Measuring Customer Satisfaction - HDFC
Measuring Customer Satisfaction - HDFC
Measuring Customer Satisfaction - HDFC
Project Report on
Customer Satisfaction
Measurement
at
Session 2009-10
Submitted To:-
Submitted By:-
CERTIFICATE
Guide:
Preface
This is to certify that I, Nitin Sharma of B.com. (Prof.)-III of D.A.V College, Jalandhar
have undergone Summer Training at HDFC Bank. Jalandhar and have prepared the
Date:
EXECUTIVE SUMMARY
- Introduction
- Customer Satisfaction Concepts
- Sampling Design
- Research Design
- Research Findings
- Research Analysis
- Customer Satisfaction
Measurement
- The road ahead
- Conclusions
- Appendices
INTRODUCTION
INTRODUCTION
PROBLEM STATEMENT: -
The management of HDFC BANK desires to know about the satisfaction of
their customers related to the Retail Banking products and also it wants to know
the attitude, image and motivation of customers towards banking services
provided by them.
CUSTOMER
The sample size of the customers was small, so it was not able to convey
the attitude of the customers
Inadequate time was the major constraints during the project work
Respondents might have some biased views and this could have affected
the findings to a certain extent
CUSTOMER SATISFACTION
Customer satisfaction means giving the customers what they really want,
when they want it and the way they want it. It involves understanding customer
expectations and meeting them fully.
It can be defined as” an outcome of purchase and use resulting from the
buyer’s comparison of rewards and the costs of the purchase in relation to the
anticipated consequences. (Churchill and Surprenant 1982, 493)
Customer is an individual or an organization. Their requirements are very
similar.
Conformance of services to their requirements and its performance in
actual stage
Competitive prices
Quality and reliability
Prompt delivery
Service
Improved profitability: -
There is both an intuitive belief and empirical evidence that improved
customer satisfaction will increase organizational profitability.
Customer Satisfaction has long reaching impact on the current and perhaps
future viability of an organization. The cycle suggests that satisfied customers
tolerate higher margins that can be used to better pay employees. This boosts
employee moral, reducing employee turnover, which in turn helps to produce
more satisfied customers and so on.
BY PRODUCT OF CUSTOMER SATISFACTION
Information:
The primary intention for measuring customer satisfaction is to collect
information regarding either what customers report needs to be changed ( in a
product , service , or delivery system ) or to assess how well an organization is
currently delivering on its understanding of these needs. This is an
Communication:
The very act of surveying customers conveys a very positive message; the
organization is interested in its customers’ well-being, needs, pleasures, and
IMAGE
HOW TO ACHIEVE CUSTOMER SATISFACTION?
SATISFACTION?
It’s the responsibility of the management to take the initiative and measure
the customer satisfaction but it is the responsibility of the whole organization to
manage and improve.
A naïve view of business might suggest that profit is the appropriate goal of
an organization, which is a very shortsighted view. From a practical viewpoint,
the primary goal of an organization has to be customer retention. Only with a
steady base of customers can an organization hope to make a profit. And only by
first satisfying customers can a business ever hope to retain its current
customers.
COMPLAINTS AND CUSTOMER SATISFACTION:
Relevant population:
Study mainly focused on the customers who visit and transact at retail
branch banks. Database of 8000 + customer were already there with the HDFC
BANK (SION branch). Because of geographical, time and money constraint,
method of Simple Random Sampling was incorporated to select the samples
from Jalandhar. Because of this process, each element of the target population
has an equal chance of being selected into the sample.
Parameters of Interest:
Population proportion is the parameter of interest where the proportion
satisfied with the products and services rendered by the HDFC BANK was
investigated. Sample statistic is the sample proportion, which estimated the
required population proportion.
Sampling frame:
The division thus providing the sampling frame prepared list of all the
customers going for RETAIL BANKING.
Type of sample:
With the target population being known and having the time, money and
geographical constraints, the probability random sampling method was adopted.
With this sample design, we made probability-based confidence estimates of the
population proportion of interest. The selection followed an appropriate
procedure in which there is no chance for the interviewers or others to modify the
selection made.
Sample size:
As the population Standard Deviation is not known and we intended to
follow Normal Distribution curve while testing Hypothesis, a sample of 15
respondents was selected at random to obtain the sample proportions. Pilot
survey was conducted and the responses through the questionnaire were
registered and the sample proportions were determined.
These sample proportions were used along with the Confidence level of
80% and +5% allowable errors in the sample size estimation to arrive at the main
sample size of 57.
Data source:
Our primary data comes from an opinion-based survey, which was then
conducted across the entire Jalandhar with the sample size of 57 respondents
drawn, random. Our secondary data was scanned from various books,
magazines, Internet etc. The final model has been built by synergizing data from
the above two sources.
DATA SOURCE
FINDINGS
RECOMMENDATIONS
RESEARCH DESIGN
RESEARCH DESIGN
EXPLORATION:
Qualitative:
Factors important for customers in a bank were studied and depending
upon them the questionnaire was prepared.
See the Appendix (Part-3)
Instrument:
The instrument used for the research is the questionnaire, which was
prepared after a thorough knowledge of various aspects of customer satisfaction
process. The instrument when it was drafted for the first time for the pilot survey
was informative enough to gather the required information requiring some
Amendments. Because of this, required revision of the instrument was done after
which the main was derived and the final revised questionnaire was administered
on the same.
Questionnaire Design:
The questionnaire contained the questions that help to dive deep in the
customer satisfaction level of customer in a bank. Recommendation of the HDFC
BANK services to others, rating experience at HDFC BANK, feedback on
maintenance charges handling of complaint calls, response time, and knowledge
of the personal bankers
Repeat calls encountered etc., were some of the issues which were probed with
the help of the instrument.
Study’s Variables:
The study was mainly focused on the proportion of the population which
was satisfied with the products and services rendered by HDFC BANK. For this,
the pilot testing (survey) was conducted with a sample size of 15 in various parts
of Jalandhar. Through this, sample proportions were analyzed and were used to
derive the main sample size for conducting the survey. The sample proportions
now obtained were used to test the hypothesis related to the population
proportion and was used to estimate the required population proportion.
(See Appendix Part-2)
DATA COLLECTION:
Location:
Jalandhar was selected as area for conducting the sample survey to gather
the opinion knowledge of the respondents.
Field instructions:
The field instruction of “asking the right respondent to give the response”
was decided. This is because at times, the respondents were not there in the
bank. Customer generally comes in the post afternoon time just to use the ATM,
whereas the retail customer of particular branch comes early in the morning.
TIME PLANNING:
For this project, we had planned out the entire research in terms of
timelines. The work of survey design and data collection was planned and carried
out in a highly systematic manner.
DATA ANALYSIS;
Data handling:
The collected data was handled carefully in the form of filled-up
questionnaires. The response was then transferred manually to a paper-spread
sheet.
Preliminary analysis:
Preliminary analysis of the pilot survey was done to find out the sample
proportion. This was done with the help of SPSS package and then with this the
final sample size to conduct the survey for collecting secondary data was
calculated.
STEPS January Feb Feb March
WEEKS
1-2 3-4 1-2 3-4 1-2
PLANNING
SURVEY
DESIGN
PILOT RUN
SURVEY
CONDUCT
SECONDARY
DATA
ANALYSIS
PROJECT
FINALIZATIO
N
The response from the survey was then analyzed again to get the final
sample proportion.
Statistical tests:
Hypothesis testing was done to estimate the population proportion through
the sample proportion. For details see appendix (part – 2).
Data presentation:
The collected data is presented in the form of Bar graphs, Pie chart and
tables according to the requirement of the project.
RESEARCH FINDINGS
RESEARCH FINDINGS
CUSTOMERS:
CUSTOMERS were asked to rate the HDFC BANK services in ratings like
– Excellent, Good and Fair. Following Pie shows the response given:
80 66
60 Excellent
40 26.4 Good
%
20 7.6 fair
0
1
rating
From the above Pie diagram, it is clear that 66% CUSTOMERS rate the
HDFC BANK SERVICES as Excellent, 26.4% rate them as Good and rest of
them say that HDFC BANK SERVICES are Fair.
HANDLING OF COMPLAINT CALLS
Customers were asked about the way the complaint calls are handled by
the company. Following Pie shows the response in categories like Good, Fair
and Poor:
100 77.2
80 Good
60
Fair
%
40 21.9
20 1 poor
0
1
RATING
From the Pie, it is clear that 77.2% customers say that the handling of
complaint calls by the company is Good i.e.; they are assured of the quick
service in the least possible time.21.9% customers say that the way the
complaint calls are handled is Fair and the rest 1% say that it is Poor.
RESPONSE TIME
Customers were asked to give the feedback regarding the response time.
Following Pie shows the same in categories like Soon and Late:
RESPONSE TIME
150
95.9
100 Soon
%
50 late
4.1
0
1
RATING
From the Pie, it is clear that the 95.9% customers say that the response
after the complaint calls are registered is Soon whereas the remaining 4.1% say
that the response is Late.
TURN AROUND TIME
Customers were asked about the turn around time required by the personal
banker. Following responses were given in categories like More, Moderate and
less:
100 78
80 Less
60
Moderate
%
40 20.3
20 1.6 More
0
1
RATING
From the Pie, it is clear that 78% customers say that the time required by
the personal banker is less while 20.3% say that the time required is moderate,
whereas remaining 1.6% customers give the feedback that the time required is
more
.
KNOWLEDGE OF PB (PERSONAL BANKER)
Customers were asked to give the feedback regarding the knowledge of the
PB in categories like Good and Fair. The customers used their own judgment
about the capability of the service fellow depending upon his accuracy and
speed.
KNOWLEDGE OF PERSONAL
BANKER
100
Good
50
%
Fair
0
1
RATING
From the Pie, it is clear that 92.6% customers say that the knowledge of the
PB is Good whereas remaining 7.3% of them feel that its Fair.
THROUGH WITH WORK IN THE SAME VISIT
Customers were asked if they were able to get their work done in the same
visit. Following Pie shows the response given in categories like yes and No:
TROUGH WITH WORK IN 1 VISIT
150
96
100 1 Visit
%
96% customers said that the machine is restored in the same visit, while
remaining 4% of them said at times two visits at maximum are required by the
service engineer to restore the machine.
SERVICE EXPECTED AND SERVICE DELIVERED
Customers were asked about the gap if it is there between the services
expected and service delivered. Following Pie shows the response given in the
categories of Yes and No:
0 No
1 Yes
RATING
From the Pie, it is clear that 91.8% customers said that there is no gap
between what the service they expected from the company and what they have
been delivered, while 8.1% customers feel that there is difference between the
two, reasons separately noted down.
RECOMMENDING THE HDFC BANK SERVICES
When the respondent was asked whether he/she would like to recommend
the HDFC BANK SERVICES to others, following response was given:
100 80.2
50 Yes
%
16.6
2.6
0 No
1 can't say
RATING
80.8%( majority) customers said that they recommend the HDFC BANK
SERVICES to others which is a very good response in company’s favor, 2.6%
customers said that they would not be recommending the company’s offering to
others whereas 16.5% customers were not in a position to decide whether they
would or wouldn’t recommend. Here is a scope for the company to turn this last
segment of the respondents to product recommending customer segment.
EXPERIENCE WITH HDFC BANK
When the customers were asked to rate their experience of banking HDFC
BANK SERVICES in the categories of Excellent, Good, Fair and Poor, following
feedback was obtained:
100 81
80
60 Excellent
%
40 Good
11 5
20
0 fair
1 poor
RATING
80
67.8
70
60 High
50
moderate
40
30 24.2 low
20 can't say
10 4.39 3
0
1
From the Pie chart, it is clear that 24.2% customers said that the
maintenance charges charged by the company is high while 4.39% customers
gave the response related to the maintenance charges in the “Low”
category.67.8% of the customers said that the maintenance charges is moderate
and the
Remaining customers (3.5%) were not sure about the nature of maintenance
charges as to whether it was low, moderate or high.
RESEARCH ANALYSIS
RESEARCH ANALYSIS
The next four cross-tabulations are made depending upon service satisfaction.
Overall satisfaction Vs. Rating the services
Overall satisfaction Vs. Improvements given by the customers
Rating of services Vs. Improvements given by the customers
CUSTOMER
SATISFACTION
MEASUREMENT
CUSTOMER LOYALTY INDEX
OVERALL SATISFACTION
PRO BABILITY
OF RECOMMENDING PROBABILITY OF NOT SHIFTING
Is the satisfied customer asset to the company? No, he is not. This can be
better explained from a model given below
CONCLUSIONS
One of the basic in successful organization has been the mindset of not
standing still, not resting on past laurels, but pushing harder and harder for
profitability and growth. This seems to be true with HDFC BANK., one of the fast
growing companies in India.
Even though most of the HDFC BANK customers are getting good service,
company has to rejuvenate the existing facilities to make a foot hold in banking
segment. We are optimistic that the company will be able to continue its
presence in this segment in the years to come.
We are sure that the experience we gained by undertaking this study will
help us a lot in our future career. My sincere thanks to all the HDFC BANK
personnel’s who have helped us to complete this study successfully.
APPENDICES
APPENDIX
Part I : TERMS USED IN THE RESEARCH PROJECT
TARGET POPULATION
Relevant collection of elements about which we wish to make some
inferences
PILOT TESTING
It is small-scale test of what the survey is to be, including all the activities
that will go into the final survey. It helps in deciding upon the size of the original
sample for the main survey
NORMAL DISTRIBUTION
A distribution of a continuous random variable with a single-peaked bell
shaped curve. The mean lies at the center of the distribution, and the curve is
symmetrical around a vertical line erected at the mean. The two tails extend
indefinitely never touching the horizontal axis
STANDARD DEVIATION
The positive square root of the variance; a measure of dispersion in the
same units as the original data, rather than in the squared units of variance
VARIANCE
A measure of the average distance between the mean and each item in the
population
CONFIDENCE LEVEL
The probability that statistician’s associate with an interval estimate of a
population parameter, indicating how confident they are that interval estimate will
include the population parameter
SAMPLE PROPORTION
Sample proportion is equal to the elements in the sample belonging to the
category of interest, divided by the total number of elements in the sample.
These are represented by “p and q”
HYPOTHESIS
An assumption or speculation we make about a population parameter
NULL HYPOTHESIS – H0
The hypothesis, or assumption about a population parameter we wish to
test, usually an assumption of the status quo
ALTERNATIVE HYPOTHESIS – H1
Whenever we reject the hypothesis, the conclusion we do accept is called
the alternative hypothesis
LEVEL OF SIGNIFICANCE
A value indicating the percentage of sample values that is outside certain
limits, assuming the null hypothesis is correct, that is, the probability of rejecting
the null hypothesis when it is true
POPULATION PROPORTIONS
Population proportion is equal to the elements in the population belonging
to the category of interest, divided by the total number of elements in the
population
POPULATION PARAMETER
Population parameter are summary descriptors (e.g., incidence, mean,
variance, proportion etc.)Of variables of interest in the population
SAMPLE STATISTICS
Sample statistics are descriptors of the relevant variables computed from
the samples data. They are the estimators of population parameters
SAMPLING FRAME
It is the list of elements from which the sample is actually drawn. Ideally ,it
is a complete and correct list of population members only
Part II: STATISTICAL ANALYSIS
Thus,
q=(1-p)=1-0.8=0.2
Taking the size of the sampling error as 0.05 (or 5%)
= 54.16 approximately 57
Thus the sample size of 57 was decided
Part III: QUESTIONNAIRE
Soon Late
Yes No
Good Fair
3. Do you find any gap between the services expected and services delivered?
Yes No
If yes, then why? _________________________________________________
EXTRA DETAILS:
QUESTIONNAIRE FOR CUSTOMER:
Yes No
•
2. Which one of the following factors influences you most while taking the
decision?
(Please tick the appropriate box as per your preference)
A. Price
Yes No
4. How do rate the experience with HDFC BANK service from the HDFC bank
employee?
Excellent Good Fair Poor
If poor, why? _____________________________________________________
Journals:
NMIMS management review (July – Dec 1998, Volume 10, no 2)
Book:
Website:
www.marketingteacher.com
www.marketing-bulletin.massey.ac.nz
www.chass.ncsu.edu/garson/pa765/statnote.htm
www.marketingpower.com
www.ama.org