Marketing Strategy for Customer Retention Through CRM: A Study on Private Banks

Abstract

The main objective of the study is to examine the relationship between customer relationship management practices and customer retention as well as the impact of service marketing strategies on customer retention through customer relationship management practices of selected private banks. For this purpose, six private sector banks located at Bhubaneswar city of Odisha were selected. Data for the study were collected through a structured questionnaire from 564 customer respondents of these six private banks. Statistical tools namely structural equation modelling and regression analysis were used for data analysis and interpretation. The results of the study revealed that customer relationship management practices had strong and positive relationship with customer retention of private sector banks selected for the study. Further, the service marketing strategies through customer relationship management practices had significant impact on customer retention of such banks. The findings of the study will be useful to both the banks and customers. On the basic of the results, the banks can modify their marketing strategies and customer relationship management practices to attract customers and retain them in their fold. Further, the customers of such banks can get quality as well as timely services from such banks. The findings of the study would be beneficial to banking institutions and customers.