significant emerging trends in bank
marketing. Product pricing depends on the factor such as cost of deposit , cost
of intermediation, cost of capital, cost of default and margin. To effectively
compete on price, bank should launch a massive drive to mobilize low cost
deposit. It is also important to understand that not in all cases customer buy
product based on pricing. So marketers need to understand that customer’s
price sensitivity is not same across product category. Customer are also not
well informed about traditional charges such as charges for stop payment,
cheque return, non maintenance if minimum balance etc, bank marketer
should use this information to distinguish their product form competitors and
while pricing their service charges.
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PLACE: convenience is an important criterion for a customer to choose his
bank. Banks have to critically examine as to what extend their delivery
channels provide convenience for customer. Place would comprise location of
the branches, parking space, customer space, customer support, structure
inside the bank, sign board for easy identification of counter, product specific
counter. Today banks have created alternate delivery channels for providing
services. New technology tools have redefined and expanded the scope of
place in marketing. Customers access their account through ATMs, internet
banking tele-banking, mobile technology etc, the design layout and marketing
orientation of these delivery channels are critical for effective marketing.
PROMOTION: Promotion helps in communicating products and services of
banks to customers. To put simply, the first step on buying process is the
awareness of the product/services, followed by the interest and the desire to
avail them resulting in actual purchase of product/services. Most banks limit
themselves to creating products without much focus on reaching the product
to the customer.
PEOPLE: Customer not only want product but also better buying experience.
Banking is not mechanical processing but creating pleasant experience for
clients, Customer desire employee to be courteous friendly knowledgeable
willing to provide information and guidance, accept mistakes and provide
services with smile. People should be equipped with knowledge on 4Cs
namely Know your customer, Commodity, Company and Competitors.
PROCESS: The process of delivering services is another important aspects in
marketing. Is the process hassle free or cumbersome? Should the customer
visit the branches several times or the sales executive would visit him for
documentation at his doorstep. Is the process simple, easy to understand or
26
lengthy and complicated? Thus banks need to design their processes in order
to make buying experience pleasurable for the client.
PHYSICAL EVIDENCE: The ambience, décor air-conditioning, dress code
of the staff, cleanness of the office, arrangement and color scheme of the
furniture appearances and condition of product broacher etc. constitute
physical evidence. These things communicate positive or negative feelings to
the customer. So physical evidence must be taken seriously in banking
services.
PRODUCTS OF ICICI BANK
ICICI Bank offers wide variety of Deposit products to suit requirements.
Coupled with convenience of networked branches / over 1800 ATMs and
facility of E-channel like Internet and Mobile Banking, ICICI Bank brings
banking at your doorstep. Select any of our deposit products and provide
your details online and our representative will contact you for Account
Opening.
SAVING ACCOUNT
When liquidity is concern, the most common and basic option offered by a
bank is a saving bank account. ICICI Bank offers you a power packed
Savings Account with a host of convenient features and banking channels
to transact through, So now you can bank at your convenience, without the
stress of waiting in queues
FEATURES
DEBIT CUM ATM CARD
27
AUTO INVEST ACCOUNT
INTERNET BANKING
PHONE BANKING
ANYWHERE BANKING
CHEQUE BOOK
NIMINATION FACILITY
DOORSTEP SERVICE
Money Multiplier Account
DEBIT CUM ATM CARD
You can access your money via a Debit Card. When you make a payment
on your debit card, it immediately gets deducted from your bank account.
You can freely access your bank account and check your balance too. You
can deposit cash, cheque also through ATM, request for changing Pin No.,
request for issuing a cheque book etc.
AUTO INVEST ACCOUNT
By opening a value added saving account, if the balance in the saving
account goes above Rs. 10000.00, the additional amount in multiple of
Rs.5000.00 is moved into a fixed deposit automatically. This helps
accountholder earn a better return on their idle money. Moreover, they can
access the amount in fixed deposit just like they access their saving
account either through a cheque or through ATM card. To facilitate this
28
fixed deposit is broken in multiple of Rs. 1000.00, for that no charges are
levied.
INTERNET BANKING
The internet banking facility provides you easy and secure access to your
account. Accountholder can pay their utility bills like telephone, mobile,
electricity bill online or through phone banking.
ANYWHERE BANKING
The anywhere baking facility entitles you to withdraw or deposit cash up
to a pre-specified limit (depending on your bank) across all the bank’s 560
branches and 1900 ATMs across the country.
STANDING INSTRUCTIONS
Customers can give various type of instruction the bank, like automatically
deduct their credit card and other payment from their account. They can
give other various standing instructions too, like transferring a specified
sum to fixed deposit account at regular intervals.
CHEQUE BOOK
The chequebook facility permits you to access your fund or transfer them.
Accountholder get a personalize chequebook free of cost.
NOMINATION FACILITY
Accountholders at a liberty to specify any nominee as well as change the
nominee for their account during the course of their relationship with the
bank.
29
MINIMUM BALANCE
Accountholder must maintain a minimum balance in his account. All the
above facility can be availed of for maintaining quarterly average balance
(QAB of Rs.5000). It can even go to zero. But in quarter, the average
balance has to be Rs. 5000. If it is not so there is a service charge of Rs.
750 per quarter and 10% tax per quarter is charged if the average balance
is not maintained.
ROAMING CURRENT ACCOUNT
Only Roaming Current Account from ICICI Bank travels the distance with
your business. With advanced technological features, your banking needs
are well taken care of. You can access your accounts at over 500-
networked branches across the country. So while you take care of your
business, let ICICI Bank’s Roaming Current Account simplify banking for
you. Besides there is round – the – clock phone banking. Of course, you
can also log in to www.icicibank.com or even get mobile banking.
PRODUCT FEATURES
Choose your account
Multi city cheque facility
Anywhere Banking Facility
Upcountry Cheque Collection
Pay Order and Demand Draft
Phone Banking Facility
30
Doorstep Banking Facility
Internet Banking Facility
Debit / ATM Card
Mobile Banking
More Useful Facilities
CHOOSE YOUR ACCOUNT
ICICI Bank offers a site of current account product that meets all banking
requirement of the customer.
There is a current account that fits their budget for quarterly average
balance (QAB).
31
ACCOUNT TYPE QAB (Rs.)
STANDARD 10000
CLASSIC 25000
PREMIUM 50000
GOLD 100000
PLATINUM 500000
MULTICITY CHEQUE FACILITY
Within this facility all cheque issued by customer will be payable at par at
various ICICI Bank branches across the country. This is a unique facility,
which gives the power to customer to issue cheque that is treated as local
cheque at all centre across India.
ANYWHERE BANKING
With unparalleled set of networked branches across India, ICICI offers
“anywhere banking” in the true set of the term to its customer. ICICI
Bank’s roaming current account is one centre can be operated from any
other designated branch across any other center. So a cheque deposited in
customer account in any other center will be credited to their account much
faster, likewise accountholder can deposit or withdraw cash from
designated ICICI Bank branches up to a prescribed limit. Customer can
also transfer funds across accounts in ICICI Bank.
32
UPCOUNTRY CHEQUE COLLECTION
If somebody sends a cheque payable at a remote location to the customer
account in that situation ICICI Bank’s reach coupled with its
correspondence bank networked will ensure that cheque is credited to their
account extra fast.
PAY ORDER AND DEMAND DRAFTS
With this facility customer can carry out their baking transaction over
phone. Customers can make balance enquiry, request for a cheque book,
and request for a stop payments, make an FD, request for DD etc.
INTERNET BANKING
ICICI Bank’s internet facility allows the customer to access their account
from anywhere, anytime. Accountholder can :
Check Account Balance
Transfer Funds
Request for Chequebooks and DDs
Pay Utility Bills Online
DEBIT ATM CARD
This facility is available for sole proprietorships and partnership concerns.
Accountholder can use the Debit / ATM Card for the following
transactions:
Cash Withdrawal
33
Cash Deposit
Balance Enquiry
Cheque Book Request
Mini Account Request
Transaction at Various Merchants
Establishment Across the Country
MOBILE BANKING
Customer account balance will be communicated to the customer via SMS
everyday. What’s more, in case customer’s account has insufficient
balance when a cheque hits, bank will send an SMS alert to customer
immediately.
MORE USEFUL FACILITY
Free Monthly Account Statement
Free Standing Instruction
Customer Can Also Option For Power Pay To Make Their Salary
Payments To Employee Absolutely Hassles Free.
Free Daily Statements On E-Mail.
FIXED DEPOSIT
Wide Range Of Tenures
Choice Of Investment Plans
34
Partial Withdrawal Permitted
Safe Custody Of Fixed Deposit Receipts
Auto Renewal Possible
Loan Facility Available
Wouldn’t you like a Fixed Deposit that allows you to deposit your money
for just as long as you wish? ICICI Bank’s Fixed Deposit allows you just
that – deposits can opened for periods ranging from 15 days to 10 years
Other features include:
Choice of Two Investment Plans:
TRADITIONAL
Interest payable monthly, quarterly or half – yearly as per your
convenience
Maturity period ranges from 15 days to 10 years.
35
REINVESTMENT
Interest is compounded quarterly and reinvested with principle
amount
Maturity period ranges from 6 months to 10 years.
MINIMUM BALANCE
You can avail of ICICI Bank Fixed Deposits for a minimum deposit
of Rs. 10,000 and thereafter in multiples of just Rs. 1,000.
NOMINATION
Nomination facility is available for relationships in the names of
individuals. Unless otherwise specifically, given in writing by
depositors, nomination in deposit accounts will be at Customer ID
level.
Depositor(s) however has/have the right to specify different
nomination at account level by completing appropriate forms.
Further, the applicant(s) us/are at liberty to change the nominee, through
declaration in the appropriate form to revise the nomination during the
currency of the relationship accounts with the Bank
PARTIAL WITHDRAWAL
Pre – mature withdrawal in units of Rs. 1000. The balance amount earns
the original rate of interest. No penalty is levied on pre – mature
withdrawal from a single deposit of less than Rs. 15 LAKH. The
36
withdrawn amount will earn the interest for the period for which it is held
with the bank.
SAFE CUSTODY OF FIXED DEPOSIT RECEIPTS
Customer can leave their fixed deposit receipts with the bank in safe
custody and on maturity customer just have to inform to the bank of their
choices and bank will have them executed.
AUTO RENEWAL POSSIBLE
Bank also offers the customer the option of automatic renewal of their
fixed deposit on maturity for a same period as was originally specified the
customer.
LOAN FACILITY AVAILABLE
Customer can take a loan against fixed deposit. The loan will be available
for 85% of the fixed deposit value, at a nominal rate above the fixed
deposit rate.
EASY DEPOSIT
Free Debit / ATM Card.
No Need To Open A Saving Account.
Options Of Easy Withdrawal And Easy Loan.
Wide Range Of Tenures
Auto Renewal Possible
Loan Facility Available
37
ICICI Bank Salary Account
ICICI Bank Salary Account is a benefit – rich payroll account for
Employers and Employees
As an organization, you can opt for our Salary Accounts to enable easy
disbursements of salaries and enjoy numerous other benefits too
With ICICI Bank Salary Accounts your employees will enjoy the
convenience of :
Having the largest network of ATMs at their command.
Free 24 hour Phone Banking
Free Internet Banking
All you would require to do is to send ICICI Bank an advice (in form of a
cheque / debit instruction, ecs, etc) for the total salary amount along with
the salary details of the designated employees in a soft and hard copy
format and will credit the respective employee’s Accounts as per your
statement of advice.
38
REVIEW OF LITERATURE AND PROBLEM STATEMENT
Retail banking group (RBG) has emerged as the fastest growing segment
within ICICI BANK LIMITED. Within RBG, retail channel and liability
group mobilize the much needed resources at highly competitive rates
through Deposits and Bonds and retail assets and products group deploys
the available resources through various channels like home Loans,
Personnel Loans, Consumer Durables Loans, Commercial vehicle Loans
etc. in the retail assts.
Across the world retail banking has been the high volume low value
business proposition. Enormous amount of resources are required to
acquire and service customer in terms of infrastructure and operation.
Given the current stage of evolution of the Indian market. We have
adopted an organization model that continuous to focus on product and on
achieving market leadership in various product segments. In order to
enable closer attention and dedicated service, and tat the same time
facilitate the widening and deepening of customer relationships two
customer centric groups private banking and salary accounts group and
trusts, Association, Society and Club (TASC) and household group has
been created.
PRODUCTS OF ICICI BANK
“7 Ps” of Banking Product
Successful marketing strategy for any banking would depend on the skill with
which it weaves all these ‘7Ps’ in marketing effort. Simply put, it is not
enough for a bank to have a ‘right product’. It also need s ‘right pricing’ for
39
the product made available at ‘right place and delivered by ‘right people’
using ‘right process’ and packaged in ‘right way’.
Literature Review It is relevant to refer briefly to the previous studies and
research in the related areas of the subject to find out and to fill up the
research gaps, if any. Literature on financial services can generally be found;
a number of books are available on banking related aspects as merchant
banking, loan syndication, securitization, profitability and productivity etc.
but, few studies are undertaken on the role of technology in the banking
services. Uppal R.K. (2010) studies the extent of mobile banking in Indian
banking industry during 2000-2007. The study concludes that among all e-
channels, ATM is the most effective while mobile banking does not hold a
strong position in public and old private sector but in new private sector banks
and foreign banks m-banking is good enough with nearly 50 pc average
branches providing m-banking services. M-banking customers are also the
highest in ebanks which have positive impact on net profits and business per
employee of these banks. Among all, foreign banks are on the top position
followed by new private sector banks in providing m-banking services and
their efficiency is also much higher as compared to other groups. The study
also suggests some strategies to improve m-banking services. Abdullah
D.N.M.A. and Rozario F. (2009) study the influence of service and product
quality towards customer satisfaction. 149 respondents from one of the well
known hotel in Kuala Lumpur, Malaysia are selected as a sample.
Psychometric testing is conducted to determine the reliability and validity of
the questionnaire. The study finds positive significant relationship between
place/ambience and service quality with customer satisfaction. Although,
relationship between food quality and customer satisfaction is significant, it is
in the negative direction. Future researchers can concentrate on determining
40
attributes that influence customer satisfaction when cost/price is not a factor
and reasons for place/ambience is currently becoming the leading factor in
determining customer satisfaction.
Aktan B., Teker E. and Erosy P. (2009) examines the usage of internet in
Turkey to make a basic due-diligence investigation for the financial
institutions, including banking, stock trading, insurance and provision of
financial information over the period 2005 and 2008. The findings show that
internet usage in Turkey with its young population has continued to grow
dramatically in financial services in terms of customers and financial
transactions of various natures. Azouzi Dhekra (2009) aims to check if the
current and prompt technological revolution altering the whole world has
crucial impacts on the Tunisian banking sector. On the basis of empirical
analysis, the study concludes that panoply of factors is affecting the
customersattitude toward e-banking. For instance; age, gender and educational
qualifications seem to be important and they split up the group into electronic
banking adopters and traditional banking defenders and so, they have
significant influence on the customers’ adoption of e-banking. It also shows
that despite the presidential incentives and in spite of being fully aware of the
ebanking benefits, numerous respondents are still using the conventional
banking. Fear of loss because of transactions errors or hackers plays a
significant role in alienating Tunisian customers from online banking. Finally,
the study highlights the limitations and suggests some research perspectives.
Ganesan R. and Vivekanandan K. (2009) describe a secured hybrid
architecture model for the internet banking using Hyperelliptic curve
cryptosystem and MD5. This hybrid model is implemented with the
Hyperelliptic curve cryptosystem (HECC) and it performs the encryption and
decryption processes in an efficient way merely with an 80-bit key size. The
41
various screen shots given in this contribution shows that the hybrid model
which encompasses HECC can be considered in the internet banking
environment to enrich the privacy and integrity of the sensitive data
transmitted between the clients and the application server. Hua G. (2009)
investigates the online banking acceptance in China by conducting an
experiment to investigate how users’ perception about online banking is
affected by the perceived ease of use of website and the privacy policy
provided by the online banking website. The 110 undergraduate students in
Chinese University are involved in the investigation. The study finds that both
perceived ease of use and privacy policy have a significant impact on user’s
adoption of online banking. The study also investigates relative importance of
perceived ease of use, privacy, and security. Perceived ease of use is of less
importance than privacy and security. Security is the most important factor
influencing user’s adoption. The study also discusses the implications of these
results and limitations.
identified and the extent to which current online retailers provide online
service attributes are analyzed to be low or moderate on most of the
dimensions for both the e-travel and e-mart service providers. The model
tested for the relationship between the service quality dimensions and
customer satisfaction is also found to be correlated at a low level.
Oghenerukeybe E. A. (2009) describes a user study performed to
investigate user’s perception of factors influencing the effective
implementation of existing SI objectives and to evaluate the effectiveness
of SI in banking web browsers using the Communication-Human
Information Processing Model (C-HIP) model, a model proposed by
Wogalter in 2006 in the field of warning sciences. Findings reveal that SI
is not very effective at alerting and shielding users from revealing sensitive
42
information to spoofed sites. 27 pc participants do not understand the full
meaning of the SI noticed in the banking sites while the attention of some
users is not captured enough, for they ignore the warnings completely.
Even with the presence of SI, 18.3 pc participants still go ahead to submit
sensitive information. These outcomes may help the management of banks
develop effective security strategies for the future of electronic banking in
Nigeria. Rao N. and Tiwari S. (2009) study the efficiency of 5 public
sector banks selected on the basis of deposits size in 2005. The study
concludes that all employee efficiency factors have insignificant influence
on deposits, assets and advances, from branch efficiency, only operating
profits per branch and from operating efficiency, cost of deposits have
significant and positive impact. Liquidity influencing factors and ultimate
profit factors do not influence deposits, assets and advances significantly
although all profit factors have negative effect. The study also suggests
some measures to improve efficiency. Riquelme H.E., Mekkaoui K.A. and
Rios R.E. (2009) identify which customer service and online attributes
predict overall satisfaction, determine that if satisfied customers use more
online banking features than less satisfied customers and the characteristics
of less satisfied customers. The sample of 185 customers is drawn from
one of the main banks in Kuwait, the Middle East and multiple regression
and discriminant analysis are used to analyze the data. The findings
suggest that satisfaction can be generated through improving courtesy,
content, timeliness and product and services offered and the majority of the
customers in the sample are satisfied or very satisfied with the service and
online systems attributes. The study explores that companies that offer a
wide product portfolio and relevant website content accompanied by
prompt and courteous response create satisfaction online. Thulani D.,
Tofara C. and Langton R. (2009) explore the extent of adoption and usage
43
of internet banking by commercial banks in Zimbabwe. The study
concludes that while the majority of the banks in Zimbabwe have adopted
internet banking, usage levels have remained relatively low, as not many
customers are using this innovation in Zimbabwe. Compatibility with
existing legacy systems, cost of implementation and security concerns are
the challenges faced by banks in the adoption of IB. The implications of
the study are that banks in Zimbabwe should vigorously promote the usage
of IB among customers while Government and the Reserve Bank of
Zimbabwe should increase investments targeted at infrastructure
development so as to encourage banks and individuals alike to adopt the
innovation. Hugar S.S. and Vaz N.H. (2008) evaluate the customer
orientation in public sector banks for 5 public sector, 3 new private sector
and 3 foreign banks are selected. The study concludes that new private
sector banks have more ATMs at the end of March 2006 followed by SBI
group where 77.5 pc branches are fully computerized and 18.2 pc are
partially computerized. Business per employee and profits per employee
are higher in foreign banks where SBI has received more number of
complaints followed by ICICI. The study also suggests adopting CRM by
public sector banks to stand strong in competitive environment. Kaleem A.
and Ahmad S. (2008) aims to collect bank employees’ perceptions of the
potential benefits and risks associated with electronic banking in Pakistan.
The study shows that public bank employees who have professional
degrees consider ‘minimizing transaction costs’ and ‘reduction in HR
requirements’ as the most and the least important benefits of electronic
banking respectively. Private bank employees having masters or bachelor
degrees, and less than 10 years experience, perceive ‘time saving and
minimizing inconvenience’ as the major benefits of electronic banking.
Branch managers viewed ‘facilitates quick response’ as the most important
44
benefit of electronic banking. Bankers in all segments consider
‘government access to data’ as the biggest risk associated to electronic
banking. The empirical analysis suggests that bankers in Pakistan perceive
electronic banking as tool for minimizing inconvenience, reducing
transaction costs and saving time. Migdadi Y.K.A. (2008) aims to identify
the quality of internet banking service encounter of the retail banks in
Jordan, and to identify the quality dimensions that should be improved or
sustained. The study evaluates the banks' web sites by using the web site
quantitative evaluation method (QEM) in March 2008 for sixteen retail
banks in Jordan. The results indicate that the banks in Jordan have
significant positive quality of the internet banking service encounter,
further the banks' web sites are rich in their content and significant in the
navigation, but the speed of home page down load and web site
accessibility should be developed in the future. Munusamy J. and Fong V.
O. (2008) examine the level of customer satisfaction with regard to
IBBM’s training services. The study investigates the dimensions of service
quality that have significant effect on customer satisfaction in IBBM’s
training services. The study finds that the dimensions of service quality
and customer knowledge are positively correlated to customer satisfaction
among IBBM’s corporate clients. However, only four factors, namely,
competence, credibility, accessibility, and tangibles have significant effect
on customer satisfaction. Therefore, the management of IBBM should
focus efforts on upgrading areas of competence, credibility, accessibility
and tangibles in order to continually increase customer satisfaction for
continued profitability and success in training business. Murali R., Richard
S., Nafis A. and Mudiarasan K. (2008) evaluate consumer perceptions on
quality of e-services and Internet banking adoption in Malaysia. The data
is collected from 150 retail banking customers of the Klang Valley area.
45
Results show that Internet banking users and non-users have different
expectations towards e-service quality preferences. Not all of the
dimensions are preferable by the respondents. The study also discusses
implications and recommendations to improve Internet banking service
quality in Malaysia. Qureshi T.M., Zafar M.K. and Khan M.B. (2008)
evaluate the customer acceptance of online banking. Study concludes that
majority of customers are accepting online banking culture because of
many favorable factors, usefulness, security and privacy are the main
perusing
Statement of the problem
The problem is how feasible is Kaizen techniques in India and what is
customer conception as to use kaizen techniques as a marketing tool it is
important to know what the people think about new techniques and what
erectly want to gather information.
46
OBJECTIVES OF STUDY
To study the financial product of ICICI BANK LIMITED.
To study the customer behavior about the financial product of the
bank.
To study the software uses at ICICI bank
To stduy the uses of Kaizen techniques at ICICI Bank
To suggest some ideas to the bank that will give an edge over the
competitors.
47
RESEARCH METHODOLOGY
Statement of the problem
The problem is how feasible is Kaizen techniques in India and what is
customer conception as to use kaizen techniques as a marketing tool it is
important to know what the people think about new techniques and what
erectly want to gather information.
METHODOLOGY OF RESEARCH
In common parlance, research is a search for facts. The search for facts
many be made through either.
a) Arbitrary method.
b) Scientific method.
• Arbitrary method:- Arbitrary method of seeking answers to
question consists of imagination, opinion, blind belief or
impression.
• Scientific method:- This is a systematic method approach of
seeking facts. It climates the drawback of arbitrary method. It is
objective, precise and Ames at conclusion on the basis of the
variable evidence.
Therefore, Scientific method rather than arbitrary method should make
research for facts. Then only we may get verifiable and accurate facts.
Hence, research is a systematic and logical study of an issue or problem or
phenoucra through scientific method.
48
TYPES OF RESEARCH
(1) Descriptive Research
(2) Analytical Research.
(3) Applied Research.
(4) Fundamental Research.
(5) Concept ional Research.
(6) Imperial Research.
DESCRIPTIVE RESEARCH
This includes surveys and fact-finding inquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs
as it exist at present. The main characteristic of this method is the
researcher does not have any controlled our the variable. Most of these
researchers seek to major much items as, for example frequency of
shopping, preference of people or similar data. These studies also include
attempts by researcher to discover causes even when they can not control
the variables.
EMPIRICAL RESEARCH
It is a Data Based Research, Coming up with result, which are capable of
being verified by ostentation or experiments. In such type of research, it is
necessary to get at facts first hand, at thin source and actively to go about
curtain things to stimulate the production of designed information. In
search a result the researcher must provide himself with working
hypothesis guess as to probable recounts.
49
This profit work has been done using the method “Secretive Research” and
Analytical Research”. The researcher is making use of the facts and
information already available its to make a critical evaluation of the
materials and also include survey and fact finding inquiries of different
kinds.
LIMITATION OF THE STUDY
Answer given by the customers and the bank personal can be biased,
which may have affected my project.
As my project was for Patna region only, it may not provide an overall
view of the market of financial product.
As for the figures for the various financial products were not available
to me, I couldn’t include any portion from viewpoint of finance. It is
totally a topic of marketing.
As the topic of my project was completely research – oriented, I didn’t
get any suitable book for my project.
Due to shortage of time I was not able to take more sample size than
150, which could also be a hurdle in my suggestion.
50
DATA ANALYSIS & INTERPRETATION
AGE GROUP
AGE GROUP
A, 47%
B, 25%
C, 19%D, 9% A
B
C
D
IMPLICATION: If we closely look at the pie-chart, we can say that the
people between the age group of 25 to 55 are the main customer of the
bank, which contributes almost 75% of the bank’s customers. But the old
age and the young people have been less attractive on this leading product
of ICICI Bank, which is a matter of concern. So more focus should be
given to them as they have the huge potential.
51
OCCUPATION
OCCUPATION
SERVICE51%BUSINES
S32%
STUDENT7%
OTHERS10%
SERVICE
BUSINESS
STUDENT
OTHERS
IMPLICATIONS: This pie chart clearly shows that service holder and the
business people are the main customer of the bank. Reason for this could
be as per interviewed was working hour and anywhere banking which suits
them. 8 to 8 banking give them the freedom to do banking work after the
office. Student’s contribution is less as student account is not available in
Patna and 5000 as minimum balance is not possible for them. Other
section should be increased by creating awareness about the banking
products.
52
ANNUAL INCOME
LESS THAN 1
LAKH, 8%
1-2 LAKH, 22%
3-4 LAKH, 37%
MORE THAN 4 LAKHS,
33%
LESS THAN 1LAKH
1-2 LAKH
3-4 LAKH
MORE THAN 4LAKHS
ANNUAL INCOME
IMPLICATIONS: Higher income or we can say that more than 34 LAKHS
earning people are contributing 70% of the transactions. But it is advisable
to penetrate more in the lower income group not only in terms of accounts
but also in other banking products because they contribute a major part of
the society. Target should be on that every section of the society should
open saving account or other account in ICICI Bank.
53
WHAT FEATURES ATTRIBUTES DO YOU EXPECT FROM A
BANK WHILE OPENING AN ACCOUNT
FEATURES / ATTRIBUTES
QUICK SERVICE ,
44%
PROPER INFO, 14%
WORKING HOUR, 28%
LESS FORMALITIE
S, 8%
VARIETY OF PRODUCTS,
6% QUICK SERVICE
PROPER INFO
WORKING HOUR
LESSFORMALITIES
VARIETY OFPRODUCTS
IMPLICATIONS: When a customer visits a bank the first and foremost
thing he looks, that how quickly he is served, how his problem is
entertained by the bank employee and what is the working hour of the
bank. That’s why these three things contribute the maximum of this pie –
chart. Less formalities and variety of products although contributes less but
it has a major impact on the customer. So bank should follow on these
things also. Service sector like banking, preference should be given to
make.
54
WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU
MOST TO OPEN SAVING ACCOUNT IN ICICI BANK
SAVINGS A/C ATTRIBUTES
ATM CUM DEBIT
CARD, 26%
VALUE ADDED S. A/C, 48%
CHEQUE BOOK, 16%
PHONE / INTERNET BANKING,
10%
ATM CUM DEBITCARD
VALUE ADDED S.A/C
CHEQUE BOOK
PHONE /INTERNETBANKING
IMPLICATIONS: As we found in our finding that majority of the people
like the saving account, this chart reveals that what are the factor and their
contribution making their product really leading product of ICICI Bank.
VALUE ADDED SAVING ACCOUNT is undoable a unique sub product
of ICICI Bank. Since it has the appeal catch maximum customer as it
provides the facility of FIXED deposit in saving account ATM cum debit
card is also a major attributes as it made the banking easy. Personalized
chequebook is also a major attraction in this section. As far as other factors
are concern they are showing less appearance in this chart.
55
ACCOUNT TYPE
SAVING54%CURRENT
18%
FIXED15%
NRI8%
OTHER5%
SAVING
CURRENT
FIXED
NRI
OTHER
WHAT TYPE OF ACCOUNT DO YOU HAVE IN ICICI BANK?
IMPLICATIONS: Saving account is the leading and attractive product for
the ICICI Bank as it has occupied a major chunk in this chart. This number
and percentage clearly shows that this product has all the quality to give
the customer best services and ability to satisfy them. On the second and
third position current and fixed deposit has also been helpful to increase
the customer base but still their performance needs to be improved. As far
as NRI and other accounts are concerned they have less appearance. So
majority of the business is moving around few leading products. Reason
could be either people are not aware about the various products of the bank
or bank has limited range of products. So bank must ascertain that where
things are going wrong and for that what sort of necessary step could be
taken.
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WHICH FACTOR AMONG THE FOLLOWING INFLUENCED
YOU MOST TO OPEN AN ACCOUNT IN ICICI BANK?
INFLUENCED FACTOR
FRIENDS / RELATIVE
44%
ADVERTISE MENT 33%
BANK EMPLOYEE
12%
PROSPECT US
11% FRIENDS / RELATIVE
ADVERTISEMENT
BANK EMPLOYEE
PROSPECTUS
IMPLICATIONS: It has been said a satisfied customer is the best medium
for an advertisement since in this chart friend / relative have played a key
role in opening the accounts of others. Which implies that bank’s real
customers are satisfied enough with facilities available on the products and
services enjoyed by them. On the other hand advertisement also plays a
vital role in influencing the customer. As their behavior not only please the
customer but also attract the customer. Well maintained prospectus is also
a major attributes of attracting the customer. Main focus of the bank
should be no satisfaction of customer.
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YOUR REMARKS ON SAVING ACCOUNT?
REMARKS
EXCELLEN T
34%
GOOD 45%
AVERAGE 18%
POOR 3%
EXCELLENT
GOOD
AVERAGE
POOR
IMPLICATIONS: As this chart is showing at what level people are
satisfied with saving account. With its unique facility, features and ability
to serve all the needs of customers because by and large it can be said 79%
people of this chart are saying good and excellent saving account. Reason
for this could be different type of facility associated with this product,
either are rendering true value to the customer. Effort may be given to
know why there are people who are still saying average and poor along
saving account and what are the factor that are going wrong with the
people.
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IN COMPARISION TO OTHER BANKS HOW WOULD YOU
RATE ICICI BANK?
COMPARISON
EXCELLENT
27%
GOOD47%
AVERAGE14%
POOR5%
CAN'T SAY7%
EXCELLENT
GOOD
AVERAGE
POOR
CAN'T SAY
IMPLICATIONS: Comparison with other banks depends on its overall
performance in the eyes of the people. In this chart it is clearly showing
that 74% of the people are satisfied with ICICI Bank. In a short span of
time of its existence in this city with strong competition from major public
sector bank like SBI and other private players bank has done well it has
occupied a different position in the people’s mind.
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WAS THE BRANCH STAFF POLITE AND COURTEOUS?
BEHAVIOR OF STAFF
YES94%
NO6%
YES
NO
IMPLICATIONS: As this chart is showing 91% yes that shows that
maximum customers are satisfied with the bank. But this is 100% because
only a satisfied customer can gather more and more customer. So bank
should focus and find out the reasons of the 9%.
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HOW LONG DID YOU WAIT IN QUEUE?
WAITING IN THE QUEUE
0-5 MIN59%
5-10 MIN32%
MORE THAN 10
9%0-5 MIN
5-10 MIN
MORE THAN 10
IMPLICATIONS: Above chart is showing 59% of the people wait 0-5
minutes in the queue and 32% 5-10 minutes in the queue. Between 0-5
minutes should be 100% and bank should strictly follow the queue
management.
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DO YOU THINK THE NUMBER OF COUNTERS AVAILABLE
ARE SUFFICIENT?
NO. OF COUNTERS
YES90%
NO10%
YES
NO
IMPLICATIONS: As far as satisfaction is concern 90% of the customers
are satisfied with the bank’s customer. That’s sounds good, but bank
should focus on the 10% people are not satisfied. What are the reasons for
that should be found and problems should be sorted out.
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WOULD YOU RECOMMEND ICICI BANK TO OTHERS?
RECOMMANDATION
YES95%
NO5%
YES
NO
IMPLICATIONS: As per the chart we show that 5% of the people don’t
want to recommend ICICI Bank to others. Bank must find the reason of
their dissatisfaction because in this competitive world we have to achieve
this target.
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FINDINGS & CONCLUSIONS
The liberalize policy of government of India permitted entry to private
sector in the banking, the industry has witnessed the entry of new
generation private banks. The major differentiating parameter that
distinguishes these banks from all the other banks in the Indian banking is
the level of service that is offered to customer. Verify the focus has always
been centered around the customer understanding his needs, preempting
him and consequently delighting him with various configuration of
benefits and a wide portfolio of products and services.
Banks are increasingly finding that the most viable way of differentiating
themselves will be to successfully manage customer relationship and
enhance the overall customer experience. Marketing and brand building
programs were also given a new thrust in the new liberalized banking
scenario. Promotional budgets were hiked to cater to new and large
discerning target audience. Banks were now keen on marketing their
products and service though various medium to reach their core customers.
Having worked in ICICI bank (Patna), as a summer trainee to know market
Potential of saving account and comparatively analyzing it with it’s
competitors, I am of the opinion that in such a stiff competition where the
banking business is becoming more and more complex with the change
emanating from the liberalization and globalization at same time
aggressive marketing strategies for generating business opportunities from
competitors,. ICICI bank has made a unique position in the retail banking.
With the help of kaizen techniques (continuous improvement) it gives a
better product and service to customer. The popularity of this bank can be
gauged by the fact that in a short span of time, This bank has gained
considerable customer confidence and consequently, has shown impressive
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growth rates set of customer friendly products, which are prompt flexible
and have the ability to satisfy customer need, has been launched by the
ICICI Bank with it’s quick and efficient banking system. This bank has
always tried to give the feeling of belonginess to it’s customers by
providing them homely environment at the well-equipped branch with all
modern facilities, where well-informed bank employees are always prompt
to give their best services. With efficiency being the major focus, this bank
has leveraged on it’s strength and competencies viz. management,
operational efficiency and flexibility, superior products positioning and
higher employee productivity skills. For this ICICI Bank has always tried
and is trying, in bringing most advanced technology – based networking
system, “Siebel” is one of the best example and implementing many type
of quality improvement tools in operation too, like Five ‘S’. Five ‘S’ has
been indeed a significant learning for me at ICICI Bank since fortunately I
was a part of this teamwork process in which each and every employee
participated. It is the quality improvement process that increases efficiency
of the system those ultimate benefits goes to the customers. As customer
service has always been and will always be deciding factor for the success
in the retail banking.
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SUGGESTIONS & RECOMMENDATIONS
Since the customer and his needs remain in focus in banking, it would be
appropriate to have a view of the customers banking needs which include
financial security, convenience, quick service, personalized service,
investment counseling, return of investment, support by way of credit
prestige, wide range of service, etc. and to be the best on these aspects
ICICI Bank has and is trying it’s best, and has been successful too, but still
there is some scope for improvement, which I observed during my training
in this bank.
CUSTOMIZED SERVICE
Nowadays, customers are more service driven than product – driven and
are not homogeneous in their behavioral pattern, attitude, needs and
expectations. Therefore, a through understanding of the customer is a pre
requisite to offer him satisfaction through providing services. ICICI Bank
should also focus on to have the provision to make some changes in it’s
core products on the basis of region, purchasing power of the people etc.
because customers want that their special case must be considered, for that
branches need to be empowered. In other word it can be said bank should
alter it’s existing service to satisfy the customer needs, as and when it is
needed in special cases. Bank should begin a clear understanding of the
entire customer base in particular, of those customers are the most
profitable.
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SINCERE PRICING OF THE CORE PRODUCT
Pricing is in fact a very critical and sensitive issue while launching any
product or inducing more features in existing product in such a highly
competitive market of banking before the management of any bank.
Because, price driven competition is one of the significant emerging trend
in bank marketing. ICICI Bank should also be very careful while
reconsidering the price of any core and leading product by closing
understanding the behavior up to what extent customers are in the position
to tolerate it, since customer’s price sensitivity is not same across product
categories. Price of any product is kept same across the country but for the
some places is always not correct, like Patna where delta increase in the
price of any product matters for the customers. As it has been seen in the
case of increase in charges of QAB of savings account that resulted in
many closures of the account. The reaction of this increment in the charges
from the customer was aggressive. So bank must price any product by
keeping the view of region factor too-where people needs, attitude and
purchasing power must be closely understood by the management of the
bank. For this, branches also needs to be empowered to the some extent-
where they can make necessary changes in the price of some selected core
products, as they have better understanding of the behaviour of their
customers than the policy makers of the bank. There should be effective
publicity of new products of new products and relaunching of existing one
too. Monitoring and customer feedback of all the new and old products
should be one regular basis.
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CUSTOMER AWARENESS
Bank should provide effective publicity of new product launched and
educate the customer to go in for these products by highlighting the
advantages of the products. Because if bank’s aim is to provide service
matching the best in the banking industry so that it can get the most
effective publicity, especially through word of mouth for this at the same it
is inevitable to educate the customer about bank’s product and facilities
available on it. As the products and services of the ICICI Bank are almost
technology oriented where most advanced softwares are used and most of
the banking work are executed on computer through Internet. In such
situation where more technicalities is involved in both products and
services there is a need to educate the customers so that they can easily use
and avail all the facilities available on all the product. During my training,
I observed that many customers, not to ask about Internet banking, Phone
Banking even don’t know how to use ATM, which is really a area of
concern. Customers do not know the complete rules and regulations and
procedures of banks and bankers preserve them for themselves and do not
take interest in educating the customers because if you are giving a product
in the hands of the customers keeping the view to serve them better, it is
equally important to aware not only about the facilities that are available
on any product but also how to use them. Until and unless this thing is
practicised as a campaign, it would be difficult to retain existing customers
as it is said retaining the existing customers is less expensive than creating
new one. For this bank need to educate the customer from the grass root of
banking.
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BIBLIOGRAPHY
www.icicibank.com
June & July issue of IBA Bulletin
Brochures of ICICI BANK LTD.
www.iciciuniverse.com
Business Magazines
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ANNEXURE
QUESTIONNAIRE
Dear Sir / Madam, I am management student conducting a survey on
ICICI Bank Ltd, I shall be very thankful, if you give your few minutes to
me for answering few questions given below. Every information given by
you will be only for academic purpose.
Name Address
Sex
Occupation
Q1). Please specify your annual income?
(a) Less than 1 Lakhs
(b) 1 to 2 Lakhs
(c) 2 to 3 Lakhs
(d) 3 to 4 Lakhs
(e) More than 4 Lakhs
Q2). What feature / attributes, while opening an account do you expect
from a bank?
(a) Quick Service
(b) Varity of Product
(c) Less formalities of Documents
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(d) Working Hours
(e) Proper Information
Q3). In which of following banks do you have account?
(a) ICICI Bank
(b) IDBI Bank
(c) HDFC Bank
(d) UTI Bank
Q4). If yes, which features compelled you most to open an account in
ICICI Bank?
(a) Quick Services
(b) Variety of Products
(c) Less Formalities of Document
(d) Working Hour
(e) Proper Information
Q5). Who influenced to open an account in ICICI Bank?
(a) Bank Employees
(b) Prospectus
(c) Advertisement
(d) Friend
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Q6). What kind of account do you have in ICICI Bank?
(a) Saving Account
(b) Current Account
(c) Fixed Deposit
(d) N.R.I. Services
Q7). Would you recommend anyone to open an account in ICICI Bank?
(a) Yes
(b) No
Q8). Your remark on Saving Account?
(a) Excellent
(b) Good
(c) Average
(d) Poor
Q9). Which of the following attributes compelled you most while opening
a Saving Account?
(a) ATM Cum Debit Card
(b) Cheque Book Facility
(c) The Internet Banking
(d) Value Added Saving Account
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(e) Phone banking
Q10). Was the branch staff and courteous?
(a) Yes
(b) No
Q11). How long did you wait in queue?
(a) 0 to 5 Minutes
(b) 5 to 10 Minutes
(c) More than 10 minutes
Q12). Do you think the numbers of counter available are sufficient?
(a) Yes
(b) No
Q13). Are you satisfied with the response given by the staff for your
request?
(a) Yes
(b) No
(c)
Q14). Would you recommend ICICI Bank to other?
(a) Yes
(b) No
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