 Customer is the king of the market.

 Relationship marketing is the attracting,

maintaining and nurturing relationship with
customer in a multi-service organization.
 Long-term customer retention

 Relationship with external market who

influence or provide referrals

 Integrating marketing activities, customer

service and quality standards.
 Establish and maintain a customer
information database

 Planning customer contact points

 Analyzing informal customer feedback

 Conducting customer satisfaction survey

 Managing communication programmes

 Hosting special events

 Auditing and reclaiming lost customers

 The CRM tries to close the gap in the
customer perception and the firm’s
perception by finding and analyzing the
“ Gap ”.
 The 1st gap is between service expected by
customer and company perception of
consumer expectations.

 It occurs due to inadequate market research

orientation, lack of upward communication
and insufficient relationship focus.
 The 2nd gap is between the customer driven
service designs & standards vs. company
perception of consumer expectations about
the service designs & standards.

 It occurs due to an absence of customer

driven standards, inadequate service
leadership and poor service design.
 The 3rd gap is about delivery of service
perceived by the customer and the firm’s
perception about customer expectations.

 Caused by deficiencies in HR policies, failure

to match demand and supply and customers
not fulfilling roles.
 The 4th gap is between the service delivery to
the customer and external communication to
the customer by the firm.

 Due to ineffective management of customer

expectations, over promising and inadequate
horizontal communication.
 The 5th gap is the ultimate gap between
expected service and perceived service, which
is the result of all the above gaps.
 In banking services, retaining the existing
customer has become a big challenge.

 The more the banks are improvising their

systems and mechanism for better
relationships, the more the customers are
losing loyalty to the bank.
 Earlier the customer hesitated to move to
other banks and preferred to wait for months
together for a simple loan sanction from its
bank,

 But now even for the deposit product, the

customer does not mind shifting his business
to other bank where he gets better returns.
 Kotler has defined – A product is anything
that can be offered to a market for attention,
acquisition, use or consumption that might
satisfy a want or need.
 Products comprise several components,
which impart meaning to it and project its
distinct images.
 The core features

 The associated features

 The brand name & logo

 The package & label

 Potential product

 Augmented product

 Expected product

 Basic product

 Core benefit
 A product has a customer value hierarchy –
emerging from 5 levels of product, namely,

 Core product [ soap implies “cleanliness”,

convenience of operation and some interest
earning ]

 Basic product [ a business centre includes a

cabin, a table and chairs, telephone
connection, lights, savings bank A/c with
cheque book facility.
 Expected product [ bank customers expect
accounting of their transactions, getting
withdrawals of their money on demand,
correct and timely interest receipts.

 Augmented product [ an airlines offers

executive waiting lounges at the airports with
facilities for shower, refreshments,
newspaper and internet connection etc.
 Potential product [ possible future
augmentations, like electronic cheques ]

 The competition today essentially takes place

at the augmented product level and the firms
strive to reach the potential product level.
 Banks are in the business of accepting
deposits for lending or investment.

 The distinguishing feature of banking from

finance companies is the payment and
settlement facility it provides to its
customers.
 A banking product is a service or a package of
services that -

1. Is typically provided for any one consumer by

one bank only,

• the customer may buy different product items

or product lines from different banks

• but the bundle or package under one product

item cannot be purchased from different banks.
• Customer cannot keep account in one bank
and obtain cheque book from another bank.

2. It is aimed at a particular market.