An empirical study on CRM as a tool to assess customer satisfaction for banks - A comparison of Public sector bank with a Private sector bank

CRM has emerged as a strategic tool to develop, maintain and enhance relationship with customers by using existing information of customers with the banks. This research work is a comparative study of a Public sector bank and a Private sector bank which adopted CRM tool to achieve competitive advantage over its competitors. The study evaluates the satisfaction level of customers on 8 dimensions of CRM. The study was carried out with a sample of 250 respondents in Chennai, Tamil Nadu, India. The survey was conducted using a validated closed ended questionnaire. The findings confirms a relatively higher level of satisfaction in the Private sector bank, attributed mainly to channel management aspects including bank facilities, ATM facilities, on-line banking services and telephonic banking. The customers of the Public sector bank were more satisfied with the front end services including services provided by Customer Service Representative /teller and Supervisors/Managers.