The Relationship between CRM Dimensions and Customer Retention in Indian Banking Industry: an Empirical Study of Public and Private Sector Bank

In today's Dynamic world where everything is bound to change faster than ever with the influence of I.T and technology based innovations, nothing can stay for long without coping up with external environments. Every Organization is trying to develop and apply innovative strategies for ensuring success in world market. In fact, innovative strategies are essential in the financial services context because of relatively undifferentiated intangible and difficult to evaluate offerings. Today customer relationship management used as tools for improving innovation capabilities and obtaining sustained competitive advantages for ensuring service quality and customer retention in the bank industry and it will be effective and efficient for organizations performance.

The proposed study investigates the relationship between CRM dimensions and customer retention. The part of this study compares the service quality perception of customers and CRM implementation in public and private sector banks of India. Analysis of data indicates that Organization culture as internal dimension of CRM of firm is much more important than other dimensions in customer retention and has positive relationship with each other. Whereas Information sharing and technology based CRM as external dimensions of CRM are highly related with customer retention. A part of this study also indicates that private sector banks are comparatively more aggressive than public sector banks in the implementation of Long-term Partnership, Joint problem-solving and Technology-based CRM where as for rest of dimensions like Information Sharing and Customer Involvement both type of banks are indifferent. This study also indicate that empathy as a service quality parameter is gray area of public sector bank, whereas in rest of other parameters like Reliability Responsiveness Assurance and Tangibility, there is no difference between public and private sector banks.