Customer Relationship Management Practices in Non-Banking Financial Companies with Special Reference to CitiFinancial

Non-banking financial companies (NBFCs), often considered as complementary to the banking system, nowadays play an instrumental role in extending financial assistance in diversified fields of the financial sector. Keeping in view the tough competition and taking into consideration the opportunities and threats they face, NBFCs are focusing more on relationship marketing than on transactional marketing. In order to meet the challenges of the dynamic turbulent external environment, NBFCs are concentrating on various financial products in their effort to satisfy their clients’ needs. The objective of this paper is to study CRM practices in NBFCs with a special reference to CitiFinancial. This study also outlines customer profitability and lifetime customer value. The research was carried out among 200 customers of CitiFinancial using a structured questionnaire. A qualitative analysis was carried out taking into account the ten basic performance indicators of CRM and the manner by which the customers of CitiFinancial have rated them. The ten parameters are categorised under three segments, namely core services, differentiating services and potential services. It is inferred from research findings that broadly CitiFinancial is not only extending the best of CRM practices in core and differentiating services but moreover it is also lagging behind in two of the important aspects such as range of products offered by the institution and technologically equipped services, which falls under the potential services segment. CitiFinancial has to put in an extra effort to streamline these deficit areas.