A Comparative Study on Customer Satisfaction and Retention Strategy in Public and Private Sector Banks
Dr. Sundharesalingam P.*, Dr. Padmavathy S.**
*Assistant Professor, Department of Management Studies, Kongu Engineering College, Erode, Tamilnadu, India
**Assistant Professor, Department of Management studies, Kongu Engineering College, Erode, Tamilnadu, India
Online published on 5 April, 2016.
The Private sector banks in India have proved a higher growth rate compared with Public sector banks over a decade. This study examines whether the difference in financial growth can be partly explained by differences in customer retention and what are the factors that have an impact on customer retention. Data is collected through a questionnaire from 975 customers at 41 branches of 5 public sector banks and private sector banks each. Logistic regression model is used to identify the factors that contributed to Customer Satisfaction. Chi Square test is used to test the association between different variables. The study contributes to theory by identifying Customer relocation as an important variable in customer retention and also identifies that reasons for defection vary with time. Suggestions to improve customer satisfaction and customer retention are made. Areas for further research have been identified.
Customer retention, Commercial Banks, Customer Satisfaction, Logistic Regression, CRM, Internet Banking.