Customer Satisfaction in Icici Bank Essay Example

crisis management needs, government interference, and issues with advertising and media. It is crucial for service organizations to prioritize customer satisfaction by focusing on manpower. The banking sector should identify areas that require improvement and devise strategies to enhance service quality. Promotional packages play a significant role in the financial service industry.

The banking industry has experienced substantial growth in recent times, attracting numerous new players. Consequently, banks must expand their attention to consumer and market demands and craft successful marketing tactics. It is crucial for banks to tackle the challenges posed by evolving environments and discern consumer needs through product innovation. This investigation investigates ICICI Bank's promotional approaches in light of these advancements.

The study then evaluates and analyzes the findings of their effect on customers in order to present a clear picture of the company's market strategy.

The Company

The survey results will inform the company about the effectiveness of ICICI bank's various promotional strategies and their impact on customer buying decisions. The results will also help identify and address any shortcomings in these strategies.

The Industry
This study is limited to the responses of 50 people but the data can still be used to make decisions regarding promotional strategies in the industry.

Studying emerging trends in the rapidly changing and evolving industry is significant. People are just starting to realize the vast possibilities it offers. This study aims to guide the future of the industry by analyzing current trends.

Methodology

Research methodology is a strategy that guides research in answering research questions. In this case, a research survey is being conducted.

The accuracy of the study depends on implementing the method systematically. The researcher needs to select a method that

will guide them towards their objectives in a systematic manner.

Methodology Used: Questionnaire Design

The questions were designed to be easily understood so that respondents can answer them without difficulty. Furthermore, the questionnaire included a comment section where individuals could share their thoughts on ICICI products and services and give suggestions for improvement. Random sampling involves choosing a subset of the population for research purposes.

Random sampling is the process of selecting a portion from a population where each element has an equal chance of being chosen. Another definition of random sampling is that each element in the population has a known probability of being selected, resulting in an unbiased sample. In this research survey, relevant information was gathered by randomly surveying 50 people.

The sample size: The project used probability sampling techniques and cluster sampling methods.

The sampling unit: The respondents who filled out questionnaires are considered as the sampling units.

Various individuals, such as employees of MNCs, Government Employees, and self-employed individuals, were included in the study.

Size of the sample:

A total of 50 individuals between the ages of 25-40 were selected for the study.

Sampling Area:

The research was conducted in the Delhi Metro Railway Quarters area of New Delhi. Data was collected using a structured questionnaire that contained standardized questions. These questions aimed to gather information about ICICI's promotional strategies and advertisements, as well as individual behavior towards ICICI products.

Interview

An additional step involved discussing with people to collect information.

Informal friendly talks with the people were used to gather valuable information. In addition, various websites were consulted to collect literature relevant to the topic.

Literature Review

Promotion is achieved by organizations through the five elements of the promotion mix, which include:

According to czinkota

; Ronkainen (2004), the financial services sector is under increasing pressure to improve marketing management. Despite experiencing recent recessions, this sector continues to expand and has a significant influence on the economy. Consequently, there is a growing desire to implement marketing techniques and tools in financial services (Meidan, 1996). However, banks are still struggling to adopt the marketing philosophy and achieve customer satisfaction. The current promotional practices of financial institutions are insufficient for the evolving market conditions and the rising number of customers leaving the sector.

Traditionally, banks have aimed to reach out to everyone in the community, but recent research suggests that they should focus on identifying and serving microsegments (Dawn ; Brown, 2000). They have refined the role of promotion to manage long-term relationships with select customers, including the establishment of a learning relationship where marketers maintain a dialogue with individual customers (Dawes ; Brown, 2000). As a result, personnel are one of the most important resources for a bank, as their competence determines the bank's quality and operational success (Marquardt, 1994). Difficulties in understanding foreign cultures often lead to insecurity, which in turn makes it challenging to enter a new market. Therefore, many banks choose to operate in markets similar to their home countries.

(Marquardt, 1994) Cheese et al. (1988) were the first to emphasize the significance of effective bank communication strategies. Despite the wide presence of advertising in academic research and the extensive study of advertisement-related topics, no previous research specifically focused on financial advertising was found in the literature. This lack of studies on bank advertising effectiveness was also highlighted by Laskey et al. (1992) in the past. They emphasized the scarcity

of literature and published research on this topic. Since then, numerous studies, particularly for the Greek bank market, have been published (Koutouvalas et al.).

Research conducted by Mylonakis in 2005, Mylonakis in 2004, and Mylonakis et al. in 1998 focused on spontaneously bank advertising issues. These studies primarily examined consumer satisfaction rates and investigated whether bank customers were influenced by advertising when choosing their primary or secondary bank. One notable research paper by Laskey et al. published in 1992 explored strategy and structure in bank advertising.

The study focused on the impact of advertising on bank customers. It discovered that the overall attitude and emotional evaluations of the respondents varied significantly. It also found that picture-based advertising had a greater influence on customers' intention to patronize a bank. A distinction was made between information-based and transformational advertising, with the former being identified as more effective. In the banking industry, the temporal and spatial dimensions were seen as more important than traditional outcome and process elements. Tokunbo Simbowale (2005) explored the use of marketing concepts and techniques and recommended the implementation of a well-structured marketing strategy. A study by Krishna, Suryanarayana, and Srikant (2005) suggested that promotional strategies should be tailored to the nature of the services being promoted.

The advertisers should prioritize a narrative approach over a logical, argumentative approach when communicating the service experience. This involves using storytelling methodology and a sequence of events (Sehgal Roli, 2004). In banking services, location convenience, speed of service, competence, and friendliness of bank personnel are the most important factors (Laroche & Manning, 1986). Meidan (1976) found that about 90% of respondents banked at the branch nearest to their home or

workplace. Convenience in terms of location was the top factor in branch selection. Studies have shown that advertising services marketing is more challenging than advertising tangible products (Ray and Bose, 2006).

Winning new customers in the marketing of financial services is significantly more expensive than retaining existing ones. Therefore, it is crucial for banks to prioritize consumer sovereignty, attitude, responsiveness, and personal skills of bank staff. Additionally, revitalizing the marketing department and gaining top management support are essential. It is also important for marketing personnel to participate in key bank decisions.

Analysis

This section summarizes the feedback and performance of the branch in Coimbatore's mass market based on a conducted survey.

Data and Interpretation

The following are some key questions from the questionnaire, and the interpretation is based on the respondents' answers. One of the questions asked was whether the person uses ICICI Bank's online banking system. The survey revealed that many loyal and privileged customers utilize ICICI Online banking facility effectively.

Approximately 80% of account holders find the ICICI Bank's online banking facility user-friendly and effective. Non-account holders are aware of the existence of the online banking facility provided by ICICI Bank, but they are not very familiar with its functions and accessibility. Nonetheless, they find it convenient to have access to online banking services in today's fast-paced world. Are you using the iMobile app, which offers easy, convenient, and secure online banking features? ICICI Bank iMoblie is a groundbreaking innovation that allows customers to perform almost all internet banking transactions on their mobile phones. With just a click, customers can now transfer funds between ICICI and non-ICICI bank accounts. The iMobile app covers various types of accounts, including savings,

demat, credit card, and loan accounts.

Customers can avail the following convenient services through this facility: utility bill and insurance premium payment. ICICI Bank provides this service to customers free of charge. Some of the exceptional features of this application include: balance enquiry, funds transfer, cheque book request, cheque status, stop cheque, view transaction details, view credit card, demat and loan account transaction details, bill pay, bank locations, and prepaid mobile recharge. Despite the widespread use of smartphones and 3G services in all networks and products, many customers are still unaware of the mobile banking application called iMobile. They are unaware that this application makes banking even simpler.

Mobile banking payments

Finally, commerce might attract more users in India.

ICICI Bank has launched its Mobile Banking Application called iMobile to all its users. The application enables users to perform most of the actions available through internet banking. However, there is a significant level of risk associated with mobile banking, which has resulted in limited adoption of m-commerce. To mitigate this risk, the app requires users to enter digits from their debit/credit card to authorize transactions, ensuring that they are carried out by the account owner and preventing misuse.

It shows how mobile technology is impacting our lives. ICICI Bank's mobile banking application, called iMobile, is easy, convenient, and secure. iMobile allows account holders to transfer funds, pay bills, book travel or movie tickets, recharge prepaid mobile and DTH, locate an ATM, and more while on the go. However, non-account holders are not familiar with the iMobile application. Despite ICICI Bank's efforts to simplify banking, account holders and the public are not well-informed about the bank's services. Are you aware of

PAYBACK (i-mint), a loyalty program managed by ICICI Bank? You can redeem your PAYBACK points for great rewards. PAYBACK is India's largest and one of Europe's most successful loyalty programs, authorized by ICICI Bank for reward redemption.

You have the opportunity to accumulate PAYBACK points by using either your ICICI Bank Credit Card or Debit Card. In addition, you can earn even more points by using your cards at HPCL, makemytrip.com, and other PAYBACK partner stores both in-person and online. Once you have accumulated a sufficient amount of PAYBACK points, you can exchange them for fantastic rewards. With PAYBACK, you have the ability to combine points from various sources into one account and exchange them for incredible rewards. Furthermore, you will consistently earn PAYBACK points each month on your ICICI Bank Credit Card.

These points will be transferred as PAYBACK points to your PAYBACK account when your ICICI Bank Credit Card statement is generated. Additionally, if you use your PAYBACK card at any PAYBACK partner for payment, you will receive extra PAYBACK points from that partner. Each month, the reward points earned on your ICICI Bank Credit Card will automatically be transferred as PAYBACK points to your PAYBACK account when your ICICI Bank statement is generated. The main purpose of this scheme is to incentivize individuals to spend more at specific merchants/companies that have partnered with i-Mint.

In exchange for your money spent at channel partners, you will receive points that can be exchanged for gifts. iMint was created in late 2006/early 2007 with a great concept, but the promoters of i-Mint have not prioritized making it a positive experience for end users. Their inefficient website and poor

customer service are ruining a promising business opportunity and driving users away. It is crucial for i-Mint channel partners (such as lifestyle, ICICI Bank, Indian, MakeMyTrip, and other lesser-known shops) to take this seriously and put pressure on i-Mint promoters to ensure that customers can enjoy using i-Mint. The promoters should promptly acknowledge and respond to emails to show courtesy.

Implementing a toll-free number and improving the website's infrastructure would enhance its efficiency and reliability. It would be more convenient for users if points could be credited automatically without any extra effort. Allow users to claim points online for eligible transactions where the i-Mint card was not swiped, by using the bill number to verify with the service provider and then crediting the points. The value of gifts should be a minimum of 2-3% of the total amount spent to accumulate the points required for redeeming that gift. If the value is less than 1%, it may not be worth the additional time and effort spent on redemption. Conduct a survey and gather feedback from users to gain a better understanding of the service's performance and reach. Consider revamping the website to make it more user-friendly.

Overall, 95% of the respondents in a survey were not aware of the features provided by ICICI Bank's privilege banking, while only 5% were aware. ICICI Bank has introduced privilege banking, which offers convenient access to their products and services. Each bank branch has a dedicated service area for privilege banking customers, where specially trained professionals provide minimal waiting time. The features provided by ICICI Bank for privilege bankers include a payable-at-par chequebook at no extra cost, an ICICI Bank

International VISA Debit Card, a debit-cum-ATM card, free Internet Banking, anywhere banking, standing instructions facility, nomination facility, and half-yearly interest payments. The survey revealed that many privilege bankers were aware of and found the free internet banking feature provided by ICICI Bank to be convenient.It provided them with the ability to do banking conveniently from any location and at any time.

International debit cards come in two categories: gold and titanium, depending on the account holder's status. These cards function as both a debit card and an ATM card, providing added convenience for customers. Privilege banking is highly appealing to many customers and offers a simple and convenient banking solution in today's fast-paced electronic world.

The relationship managers of privilege account holders not only keep them informed about their account transactions and assist them with banking processes, but also maintain regular communication to provide a sense of security. This fosters a deeper understanding between the customers and the managers. However, customers may feel uneasy when products are aggressively promoted to them through constant phone calls, giving a wrong impression. Despite its potential to create loyal customers and offer complete satisfaction by introducing new products, many customers fail to appreciate the value of privilege banking.

This is just another aspect of banking, although it is a significant development in the industry where customers are prioritized. Are you familiar with the services offered by ICICI's ATM Banking? 24% of people are aware of these services, while 76% are not. The term ATM doesn't simply stand for "avoids traveling with money" or "any time money," but it does encompass both concepts. Slim ATM cards are becoming increasingly popular and are replacing

confusing withdrawal forms as a convenient method of accessing funds from banks. In essence, they are changing the way financial transactions are conducted.

Nowadays, individuals no longer require carrying a bunch of physical money in their wallets. Instead, they can simply utilize an Automated Teller Machine (ATM) card to extract cash by inserting it into the designated slot, entering a few details, and leaving with the desired amount. The level of customer satisfaction plays a crucial role in evaluating the banks' performance. It is important to note that ATM encompasses more than just the plastic card and Personal Identification Number (PIN). The services offered through this technology are the most significant aspect, including cash and cheque deposits, speedy cash withdrawals, account balance viewing, mini-statements, and the ability to request a chequebook or account statement.

The table below presents the usage percentage of different services provided by ICICI Bank through their ATM facility. It shows how often customers use these services and make efficient use of them.

Based on the collected data, it was found that almost all customers primarily use the ATM for cash withdrawal, which is the main purpose of the service. Only three-fourths of the customers use the ATM to view their account balance. Furthermore, only one-third of the customers from whom data was collected use the

ATM for cash deposit.

The percentage of customers who do not use certain major services provided by ICICI Bank's ATM is as follows:
Services: Cash/cheque deposit, Fast cash withdrawal, View account balances, Request cheque book or account statement
ICICI Bank: 25% never use these services

ICICI Bank has a widespread network of ATMs that enables customers to bank 24 hours a day. The ATM Banking facility of ICICI Bank offers several new value-added services:
- Open Fixed deposit
- Transfer funds
- Pay credit card bills
- Request cheque book
- Recharge mobile
- Pay utility bills
- Update mobile number

However, not many customers are aware of these additional services provided by the ICICI ATM Banking.

No of customers aware of the other services provided by ATM Open Transfer pay recharge fixed funds credit mobile deposit card bills pay utility bills update mobile number

From the data collected, it was found that only a small number of customers knew that they could update their mobile number through the ATM. Most customers were aware of the ability to transfer funds to other accounts via the ATM provided by ICICI Bank. However, not many were aware of the new mobile recharge service, and even fewer actually used it. Many customers knew they could pay their credit card bills through the ATM and frequently utilized this service. While ICICI Bank's efforts to make banking easier for customers and provide value-added services through the ATM have made a significant impact on the financial sector and established a distinct position for the bank, these factors do not greatly impact customer satisfaction or loyalty towards the bank.

It serves as a unique facility without attracting many customers, but it does sustain the current customers.

Recommendation

Strategies

for improving bank marketing:

In the highly competitive market, customer needs are constantly changing. Therefore, our marketing strategy must be adaptable and flexible to meet these changing demands. Here are the steps to develop a successful and effective marketing strategy for bank products.

Emphasis should be placed on generating more term deposits as they are more profitable for the bank compared to demand deposits. The bank should create a scheme that caters to the customers' needs, which can include various deposit schemes, accounts with more flexibility, technologically advanced banking services like tele/mobile/net banking, and innovative schemes targeting specific customer groups such as children, women, the elderly, and businessmen. In summary, a bank product encompasses anything offered to customers.

Effective Branding: Man is a bundle of sentiments and emotions, which can be effectively utilized in branding our products. By taking into account the product features and target customer group, we can brand the product in a catchy and appealing manner. The branding should aim to attract customer attention and make it easy for them to remember the brand name. Suryabala.

Remember. The target group and the silent feature of the product should resemble the brand name. This will help greatly in making the brand successful. All employees and all our campaigns should refer to the product by its brand name only so as to leave a lasting impression on the customer's mind.

Products for Women: The national perspective plan for women reveals that 94% of women workers are engaged in the unorganized sector, with 83% of these involved in agriculture and allied activities such as dairy, animal husbandry, sericulture, handloom, handicrafts, and forestry.

Banks need to take steps to enhance their

credit access, which they require.

Customer Awareness

There is a need to educate customers about bank products. Efforts should be made to expand and deepen the flow of information for the benefit and education of Indian customers. Presently, customers lack awareness regarding the time required for various banking services. Rural customers are unaware of the available loan purposes and how to avail them. Customers are unaware of the complete rules, regulations, and procedures of the bank, as bankers tend to keep them to themselves without showing interest in educating the customers.

It is necessary to provide banking education to customers starting from the basics. Now is the time for every bank branch to take action.