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A

Summer Training Project

On

CUSTOMER SATISFACTIONIN IN PNB

Submitted to

Kurukshetra University, Kurukshetra

In the partial fulfilment of the degree of Master of Business Administration

(Session 2013-15)-MBA 3 rd Semester

Under the Guidance of: Submitted By:

Mr. Gaurav Gupta Ravinder Kumar Ahuja

Assistant Professor S/O Sh. Ghanshayam Das Ahuja

Department of Management Class Roll No.1101/13

Univ.Reg-.

Univ. Roll No.

Tilak Raj Chadha Institute of Management & Technology

(Affiliated to KurukshetraUniversity, Kurukshetra& Approved By AICTE)

M.L.N.College Educational Complex, Yamuna Nagar- 135001 (Haryana)

Ph. 01732-220103, 234010, 234110. Fax: +91-1732-234110

E-mail: [email protected], Web Site: www.timt.ac.in


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DECLARATION

I, Ravinder Kumar Ahuja Roll No # 1101/13, MBA (Semester-III) of the Tilak Raj

Chadha Institute of Management and Technology, Yamuna Nagar hereby declare that

the Summer Training Report Customer Satisfaction In PNB Bank has been an original

work and the same has not been submitted to any other Institute for the award of any other

degree.


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ACKNOWLEDGEMENT

A Project usually falls short of its expectations unless guided by the right person at the right

time. This Project would not have completed without the direct or indirect help and guidance

of such luminaries in Punjab National bank. They provided us with the necessary resources

and an environment conducive for healthy learning and training. They provided us with therequired amount of freedom to exercise our skill under their able guidance. At the outset, I

would like to take this opportunity to grate fully acknowledge the very kind and patient

guidance and encouragement I have received from our Project Guide Mr. Amit Singh Kumar

(Senior Marketing Manager ) and Mr. Sateesh Kumar Dua (Circle Head ) throughout their

critical evaluation and suggestion at every stage of the Project, this report could never have

reached its present form This summer training has added to his practical knowledge and built

his confidence.

He would like to convey thanks to Dr. Vikas Daryal (Director) , Mrs. Vandana Madaan

(HOD) and Mr. Gaurav Gupta (Faculty) MBA for their ready assistance, keen interest and

valuable suggestions. Last, but not the least, he is extremely thankful to his parents,

respondents and friends for their unconditional support and ready assistance.


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EXECUTIVE SUMMARY

The intended research on Customers Satisfaction in PNB has been carried out to identify

significant factors of Salesperson Commitment which impact on buyer seller relationship.

OBJECTIVES OF THE STUDY

To have an insight into the attitudes and behaviours of customers.

To find out the differences among perceived service and expected service.

To produce an executive service report to upgrade service characteristics.

To understand consumers preferences.

To access the degree of satisfaction of the consumers

The research has been Descriptive in nature as it seeks to discover ideas and insight to bringout new relationship based on previous findings in other organizations. The type of

investigation is Causal and the impact of Salesperson Commitment on Buyer Seller Relation

has been studied. Study setting is Non-contrived because the study has been conducted with

no interference of researcher. It is a Cross-sectional study as data has been collected at one

point of time.

The data has been collected by researcher from through questionnaire comprising of 100

items scale in order to measure the impactof Salesperson Commitment on Buyer SellerRelation. He has drawn a sample of 100 respondents Who is the customers of PNB (INDIA)

and using non probability sampling technique.

Various statistical tools have also been applied like Factor analysis, Reliability Statistics and

Regression analysis to analyze the data using software for statistical package for social

sciences (SPSS) 16.0.


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CONTENTS

1. Introduction

a. Company/Industry Profile

b. Topic

2. Theoretical Framework

a. Constructs

b. Independent and dependent Variables

3. Literature Review4. Research Objectives

5. Research Methodology

a. Research Design

i. Type of Research Design

ii. Time Horizon

iii. Study Setting

iv. Measurement and scaling

v. Flow chart for selection of statistical toolsb. Hypothesis Development and testing

c. Sample and Sampling Design

d. Data Collection

e. Analytical Tools(if any)

6. Statistical Tools

i. Factor Analysis

ii. Reliability Statistics

iii. Regression Analysis

7. Limitations of the Study

8. Data Analysis

9. Results and Findings

10. Policy Implications

11. Recommendations/Suggestions

12. Bibliography

13. Annexure

i. Annexure i Questionnaire


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ii. Annexure ii- Reliability

iii. Annexure iii- factor analysis

iv. Annexure iv- Regression Analysis

v. Annexure v- T-test

vi. Annexure vi- snapshots


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Banking Industry

INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the

Banking System in India. It will discuss upon the matters with the birth of the

banking concept in the country to new players adding their names in the

industry in coming few years. The banker of all banks, Reserve Bank of India

(RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC,

ICICI, ABN AMRO ,etc. has been well defined under three separate heads withone page dedicated to each bank. However, in the introduction part of the entire

banking cosmos, the past has been well explained under three different heads

namely:

History of Banking in India

Nationalization of Banks in India Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government

took major step in the 1969 to put the banking sector into systems and it nationalized 14

private banks in the mentioned year. This has been elaborated in Nationalization Banks in

India. The last but not the least explains about the scheduled and unscheduled banks in India.

Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.The description along with a list of scheduled commercial banks are given on this page


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1.1.1HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a

healthy economy. The banking system of India should not only be hassle free but it should be

able to meet new challenges posed by the technology and any other external and internal

factors. For the past three decades India's banking system has several outstanding

achievements to its credit. The most striking is its extensive reach. It is no longer confined to

only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached

even to the remote corners of the country. This is one of the main Reasons of India's growth

process.

The government's regular policy for Indian bank since 1969 has paid rich

dividends With the nationalization of 14 major private banks of India. Not long ago, an

account holder had to wait for hours at the bank counters for getting a draft or for

withdrawing his own money. Today, he has a choice. Gone are days when the most efficient

bank transferred money from one branch to other in two days. Now it is simple as instant

messaging or dials a pizza. Money has become the order of the day .The first bank in India,

though conservative, was established in 1786.From 1786 till today, the journey of Indian

Banking System can be segregated into three distinct phases. They are as mentioned below :

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking SectorReforms after 1991.To make this write-up more explanatory, I prefix the scenario as Phase I,

Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan

and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of

Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency

Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was

established which started as private shareholders banks, mostly Europeans share holders. In

1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National


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Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of

India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of

Mysore were set up. Reserve Bank of India came in 1935.During the first phase the growth

was very slow and banks also experienced periodic failures between 1913 and 1948. There

were approximately 1100 banks, mostly small. To streamline the functioning and activities ofcommercial banks, the Government of India came up with The Banking Companies Act,

1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965

(Act No. 23of 1965). Reserve Bank of India was vested with extensive powers for the

supervision of banking in India as the Central Banking Authority. During those days publichas lesser confidence in the banks. As an after math deposit mobilisation was slow. Abreast

of it the savings bank facility provided by the Postal department was comparatively safer.

Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after

independence. In 1955, it nationalized Imperial Bank of India with extensive banking

facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of

India to act as the principal agent of RBI and to handle banking transactions of the Union and

State Governments all over the country. Seven banks forming subsidiary of State Bank of

India was nationalized in 1960 on 19th July, 1969, major process of nationalization was

carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14

major commercial banks in the country were nationalized .Second phase of nationalization

Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step

brought 80% of the banking segment in India under Government owner ship .The following

are the steps taken by the Government of India to Regulate Banking Institutions in the

Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.


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1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200crore

After the nationalization of banks, the branches of the public sector bank India rose to

approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the

sunshine of Government ownership gave the public implicit faith and immense confidence

about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector inits reforms measure. In 1991, under the chairmanship of M Narasimham , a committee was

set up by his name which worked for the liberalisation of banking practices .The country is

flooded with foreign banks and their ATM stations . Efforts are being put to give a

satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. Time is given more importance than money .The

financial system of India has shown a great deal of resilience. It is sheltered from any crisis

triggered by any external macroeconomics shock as other East Asian Countries suffered. Thisis all due to a flexible exchange rate

regime, the foreign reserves are high, the capital account is not yet fully convertible, and

banks and their customers have limited foreign exchange exposure

1.1.2 SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second

Schedule of Reserve Bank of India (RBI) Act,1934. RBI in turn includes only those banks in

this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act .As on

30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918

branches. The scheduled commercial banks in India comprise of State bank of India and its


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associates (8),nationalized banks (19), foreign banks (45), private sector banks (32),co-

operative banks and regional rural banks."Scheduled banks in India" means the State Bank of

India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as

defined in the State Bank of India (Subsidiary Banks) Act,1959 (38 of 1959), a corresponding

new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of

Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a

bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934),

but does not include a co-operative bank"."Non-scheduled bank in India" means a banking

company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of

1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector):

State Bank of India

State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Saurashtra

State Bank of Travancore

Andhra Bank

Allahabad Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India


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Corporation Bank

Dena Bank

Indian Overseas Bank

Indian Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab and Sind Bank

Syndicate Bank

Union Bank of India

United Bank of India

UCO Bank

Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

ING Vysya Bank Ltd

Axis Bank Ltd

Indusind Bank Ltd

ICICI Bank Ltd

South Indian Bank

HDFC Bank Ltd

Centurion Bank Ltd

Bank of Punjab Ltd

IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:


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American Express Bank Ltd.

ANZ Gridlays Bank Plc.

Bank of America NT & SA

Bank of Tokyo Ltd.

Banquc Nationale de Paris

Barclays Bank Plc

Citi Bank N.C.

Deutsche Bank A.G.

Hong Kong and Shanghai Banking Corporation

Standard Chartered Bank.

The Chase Manhattan Bank Ltd.

Dresdner Bank AG.

BANKING SERVICES IN INDIA

With years, banks are also adding services to their customers. The Indian banking

industry is passing through a phase of customers market. The customers have more choices in

choosing their banks. A competition has been established within the banks operating in India

.With stiff competition and advancement of technology, the services provided by banks have

become more easy and convenient. The past days are witness to an hour wait before

withdrawing cash from accounts or a cheque from north of the country being cleared in one

month in the south .This section of banking deals with the latest discovery in the banking

instruments along with the polished version of their old systems.

BANK ACCOUNT

The most common and first service of the banking sector. There are different types of

bank account in Indian banking sector. The bank accounts are as follows:


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Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from

time to time)

Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates /

Societies / Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits Account can be opened byindividuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified

Associates / Societies /Trusts, etc.

Bank Account Online - With the advancement of technology, the major banks in the public and private sector has facilitated their customer to open bank account online. Bank

account online is registered through a PC with an internet connection. The advent of bank

account online has saved both the cost of operation for banks as well as the time taken in

opening an account .

PLASTIC MONEY

Credit cards in India are gaining ground. A number of banks in India are encouraging people

to use credit card. The concept of credit card was used in 1950 with the launch of charge

cards in USA by Diners Club and American Express. Credit card however became more

popular with use of magnetic strip in 1970.Credit card in India became popular with the

introduction of foreign banks in the country. Credit cards are financial instruments, which can

be used more than once to borrow money or buy products and services on credit. Basically

banks, retail stores and other businesses issue these .

LOANS

Banks in India with the way of development have become easy to apply in loan market. The

following loans are given by almost all the banks in the country:

Personal Loan

Car Loan or Auto Loan


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Loan against Shares

Home Loan

Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs25,000 to 10, 00,000

depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are

some of the leading banks which deals in Personal Loan .Almost all the banks have jumped

into the market of car loan which is also sometimes termed as auto loan . It is one of the fast

moving financial products

of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom

price of the car with some simple paper works and a small amount of processing fee. Loan

against shares is very easy to get because liquid guarantee is involved in it. Home loan is the

latest craze in the banking sector with the

development of the infrastructure. Now people are moving to town ship outside the city.

More number of townships is coming up to meet the demand of 'house for all'. The RBI has

also liberalised the interest rates of home loan in order to match the repayment capability of

even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI,HDFC, HSBC are leading. The

educational loan , rather to be termed as student loan, is a good banking product for the mass.

Students with certain academic brilliance, studying at recognised colleges/universities in

India and abroad are generally given education loan / student loan so as to meet the expenses

on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one corner of the globe

to another. This act of banks is known as transfer of money. This activity is termed as

remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders

or other such instruments for transferring the money. This is a type of Telegraphic Transfer or

Tele Cash Orders .It has been only a couple of years that banks have jumped into the money

transfer businesses in India. The international money transfer market grew 9.3% from 2003 to

2004 i.e. from US$213 bn. to US$233bn. in 2004. Economists say that the market of moneytransfer will further grow at a cumulative 12.1% average growth rate through2009.


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FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good

growth and yet remain stable in an increasingly global business environment. The

Indian banking system has witnessed a series of reforms in the past, like deregulation

of interest rates , dilution of government stake in PSBs, and increased participation of

private sector banks. It has also undergone rapid changes, reflecting a number of

underlying developments. This trend has created new competitive threats as well as

new opportunities. This paper aims to foresee major future banking trends, based on

these past and current movements in the market.Given the competitive market,

banking will (and to a great extentalready has) become a process of choice andconvenience. The future of banking would be in terms of integration. This is already

becoming a reality with new-age banks such as YES Bank, and others too adopting a

single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the

differentiator in the short-term but the dynamic environment will soon lead to its

saturation and what will ultimately be the key to success will be a better relationship

management.

1.2.1 OVERVIEW

If one were to say that the future of banking in India is bright, it would be a gross

understatement. With the growing competition and convergence of services, the customers

(you and I) stand only to benefit more to say the least. At the same time, emergence of a

multitude of complex financial instruments is foreseen in the near future (the trend is visible

in the current scenario too) which is bound to confuse the customer more than ever unless she

spends hours(maybe days) to understand the same. Hence, I see a growing trend towards theimportance of relationship managers. The success (or failure) of any bank would depend not

only on tapping the un tapped customer base (from other departments of the same bank,

customers of related similar institutions or those of the competitors) but also on the

effectiveness in retaining the existing base. India has witness to a sea change in the way

banking is done in the past more than two decades. Since 1991, the Reserve Bank of

India(RBI) took steps to reform the Indian banking system at a measured pace so that growth

could be achieved without exposure to any macro- environment and systemic risks. Some ofthese initiatives were deregulation of interest rates, dilution of the government stake in public


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sector banks (PSBs), guidelines being issued for risk management, asset classification, and

provisioning. Technology has made tremendous impact in banking. Anywhere banking and Anytime banking have become a reality. The financial sector now operates in a morecompetitive environment than before and intermediates relatively large volume of

international financial flows. In the wake of greater financial deregulation and global

financial integration, the biggest challenge before the regulators is of avoiding instability in

the financial system.

1.2.2RISK MANAGEMENT

The future of banking will undoubtedly rest on risk management dynamics. Only

those banks that have efficient risk management system will survive in the market in the long

run. The effective management of credit risk is a critical component of comprehensive risk

management essential for long-term success of a banking institution. Although capital serves

the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol

or risk management systems. Coming years will witness banks striving to create sound

internal control or risk management processes .With the focus on regulation and risk

management in the Basel II framework gaining prominence, the post-Basel II era will belong

to the banks that manage their risks effectively. The banks with proper risk management

systems would not only gain competitive advantage by way of lower regulatory capital

charge, but would also add value to the shareholders and other stakeholders by properly

pricing their services ,adequate provisioning and maintaining a robust financial structure.

The future belongs to bigger banks alone, as well as to those which have minimized theirrisks considerably


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CHAPTER -2

PUNJAB NATIONAL BANK


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Punjab National Bank (PNB ) is an Indian financial services company

based in New Delhi, India. Founded in 1895, the bank has over 5,800 branches

and over 6,000 ATMs across 764 cities. It serves over 80 million customers.

Punjab National Bank is one of the Big Four banks of India, along with State

Bank of India, ICICI Bank and Bank of Baroda. It is the third largest bank in

India in terms of asset size (US$6.6 billion by the end of FY 2012-13). The

bank has been ranked 248th biggest bank in the world by the Bankers' Almanac.

PNB has a banking subsidiary in the UK, as well as branches in Hong Kong,

Dubai and Kabul. It has representative Offices in Almaty (Kazakhstan), Dubai

, Shanghai (China), Oslo (Norway) and Sydney (Australia).

During the year 2010-11, the bank introduced new set of products and services

such as PNB Uphaar, PNB Suvidha and World Travel Card. In December 13,

2010, they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January

12, 2011, t he banks joint venture India factoring and finance solutions Pvt Ltdstarted its commercial operations from Delhi, Mumbai

& Chennai. The total number of branches at the end of March 2011 rose to

5189. The branch network comprises 2047 rural, 1154 semi-urban, 1111 urban
http://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/New_Delhi,_India


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& 877 metro Politian branches. During the review period 210 domestic

branches were opened. With 5189 branches, including 28 extension counters,

the bank has the largest network amongst the nationalized banks.

History

Punjab National Bank was registered on 19 May 1894 under the Indian

Companies Act, with its office in Anarkali Bazaar, Lahore. The founding board

was drawn from different parts of India professing different faiths and a varied

back-ground with, however, the common objective of providing country with a

truly national bank which would further the economic interest of the country.

PNB's founders included several leaders of the Swadeshi movement such

as Dyal Singh Majithia and Lala Harkishan Lal, Lala Lalchand, Shri Kali

Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and

Lala Dholan Dass. Lala Lajpat Rai was actively associated with the

management of the Bank in its early years. The board first met on 23 May 1894.Ironically, the PNB Website now claims Lala Lajpat Rai to be the founding

father, surpassing Rai Mul Raj and Dyal Singh Majithia. The bank opened for

business on 12 April 1895 in Lahore.

PNB has the distinction of being the first Indian bank to have been started solely

with Indian capital that has survived to the present. (The first entirely Indian

bank, Commercial Bank, was established in 1881 in Faizabad, but failed in

1958.)

PNB has had the privilege of maintaining accounts of national leaders such

as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as

well as the account of the famous Jalianwala Bagh Committee.
http://en.wikipedia.org/wiki/Anarkali_Bazaarhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Dyal_Singh_Majithiahttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Dyal_Singh_Majithiahttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Anarkali_Bazaar


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VISION

"To be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Gangetic Plains providing entire range of financial

products and services under one roof".

MISSION

"Banking for the unbanked"

Financial Inclusion:

Financial inclusion has been priority area for the Bank as reflected in its mission

"Banking for the unbanked. To provide Business Correspondents (BC) servicesonline, the Bank has put in place Kiosk Banking Solution (KBS). With this new

technology the Financial Inclusion customers can access all the banking

services (Account opening, cash withdrawal, cash deposit, mini statement,

balance enquiry and fund transfer, etc.) required by them at BC location in real

time.

For an efficient use of BC network, The Bank has adopted a mix of BC models

using KBS technology for each Sub Service area (SSA) or Urban Ward (UW)

within service area of each base branch. The Bank has 8490 SSAs across the

country.


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Organizational Structure-

Chairman & Managing Director

Mr. K.R. Kamath


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Employees

As on 31 March 2013, the bank had 63,292 employees, out of which 11,594

were women (18%). It also had 919 employees with disabilities on the same

date (1.45%). The average age of bank employees on the same date was 45.96

years. The bank reported business of INR 11.65 crores per employee and net

profit of INR 8.06 lakhs per employee during the FY 2012-13. The company

Executive Directors

Directors

(Govt. of India Nominee, RBI nominee, Part-time non-official, Shareholder, Officer Em lo ee

General Manager

Deputy General Manager

Asst. General Manager

Chief Manager

Senior Manager

Manager

Officer, Clerks, SWO


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incurred INR 5,751 crores towards employee benefit expenses during the same

financial year.

Subsidiaries:

A. Domestic :

Sr

No. Name of the Entity Country of

Incorporation

Proportion of

ownership %

i) PNB Gilts Ltd. India 74.07

ii) PNB Housing Finance Ltd. India 51.01

iii)PNB Investment Services

Ltd.India 100

iv) PNB Insurance BrokingPvt. Ltd.#

India 81

# PNB Insurance Broking Company is non-functional. The Broking licence has

been surrendered and steps are being initiated for winding-up of the Company.

Domestic Subsidiaries

1. PNB GILTS LTD.

PNB Gilts Ltd., a subsidiary of the Bank, is engaged in the business of trading
http://pnbgilts.com/http://pnbgilts.com/


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in Govt. securities, treasury bills and Non SLR Investments. It is also engaged

in dealing in Money Market Instruments (Call/Notice/Term Money, Repo

/Reverse Repo, Inter-corporate Deposits, Commercial Paper, Certificate of

Deposit) and Mutual Funds Distribution. The company is listed at NSE and

BSE.

2. PNB HOUSING FINANCE LTD

PNB Housing Finance Ltd. is engaged in providing housing loans for purchase,

construction and up gradation of a dwelling unit. The company offers Loans forconstruction or for purchase of house/flat from development authorities and also

from private builders/ group housing societies as well as for renovation/ repairs.

Company also provides finance for construction of residential projects. Loans to

NRIs are also provided for purchase/ construction of house/ flat along with a

resident/ non-resident co-borrower.

3. PNB INVESTMENT SERVICES LTD

PNB Investment Services Ltd, a wholly owned subsidiary, has been set up by

the Bank for carrying out Merchant Banking Business. It provides services for

Project Appraisal, Loan Syndication, Debt Placement and to executes

IPOs/FPO/QIPs. PNBISL is registered with SEBI as a Category- I MerchantBanker.

4. PNB INSURANCE BROKING Pvt. Ltd.

The Bank is holding majority stake in above company, jointly with Vijaya

Bank, minor shareholder.
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Domestic Joint Ventures

The Bank has the following Joint Ventures:

1. Principal PNB Asset Management Company Pvt. Ltd

2. Principal Trustee Company Pvt. Ltd

3. Assets Care & Reconstruction Enterprise Ltd.

4. PNB Metlife India Insurance Company Ltd

B. International:

Sr.

No

Name of the Entity Country o

incorporation

Proportion

of

ownership

1 Punjab National Bank(International) Ltd.

UnitedKingdom

100%

2 Druk PNB Bank Ltd Bhutan 51%

3 JSC SB PNB Kazakhstan Kazakhstan 84.375%

Associates: (Bank having 20% or more stake)

Punjab National Bank

Type Public

Traded as BSE: 532461

NSE: PNB
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CNX Nifty Constituent

Industry Banking, Financial services

Founded 1895 [1][2]

Founder(s) Lala Lajpat Rai

Headquarters New Delhi, India

Key people K R Kamath

(Chairman & MD)[3]

Products Credit cards, consumer

banking, corporate

banking, finance and

insurance, investment banking, mortgage

loans, private

banking ,private

equity, wealth management

Revenue INR 474 billion (US$ 8.7

billion) (2013 )[4][5]

Net income INR 49.54 billion (US$

906 million) (2013 )[4][5]

Total assets INR 4.97 trillion (US$

90.9 billion) (2013 )[4][5]
http://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-Origin-1http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-Origin-1http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-Origin-1http://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-3http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-3http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-3http://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Wealth_managementhttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-PNBAR2012-13-4http://en.wikipedia.org/wiki/Wealth_managementhttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-3http://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-Origin-1http://en.wikipedia.org/wiki/Punjab_National_Bank#cite_note-Origin-1http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/S%26P_CNX_Nifty


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Employees 62,392 (March 2013 )[4]

Financial performance

# Particular s[4] FY

2008-09

FY

2009-10

FY

2010-11

FY

2011-12

FY

2012-13

A Deposits (' INR crores) 209,761 249,330 312,899 379,588 391,560

B Advances (' INR crores) 154,703 186,601 242,107 293,775 308,725

CTotal Business (A+B) ('

INR crores)364,464 435,931 555,006 673,363 700,285

DTotal Assets (' INR

crores)246,919 296,633 378,325 458,192 478,877

EOperating Profit (' INR

crores)5,690 7,326 9,056 10,614 10,907

F Net Profit (' INR crores) 3,091 3,905 4,433 4,884 4,748

GBusiness/Employee ('

INR lakhs)655 808 1,018 1,132 1,165
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I Return on assets (%) 1.39 1.44 1.34 1.19 1.00

J Gross NPAs (%) 1.60 1.71 1.79 2.93 4.27

K Net NPAs (%) 0.17 0.53 0.85 1.52 2.35

L Total Branches 4,665 4,997 5,189 5,670 5,874

Listings and shareholding [edit]

PNB's equity shares are listed on Bombay Stock Exchange and the National

Stock Exchange of India. It is a constituent of the S&P CNX Nifty at the NSE.

Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group (Govt. of India ) 58.87%

Foreign Institutional Investors (FII) 17.51%

Insurance Companies 15.46%

Individual shareholders 04.05%

Banks/Financial Institutions/Mutual Funds /UTI 03.02%
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Others 01.09%

Total 100.0%

Awards and recognition

Punjab National Bank was ranked #717 in the Forbes Global 2000 in May

2013.

Punjab National Bank was ranked #26 in the Fortune India 500 ranking of

2011.

PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.

The bank was recognised as the 'most socially responsive bank' by Business

world and PwC in 2012.

In 2011, it received Golden Peacock Award for "Excellence in CorporateSocial Responsibility" and "National Training Award".

SWOT ANALYSIS

STRENGTHS

Brand name of Punjab National Bank (PNB) is established over the years.

Single window clearance - a single employee provides wide variety of

facilities to the borrower, minimizing the hassle of wastage of time.

Appraisal techniques are used.

Specialized software's are big assets.

There is no penalty for prepayment from borrowers own service.

WEAKNESSES


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High interest rates as compared to other housing finance institutions.

Top management takes large amount of time to approve high value

seeking loan borrowers. No publicity.

No marketing managers work, only through direct sales agent.

People are not aware of wide variety of schemes offered by the company;

tend to think the company as only providing home loans.

There is the shortage of staff at almost all branches which does not ensure

easy addressable of the customers problems.

Delegation of authority and responsibility is not proper.

OPPORTUNITIES

Special rates of interest are offered during exhibitions. Special rates of interest can be introduced for employees of PSU'S &

reputed national or multinational companies'

Product life cycle is to be reviewed.

The growing category of the builders ensure that good, high value&

qualitative projects, providing them home loans with the new and

innovative schemes can lead to over all development of the company.

THREATS

The competition in market is very high due to the private players.

The rates of interest of other players are quite low.

Innovative schemes with home loan from other players.

The processing process is quite slow which leads to low housing finance


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CHAPTER 3

INFORMATION TO TOPIC


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SATISFACTION DEVELOPMENT

Customer satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction

is defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction

goals. "[1] In a survey of nearly 200 senior marketing managers, 71 percent responded that

they found a customer satisfaction metric very useful in managing and monitoring their

businesses.

It is seen as a key performance indicator within business and is often part of a BalancedScorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers expectations. Furthermore, when theseratings dip, they warn of problems that can affect sales and profitability. . . . These metrics

quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service

has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.

When customers have high expectations and the reality falls short, they will be disappointed

and will likely rate their experience as less than satisfying. For this reason, a luxury resort, forexample, might receive a lower satisfaction rating than a budget motel even though itsfacilities and service would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an

industry that is an oligopoly, where only a few suppliers of a certain product or service exist.

As such, many cell phone plan contracts have a lot of fine print with provisions that they

would never get away if there were, say, a hundred cell phone plan providers, because
https://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-Marketing_Metrics-1https://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-Marketing_Metrics-1https://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-Marketing_Metrics-1https://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Bargaining_powerhttps://en.wikipedia.org/wiki/Bargaining_powerhttps://en.wikipedia.org/wiki/Cell_phonehttps://en.wikipedia.org/wiki/AT%26Thttps://en.wikipedia.org/wiki/Verizonhttps://en.wikipedia.org/wiki/Oligopolyhttps://en.wikipedia.org/wiki/Fine_printhttps://en.wikipedia.org/wiki/Fine_printhttps://en.wikipedia.org/wiki/Oligopolyhttps://en.wikipedia.org/wiki/Verizonhttps://en.wikipedia.org/wiki/AT%26Thttps://en.wikipedia.org/wiki/Cell_phonehttps://en.wikipedia.org/wiki/Bargaining_powerhttps://en.wikipedia.org/wiki/Bargaining_powerhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-Marketing_Metrics-1https://en.wikipedia.org/wiki/Marketing


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customer satisfaction would be far too low, and customers would easily have the option of

leaving for a better contract offer.

There is a substantial body of empirical literature that establishes the benefits of customer

satisfaction for firms.

Customer Satisfaction: How to Increase Customer Satisfaction in 3 Steps

Valeria Maltoni wrote a great article about how you should develop a content strategy for

customers who already bought one of your products. To summarize, she recommends that

you:

Confirm they made the right choice Tell them what they just bought

Give them something to share

Get there early

Im sharing this with you because this is a crucial phase in the customer life cycle. If youexecute it right, you can minimize returns, prevent buyers remorse, and increase customersatisfaction.

What else can you do? How can you create a satisfied customer who will continue to buy

more stuff from you?

1. Justify the Sale with Social Proof

When most sales are made, chances are that the buyer will have to justify the purchase to

another person a boss, spouse, or anyone that may pass judgment.

To make this go smoothly, you should arm each one of your customers with testimonials

from other people and companies. Or, if you have a low return rate, you might emphasize

how few people returned it.

You likely recognize this as social proof. The problem is, many people use it in the selling

process, but forget about it in the post purchase phase. It works, so dont make that mistake.


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2. Surprise Customers with a Bonus

When people spend money on a product, the last thing you want them to think is was thisworth it? To combat this, you should surprise each one of your customers with a little bonus.To elaborate, let me share the fascinating experiment that helped waiters service

professionals increase their tips by 23%.

Picture a restaurant that offers mints on the way out. Do you think customers will leave a

bigger tip if the waiter left a mint with the check? How about 2 mints? Or, what if the waiter

left 1 mint, walked away, and then out of no where, went back to the table to leave an

additional mint?

As you may have guessed, leaving a mint increased the tip size. However, in each scenario,

the increase was different. For 1 mint, the tip was 3% higher. For 2 mints, it was 14% higher.

And for the third scenario it was an amazing 23% higher. The surprise triggered the largest

tip because customers didnt expect it.

So think about this. If tips are representative of customer satisfaction, which I believe they

are, you should surprise your customers with a free, valuable bonus. They wont expect it and

it will help them answer was it worth it? with an enthusiastic, head- nodding, yes!

3. Offer Free Product Training and Support

This is a clear, business-winning decision. Nothing decreases customer satisfaction more than

being confused with how to make a product work. And free product training and support will

be how you alleviate this customer frustration.

For example, the amazing e-learning software provider, Articulate, provides a free blog, forcustomers and non-customers, that teaches people how to create more effective e-learning

training material. I had the chance to interview Articulates CEO Adam Schwartz and he said

this blog helped keep customers happy and bring in new business.

Why does this work? For starters, when people spend money on something, they tend to

doubt themselves and their ability to make the product work right. With detailed, free

training, youll alleviate that self -doubt and win a life-long customer.


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Whether you are building the fortunes of your professional practice or building your Fortune

1000 company, Customersatisfaction.com and Dr. Gary S. Goodman can assist you. We're

here for you if you're seeking consultation or an internationally acclaimed customer service

speaker, a dynamic sales speaker, or a highly credentialed, engaging best practices in

negotiation speaker. We offer special seminars, custom conference programs, keynote

speakers, convention breakout programs, customer service training, sales speakers,

prospecting seminars, telemarketing training, front-line and supervisor coaching, sales

management training, teleconferences, webinars, audio & video learning products, original

articles, books, and licensed publications. We also offer a range of consulting and research

services that include: customer service & sales outsourcing, employee and customer

satisfaction surveys, service level monitoring, mystery shopping, unobtrusive measurement,

benchmarking, and focus groups.

By teaming with us, youll be able to access uniquely effective protocols for improvingcustomer service, sales, and telemarketing productivity, making customer transactions

shorter, and more cost- effective. Youll discover leading-edge ways to monitor, measure, andmanage your service and sales functions, and overall customer satisfaction.

Our methods have been recognized as the "Best" of the "Best Practices in Customer Care."

More important, our clients win prestigious industry awards, enabling them to reach and

sustain positions of leadership and respect.

We also give customers new forums, including blogs, where they can Rant & Rave, praising

excellent service providers while alerting us to those who fail to meet expectations. By doing

so, we hope to improve customer satisfaction at large, while creating a significant feedback

loop between businesses and those who are served by them.

Improve Customer Satisfaction

As customer expectations increase, maintaining customer satisfaction is an on-going

challenge and a competitive opportunity. Continuing to evaluate and evolve your customerinteraction strategies can deliver benefits including faster problem resolution, greater

customer loyalty, better customer information, and more efficient contact centres. With

collaboration tools, you can provide service through the channels your customers choose to

reach you, whether in person, by phone, online, or through social media.
http://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/articles/main.htmlhttp://www.customersatisfaction.com/articles/main.htmlhttp://www.customersatisfaction.com/consulting/main.htmlhttp://www.customersatisfaction.com/consulting/main.htmlhttp://www.customersatisfaction.com/credentials/main.htmlhttp://www.customersatisfaction.com/rave/main.htmlhttp://www.customersatisfaction.com/rave/main.htmlhttp://www.customersatisfaction.com/credentials/main.htmlhttp://www.customersatisfaction.com/consulting/main.htmlhttp://www.customersatisfaction.com/consulting/main.htmlhttp://www.customersatisfaction.com/articles/main.htmlhttp://www.customersatisfaction.com/articles/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.htmlhttp://www.customersatisfaction.com/seminars/main.html


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Companies typically evolve their customer-service strategies along three waves. The first

involves cost reduction, the second emphasizes improving relationships, and the third focuses

on creating more interactive user experiences. This evolution can help not only to improve

the quality and efficiency of interactions, but provide differentiation from competitors.

Primary Use Cases for Improving Customer Satisfaction

Provide Multichannel Customer Service

Move past typical service strategies to create more interactive and collaborative

customer relationships.

Locate & Access Remote Experts

Identify, locate, and connect with experts in real-time to provide customers with

advisory services for sales and support using high-quality audio and video.

Monitor Social Media Provide real-time proactive response to generate greater

customer loyalty and brand preference.

Secondary Use Cases for Improving Customer Satisfaction

Enable Meetings with Remote Participants

Use web conferencing so employees and customers can meet any time, from

anywhere.

Collaborate with External Organizations

Share information, interact with customers in real time, and communicate across

channels beyond email and telephone.

Advantages of Customer Satisfaction Surveys

Up-to-date feedback : Gather current customer feedback on various aspects of your

company. You can stay on top of customer trends through regularly scheduled online

surveys or email surveys, and receive instant customer feedback. It is always useful


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to acquire insight into how your customers are currently reacting to all aspects of your

business.

Benchmark results : You can administer the same survey every so often to customers

to gain continued insight into your customers. Surveys can have the same questions,

which will allow you to compare data over time and benchmark survey data across

previous years to determine if any changes need to be made.

Show that you care : Customers like to be asked for their feedback. It gives the

customer the perception that your company values them; is committed to keeping

them as a long-term customer; and bases business decisions on their feedback.

Disadvantages of Customer Satisfaction Surveys

Too many surveys, so little time : Your customers are bombarded with online

surveys. Surveys may be simple to complete, however, some people simply dont liketo complete them. Sending surveys too often can irritate customers and lead to

customer burnout. Customer burnout can result in low response rates or result in

lower satisfaction scores, despite your reputation for providing excellent products or

services.

Privacy Issues : We live in a high-tech environment filled with daily doses of

unwanted junk email, email solicitations, and sales calls. When taking an online

survey or a phone survey (or any type of survey), it is hard for your customers to

believe that they arent being tracked. Because of insecurities of releasing privateinformation, customers today are hesitant in giving out information that may lead to

more junk email and unwanted calls. Make certain to assure customers that the

information they provide in response to your customer satisfaction surveys will not be

used. Without this disclaimer, it may be difficult to receive a good response rate.

4 KEY TO MEASURE CUSTOMER SATISFACTION

Overall Satisfaction Measure (Emotional)

Example question: Overall, how satisfied are you with La Jolla Grove restaurant?

This question reflects the overall opinion of a consumers satisfaction experience with a product he or she has used.


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The single greatest predictors of customer satisfaction are the customer experiences that

result in attributions of quality.

Perceived quality is often measured in one of three contexts:

1. Overall quality

2. Perceived reliability

3. Extent of customers needs fulfilledIt is commonly believed that dissatisfaction is synonymous with purchase regret while

satisfaction is linked to positive ideas such as it was a good choice or I am glad that I bought it.

Loyalty Measurement (Affective, Behavioral)

Example question: Would you recommend La Jolla Grove restaurant to your family andfriends?

This single question measure is the core NPS (Net Promoter Score) measure.

Customer loyalty reflects the likelihood of repurchasing products or services. Customer

satisfaction is a major predictor of repurchase but is strongly influenced by explicit

performance evaluations of product performance, quality, and value.Loyalty is often measured as a combination of measures including overall satisfaction,

likelihood of repurchase, and likelihood of recommending the brand to a friend.

A common measure of loyalty might be the sum of scores for the following three questions:

Overall, how satisfied are you with [brand]?

How likely are you to continue to choose/repurchase [brand]?

How likely are you to recommend [brand] to a friend or family member?

A Series of Attribute Satisfaction Measurements (Affective and Cognitive)

Example question: How satisfied are you with the taste of your entre at La Jolla Grove? Example question: How important is taste in your decision to select La Jolla Groverestaurant?

Affect (liking/disliking) is best measured in the context of product attributes or benefits.

Customer satisfaction is influenced by perceived quality of product and service attributes, and


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is moderated by expectations of the product or service. The researcher must define and

develop measures for each attribute that is important for customer satisfaction.

Consumer attitudes toward a product develop as a result of product information or any

experience with the product, whether perceived or real.

Again, it may be meaningful to measure attitudes towards a product or service that a

consumer has never used, but it is not meaningful to measure satisfaction when a product or

service has not been used.

Cognition refers to judgment: the product was useful (or not useful); fit the situation (or did

not fit); exceeded the requirements of the problem/situation (or did not exceed); or was an

important part of the product experience (or was unimportant).

Judgments are often specific to the intended use application and use occasion for which the

product is purchased, regardless if that use is correct or incorrect.

Affect and satisfaction are closely related concepts. The distinction is that sati sfaction is postexperience and represents the emotional affect produced by the products quality or value.

Intentions to Repurchase Measurements (Behavioral Measures)

Example question: Do you intend to return to the La Jolla Grove restaurant in the next 30days?

When wording questions about future or hypothetical behaviour, consumers often indicate

that purchasing this product would be a good choice or I would be glad to purchase this product.Behavioural measures also reflect the consumers pastexperience with customerservice representatives.

Satisfaction can influence other post-purchase/post-experience actions like communicating to

others through word of mouth and social networks.

Additional post-experience actions might reflect heightened levels of product involvement

that in turn result in increased search for the product or information, reduced trial of

alternative products, and even changes in preferences for shopping locations and choice

behaviour.


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Customer Expectations: 7 Types all Exceptional Researchers Must Understand

Customer satisfaction reflects the expectations and experiences that the customer has with a

product or service. Expectations reflect both past and current product evaluation and use

experiences.

Think about any maj or purchases youve made recently. Did you research your purchase?Did you collect information from advertising, salespersons, friends, associates, or even test

the product?

This information influences our expectations and gives us the ability to evaluate quality,

value, and the ability of the product or service to meet our needs.

Customers hold both explicit and implicit performance expectations for attributes, features,

and benefits of products and services.

The nature of these expectations will dictate the form and even the wording of customer

satisfaction survey questions.

Let me repeat this: the nature of these expectations will dictate the form and even the wording

of your satisfaction questions.

Understanding the following 7 customer expectations is critical before you set out to measure

customer satisfaction.

1. Explicit Expectations

Explicit expectations are mental targets for product performance, such as well-identified

performance standards.

For example, if expectations for a colour printer were for 17 pages per minute and high

quality colour printing, but the product actually delivered 3 pages per minute and good

quality colour printing, then the cognitive evaluation comparing product performance and

expectations would be 17 PPM 3 PPM + High Good, with each item weighted by theassociated importance.

2. Implicit Expectations

Implicit expectations reflect established norms of performance. Implicit expectations are

established by business in general, other companies, industries, and even cultures.

An implicit reference might include wording such as Compared with other companies orCompared to the leading brand 3. Static Performance Expectations

Static performance expectations address how performance and quality are defined for a

specific application. Performance measures related to quality of outcome may include the


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evaluation of accessibility, customization, dependability, timeliness, accuracy, and user

friendly interfaces.

Static performance expectations are the visible part of the iceberg; they are the performance

we see and often erroneously are assumed to be the only dimensions of performance thatexist.

4. Dynamic Performance Expectations

Dynamic performance expectations are about how the product or service is expected to

evolve over time. Dynamic expectations may be about the changes in support, product, or

service needed to meet future business or use environments.

Dynamic performance expectations may help to produce static performance expectations asnew uses, integrations, or system requirements develop and become more stable.

5. Technological Expectations

Technological expectations focus on the evolving state of the product category.

For example, mobile phones are continually evolving, leading to higher expectations of new

features.

Mobile service providers, in an effort to limit a consumers ability to switch to newtechnology phones, have marketed rate plans with high cancellation penalties for switching

providers, but with liberal upgrade plans for the phones they offer.

The availability of low profile phones with email, camera, MP3, blue tooth technology, and

increased storage will change technology expectations as well as the static and dynamic

performance expectations of the product.

These highly involving products are not just feature based, but raise expectations that

enhance perceptions of status, ego, self-image, and can even evoke emotions of isolation and

fear when the product is not available.

6. Interpersonal Expectations

Interpersonal expectations reflect the relationship between the customer and the product orservice provider.

Person to person relationships are increasingly important, especially where products require

support for proper use and functioning.

Support expectations include interpersonal sharing of technical knowledge, ability to solve a

problem, ability to communicate, reduced time to problem resolution, courtesy, patience,

enthusiasm, helpfulness, assurance that they understood my problem and my situation,

communication skills, and customer perceptions regarding professionalism of conduct, oftenincluding image and appearance.


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7. Situational Expectations

In building a customer satisfaction survey, it is also helpful to evaluate why pre-purchase

expectations or post-purchase satisfaction may or may not be fulfilled or even measurable.

The following conditions may be considered:

Expectations may not include unanticipated service attributes that are new to that

consumer.

Expectations may be based on vague images, thereby creating wide latitude of

acceptable performance and expected satisfaction.

Product performance expectations and evaluations may be sensory and not cognitive,

as in expectations of taste, style or image. Such expectations are not only difficult to

evaluate and understand, but may change over time and with consumption.


Customer satisfaction refers to the extent to which customers are happy with the products and

services provided by a business. Customer satisfaction levels can be measured using survey

techniques and questionnaires.

Gaining high levels of customer satisfaction is very important to a business because satisfied

customers are most likely to be loyal and to make repeat orders and to use a wide range of

services offered by a business.

Customer focused

Studies carried out by companies like Argos and Cadburys have found very high levels of

customer satisfaction. It is not surprising because these companies emphasise market research

and marketing as the tools to find out what customers want. Knowing what your customer

wants then makes it possible to tailor everything you do to pleasing the customers e.g.

providing the goods that customers want, in the packaging that they want, in retail outlets

which are convenient to use and well placed.

There are many factors which lead to high levels of customer satisfaction including:

Products and services which are customer focused and thence provide high levels of

value for money.

Customer service giving personal attention to the needs of individual customers.


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After sales service - following up the original purchase with after sales support such

as maintenance and updating (for example in the updating of computer packages).


Customer satisfaction is essential to any business. If your customers are satisfied they are

more likely to purchase more from you or from you more often. So, how do you measure

your customer satisfaction? And how can you increase your customer satisfaction?

Measure Customer Satisfaction

Like any other aspect of your business that you want to improve, you first have to

measure it. You can't manage what you don't measure. Without an appropriatemeasurement you have no way of knowing whether you are getting better or worse.

One of the best ways to measure your customer satisfaction is with a Customer

Satisfaction Survey. As you design your customer satisfaction survey, remember to stay

focused on the issues that will have the biggest impact.

Many factors have an impact on customer satisfaction and loyalty. You don't have enough

resources to attack all the problem areas. Key Driver Analysis tells you what is most

important to your customers and where to spend your money for the greatest impact so

you can take action.

As you do the Key Driver Analysis, don't lose sight of your business strategy. There are a

small number of factors that you need to keep everyone focused on, your Key

Performance Indicators (KPI).

And finally, don't forget that Keeping Score Isn't Winning. The important thing is to keep

your customers satisfied to keep your business healthy and growing.

Increase Customer Satisfaction

Once you have established your benchmark of customer satisfaction, you need to start

working to improve it.


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The first step is to get everyone on your team to understand that they are in the customer

service "department" regardless of where in the company they work. You may want to

print out and post this list of Customer Management Tips for them.

Next, they all need to understand that Guaranteed Customer Satisfaction is not just the

goal, but that it is achievable and essential. And while it is essential, Good Customer

Service Is No Longer Enough.

Customer Service & Sales Tips

Building solid customer relationships is key to the success of an organization. Consumers

have more choices than ever before in deciding what products to purchase and whichcompany to do business with. Companies that utilize appropriate customer service techniques

as well as effective and efficient sales tactics will enjoy loyal customers and steady business

growth.

Value Customer Relationship

It is important that a company make its customers feel value and that their business is

appreciated. Advances in technology have changed the way we interact with customers and

as a result, the relationship that once existed between buyer and seller has been lost is a sea of

telephones, voice-mail, fax machines and emails.

Excellent customer service begins with the right customer service employee. Clients enjoy

doing business with people that are helpful and enthusiastic about their jobs. Patience also

goes a long way in customer service. Although an employee may speak with several

customers a day, it is necessary to treat each new client with courtesy and respect. Going

above and beyond minimum requirements will ensure satisfied customers and repeat

business.

Know Product

A thorough understanding of the product you are selling is one of the best ways to improve

sales. Further, knowing how the features of your product can best meet the needs of your

client is also important. Give customers the chance to understand your business and how youcan be of benefit to them.


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Polish your sales presentation and practice before meeting with clients. Jot down a few

anticipated objections and possible scenarios of overcoming them so you are not surprised

during your sales pitch. Really listen to your customer and be mindful of any changes in your

customer's demeanor. Always take notes so when it comes time to close the deal, you can use

them as a reference to make sure you have met your customer's needs.

Conduct Needs Analysis

A thorough needs analysis is important for sales and customer service. A needs analysis is a

method of uncovering how the customer's life or company will be improved by purchasing a

product or service. It is also a method of finding out the customer's interests as well as how

much they would be willing to pay for a particular product. An article in Entrepreneurmagazine explained the needs analysis as a way for the sales person to understand their client

and ask questions that allow the client to essentially sell themselves. Needs analysis questions

are structured to encourage open dialogue. The client is able to talk about his wants and also

feels as though the sales person is genuinely interested in his satisfaction.

Defining customer satisfaction

Because the concept of customer satisfaction is new to many companies, it's important to beclear on exactly what's meant by the term.

Customer satisfaction is the state of mind that customers have about a company when their

expectations have been met or exceeded over the lifetime of the product or service. The

achievement of customer satisfaction leads to company loyalty and product repurchase. There

are some important implications of this definition:

Because customer satisfaction is a subjective, non-quantitative state, measurement

won't be exact and will require sampling and statistical analysis.

Customer satisfaction measurement must be undertaken with an understanding of the

gap between customer expectations and attribute performance perceptions.

There should be some connection between customer satisfaction measurement and

bottom-line results.

"Satisfaction" itself can refer to a number of different facts of the relationship with a

customer. For example, it can refer to any or all of the following:


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Satisfaction with the quality of a particular product or service

Satisfaction with an on-going business relationship

Satisfaction with the price-performance ratio of a product or service

Satisfaction because a product/service met or exceeded the customer's expectations

Each industry could add to this list according to the nature of the business and the specific

relationship with the customer. Customer satisfaction measurement variables will differ

depending on what type of satisfaction is being researched. For example, manufacturers

typically desire on-time delivery and adherence to specifications, so measures of satisfaction

taken by suppliers should include these critical variables.

Clearly defining and understanding customer satisfaction can help any company identifyopportunities for product and service innovation and serve as the basis for performance

appraisal and reward systems. It can also serve as the basis for a customer satisfaction

surveying program that can ensure that quality improvement efforts are properly focused on

issues that are most important to the customer.

Objectives of a customer satisfaction surveying program

In addition to a clear statement defining customer satisfaction, any successful surveying program must have a clear set of objectives that, once met, will lead to improved

performance. The most basic objectives that should be met by any surveying program include

the following:

Understanding the expectations and requirements of all your customers

Determining how well your company and its competitors are satisfying these

expectations and requirements

Developing service and/or product standards based on your findings

Examining trends over time in order to take action on a timely basis

Establishing priorities and standards to judge how well you've met these goals

Before an appropriate customer satisfaction surveying program can be designed, the

following basic questions must be clearly answered:

How will the information we gather be used?

How will this information allow us to take action inside the organization?


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How should we use this information to keep our customers and find new ones?

Careful consideration must be given to what the organization hopes to accomplish, how the

results will be disseminated to various parts of the organization and how the information will

be used. There is no point asking customers about a particular service or product if it won't or

can't be changed regardless of the feedback.

Conducting a customer satisfaction surveying program is a burden on the organization and

its customers in terms of time and resources. There is no point in engaging in this work unless

it has been thoughtfully designed so that only relevant and important information is gathered.

This information must allow the organization to take direct action. Nothing is more

frustrating than having information that indicates a problem exists but fails to isolate thespecific cause. Having the purchasing department of a manufacturing firm rate the sales and

service it received on its last order on a scale of 1 (terrible) to 7 (magnificent) would yield

little about how to improve sales and service to the manufacturer.

Its a well-known fact that no business can exist without customers. In the business ofwebsite design, its important to work closely with your customers to make sure the site orsystem you create for them is as close to their requireme nts as you can manage. Because itscritical that you form a close working relationship with your client, customer satisfaction is of

vital importance. What follows is a selection of tips that will make your clients feel valued,

wanted and loved.

Customer Satisfaction in 7 Steps

Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If yourenot used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured,

though, it does get easier over time. Its important to meet your customers face to face at leastonce or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with someone

theyve actually met in person, r ather than a voice on the phone or someone typing into an

email or messenger program. When you do meet them, be calm, confident and above all, take


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time to ask them what they need. I believe that if a potential client spends over half the

meeting doing the talking, youre well on your way to a sale.

Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a response

to an email or phone call. It might not always be practical t o deal with all customers querieswithin the space of a few hours, but at least email or call them back and let them know

youve received their message and youll contact them about it as soon as possible. Even ifyoure not able to solve a problem right away, let the customer know youre working on it.

A good example of this is my web host. Theyve had some trouble with server hardwarewhich has caused a fair bit of downtime lately. At every step along the way I was emailed

and told exactly what was going on, why things were going wrong, and how long it would be

before they were working again. They also apologised repeatedly, which was nice. Now if

they server had just gone down with no explanation I think Id have been pretty annoyed andmay have moved my business elsewhere. But because they took time to keep me informed, it

didnt seem so bad, and I at least knew they were doing something about the problems. Thatto me is a prime example of customer service.

Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is very

true. Its very important to be friendly, courteous and to make your clients feel like youretheir friend and youre there to help them out. There will be times when you want to beatyour clients over the head repeatedly with a blunt object it happens to all of us. Its vitalthat you keep a clear head, respond to your clients wishes as best you can, and at all timesremain polite and courteous.

Have a Clearly-Defined Customer Service Policy

This may not be too important when youre just starting out, but a clearly defined customerservice policy is going to save you a lot of time and effort in the long run. If a customer has a

problem, what should they do? If the first option doe snt work, then what? Should theycontact different people for billing and technical enquiries? If theyre not satisfied with anyaspect of your customer service, who should they tell?


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Theres nothing more annoying for a client than being passed from person to person, or notknowing who to turn to. Making sure they know exactly what to do at each stage of their

enquiry should be of utmost importance. So make sure your customer service policy is

present on your site and anywhere else it may be useful.

Atte ntion to Detail (also known as The Little Niceties)

Have you ever received a Happy Birthday email or card from a company you were a client

of? Have you ever had a personalis

summer report finl

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