Customer Retention Tools Used By Public And Private Banks Marketing Essay

Customer Retention Tools Used By Public And Private Banks Marketing Essay Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A companys ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. Customer retention is more than giving the customer what they expect; its about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts customer value rather than maximizing profits and shareholder value at the centre of business strategy. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service. Private and Public Banks Banks have been broadly divided into private and public. A private bank is that in which there are but few partners, and these attend personally to its management. 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 management. he business of banking consists chiefly in receiving deposits of money, 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 portion of its total receipts including discount, interest, dividends, and commission which exceeds the amount of the expenses. List of Private Banks in India Bank of Punjab Bank of Rajasthan ICICI HDFC Centurion bank IndusInd bank Federal bank UTI bank Jammu Kashmir bank South India bank Karnataka bank List of Public Banks in India Allahabad bank State bank of India Punjab National bank Punjab Sind bank Bank of Maharashtra Bank of India Canara bank UCO bank Central bank of India IDBI CUSTOMER RETENTION TOOLS USED BY PRIVATE BANKS Social media major customer retention tool in private banks: To retain more and more customers private 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. Bank world relationship -personal banker To retain the customers private banks started bank word relationship in this they will do: they will assign special persons to a group of clients in which clients can mail to these persons for personal help and financial advice. Keep customers informed In this to retain their customers they 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. Contest for customers For existing customers to retain them they have started to reward customer loyalty 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 website Offers related or complementary products Banks are providing complementary products or services to their customers because this helps them in retaining their customers. Anniversary offer In this banks are providing special anniversary offers one year exactly after the customer first came to banks. Employee motivation Employee 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. Managing customer complaints Customer complaints are identified by a number of ways in private banks: such 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 taking quick actions. This helps in the retention of customers. Relationship Managers (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 main 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 manner within the clients time frame. The relationship managers for corporate banking are very much important because during the relationship the bank attempts to solve the problems of client organization and satisfy its needs through a series of transactions. It helps in the customer retention. INTERNET BANKING Private Banks have their own website. Internet Banking has already been started. Following are the common features of Internet Banking: View account balances and transaction history Verify deposits Check loan balances Check loan payment information View interest information Various information regarding their products In this customers can get every information through internet. It is an important tool to retain customers. SPATIAL CONVENIENCE Spatial convenience is provided by branch location and technology driven delivery services such as ATM. To create spatial convenience branches and ATM booths should be established near the target customers.. ATM is used to provide convenience by placing them in locations like shopping mall, in some central place of areas. SEGEMENTATION To retain the customers in banks they started segmentation. The factors that banks emphasize to identify the needs and requirements are as follows: For corporate customer: Financial Strength and credit worthiness Market Positioning Reputation Integrity Industries Listed Companies For personal banking: Occupation Income and Propensity to save Attitude towards banking Market demand Geographic concentration BUILDING MANAGING CUSTOMER RELATIONSHIP Relationship 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 rewards It 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 enable 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 printing and mailing) and gives bankers the time and resources they need to focus on building relationships with key customers. Technology Telephone banking is another option for customer retention as this service is for convenience of customer. And for this purpose following technology is used: Interactive voice response (IVR) IVR systems are used very commonly by various 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 name a few. IVR systems are also used at call centres to help identify customers needs and prepare the live customer service representative 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 software application that allows telephone caller to select options from various menus. IVR systems are available 24 hours a day, seven days a week, so callers can access them anywhere, anytime. Callers may enter requested information into telephone keypad or by simply speaking 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 PUBLIC BANKS Relationship based pricing Existing customers feel that they are being 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 earned from the customer across all the LOBs and work out mutually profitable pricing. RBP helps banks to treat each 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 motivation Employee 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 informed Same 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 management Customers expect banks to be flexible and willing to change while offering 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 against purchases etc are the ones which will be liked. Proper segmentation of customers is required so that the right product/reward is targeted. Loyalty programs 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 increased 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, improving employee morale along with the relevant Enterprise wide technology platform to monitor all these will ensure in improving customer relationships with the active participation 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. Ultimately, best strategies in customer loyalty management reflect in higher customer satisfaction indices and improved bottom line f or the Bank. Education for the customer on products and services offerings:Â   Customers 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 similar applications which can deliver personal interaction remotely. Customer Empowerment with necessary information and tools to encourage independent decision making:Â   Customer 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 ATMs Public banks have just introduced humble ATMs to retain its customers. In these ATMs if a person can interact with bank staff if the nearest branches are closed. Social Media To 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. CONCLUSION There is a great competition between public and private banks. Customer retention is their major motive. To retain their customers banks adopted many 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.

Fate or Free will Romeo and Juliet Essay

Fate: Is it just an excuse? Excuses are something people use to clear themselves or others of the blame of their own foolish actions. In Shakespeare’s Romeo and Juliet, it is not fate, but impulsive and desperate actions that bring about the downfall of Romeo and Juliet. In the Victorian era, fate was known as the development of events out of human control, and determined by a supernatural power. By no means was the demise of Romeo and Juliet out their control. It happened because of the choices they themselves to make. Romeo always blames his own reckless actions on fate. Romeo is warned not to go to the masquerade party but tells fate to â€Å"steerage of [his] course† and â€Å"direct [his] sail† and goes anyway. Romeo knows himself that he will die if he goes but still chooses to go. Romeo decides that whatever happens is up to fate and it’s completely out of his control. Also, after killing Tybalt, he calls himself â€Å"Fortune’s fool† and realizes he will be punished severely (Rom 3.1.142). Romeo is basically says he is a subject to the whims of fate. He thinks fate is playing around with him and not taking responsibility for what he himself did. However when he hears of Juliet’s â€Å"death† Romeo tries to â€Å"defy the stars† and kills himself (5.1.25). Romeo is taking responsibility for his actions by trying to defy his â€Å"fate† and finally taking thing into his own hands. This doesn’t work, since he didn’t bo ther to check if Juliet was still alive and just kills himself in his attempt to be together with her, even if it’s in death. Romeo uses fate to justify his actions and say that a power outside of his control fueled his action, but instead everything was just his impulsive choices. Juliet makes reckless and impulsive actions knowing very well what the consequences could be, and then blames it on her unavoidable fate. When Juliet first sees Romeo at the party, Juliet tells the nurse to â€Å"go ask [for his] name. If he be married† and says that her grave is â€Å"like to be [her] wedding bed†, foreshadowing her own death (1.5.148). Juliet wants to know if Romeo is married, and she is just a thirteen year old girl who saw Romeo the first time in her life. Juliet is the one that eventually proposes to Romeo, and she does this knowing to be married means her own death. When Romeo  visits Juliet on her balcony that night, she says she has â€Å"no joy of this contract tonight, it is too rash, too unadvised, [and] too sudden’ about Romeo swearing his love to her. Even before they are married, Juliet already knows their actions are impulsive. Combined with the fact that she even foreshadows her own death, she still rashly decides to marry Rome o. This wedding was by her own choice and not like the one where her parents force her to marry Paris. In addition, after Romeo leaves Juliet after their only night together, Juliet pleads to fate to â€Å"be fickle†, and to â€Å"not keep him long, but to send him back† to her (3.5.63). She also hopes that since Romeo is â€Å"renown’d for faith† unlike fate (which is fickle) fortune should be kind to him. She is excusing his killing of her cousin Tybalt with the fact that fate is unreliable and unpredictable. It wasn’t fate being unpredictable, it was Romeo losing his cool and acting rashly. Juliet shows that she knows the consequences of her actions, but goes forth with them anyways. Friar Lawrence’s reckless actions brought together the deaths, and he blames them on fate. When Friar John tells him that the letter couldn’t be sent, Frair Lawrence decides to blame it on â€Å"unhappy fortune† and not himself (5.2.17). He is a grown man, but decides to let Friar John travel alone to deliver the message. Instead of sending the message himself, he gives the crutial task to people that aren’t even involved. Knowing this, he blames his own blatant fault on fate being unhappy. Also, when Friar Lawrence walks in to see both Paris and Romeo dead, he says it is â€Å"lamentable chance† that they are dead (5.3.151). Again, fate is blamed for something easily avoided. He is saying that it was out of his control that the two died, but Frair Lawrence was the one who married them and masterminded the plan in the first place. Not only that, when Juliet awakens the Friar tells her â€Å"a power greater than [they] can contradict has thwarted [t heir] intents† and as a result, Romeo is now dead (5.3.158). When he talks about a power that could not be resisted he is talking about fate and how fate ruined the plan to reunite Romeo and Juliet. He was the one that botched the sending of the message to Romeo. The Friar just doesn’t take any responsibility at all for his actions and opts instead to blame uncontrollable forces. Throughout Shakespeare’s Romeo and Juliet, the characters’ own impetuous and  brash choices, not fate, bring about the deaths. Characters repeatedly used fate as an excuse by saying the series of events were completely out of their control. In contrast, everything could have been avoided if the characters just decided to think rationally. By having them blame fate, Shakespeare is asserting that people need to take responsibility for their own actions. They should realize it is their own choices that affect the future, not fate. People’s destinies can be changed, and it is not predetermined by an all-powerful force.

Examine The Advantages Of Unstructured Interviews In Sociological Research

In this essay I will be examining the advantages of unstructured interviews; unstructured interviews gain qualitative data, which is data which cannot be analysed for patterns or trends. One advantage of unstructured interviews is it produces valid data; valid data is data that is true to life, opinionated and cannot be analysed. This is an advantage because qualitative data is received, anti-positivists prefer qualitative data as it gives motives behind actions. However, valid data is not reliable as if you repeat the interview; you will not get the same results as human behaviour is unpredictable.Another advantage of unstructured interviews is it gives the researcher access to sensitive topics, for example domestic abuse. It’s an advantage because anti-positivists get access to emotions the participant is feeling and can build a rapport with them and they will therefore be more open. An example of this is Dobash and Dobash’s study, in which they interviewed a woman ab out her experience with domestic violence. However, the participant talking about their sensitive information can cause emotional distress to either the participant or the researcher especially in the case of domestic violence.A third advantage is the fact that unstructured interviews the participant can be interviewed with their friends or family, which is known as a group interaction. This is an advantage because the participant will be more relaxed and at ease when answering the researchers questions. However, group interactions can lead to demand characteristics in which the participant behaves unnaturally and may even lie during the interview, therefore reducing the validity of the interview.A final advantage is that unstructured interviews can be flexible, in which the researcher has no set questions and as the interview progresses more questions are answered. This is an advantage because the interview will be unique and provides new data which hasn’t been reshaped by a hypothesis. However, it’s unreliable as you can’t repeat the whole interview word for word when there are no set questions. To conclude, four advantages of unstructured interviews are they’re flexible, the participant can be interviewed with friends or family members, it allows access to sensitive topics and it produces valid data.

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