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SERVICES MARKETING
PART 1: A study on Banking services in India PART 2: A study of Services Marketing at Citibank

BANKING INDUSTRY: CITIBANK

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Contents
PART 1: A STUDY ON BANKING SERVICES IN INDIA ................................................................................ 3 Introduction ............................................................................................................................................ 3 Banking Structure in India ....................................................................................................................... 4 The APEX Bank: RBI ................................................................................................................................. 7 What Indian Consumers want from Banks? ........................................................................................... 8 Customer Service Drives Customer Loyalty in Banking ........................................................................ 10 Competitive Strategies in Banking ........................................................................................................ 11 SWOT Banking Industry ........................................................................................................................ 12 PART 2: A STUDY OF SERVICES MARKETING AT CITIBANK .................................................................... 13 Citibank Profile ...................................................................................................................................... 13 STP......................................................................................................................................................... 13 Gaps Model ........................................................................................................................................... 14 Market Offerings ................................................................................................................................... 15 Marketing Mix ....................................................................................................................................... 16 Customer Expectation........................................................................................................................... 17 Buying Behaviour .................................................................................................................................. 18 Service Design & Blueprint.................................................................................................................... 19 Demand & Capacity Management ........................................................................................................ 20 Customer Perception ............................................................................................................................ 21 Customer Satisfaction ........................................................................................................................... 21 Customer Relationship Management ................................................................................................... 22 Comparative Analysis of Marketing Strategy of ICICI Bank and Citibank. ............................................ 23 SWOT Citibank ...................................................................................................................................... 23 Survey On Banking Services .................................................................................................................. 24 References ............................................................................................................................................ 28

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PART 1: A STUDY ON BANKING SERVICES IN INDIA
Introduction
The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and have since then seen tremendous progress. The need to become highly customer focused has forced the slowmoving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions.

4

Banking Structure in India
The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country.

Scheduled Banks

Scheduled Cooperative Banks

Scheduled Commercial Banks

Foreign Banks

Public Sector Banks

Regional Rural Banks

Private Sector Banks

Nationalised Banks

SBI & Associates

New Private Sector Banks

Old Private Sector Banks

5 Broad classifications of the Indian Banking Structure 1) The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the “Reserve Bank”. 2) Public Sector Banks:    State Bank of India and its Associates Nationalized Banks Regional Rural Banks Sponsored by Public Sector Banks

(3) Private Sector Banks:    Old Generation Private Banks Foreign New Generation Private Banks New Generation Banks in India

(4) Co-operative Sector Banks:      State Co-operative Banks Central Co-operative Banks Primary Agricultural Credit Societies Land Development Banks State Land Development Banks

(5) Development Banks: Development Banks mostly provide long term finance for setting up industries. They also provide short-term finance (for export and import activities)  Industrial Finance Co-operation of India (IFCI)  Industrial Development of India (IDBI)  Industrial Investment Bank of India (IIBI)  Small Industries Development Bank of India (SIDBI)  National Bank for Agriculture and Rural Development (NABARD)  Export-Import Bank of India

6

List of Banks in India
Public Sector Banks(20) State Bank Group (6) Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank IDBI Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of India *State bank of Saurashtra & State Bank of Indore merged with SBI Private Sector banks (23) Axis Bank Catholic Syrian Bank City Union Bank Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Saraswat Bank YES Bank Karnataka Bank Tamilnad Mercantile Bank South Indian Bank Ratnakar Bank Nainital Bank Ltd. SBI Commercial & International Bank Bank of Rajasthan Development Credit Bank

7

The APEX Bank: RBI
RBI is the banker to banks—whether commercial, cooperative, or rural. The relationship is established once the name of a bank is included in the Second Schedule to the Reserve Bank of India Act, 1934.Such bank, called a scheduled bank, is entitled to facilities of refinance from RBI. Main Functions Monetary Authority: Formulates, implements and monitors the monetary policy.  Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors. Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country's banking and financial system functions.  Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. Manager of Foreign Exchange Manages the Foreign Exchange Management Act, 1999.  Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Issuer of currency:
    

Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role


Performs a wide range of promotional functions to support national objectives.

Related Functions
 

Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks.

8

What Indian Consumers want from Banks?
Retail-banking customers in India, like their counterparts throughout Asia, are very loyal to their domestic banks and quite hesitant to incur debt. McKinsey’s recent survey on the attitudes of Indian customers toward personal financial services reinforces these assessments. All respondents in the survey expressed a loyalty to domestic banks. Younger and relatively affluent Indian consumers—the fastest-growing and most profitable customer segments—were much more likely to view the entry of foreign banks as advantageous (Exhibit 1), however, perhaps believing that increased competition will bring benefits, such as the chance to try new products and services. Exhibit 1 Entry of foreign banks will benefit me
%age of indian consumers who strongly agree {n=308}

By Age
55+ 40-55 30s 20s 0 20 40 60 55 54 56 68 80

By Income Level

Affluent High Less Affluent Lower Middle Upper Middle 45 50 55 60 53 62 65 59

High income =>$10,000 annually, Upper Middle =$2,300 - $10,000, Lower Middle Income =$1,150 - $2,299. Source: McKinsey personal finance services survey of 308 households

The sentiments of respondents about credit reflect a similar dichotomy. While 65 percent agreed that "borrowing is dangerous and can lead to loss of face," a closer examination of the results shows, for instance, that younger and middle-income households are much more likely than other consumers to apply for a mortgage (Exhibit 2). Overall, mortgage penetration rates remain very low, with only about 6 percent of respondents (primarily 30- to 39-year-olds) holding a mortgage, compared with 15 percent in the overall sample. Credit card penetration is also low, at 18 percent (compared with 45 percent in Asia as a whole), and wealthier and older customers are more likely to make purchases with plastic. Exhibit 2 Considering Credit
Likelihood of applying for a mortgage loan %age of indian consumers who strongly agree {n=308}

9

By Age
55+ 40-55 30s 20s 0 5 10 15 9 10 14 18 20

By Income
Affluent High Less Affluent Lower Middle Upper Middle 0 5 10 15 16 16 20 9

High income =>$10,000 annually, Upper Middle =$2,300 - $10,000, Lower Middle Income =$1,150 - $2,299. Source: McKinsey personal finance services survey of 308 households

Wealth-management services also represent a chink in India's loyalty armor. Only 10 percent of Indian respondents have used a financial adviser—still a relatively large share compared with the percentage in other Asian countries. Yet more than half the sample, in all age and income categories, said that they would like more assistance with managing their investments. A significant portion of these customers indicate that they would be willing to pay for such advice (Exhibit 3). Very few banks currently offer it, however, thus leaving the market to tax advisers and accountants. Exhibit 3 Looking for assistance
I would like more advice & assistance in managing my investments I am willing to pay for financial advice %age of Indian respondents who strongly agreed {n=308}

By Age
55+ 40-55 30s 20s 0 20 40 26 35

By Income Level

55 54 47 56 46 60 68 80

Affluent High Less Affluent Lower Middle Upper Middle 0 20 40 32 40 60 53 62 80 47 59

High income =>$10,000 annually, Upper Middle =$2,300 - $10,000, Lower Middle Income =$1,150 - $2,299. Source: McKinsey personal finance services survey of 308 households

10

Customer Service Drives Customer Loyalty in Banking

While location is sighted most often by customers as a reason for staying with a retail bank, the importance of this factor is decreasing as banks continue to build more branches & ATMs. Customer service holds the key to deeper long –term relationships. As per the survey by Deloitte, Customer Service is the major reason for customer loyalty.

11

Competitive Strategies in Banking
Number of Markets Served Many Breadth of Service (Narrow) Service Focused Offerings (Wide) Unfocused

ICICI Bank
(serves many customers; hedges risk; expertise and sales effort in serving each segment)

SBI
(everything for everyone)

Few

Fully Focused

Market Focused

Citibank
(service and market focused) (Niche; Protection; premium price; higher risks; vulnerability; lower volumes)

HDFC
(understand market preferences well; must have operational capability to deliver)

12

SWOT Banking Industry

Strengths •- Extensive Reach : Branches & ATMs •- Opportunity for Foreign Banks to own up to 74% of Indian private sector banks and 20% of government owned banks. •- Indian banks have compared favourably on growth, asset quality and profitability with other emerging economies banks over the last few years. •- In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets

Weaknesses •- PSUs to strengthen institutional skill levels especially in sales & marketing, service operations •- Cost of intermediation is high & bank penetration is limited to only a few customer segments & geographies •- Structural weaknesses - fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance •- Govt. has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raising equity capital.

Opportunities •- opportunities in credit cards, consumer finance and wealth management •- Demographic shift & inc. income levels will lead to more demand for banking services •- RBI has approved proposal from govt. to permit trade in commodities & commod. Derivatives •- In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital. It would help PSU banks, left with little headroom for raising equity.

Threats •- Rise in Inflation rate could push up interest rates - Increase in the number of foreign players would pose a threat to the PSB as well as the private players. - Threat of stability of the system: failure of some weak banks has often threatened the stability of the system.

13

PART 2: A STUDY OF SERVICES MARKETING AT CITIBANK
Citibank Profile

Customers

•Upper Class Segment; Business Firms. In Asia Pacific Upper Middle Class •Upscale Service •Premium Product Positioning •Regiocentric Approach •Local Employees recruited

Quality

Employees

Brand

•Premium Products with Status

Growth Strategy

•To be the most profitable provider of financial services to high income households in this region

STP
Segmentation Citibank has segmented its market both geographically & demographically. Geographically, Citibank has made it’s branches, keeping in view: World Region City Country Region Density

The main segmentation is based on the income level & class of people. Corporate clients & people relating to the high class of society are it customers. On the other hand, the lower class customers have limited sense of choice and are very much concerned on the risk inherent in the product. Psychographic segmentation has been done on the basis of Lifestyle. The people who believe in modern banking with higher set of services i.e internet banking, credit cards etc, are in this segment. Targeting Corporate Banking: This market targets the industries, mainly medium and large scale enterprises, to cater to their financial requirements. Capital Market: Citibank meets the long term financial needs of businesses and individuals.

14 Retail Banking: Citibank has chosen the upper income group of people as it’s customers. They provide short term credit to their customers for their financial needs.

Positioning Citibank has positioned itself as the banker of elites; those who belong to the higher classes and are very well educated & have a high level of awareness about the market.

Gaps Model

Gap number three is one we found during our interviews with people regarding the services of Citibank. While interviewing people about Citibank one pint which came forth was that though the name is Citibank people do not see enough of Citibank in the City When Investigated we found:There are 5 Citibank Branches in Delhi and ICICI Bank has more than fifty branches in Delhi which is one of the gap in the service as the customers wants banks to be located as close as possible because certain services like making a bank draft can be done only at the branch and not online.

15

Market Offerings
Products & Services  Banking
Citibank Suvidha Premium Savings Account Corporate Salary Account Citigold Citibank Savings Account for Expatriates Commercial Bank Other Banking Services Citibank Suvidha Cash Back Shopping Travel Fuel Lifestyle Prepaid Others Personal Travel



Credit Cards
-



Prepaid Cards
-



- Corporate Travel Investments
Demat Mutual Funds Deposits Life Insurance Health & Accident Travel Insurance Home Loan Insurance Internet Banking Mobile Services



Insurance
-



Online Services
-



- Other Online Services Loans
Personal Loan Mortgages Business Loans Ready Credit Stock Power Preferred Rupee Checking Account FCNR Deposits Dollar Checking Account Remittances Global Investments



NRI Products
-

-

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Marketing Mix
The 7 P’s Product Service Innovative banking products: Suvidha Premium Savings Account. First to launch Credit Cards in India. Now their credit card application process has gone completely online. They were awarded “Best Internet Bank” by Global Finance in India. SOURCE: http://www.online.citibank.co.in/portal/india-images/Corporate-Internet-Bank-Award.pdf Their Services include Deposits, Loans, Payments, Insurance, NRI Products & Investments. They have 700 ATMs. They have 42 branches in 33 cities. Since their positioning is that of a premium banking service provider, their branches & ATMs are located in Metros & Tier I cities.

Place

Promotion

The Promotion Mix consists of: Public Relations, Personal Selling, Sales Promotions, Word of mouth Promotion, Telemarketing, and Internet. Promotions in Delhi:
Incredible discounts of up to 20% across various restaurants in Delhi Did you know? Get a new Nokia Phone in 3 EMIs* at no extra cost

Enjoy more savings at GK 1 M block Market with your Citibank Credit or Debit Card

Get 20% off on food @ Italiano, Gurgaon. Offer valid till 30th September, 2011

Now redeem your Citi reward points instantly for purchases

Trident Holidays Book Trident Holidays for 3N/4D and enjoy the 3rd night complimentary*.
*Terms and conditions apply

Also on Facebook they have new features like: ‘Recommendation Engine’, ‘Tax Corner’& ‘Payments Dashboard’.

17 Price Citibank is the bank for elites. They charge higher fees & interest rates for their services & products.

People

Employer of choice to 7500 Employees. Recruiting the right staff & training them. Regiocentric Approach: Recruiting Local Talent. Seminars & Training workshops to help employees better understand customers. The smaller & simpler the procedure, the better the process & the customer will be satisfied. Eg: Car Loan Process – - Produce proper documents - Fill up Application Form - Pay initial Down payment It refers to the system adopted to assist the organisation in delivering the service. Eg: Banks send out credit cards automatically when their customer’s old one is expired. Thos requires an efficient process to identify expiry & renewal dates. Website, Pamphlets, Forms, Placement of Customer service executives desk, location of the Cheque drop box, ATMs

Process

Physical Evidence

Customer Expectation
The five imperatives that customers would be looking at to be addressed by their bank of choice are:  Simplified Banking: Make banking sophisticated, yet simple, in terms of processes and services, to enhance banking experience. Data Privacy and Security: Protect the identity of the customer, and ensure appropriate mechanisms are established to proactively guard against internal and external misuse of customer information. Channel Amplification: Develop the right mix of assisted and self-service channels to provide rich, unified and consistent banking experience. This is very important for Citibank as their branch & ATM network is limited, hence, they have concentrated on the use of Internet banking. They were awarded “Best Internet Bank” by Global Finance in India. Service Accessibility: Incorporate technologies which can make banking accessible for a broader base of population. Customer Serviceability: Develop a responsive, reliable and competent service model, accessible via various channels that continuously take feedback and can improvise.









18

Buying Behaviour
Beckett (2000) identifies two broad attitudinal factors: uncertainty and involvement that influence consumer behaviour. The matrix represents four ideal consumer behaviour patterns in the context of financial services. These are repeat-passive, rationale-active, relational-dependent and no purchase. In the repeat-passive quadrant, consumers display a high level of confidence (i.e. low uncertainty) and a limited perception of involvement. Consumers are well aware of the product/service features and benefits and thus feel confident about the outcomes of the usage and make repeat purchases. Consumers who are interested and involved in the offering and also feel confident about the outcomes follow the rational-active behaviour pattern. Consumers in relational-dependent quadrant are highly interested and involved in the product/service category but due to the complexity and uncertainty of the outcomes are not capable of controlling the buying process. Thus, they seek for advice from other parties, such as friends, family and service provider. These customers are dependent on others and are building relationships to avoid and control uncertainty. In that way they are able to make reasoned decisions. No-purchase quadrant represents a situation where consumers are not involved in the product/service category and do not have the capability to make transaction decisions. These consumers are not buying at the moment but there might be marketing potential in terms of prospective customers.

HIGH

No Purchase
Consumer Behaviour Matrix Repeat Passive
LOW LOW

Relational Dependent

Uncertainty

Rational Active

Involvement

HIGH

Consumer Behaviour Matrix (Beckett 2000, 195)

19

Service Design & Blueprint
Physical Evid. Website Customer Actions Seek Information Pamphlet s Take Calls Employees Give Appointment See the Demonstration Attire of employees Meet Executive Sign Up the forms Transactions Office

Submit Documents

Add/Del Scrips (line of interaction) Onstage Make Calls/Send e-mail Contact Employee Actions Collect Documents Give demonstration Take Appointments

Call the Relationship Manager

Meet Clients

Get the form Signed up

Process the Forms Clear Deficiencies

(line of visibility) Backstage Contact Employee Actions Inform Onstage Contact Emp about deficiencies Generate leads (line of internal interaction) Support Processes Train Contact Employees Process forms and look for Deficiencies Inform about deficiencies Activate Client’s Account Advise the Client Make Calls Take Calls/e- mails Fix Appointments for Onstage Contact Employees

Process the Forms & forward for activation

20

Demand & Capacity Management
The key to efficiency and fast customer service in the service industry is the correct and dynamic matching of demand and capacity. The important step is to separate the bank's factory-like transactions which are more or less standardized, like check encashment, withdrawals, and check deposits, from the personalized ones like opening accounts, loan application, or marketing a new service. It should be recognized that the former constitute the bulk of banking transactions. Factorylike transactions are fairly predictable in terms of duration or cycle time, and occurrence. Their seasonality or peak-and-low periods during the day, week, and month can also easily be discerned from a careful study of past data. By matching the demand and capacity of its factory transactions, a bank can decongest its lobby or ATM booths, improve over-all customer satisfaction, and provide its staff with ample time and better composure to attend to the more personalized transactions. Perhaps the most blatant flaw committed by many banks is basing its capacity plans on its total dollar value of business, e.g. deposit base, loans outstanding, or total assets. To compound the error, a productivity index is derived by dividing the dollar value by the headcount. The head office may stipulate a standard index like so much dollars in deposits per employee. Branch managers are enjoined to observe this index by downsizing or risk getting adverse performance appraisal. Often this index is used by head office to reject the branch's "unreasonable" request for additional manpower. Basing capacity on value will either lead to overcapacity and idle resources, or undercapacity and long customer queues. In banking, as in many other service establishments, what use capacity, consume resources, and drive costs are not the financial value of the transaction, but rather the volume of transactions. To process a $100 check deposit takes exactly the same teller or ATM time to process as a $200 one. A $100 passbook withdrawal or check encashment would take about the same time to transact as a $200. Even in the non-factory like transactions, there is no direct relationship between value of the service and the amount of bank resources utilized to deliver it. For instance, in general, a $2,000,000 loan will definitely take less than twice the time to process a $1,000,000 one. To correctly match capacity to demand, it is important therefore to derive the total volume of factory-like transactions and translate these to teller time or man hours, or machine hours for automated services. Thereafter, these hours can be translated to the number of tellers or ATMS required to meet the expected demand. A branch may get the average number of checks encashed, check deposits, cash withdrawals, cash deposits, utility payments on a daily, weekly, or monthly basis, whichever is appropriate for its capacity planning. It is tempting to use the number of customers accounts, particularly the number of active accounts, to compute for capacity. While this is more accurate than dollar value, and easier to use than transactions, it is not as accurate than the latter, since clients will have different volumes and types of transactions. Tellering, whether manual or automated, is transaction driven, not client or value driven. The best way to determine teller deployment is to use the number of transactions regardless of number of clients or value of transactions - and translate these to transaction hours, and then to headcount. With the increasing power of computer technology at the disposal of banks, getting an accurate count of transactions should not be difficult.

21

Customer Perception

Reliability

•Correct transactions •Maintaining error free records •Performing service right the first time •Dependability in handling customer service problems •Keeping customers updated as to when the service will be performed •Waiting time to redress customer’s problems •Willing & able employees to respond to customer enquires

Responsiveness

Assurance

•Capable/Knowledgeable /Courteous employees who instill confidence in the customer •Make customers feel safe in their transactions, especially over the internet •Individual attention to customers through Relationship managers •Regularly hold Seminars & Training workshops for employees so that they can better understand the customer •Convenient business hours •Modern equipment •Professional appearing employees •Visually appealing facility; Spatial retail format layout

Empathy

Tangibles

Customer Satisfaction
With the phenomenal increase in the country's population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge. Primarily it becomes important to live up to customer’s expectations to create customer satisfaction for banking customers. The key features determining customer satisfaction provided by banks would be: 1. Product and services provided by the banks, both saving and investment. 2. Customer emotions while availing a bank’s services i.e. how a person’s mood is controlled in bank’s services cape.

22 3. Customer perception of fairness of treatment by staff and delivering what has been promised, especially the service aspect of banking. 4. Core banking solutions provided to the customers.

Customer Relationship Management
Citibank’s strategies, policies, procedures, services and customer relationships department all work together to create value for the customer, to provide them satisfaction and to create long term relations with the customer. Purpose – Citibank is committed to the prosperity & success of the company. They understand that to succeed & grow they must support with the highest level of professionalism, efficiency, technology & service. In today’s banking scenario speed & accuracy are critical. With Citibank you only need to call one number. One number will put you straight through a CItiService officer who will be able to handle all your customer service enquires online. Scope- To keep pace with the growing complexity of business & the industry trends, CitiService is equipped with adequate number of telephones, facsimile lines and have employed dedicated staff trained with complete knowledge of all products. Ongoing research is conducted by means of surveys & feedbacks to understand & anticipate the changing needs & expectations of our customers in order to provide them with prime quality services. BenefitsOne phone number for fast efficient service Quick & accurate response to your enquires Regular updates on the status of your enquires Easy access to Citibank experts Readily available product knowledge & technical support

23

Comparative Analysis of Marketing Strategy of ICICI Bank and Citibank.
ICICI Bank’s SILO (Product Based) Different departments do not share information Citibank’s Relationship Based Departments are inter-linked through IT that enables each department to share information Customers are presented with the right product at the right time Helps build personalized relationships with customers

Coordination between different departments

Marketing Type

Marketing is not targeted

Customer Relationship

Customers are hoarded with unnecessary calls leading to the assumption that his/her own bank is not aware of the customer

SWOT Citibank

STRENGTHS Strong Economic Development Strong Internet Presence Innovative product offerings SWOT

THREATS Credit Card Penetration is Low Low cost competitors

WEAKNESS Weak Infrastructure

OPPORTUNITIES Undifferentiated view of marketplace

24

Survey On Banking Services
Survey was done on a sample size of 30

Q1 Acceptable limit (in Kms) for distance of a bank ATM from any place in the City you Live

1 8 14

1 KM 2 KM 3 KM 5 KM 7

Q2 Bank Employees being Courteous and Helpful is something which goes without saying

2 No 28 Yes

This implies that bank employees being courteous and helpful is something which would come under the adequate service level and not desired Q3 Employees of my bank are courteous & hospitable.

25

7 No 23 Yes

Taking ahead the responses of the Q2 we find that most of the bank’s have adopted courtesy and helpfulness as important part of their services as almost 80 percent of people feel that their bank employees are helpful and courteous

Q4.If the answer to the previous question is "NO" then are you ready to pay more for courteous & hospitable bank employees.

1 3 It is their job to be courteous & hospitable No Yes 15

Q5 The banking infrastructure like air-conditioned branches are very important in a banking Service

Very Important Not Important Important I do not evaluate Bank on Infra. Basic Infra. would do 0 2 4 6 8 10 12 14 Series1

26 Customers give high importance to the bank infrastructure like air-conditioned branches while selecting a bank Q6 Does the service range in Bank's Portfolio attract you towards a bank Like the same bank providing Locker service, Investment management service , Demat acc. Etc

No Yes

Q7 Do the unsolicited Calls from Bank Executives dissuade you from using a Bank's Service

Yes

8

No I like those calls to get info about new products from banks I ignore them 0

2 Series1 6

14

5

10

15

The unsolicited calls can make bank loose prospective customers as is evident from the survey results

27 Q8 Rate the importance of promptness of Bank in redressing issues like money debited twice for a single ATM transaction

20 15 10 5 0 Important 8 1 Most Important Very Important 19 Series1

Q9 Could you please rate the importance of convenient business hours of your bank. (As in open till late evenings and / or full day on Saturdays as well)

Very Unimportant Very Important Unimportant Neutral Important 0

1 13 1 4 11 5 10 15

Series1

In services convenience is the king. Most people want banks to work even on Saturdays as on working days people do not find time to do bank related work Q10 Maximum waiting time acceptable for any bank service when you visit the Bank Branch.

20 10 0

16 8 3 10 mins 20 mins 3 Series1 30 mins 5 mins Series1

28 10 minutes was the time which most of the respondents replied as the maximum time to wait indicating that wait is something people do not prefer in a banking service and this can be used to gain competitive advantage by any bank.

Recommendations
• • • Citibank should increase the number of branches to increase its customer base Increase no. of service hours Increase no. of Bank open days, like ICICI has 5 of its branches which are open on Sundays too

References
http://www.cashcow.in/?p=4984 http://www.ibmi.jp/IBMI/report_links.html#BankingandFinance http://www.financialexpress.com/b02.pdf https://www.mckinseyquarterly.com/Financial_Services/Personal_Financial_Services/What_Indian_ consumers_want_from_banks_1662?gp=1 http://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043 http://www.online.citibank.co.in/

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