A study on customer retention strategy In public sector banks with reference to Erode district

Abstract

The Private sector banks in India have achieved a higher growth newlinerate compared with Public sector banks over a eight year period 2004 2011 newlineThis thesis examines whether the difference in financial growth can be partly newlineexplained by differences in customer retention and what are the factors that newlinehave an impact on customer retention Data is collected through a newlinequestionnaire from 975 customers at 41 branches of 5 public sector banks and newlineprivate sector banks each located in the 5 taluks of Erode district Data on newlineBank Branch attributes Customer Service Characteristics Customer newlineAttributes Perception about Competitors the period of holding the account newlinethe reason for choosing a particular bank the likely period for which the newlinecustomer will maintain the account and the likely reason for changing the bank newlinewere collected and analysed Logistic regression model is used to identify the newlinefactors that contributed to Customer Satisfaction Chi Square test is used to newlinetest the association between different variables newlineThe study finds that Bank Branch attributes such as convenient newlineLocation access parking space and working hours have the greatest impact on newlineCustomer Satisfaction Customer service characteristics like account handling newlinecustomer friendly policies and customer handling also influence Customer newlineSatisfaction newline newline