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Customer Retention

In: Business and Management

Submitted By garimaahuja
Words 263
Pages 2
Customer retention is an important element of banking strategy in today’s increasingly competitive environment. Bank management must identify and improve upon factors that can limit customer defection. These include employee performance and professionalism, willingness to solve problems, friendliness, and level of knowledge, communication skills, and selling skills, among others. The banking industry is highly competitive, with banks not only competing among each other; but also with non-banks and other financial institutions.
In Kotak Mahindra Bank, customers are treated with due respect and in a very effective manner. Customer’s needs are kept in mind and the manager does every possible effort to satisfy and fulfill the needs of his customers. With a high rate of inflation and increasing rates by RBI it becomes difficult for a banking manager to enhance the sale of loans due to increase in lending rates. Customers require certain extra benefits in order to pay for the extra interest. If the customer’s requirements are not met it leads to customer fallout. Thus a bank manager always tries to retain its old customers rather because if these old customers are satisfied they spread a positive word of mouth thereby helping the bank to acquire new customers.
In Kotak Mahindra Bank, the manager has resorted to additional benefits in order to retain its customers so that it can acquire new ones. The benefits taken up by the bank and the manager are as follows:- * For Corporate loans the benefits include increased limits and reducing the required time and providing superior comfort to its customers * For Individual Loans, waving off pre…...

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