Summer Internship Project report- Customer Satisfaction Analysis: Reliance Securities Ltd.

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Summer Internship report on Customer Satisfaction Analysis in Reliance Securities.

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Summer Internship Project report- Customer Satisfaction Analysis: Reliance Securities Ltd.

  1. 1. A REPORT ON By Shubham Dasgupta 13BSP0776 CUSTOMER SATISFACTION ANALYSIS RELIANCE SECURITIES LTD.
  2. 2. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 1 A REPORT ON CUSTOMER SATISFACTION ANALYSIS By SHUBHAM DASGUPTA 13BSP0776 RELIANCE SECURITIES LTD. A report submitted in partial fulfillment of The requirements of PGPM Program of IBS Mumbai Date of Submission: June 2, 2014
  3. 3. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 2 Authorization This is to authorize Shubham Dasgupta (13BSP0776), student of IBS Mumbai, to conduct a research study and compile a report on Customer Satisfaction Analysis with Reliance Securities Limited as a part of the fulfillment of the PGPM Internship. The period of the aforementioned study has stretched from February 25 to May 24, 2014. Prof. Jaswinder Singh Mrs. Neha Rai Faculty Guide Company Guide Branch Manager Reliance Securities Limited
  4. 4. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 3 Acknowledgements I take this opportunity to express my profound gratitude and deep regards to all those who contributed in bringing my Internship project to a successful closing. I am obliged to acknowledge the exemplary guidance, monitoring and constant encouragement throughout the course of this project of the following people.  Head of the Organization & Company Guide: Mrs. Neha Rai  Faculty Guide: Prof. Jaswinder Singh  Others: o Mr. Sourav Bhattacharya o Mr. Vidya Sagar Singh o Mr. Rahul Choubey I would like to thank my company guide along with all my fellow employees for giving me this opportunity to understand the marketing and operations practices in the NBFC sector. I would also like to express my profound and sincere gratitude to IBS Mumbai for providing me with the opportunity to do my project at the Reliance Securities Ltd. Throughout the time I had wonderful experience about this project.
  5. 5. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 4 Table of Contents I. Acknowledgements.............................................. 3 II. List of Illustrations................................................ 6 III. Executive Summary .............................................. 7 IV. Abstract ............................................................... 8 Background to the problem................................................................................................................8 Statement of the problem ..................................................................................................................8 Approach to the problem ...................................................................................................................8 Research design ..................................................................................................................................8 Types of research design.................................................................................................................8 Information needs...........................................................................................................................8 Data collection from primary sources.............................................................................................9 Scaling techniques...........................................................................................................................9 Questionnaire development and pretesting...................................................................................9 Sampling techniques.......................................................................................................................9 Data Collection Methodology .........................................................................................................9 Plan of data analysis......................................................................................................................10 V. INDUSTRY PROFILE ............................................. 11 Porter’s Five Forces Analysis.............................................................................................................12 VI. COMPANY PROFILE............................................. 14 Founder of Reliance..........................................................................................................................14 Chairman's Profile.............................................................................................................................14 Inception of Reliance Money............................................................................................................15 Objectives of the company ...............................................................................................................16 Milestones Achieved so far...............................................................................................................16 Growth of the organization...............................................................................................................17 Growth Drivers of Reliance Money...................................................................................................18 Nature of the business carried..........................................................................................................19 Vision Mission and Quality Policy .....................................................................................................19 Product and service profile...............................................................................................................20 Equity: ...............................................................................................................................................20 Wealth Management Services:.........................................................................................................21
  6. 6. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 5 IPO:....................................................................................................................................................21 Life and General Insurance ...............................................................................................................21 Pure Gold Coin ..................................................................................................................................22 Money Changing:..............................................................................................................................22 Area of operation..............................................................................................................................22 Operation in India.............................................................................................................................22 Overseas Branches of Reliance Money.............................................................................................22 Ownership pattern............................................................................................................................22 STP.....................................................................................................................................................23 SWOT Analysis...................................................................................................................................23 Strengths...........................................................................................................................................23 Weaknesses ......................................................................................................................................23 Opportunities....................................................................................................................................23 Threats ..............................................................................................................................................23 Competitor’s information .................................................................................................................24 VII. Introduction ....................................................... 26 Literature Review..............................................................................................................................27 Scope.................................................................................................................................................28 Limitations ........................................................................................................................................28 VIII. DEMAT............................................................... 29 DEMAT Accounts...............................................................................................................................29 Working of a DEMAT Account...........................................................................................................29 IX. Respondents’ Demographics .............................. 30 X. Results ............................................................... 33 Overall Satisfaction Analysis .............................................................................................................33 Test of Dependency ..........................................................................................................................34 Interpretation ...................................................................................................................................35 XI. Gap Analysis....................................................... 37 Relationship Managers .....................................................................................................................37 Process Time .....................................................................................................................................38 Financial Obligations.........................................................................................................................39 Communication.................................................................................................................................40 Research Calls ...................................................................................................................................41 Technology........................................................................................................................................42
  7. 7. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 6 XII. Additional Analysis............................................. 43 Recommendation of the product .....................................................................................................43 Brand Loyalty ....................................................................................................................................44 Recommendations from the Clients.................................................................................................45 XIII. Conclusion.......................................................... 46 XIV. Recommendation............................................... 47 XV. Attachments....................................................... 48 Customer Satisfaction Survey ...........................................................................................................48 Financial Statements.........................................................................................................................53 XVI. References ......................................................... 55 Websites ...........................................................................................................................................55 Research Reports..............................................................................................................................55 News Articles ....................................................................................................................................55 Books.................................................................................................................................................55 List of Illustrations Figure 1 Market Share 24 Figure 2 Demographics: Gender 30 Figure 3 Demographics: Occupation 30 Figure 4 Demographics: Trading Frequency 31 Figure 5 Demographics Annual Income 31 Figure 6 Demographics: Portfolio Value 32 Figure 7: Overall Customer Satisfaction Analysis 33 Figure 8: Relationship Manager’s Performance 37 Figure 9: Relationship Managers Gap Analysis 37 Figure 10: Process Time 38 Figure 11: Process Time Gap Analysis 38 Figure 12: Financial Obligations 39 Figure 13: Financial Obligations Gap Analysis 39 Figure 14: Communications 40 Figure 15: Communications’ Gap Analysis 40 Figure 16: Research Calls Performance 41 Figure 17: Research Calls’ Gap Analysis 41 Figure 18: Technology 42 Figure 19: Technology Gap Analysis 42 Figure 20: Recommendations of Products to Associates 43 Figure 21: Brand Loyalty Analysis 44 Figure 22: Service Improvement Requirements 45
  8. 8. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 7 Executive Summary Indian has emerged to be one of the fastest developing economies in the world. Many Indian Companies are expanding their business globally with mergers and acquisitions. Thus Indian equity markets today are attracting investors from around the world to take advantage of India’s growth story. As the companies grow their shareholders are benefitted with good dividend and capital appreciation on investment in equity shares of such companies. Number of companies listed in stock exchange (BSE & NSE) has been increasing every year with new IPO’s coming in the market. In India people are realizing that equity has potential to give highest return as compared to other investment avenues however people do not have proper knowledge in which stock to invest to get good returns. They just invest on the basis of tips given by brokers or friends which are not always accurate. The penetration of equity investment in the Indian Markets is just around 5%, which means that the Indian investors are not able to take the maximum advantage of India’s growth. Since the penetration of investments in equity is quite low, it is very important for the brokers to keep their existing customers satisfied in course of acquiring new clients. This report is meant to narrow down this gap between the Customers of Reliance Securities and the organization by simplifying the detailed analysis of the components driving the customer satisfaction for the organization. Understanding the service gaps is very important in creating strategies for market growth. This report looks into the detailed analysis of which factors are driving the customer satisfaction, the gaps between the perception of the organization and the clients and recommendations to bridge the same. The data and information have been collected from the Rashbehari Avenue Branch of Reliance Securities, the broking arm of Reliance Money. Consumers were asked to participate in a survey to help the company’s customer service department evaluate the effectiveness of their services. The survey included questions about the client’s most recent experience. It asked questions about their interaction with staff, staff response times; and whether the client’s issue was resolved. The survey also asked respondents to give an overall summary of their experience. Items on the survey were worded as positive statements or direct questions, and included heads like Relationship Managers, Process Time, Financial Obligations, Communication, Research Calls, Technology and Overall Experience. The major findings regarding the service gaps have been analyzed further in the report and a set of recommendations have been prepared to bridge these gaps in the order of importance as perceived by the customers. It has been established that the Relationship Managers form the backbone of this business but the major lack in the user-friendliness of the Information Technologies used and the long back-end process time hinders the growth in customer satisfaction. These issues require immediate attention of the organization in order to serve the customers with services to enhance their satisfaction level.
  9. 9. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 8 Abstract Background to the problem In the stock trading market in India, only a few organizations rule the market. Reliance is one of the few rulers in the said market. When it comes to the service industry, especially financial services, the customer satisfaction forms a key part in driving the business. Hence this project is designed to look into the detailed analysis of the customer satisfaction gap analysis. Statement of the problem Approach to the problem To address this problem, a research is conducted to find out the relevant factors that are contributing to the satisfaction level of customers and the detailed gap analysis study which looks into the existence of gaps between the expected values and the observed values. Research design Types of research design In this project, exploratory research and descriptive research are used. In order to show the competitiveness of the service deliverables of Reliance Securities, the exploratory research was used. Secondary information has been collected via Internet. Besides, descriptive research has been used because this type of a research design can focus on the problem better. A Questionnaire has been designed for the same. Information needs The information has been acquired from the present customers of the organization. The demographics include age, gender, occupation, annual income, trading frequency and marital status. Is there a gap in the service deliverables of Reliance Securities Ltd. which is affecting the customer satisfaction of the organization?
  10. 10. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 9 Data collection from primary sources Primary data has been collected by the use of questionnaire which cover all the parameters required to analyze the various aspects related to the stated problem. Scaling techniques The questionnaire has been designed with reference to Likert scale. Questionnaire development and pretesting First, we focused on the problems concerned in the research. Then, we designed the questionnaire with the criteria and information needed. After finishing the questionnaire design, responses were collected from the employees who operate their Demat accounts under Reliance Securities Limited. Sampling techniques Simple random The responses to the questionnaire have been collected randomly from the existing customers. Data Collection Methodology The research has been conducted via telephonic mode and face-to-face interview. The period of the research stretched from 2nd May to 20th May, 2014.
  11. 11. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 10 Plan of data analysis Multiple-Regression Multiple Regression model has been used to relate the overall satisfaction level and the individual heads to analyze the correlation between the two, i.e., whether a particular head is affecting the overall satisfaction level of a customer. Excel This software has been used to input data into the SPSS system. Also we use it to plot some graph such as charts. Gap analysis In this the means of all responses of a particular parameter have been calculated and equated with the expected value of the same. The difference between the expected and the observed value will prove the existence of gaps and in case there is a gap it will help the organization identify and leverage the positive gaps and work on the negative gaps for a better performance.
  12. 12. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 11 INDUSTRY PROFILE This project pertains broadly to the financial service sector. In today's corporate and competitive world financial sector has the maximum growth and potential as compared to other sectors. Financial products have the maximum growth rate of 70-80%while FMCG has maximum 12-15% of growth rate. Yet, the penetration of investing in equity could hardly tap a mere 5% of the great Indiam Market. In last few years,  India has emerged as the one of the most rapidly growing economies in the world.  India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades.  Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8-9% GDP growth rate is the common norm.  India along with other Asian powerhouse China makes for the fastest growing nations in the entire world.  Even in the case of ongoing global recession, India has managed to perform far better than other nations.' Right from banking system to financial regularities, the country has thrived on discipline and out-performance.  The booming Indian economy resulted in widespread growth and arrival of new industries. All these resulted in a most sparkling phenomenon in the form of financial market renovation of India. Financial services in India has' taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer consultancy services and all the services of wide financial gamut.
  13. 13. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 12 Porter’s Five Forces Analysis Competition The industry is now in a fairly high growth phase. However the brokerage industry is very cyclical and is impacted by activity levels in the markets. During the downturns such as 2008-2009 recession period, the smaller players were squeezed out of the business. As a result there is a contrast consolidation happening in the industry. As of now, the total population engaged in this industry is merely 5% and all the competitors are in the process of tapping the largest share of this 5%. We can conclude that the existing competition is undeniable fierce. Potential of new entrants A new entrant in addition to the above also needs a reasonable level of capital to fund the working requirements of the business (finance to customers, deposits with exchanges, etc). The scale requirements are increasing constantly and as a result a new entrant will require higher levels of investments in the future to enter the business. As pointed out, it is likely to see many entrants in the industry. On the contrary, it is also likely that the smaller players will exit by selling out or closing in course of the Business cycle of the economy Potential Entrants [Comparatively Low] Bargaining Power of Buyers [Very High] Threat of Substitutes [Comparatively High] Bargaining Power of Suppliers [Quite Low] Competition [Intense]
  14. 14. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 13 Power of the supplier There are too many suppliers in this market and too little population demanding the services. Hence the power of suppliers are extremely low. There is also a lack of product differentiation which is making the market a worse one for the existing players. Power of the buyers/customers This is important in the institutional brokerage business which involves high volume and low brokerage charges. Too many players in the market has added strength to the bargaining power of the buyers. Threat of substitutes The products offered by all firms in this industry are somewhat differentiated, however the purpose served by all is the same. Other Investment options such as fixed deposits with banks can also be considered as a substitute. In a summary, the industry has a moderate to low level of competitive advantage. There is low level of customer lock-in and customer will move his or her business if the brokerage rates are not competitive with rest of the industry. The only competitive advantage for companies in this sector comes from size and scale which enables them to leverage their size to reduce average costs and thus make a profit on low brokerage margins. In addition to high fixed costs, the industry has very low margin cost. As a result the cost of adding an additional customer is low and per transaction costs are limited. Due to this reason, we are seeing a constant pressure on the brokerage rates has intensified the competition in the industry and is resulting in consolidation with the top players.
  15. 15. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 14 COMPANY PROFILE Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to  Equity  Equity and Commodity Derivatives  Portfolio Management Services  Mutual Funds  IPOs  Life and General Insurance and  Gold Coins Customers can ·also avail Loans, Credit Card, and Money Transfer and Changing services. Founder of Reliance Few men in history have made as dramatic a contribution to their country's economic fortunes as did the founder of Reliance, Sb. Dhirubhai H Ambani. There is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India's capital markets, and the champion of shareholder interest. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossus-which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India's capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Dhirubhai always kept the interests of the ordinary' shareholder uppermost in mind in the process making millionaires out of many of the .initial investors in the Reliance stock, an creating one of the world's largest shareholder families. Chairman's Profile Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power.
  16. 16. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 15 Inception of Reliance Money Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers and the traded volumes have crossed about Rs 1,200 crore. It has tied up with Chicago-based Alaron Trading Corporation, a global, full-service commodity futures brokerage firm. “Expanding our global presence, especially with a company of the stature of Reliance Money, allows Alaron to seamlessly embrace the rapid expansion in the futures market,” Scott Slutsky,. Managing Director of Alaron Trading, told several news agencies. Alaron's trading platforms offer direct access to virtually every electronic and pit-traded contract in the world. Reliance Money will facilitate the trading process through its 88 branches and 2,200 outlets in India."Through this important window provided by Alaron, our customers in India will be in a position to readily trade international commodity futures in a cost effective, convenient, and secured manner," said Sudip Bandyopadhyay, Director of Reliance Money. The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$ 8 billion), net assets in excess of 39,007 crore (US$ 7.4 billion) as on September 30, 2012, and net worth to the tune of Rs. 11,712 crore (US$ 2.2 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and 5 continents across the world.  Mr. Bandyopadhyay says, "We haven't entered this business to take a share in this market. We are going to expand the market."He explains, 'The number of investors in mutual funds is about 30 million going by the folios. The number of individual bank accounts in the country is about 330 million. But the number of DEMAT accounts has stagnated around 5.8 million for the past decade."  Reliance Money has an all-India presence and a reach that is on a par with what State Bank of India enjoys with about 9,500 branches.  Reliance Money's key business driver may be its pricing strategy. It has decided to levy a flat charge of INR 500 per annum for trading volumes of up to Rs 1 crore and slightly higher charges for higher volumes. Currently competing brokerages charge something in the region of 0.5% to 1% on each transaction. As Mr. Bandyopadhyay puts it, "Brokers charge you 1% if you buy 10 shares. They charge someone else 1% of the cost of 100 Shares, if they buy 100 shares and similarly 1% of 1,000 shares if you buy 1,000 shares. There is no extra effort involved except punching in an extra zero. Why pay just to punch an extra zero?"
  17. 17. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 16 Objectives of the company The main objectives of the company are as follows  To attain global best practices and become' a world-class financial services enterprise guided by its purpose to move towards greater degree of sophistication and maturity.  To work with vigor, dedication and innovation to achieve excellence in service, quality.  Reliability, safety and customer care as the ultimate goal.  To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name.  To consistently achieve high growth with the highest levels of productivity.  To be a technology driven, efficient and financially sound organization.  To contribute towards community development and nation building.  To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all the people.  To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals.  To encourage ideas, talent and value systems.  To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings. Milestones Achieved so far  In last 12 months Reliance Money have taken giant strides. It has been:  India's Top Broking and Distribution house..  The largest broker with distribution reach of 20,000+ touch points, 10,000+ outlets across 4000 towns/cities  1 lakh transactions on an average, in the money transfer business.  Amongst the largest private sector partners of Western Union Money Transfer in India.
  18. 18. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 17 Growth of the organization The growth of the company is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility.  Reliance Money generated revenues of Rs.35 billion (US$ 767 million) for the year March 31, 2009 as against Rs.24 billion of the corresponding previous period, an increase of 48%. It also achieved net profit of Rs.368 million (US$ 8 million) for the same period, as against a net profit of Rs.1 million for the corresponding previous period.  Reliance Money is amongst the leading mutual fund distributors of the country distributing products of 20 AMes. It is the largest private sector partner for Western Union Money Transfer in India.  The Rs 352 crore online broking and distribution major, Reliance Money, is the first mover in deploying technology tools across its operations. Having all of its operations automated with tightly controlled risk management.  Mr. Bandhyopadhyay believes IT brings in and finds that technology usage would ensure high data availability, accuracy and integrity to the trading business and help differentiate oneself from the competition. The IT head, Nagaraj, has left no stone untamed in driving the IT benefits to users. Being a strategic planner, Nagaraj has evolved a clear IT blueprint categorizing IT under three portfolios such as expansion, strategic and sustenance which address all challenges as a cost control, mitigating risk, and helping in expansion to address a larger audience.  Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an increase 'of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period. This increase was primarily due to the expansion of the distribution network and increase in its customer base.
  19. 19. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 18 Growth Drivers of Reliance Money  Reliance Money is a comprehensive financial. services and solutions provider, providing customers with access to equities, equity options and commodities futures, wealth management, portfolio management services, mutual funds, IPOs, life and general insurance~ products, offshore investments, credit cards, money transfer, currency exchange and gold coins.  Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, OptionsXpress Holdings, Goldride Securities, Wodd Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers.  In addition to the home-grown portfolio of products and services that Reliance Capital has to offer, Reliance Money also distributes a variety other~ party financial products. It also assists millions of investors. in creating customized individual portfolios based on their diverse investment needs and risk profiles.  Reliance Money is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the largest private sector partner for Western Union Money Transfer in India.  To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant shareholding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country. Reliance Money has tied up with Kuoni India and plans to retail its forex products/ services through the national network of over 70 Kuoni outlets. TRUST LEARNING & INNOVATION DEDICATIONHARD WORK & TEAM PLAY ENTERPRISE INTEGRITY EMPATHY & HUMANITY COMMITIMENT GROWTH DRIVERS FOR RELIANCE MONEY
  20. 20. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 19  Reliance Money has tied up with India Post and World Gold Council to sell gold coins through the post office network across the country.  Reliance Money has obtained Category - I Merchant Banking License from the  Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management,  Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India.  Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian financial organization to acquire a stake in an international exchange.  It has also obtained approval from, the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE). Nature of the business carried Reliance money is carrying business such as it is giving a service of online trading with less brokerage Charge, and it also having· financial products such as Life Insurance . General insurance giving investment facility in Equity, mutual fund, PMS, and also it is carrying a money transfer and money exchange, and also dealing with gold coins. Vision Mission and Quality Policy Vision The vision of Reliance Money is to achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards. Mission The mission of the company is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics.
  21. 21. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 20 Quality policy Talented, efficient and competent team of youngsters rolling out high profile applications for the global business community, keeping in mind true quality, total customer satisfaction, delivering on time, right time, every time. Creatively involved in providing high quality products and services through:  Responsiveness to customer needs.  Provision of work satisfaction and promising careers. .  Constant measurement and monitoring of all operations.  Continuous improvements of procedures, products, and services; and  Performance of operations in a responsible manner. Product and service profile 'Reliance Money provides a· comprehensive platform, offering an investment avenue for a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money currently offers its services in Broking and Distribution of Financial Services and Products. Equity:  Separate Dealing Room for HNI, Institutional & Corporate Clients at the head office in Mumbai, manned by expert dealers  Relationship Manager assigned for each large relationships.  Tools that help plan investments, tax, retirement, etc.  Risk profile analyzer  Asset allocators to build an appropriate investment portfolio.  Equity and Commodity Derivative:  Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing broking  services in Equity, Equity & Commodity Derivatives  Option of on-line as well as off-line trading  Trading is completely secure with 3 levels of security i.e. User ill, Password and Security Token, which is available only with Reliance Money Portfolio Management Services (PMS)  Investors get regular statements and updates on the investments  Investors get access to Relationship Managers Financial Advisors through whom they dill interact with Fund Managers to discuss their portfolio
  22. 22. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 21 Wealth Management Services:  End to end Wealth Management Services.  Assessing financial health and risk profiling of the client.  Tax Advisory includes buying, selling, renting and valuation of properties.  Mutual Funds  Distribution of equity and debt products from leading AMCs including structured products such as Portfolio Management Services.  Financial Planning Through SIPs.  Systematic Investment Plans (SIPs)  SIP is a method to increase exposure to equities gradually over a long period of time say over 5-10 years by investing in equity funds by using the concept of rupee cost of averaging.  Disciplined investing in equity funds over longer time frames coupled with power of compounding helps generate superior returns.  SIP provides better downside protection as the amount invested each month is very small compared to the overall investment. IPO: IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed Priced) pan India through its distribution channel (Online + Offline) and helps get IPO Investment benefits by providing end to end assistance Life and General Insurance Life Insurance Reliance Money provides Life Insurance that helps provide financial assurance and securities for your dependents and loved ones. Life Insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment and tax planning.. General Insurance Reliance Money extends various General Insurance products with an exhaustive range of insurance policies that covers most risk including Motor, Health, Property, Marine, Casualty, Credit and Liability
  23. 23. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 22 Pure Gold Coin Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins Purity: 24 carat, 99.99% pure Fineness: 999.9 (Highest purity that can be achieved in Gold) Packaging: Available in a see through, tamper-proof packaging with a certificate of purity from Swiss Assayer Availability: All India, across all Reliance Money and Reliance World outlets Money Changing: Reliance Money Express is a Full-Fledged Money Changer (FFMC) authorized by the Reserve Bank of India for foreign exchange transaction  Sales and Purchase of Foreign Currency Notes.  American Express Traveler's Cheques and Prepaid Foreign Currency Area of operation  Reliance Money offers the services not only all over India but also outside India.  Reliance Money is one of the leading brokerage and distributors of financial products in India with more than 3.3 million customers. Operation in India As on March 31, 2012, Reliance Money had a distribution network of 10,350 outlets across 5,165 locations in India. Reliance Money has over 96 offices all over India. Overseas Branches of Reliance Money  Hong kong  Malaysia  Muscat  Nigeria Ownership pattern Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 in terms of net worth. Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services,
  24. 24. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 23 Mutual Funds, lPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. The largest braking house in India with over 2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. The average daily volume on the stock exchanges is Rs. 2,000 crores, representing approximately 3% of the total stock exchange volume. The Reliance - Anil Dhirubhai Ambani Group has a market capitalization of Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. It has a business presence that extends to over 20000 towns and 4.5lakhs villages in India and 5 continents across the world. STP STP Segment Brokerage Target Group Urban and Rural Investors Positioning Complete Investment and Stock trading Solutions SWOT Analysis Strengths Weaknesses Innovative range of financial services Penetration limited to urban areas Diversified risk with investments in upcoming sectors like infrastructure Largest E-broking house in the country Has over 6000 outlets in India and over 3.5 million clients Ranks among the top 3 private sector financial services and banking groups, in terms of net worth Opportunities Threats Growing rural market Stringent Economic measures by Government and RBI Earning Urban Youth Entry of Foreign firms in Indian financial market Educating people about the benefits of investments to increase target audience
  25. 25. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 24 Reliance Securities 6%ICICI Direct 20%Indiabulls 22% Edelweiss Capital 12% Kotak Securities 3% Share Khan 10% Motilal Oswal 8% Angel Brokers 8% Others 12% Market Share Figure 1 Market Share Competitor’s information Reliance Money has many competitors like SCHIL, Karvy Consultancy, BGSE, IL&FS, Canara Bank, ICICI, HSBC, HDFC, Sharekhan, IDBI, Standard chartered, ANZ GRINDLEYS, Religare, Indiabulls etc. Services provided by main competitors are given below: ICICI Direct  Trading In Shares and Derivatives.  Investing In Mutual Funds.  IPOs and Bonds Online.  Overseas Trading.  Personal Finance.  Risk Analyzer and Asset Allocator. Other Features:  Market Desktop.  Market Barometer and Industry Barometer.  Direct Technical Charts and Multex Global Estimates.  My Research that helps you to Research a Stock Better.  News from CNBC and REUTERS. Share Khan  Technical Research  Equity And Derivatives Trading  Depository Services  Fundamental Research  Share Shops  Portfolio Management  Online Services  Commodities Trading
  26. 26. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 25 India Bulls  Power India Bulls  India Bulls Signature Account  Depository Services  IPO online  NRI Trading  Currency Derivatives in NSE  India Bulls Equity Analysis HDFC Securities  Trading in Equity and Derivatives'  Mutual Funds and IPO  Weekly Derivative Future Report.  Aggressive Portfolio  Conservative Portfolio  Weekly Technical Report and Market Wrap  Research and Charting. RELIGARE  CRN Login  Call N Trade  Portfolio tracker  Research KOTAK Securities  Easy Equity and Derivatives  Currency Derivatives  Easy Mutual Fund  Kotak Research  NRI Service  Smart Start
  27. 27. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 26 Introduction Customer's perception of Service and Quality of product determines the success of the product or service in the market. Customer satisfaction is still one of the single strongest predictors of customer retention. In the present competitive environment it is very crucial to every business firm to ensure satisfaction to its customers. According to one survey it was found that it costs five times more to attract a new customer than to retain an existing customer. Considering all these parameters one can say that it is very important to deliver goods and services that will satisfy customers’ needs or wants irrespective of the industry or scale of the business in which a firm is operating. Liberalization of the financial sector have opened multidimensional growth opportunities for the financial service providers. At the same time it has provided more profitable investment opportunities to the investors to invest their money in a more diversified range of products. Availability of multifaceted information at faster and speedier rate with the help of communication technologies such as Internet services, mobile apps, on line trading etc. has changed the investors' investment behavior. At the same time improved earning capacity and increased family income of Indians have increased their investment capacity. So the financial service providers like broking agencies have to develop new set of products, services and methods for their business developments. Moreover the key differentiating factor in providing financial services is the efficiency in service delivery to multi product on customized basis. This includes personalized consulting and problem solutions specific to individual investors' investment and financial planning issues. The stock brokerage industry emphasizes client value because clients generally have a long-term relationship with the brokerage. It is because clients place trade instructions to a brokerage repetitively whenever they find suitable investment opportunities. So in a climate of decreasing brand loyalties, understanding customer service and measuring customer satisfaction are very crucial. There is obviously a strong link between customer satisfaction and customer retention. This concept forms the skeletal structure for this research work. Relationship Managers, Process Time, Financial Obligations, Communication, Research Calls & Technology were identified as the variable factors contributing to the Customer Satisfaction levels for this organization. This report is aimed at identifying the gaps between the expected values of these variables and the observed values of the same.
  28. 28. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 27 Literature Review A study by Kauffman et al. carried out in 2000 indicated that, due to the intensive essence of information, most traditional form of stock trading market players will eventually move towards leveraging IT in order to operate their businesses in an Internet-based trading manner. This in turn brings about many potential benefits for the users i.e. the investors, such as faster trading speeds, better information transparency, and much lower operating costs (George, 2000). A business that wants to succeed in today's global competitive market, where customers are empowered and brand loyalty erosion is increasing, will have to move to customer relationship management (CRM). Customer relationship management enables organizations to provide excellent real-time customer service through the effective use of individual account information (Kotler and Keller, 2006: 152). The retail stock brokerage sector has been the most radically transformed of the financial services industries, principally by the emergence of low price on-line securities trading and free financial information services (Kalakota and Frei 1997). Service quality is particularly essential in the financial services context because providers tend to be viewed as relatively undifferentiated, and hence it becomes a key to competitive advantage (Almossari, 2001; Stafford, 1996). In addition, financial services, like other services are intangible, difficult to evaluate, and rest on experience and credence quality (Zeithaml, 1981; Zeithaml et al., 1985). Customer satisfaction is a measure of how products and services supplied by a company can meet the customer's expectations. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Customer satisfaction is an important theoretical as well as practical issue for the marketers and consumer researchers (Fournier and Mick, 1999; Meuter et.al., 2000). Customer satisfaction can be considered as the essence of success in today's highly competitive world of business. The importance that customers place on service quality attributes is the driver of satisfaction. Loyalty is a crucial output to a firm's resource allocation strategy and quality improvement efforts. Many researchers have proposed a virtuous chain of effects from improved customer satisfaction to profits. In particular, satisfaction is thought to improve share-of spending, which in turn leads to higher customer revenue and customer profitability. Keiningham et. el. (2005) found that a simplistic focus on improving customer satisfaction for all customers in order to improve share-of-wallet and customer revenue does not seem to represent the best management approach to maximize overall firm profitability. In fact, it could actually result in a negative return on investment. Therefore, customers should first be segmented by their profitability to the firm before expending resources to improve customer satisfaction and share-of-wallet. Customer expectations are the customer-defined attributes of a product or service that must meet or exceed to achieve customer satisfaction. There are many reasons why customer expectations are likely to change over time. Process improvements, advent of new technology, changes in customer's priorities, improved quality of service provided by competitors are just a few examples.
  29. 29. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 28 Scope This report will be helpful for the organization in understanding the factors that are not performing as per their expectations and open a new sphere of implementing fresh strategies to breach these gaps. On the other hand, if the gaps are on the positive side, the organization can capitalize the over performance of that variable or conclude that they are probably undervaluing the same. This report will also be of importance as a preliminary structure for the organization to carry out a detailed research across all their business zones. Limitations Panel of questionnaire The basic limitation of this project is that the questionnaire is designed keeping in mind the operations of a particular branch. It just focuses on the performance and relationship of a particular branch with its customers. It does not take the position of the competing brands in the overall market into consideration. So it can be said that the outcome of the research is quite narrow. Small Sample Size The survey size taken into consideration is only 50 samples, which is very small considering the size of the organization. Random Sampling Since the research study has not been directly targeted only towards the inactive clients, the matters of concern for the customers might not be properly revealed owing to biases in the opinions of the sample population.
  30. 30. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 29 DEMAT DEMAT Accounts Demat a/c is just like a current a/c. In current a/c we save our money and in demat we deal in stocks, derivatives and commodities. Demat is dematerialization and trading in the demat mode. It is safer and faster alternative to the physical existence of securities. Demat offers solutions from issues of delay, theft, forgeries, settlement of risk and paper work. This system works through depository participants (DP) who offer demat services and the securities are held in the electronic form in safe custody with National Securities Depository. Working of a DEMAT Account When one buys shares, the broker credits his demat account with the shares and the payment is made from his Ledger limits. These shares are reflected in his statement of holdings. If one is trading through an internet based platform, he can view his holdings online. Typically, in case of delivery trades, Reliance Securities Ltd. credits the shares on T+2, which is trading day + 2 days after that. When one sells the shares, he needs to give a delivery instruction note either in physical document or in electronic or telecommunication channels. His account is debited with the shares and the amount of money received reflects in his Ledger. If you are trading through the internet, the account will automatically reflect a debit of the shares and amount credit to your account. There are two Depositories in India – the National Securities Depositories Limited (NSDL) and the Central Depository Services Limited (CDSL), through whom the shares are held by the various depository participants.
  31. 31. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 30 Respondents’ Demographics Out of the sample chosen for the research, the demographics of the respondents are presented as follows: Figure 2 Demographics: Gender Figure 3 Demographics: Occupation Male 76% Female 24% Gender 0 2 4 6 8 10 12 14 16 18 Student Salaried Self-Employed Entrepreneur Retired Occupation
  32. 32. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 31 Figure 4 Demographics: Trading Frequency Figure 5 Demographics Annual Income 0 2 4 6 8 10 12 14 16 18 20 0 to 3 4 to 10 11 to 20 more than 20 Weekly Trading Frequency 0 5 10 15 20 25 less than 3 lakhs 3-6 lakhs 6-10 lakhs more than 10 lakhs Annual Income
  33. 33. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 32 Figure 6 Demographics: Portfolio Value These infographics are presented to show the demographic information of the respondents of this survey. For every business, especially in the BFSI sector, it is of utmost importance to understand the demographic features of the target group. Understanding and analyzing these features help an organization to target its services better. 0 5 10 15 20 25 30 less than 1 1 - 5 lakhs 5 - 10 lakhs More than 10 lakhs Portfolio Value
  34. 34. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 33 Figure 7: Overall Customer Satisfaction Analysis Results Now the analysis of the Customer Satisfaction Level for Reliance Securities will be carried out by using different statistical tests. SPSS is used to carry out the tests in this analysis. Below are the data of distribution of different levels of satisfaction expressed by the interviewees. Overall Satisfaction Analysis . Among the respondents, 8% of them have strongly agreed to being satisfied with the services of the organization. 68% of them have partially agreed to the statement which implies that they are satisfied with all the parameters with an exception to a few. 12% of the respondents are neutral while 4% have somewhat disagreed to the statement. This implies that except a few they are dissatisfied with most of the services delivered to them. 8% of the respondents have strongly disagreed which means that they fall under the category of highly dissatisfied customers. Overall, 76% of the respondents are positive on the analysis and requires negligible attention while the rest 24% of the respondents require immediate attention of the organization. In this analysis, 12% of the respondents falling under the category of dissatisfied customers are highly likely to shift to alternative brands as soon as they get a competitive offer. Statement “I AM EXTREMELY SATISFIED WITH THE SERVICES DELIVERED BY RELIANCE SECURITIES LTD.” Extremely Satisfied 8% Satisfied 68% Neutral 12% Somewhat Dissatisfied 4% Completely Dissatisfied 8% Overall Satisfaction
  35. 35. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 34 The retention of this 12% will be a major challenge for Reliance Securities Limited. Test of Dependency Now, since we know the overall satisfaction distribution, we will test the dependency of the overall satisfaction with the overall score of each of the factors which supposedly contribute in satisfying a customer. For this the Multiple Regression model has been used in the SPSS system. The hypothesis for this test is stated as below: Ho B1= B2= B3= B4= B5= B6= 0 [ The Model is insignificant] Ha At least one B is not equal to 0. [The Model is significant as there is at least one variable that contributes to the significance of the output.] Model R R Square Adjusted R Square Std. Error of the Estimate 1 .948a .899 .870 3.446 ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 737.276 6 368.638 31.043 .000b Residual 83.124 43 11.875 Total 820.400 49 a. Dependent Variable: OE_Satisfied b. Predictors: (Constant), TECH_Overall, RM_Overall, RC_Overall, PT_Overall, COM_Overall, FO_Overall
  36. 36. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 35 Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 1.579 1.188 1.329 .191 RM_Overall .325 .182 .187 1.789 .081 PT_Overall .455 .284 .250 1.598 .117 FO_Overall .485 .343 .295 1.415 .164 COM_Overall .495 .338 .285 1.467 .150 RC_Overall .328 .293 .154 1.117 .270 TECH_Overall .831 .356 .484 2.333 .024 a. Dependent Variable: OE_Satisfied Interpretation I. Significance (p value) associated for this F-statistic is 0.000. Therefore, we conclude that the current regression equation meaningfully describes the relationship between the Overall Satisfaction(Y) and the following:  Overall Performance of Relationship Managers: X1  Overall Process Time: X2  Overall Financial Obligations: X3  Overall Communications procedure followed by the organization: X4  Overall performance of Research Calls: X5  Overall Technologies associated with the Trading account of the clients: X6 II. R2 = 0.899 (89.9%) in the second table indicates that the 89.9% of total variance of Overall Customer Satisfaction(Y) is explained by the estimated regression equation or, generally, by the combination of the factors listed above. III. Interpreting the Coefficients table we can say that, a. Overall satisfaction level will increase by .325 units if the satisfaction from Overall Performance of Relationship Managers is increased by 1 unit. b. Overall satisfaction level will increase by .455 units if the satisfaction from Overall Process Time is increased by 1 unit. c. Overall satisfaction level will increase by .485 units if the satisfaction from Overall Financial Obligations is increased by 1 unit. d. Overall satisfaction level will increase by .495 units if the satisfaction from Overall Communications procedure followed by the organization is increased by 1 unit.
  37. 37. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 36 e. Overall satisfaction level will increase by .328 units if the satisfaction from Overall performance of Research Calls is increased by 1 unit f. Overall satisfaction level will increase by .831 units if the satisfaction from Overall Technologies associated with the Trading account of the clients is increased by 1 unit. Since we have got these outputs, we can conclude that the considered factors contribute in the driving of Customer Satisfaction for Reliance Securities Limited. We will now look into the Gaps of performance in the detailed study of each of the aforementioned broad categories of variables.
  38. 38. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 37 Gap Analysis Relationship Managers Figure 8: Relationship Manager’s Performance Figure 9: Relationship Managers Gap Analysis The charts here present the performance of the Relationship managers and the comparative study of the performance score and the expected score. The Gap analysis study shows that all the gaps are on the positive side, hence no action is required to improve the same. However, it is necessary for the organization to leverage this factor as it is of utmost importance in the nature of the business. The biggest strength in driving the customer satisfaction can be motivated better to outperform and increase the customer satisfaction level of the organization. 3.7 3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 Domain Knowledge Problem Solving Skills Professionalism Understanding Nature Overall Domain Knowledge Problem Solving Skills Professionalism Understanding Nature Overall Expected Score 4 4 4 4 4 Observed Score 4.02 4.08 4.14 4.5 4.185 Relationship Managers 0 0.1 0.2 0.3 0.4 0.5 0.6 Domain Knowledge Problem Solving Skills Professionalism Understanding Nature Overall Domain Knowledge Problem Solving Skills Professionalism Understanding Nature Overall Series1 0.02 0.08 0.14 0.5 0.185 Relationship Managers: Gap Analysis
  39. 39. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 38 Process Time Figure 10: Process Time Figure 11: Process Time Gap Analysis The process time gap analysis reveals that the customers are well satisfied with the KYC updating process, the pay-outs and the overall processes. However the account opening and service request has not been able to deliver a positive gap. To work on this the organization needs to simplify the process for account opening or look into the detailed productivity of the Service Managers. In case the Service Managers are found to be fully productive, this gap can be bridged by appointing more Service Managers. The organization can also consider work specialization and rotation in which they would divide the entire process amongst various service terminals for quick processing and specialization of the person doing the same. Just to remove the monotony of the work, intra departmental job rotation can be considered. 0 1 2 3 4 5 Account Opening Service request Pay-Outs KYC Updation Overall Account Opening Service request Pay-Outs KYC Updation Overall Expected Score 4 4 4 4 4 Observed Score 3.7 3.76 4.36 4.48 4.075 Process Time -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 Account Opening Service request Pay-Outs KYC Updation Overall Account Opening Service request Pay-Outs KYC Updation Overall Gap -0.3 -0.24 0.36 0.48 0.075 Process Time: Gap
  40. 40. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 39 Financial Obligations Figure 12: Financial Obligations Figure 13: Financial Obligations Gap Analysis The Account opening charges are perceived to be high. This is because majority of the competitors, especially the banks, offer free DEMAT service. But the new products like R- REF have been able to serve the customers well. The new openings are quite satisfied with the R-Ref plans. The brokerage rates are perceived to be high for a regular account. The R-Ref slabs will definitely help in overcoming this gap. The exposure limits provided have overwhelmed the customers and the Margins provided against their portfolio value has also been able to please them well. However, the overall satisfaction is on the negative side. This will take some time for all the customers to know about the Advance Brokerage options and once they experience the same, they would be delighted. 0 1 2 3 4 5 Account Opening Bokererage Annual Maintenance Charges Exposure Overall Account Opening Bokererage Annual Maintenance Charges Exposure Overall Expected Score 4 4 4 4 4 Observed Score 3.46 3.22 4.04 4.5 3.805 Financial Obligations -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 Account Opening Bokererage Annual Maintenance Charges Exposure Overall Account Opening Bokererage Annual Maintenance Charges Exposure Overall Gap -0.54 -0.78 0.04 0.5 -0.195 Financial Obligation: Gap
  41. 41. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 40 Communication Figure 14: Communications Figure 15: Communications’ Gap Analysis The customers are pretty satisfied with the delivery of contract notes and portfolio performances. However, in the peak market hours, due to the presence of small number of dealers in a branch, it becomes very difficult for the dealers to attend all the clients and answer all their queries. Even taking full orders and confirming the same becomes tough for the dealers. Hence the organization needs to divide the order desk and confirmation desk so that the speedy and accurate flow of information can satisfy the needs of the clients well. It is hereby noteworthy that post the market hours the confirmations are accurate enough to keep the clients satisfied. 0 1 2 3 4 5 Dealer Order Deaaler Confirmation Contract Note Portfolio Performance Overall Dealer Order Deaaler Confirmation Contract Note Portfolio Performance Overall Expected Score 4 4 4 4 4 Observed Score 3.44 3.42 4.04 4.42 3.83 Communications -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 Dealer Order Deaaler Confirmation Contract Note Portfolio Performance Overall Dealer Order Deaaler Confirmation Contract Note Portfolio Performance Overall Gap -0.56 -0.58 0.04 0.42 -0.17 Communication: Gap
  42. 42. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 41 Research Calls Figure 16: Research Calls Performance Figure 17: Research Calls’ Gap Analysis The data here shows that the research team is quite accurate and delivers the calls on time for maximizing the profits of the customers. This is the second most strength of the organization. As this study was conducted in the pre-election days, the Stock market remained highly volatile with the NIFTY creating new lifetime highs every day and breaking the levels the following day. This volatility of the NIFTY has led the intraday research calls to be a bit inaccurate. However, the exit calls have been dispatched on time thereby minimizing the losses of the customers. 0 1 2 3 4 5 Timeliness Intraday Calls Fundamental Calls Exit Calls Overall Timeliness Intraday Calls Fundamental Calls Exit Calls Overall Expected Score 4 4 4 4 4 Observed Score 4.06 3.64 4.06 4.46 4.055 Research Calls -0.6 -0.4 -0.2 0 0.2 0.4 0.6 Timeliness Intraday Calls Fundamental Calls Exit Calls Overall Timeliness Intraday Calls Fundamental Calls Exit Calls Overall Gap 0.06 -0.36 0.06 0.46 0.055 Research Calls: Gap
  43. 43. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 42 Technology Figure 18: Technology Figure 19: Technology Gap Analysis The customers are not yet satisfied with the security of their trading portal. This requires the Relationship managers to convey the exact level of security followed by the organization. On the other hand the Nest Trader is not perceived to be a very easy going software. This has led to customer dissatisfaction. Although the Technical support team has performed well, it is important for the organization to conduct workshops on the software so that the clients can learn the procedures well and trade independently. If the clients can trade independently, the pressure of work on the dealers will also decrease whereby the customer satisfaction can be increased to a great extent. The online portal is quite user-friendly but the live quotes take a refresh to load thereby hindering a customer from viewing the real-time quotes easily. 0 1 2 3 4 5 TECH_NestTrader TECH_OnlinePortal TECH_TechSupport TECH_Security TECH_Overall TECH_NestTrad er TECH_OnlinePo rtal TECH_TechSup port TECH_Security TECH_Overall Expected Score 4 4 4 4 4 Observed Score 3.3 3.98 4.46 3.34 3.77 Technology -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 TECH_NestTrader TECH_OnlinePortal TECH_TechSupport TECH_Security TECH_Overall Technology: Gap
  44. 44. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 43 Additional Analysis Now we will look into some of the additional details collected as responses from the customers. Recommendation of the product On asking whether the respondent would recommend the services of Reliance Securities to their associates the responses are as follows. Figure 20: Recommendations of Products to Associates This chart shows that 92% of the respondents agree to the fact that they would recommend the services of Reliance securities to their associates out of which 54% would strongly recommend the same. 9% of the respondents are neutral to their views regarding recommending and none of the respondents are against recommending the services. This is a pretty good outcome and shows that the customers are quite satisfied. In case of those who are not satisfied, they also expect the organization to improve the performance and address their grievances with actions. 54%38% 8% 0% 0% Recommendation Strongly Recommend Recommend Neutral Not Recommend Definitely Not Recommend
  45. 45. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 44 Brand Loyalty Figure 21: Brand Loyalty Analysis This data collected from the respondents reveal their attitude towards other brands. Overall 44% of the respondents can be clubbed under the Brand Loyal category. While 16% are neutral to the view, 40% are not Brand loyal. The challenge for the organization will be to ensure the satisfaction of the Brand loyal customers and target the 16% Neutral respondents to have a sense of Brand Loyalty. Recommendation will be promoting the R-REF plans to enhance the satisfaction as well as making sure that the customers don’t get a chance to shift to other brands. In this regard, renewal of existing R-REFs will be of utmost importance and the relationship managers will play a key role in keeping the clients active and informing them about expiring R-REFs, thereby paving the way for renewal and revenue generation for the organization. Strongly Brand Loyalty 22% Somewhat Brand Loyalty 22% Neutral 16% Little Brand Loyalty 24% No Brand Loyalty 16% Brand Loyalty Strongly Brand Loyalty Somewhat Brand Loyalty Neutral Little Brand Loyalty No Brand Loyalty
  46. 46. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 45 Recommendations from the Clients According to the survey, we have also collected recommendations from the client where they feel that the service improvement is required. Figure 22: Service Improvement Requirements This data will help the organization in prioritizing the areas of improvement as perceived by the customers. The order of priority in improving the services for an enhanced customer satisfaction is as follows: 1. Usage of IT 2. Operations Lead Time 3. Research Calls 4. Charges 5. Communication with the Customers 6. Customer Relationship Management 4% 29% 10% 9% 14% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Percentage Parameters Service Improvement Recommendation
  47. 47. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 46 Conclusion The above study proves the statement of the problem to be true, i.e., there is a gap in the service deliveries by Reliance Securities Limited which is affecting the customer satisfaction level of the organization. Compiling the research outcome we can conclude that majority of the customers are satisfied with the services provided by Reliance Securities Limited. A few issue of concerns as derived from the gap analysis study are:  Usage of Information Technology in Trading  Process Time in the back office  Dealer Desk communication Most of the customers are aware of the Advanced Brokerage Plans but a lot of them had an issue with the blockage of the amount they paid for brokerage. The organization in this regard has kept this advance brokerage money non withdrawable but has also allowed the customers to use this as a part of their Ledger Margin. Almost majority of the customers are delighted with the credit limit provided by company, interest charged by company and about the communications related to their trade. The Relationship managers have served like the key drivers of the business and has contributed a significant part is the customer satisfaction level. As majority of the customers are satisfied with the overall performance and they liked the service provided by company, it will be a task for the organization to increase its advertisement and training regarding how to trade in stocks. Majority of the existing clients have hardly any technical knowledge of trading, hence they depend a lot on the performance of the research calls and the communication skills of their respective relationship managers. Aside maintaining and improving their satisfaction level, the acquisition of new clients will also form a major challenge as the financial sector is booming in India and the perception towards investing in equities is also improving each day.
  48. 48. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 47 Recommendation 1. Technology Conduct workshops for customers to train them regarding the usage of NEST Trader. 2. Process Time Simplify the process for account opening Monitor the productivity of the Service Managers Appoint more Service Managers Departmental job rotation 3. Research Calls Target customized research calls properly. This will lead to an enhanced customer service. The research calls can be customized according to customer segmentation based on their portfolio value, annual income and risk taking ability. 4. Financials Advertise the R-REF plans and attract the customers to the lowest brokerage rates in the country (0.002% for intraday trade and 0.02% for delivery). 5. Communication Work division, that is, there will be a separate terminal for trading, a separate one for giving quotes and one more for confirming the trade in market hours. 6. Relationship Managers Technical Training for generating trade calls for respective clients. This will keep the clients active in the trade and provide them with a more customized trade calls to suit their investment behavior. 7. Advertising The organization should consider advertising the DEMAT services properly to fetch an enhanced customer base and reach the areas where the investment behavior has just started shifting towards private equity. Since banking institutions are also on the competitors’ list, creating a visibility is of utmost importance in order to attract young investors in a larger scale. 8. Targeting Rural India Targeting the rural people can be a boon but convincing them to trade in equities can be equally tough. This will require frequent workshops to convey how the sector is performing and the Returns on Investment in the same. Once a substantial customer base is built, word of mouth publicity and PR activities will serve the rest of the purpose.
  49. 49. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 48 Attachments Customer Satisfaction Survey Client ID: Relationship Managers Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree The Relationship Managers are well trained. The Relationship Managers are proactive in solving my problems or queries. The Relationship managers adhere to professional standards of conduct. The Relationship managers act in my best interest. Overall, I am satisfied with the performance of the Relationship Managers. Process Time Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree The Account Opening process was quite hassle-free and quick. The processing of requests related to security token or transfer of shares is quite quick. The organization processes the ‘pay-outs’ very quickly. The process for updating details related to KYC is hassle-free and quick. Overall, I am satisfied with the operations team of the organization.
  50. 50. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 49 Financial Obligations Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree The account opening charges are amongst the best in the industry. The brokerage rates are the least when compared to other stock brokers. The Annual maintenance charges are budget friendly in comparison to the industry standards. The exposure limits provided are maximum when compared to the industry standards. Overall, I am satisfied with the financial obligations of the organization. Communication Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree I can easily contact the dealing desk to place an order. I receive timely information about the transactions done through the dealing desk. I receive the contract notes daily on time. I receive timely updates of my portfolio performance from the organization. Overall, I am satisfied with the communications department of the organization.
  51. 51. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 50 Research Calls Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree The research desk provides me accurate calls on time to maximize my profits. The intraday research calls have been profitable for me most of the times. The positional/fundamental research calls have helped me in investing wisely. The ‘exit’ notice on non- performance of a research call is communicated on time to minimize my losses. Overall, I am satisfied with the performance of the Research Team. Technology Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree The trading portal, Omnyses Nest Trader, is user friendly and secured. The online portal in the website provides me accurate and timely information related to my account. The Technical team has been able to resolve my problems quickly. I believe that the organization uses one of the most advanced, detailed and secured trading platform in the industry. Overall, I am satisfied with the technologies used in operations of the Demat Account.
  52. 52. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 51 Overall Experience Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree I am extremely satisfied with the services delivered by Reliance Securities Ltd. It is very likely that I would recommend this product to my fellow colleagues or friends. I prefer Reliance Securities over and above its competitors in the market. It is very unlikely that I would shift to an alternative brand in near future. I feel that Reliance Securities needs to improve their service offering in the following areas: (Multiple selection permitted)  Customer Relationship Management  Operations Lead Time  Charges  Communication with the customers  Research Calls  Usage of Information Technology Any Other Comments or Feedback:
  53. 53. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 52 Customer Demographics Please Tick the box applicable in each question, however, in case you prefer not to disclose any information, you are free to let the question unanswered. Please consider that answering these additional questions will help us understanding the customer behaviors better. Thank You for time and patience. We look forward to deliver enhanced service offerings and satisfying your needs. Age 18-24 24-40 40-60 More than 60 Sex Male Female Occupation Student Employed Professional Entrepreneur Marital Status Single Married Prefer Not to Disclose Trading Frequency per week 0-3 3-10 10-20 More than 20 Annual Income Less than 3 lakhs 3-6 lakhs 6-12 lakhs More than 12 lakhs
  54. 54. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 53 Financial Statements Reliance Capital: Balance Sheet ------------------- in INR Cr. ------------------- Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Sources Of Funds Total Share Capital 246.00 246.00 246.16 246.16 246.16 Equity Share Capital 246.00 246.00 246.16 246.16 246.16 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Init. Contribution Settler 0.00 0.00 0.00 0.00 0.00 Preference Share Application Money 0.00 0.00 0.00 0.00 0.00 Employee Stock Opiton 0.00 0.00 0.00 0.00 0.00 Reserves 11,725.00 11,522.00 7,543.79 7,457.82 7,207.20 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Networth 11,971.00 11,768.00 7,789.95 7,703.98 7,453.36 Secured Loans 14,388.00 11,698.00 15,338.28 8,747.41 4,954.48 Unsecured Loans 3,684.00 3,895.00 4,815.34 5,938.92 9,154.09 Total Debt 18,072.00 15,593.00 20,153.62 14,686.33 14,108.57 Minority Interest 516.00 131.00 162.80 93.75 83.26 Policy Holders Funds 0.00 0.00 0.00 0.00 0.00 Group Share in Joint Venture 0.00 0.00 0.00 0.00 0.00 Total Liabilities 30,559.00 27,492.00 28,106.37 22,484.06 21,645.19 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Application Of Funds Gross Block 636.00 468.00 438.77 414.91 530.68 Less: Accum. Depreciation 202.00 188.00 224.71 245.25 326.62 Net Block 434.00 280.00 214.06 169.66 204.06 Capital Work in Progress 5.00 1.00 111.31 88.86 97.76 Investments 15,087.00 14,759.00 12,301.37 11,340.59 9,874.24 Inventories 144.00 127.00 185.39 38.80 37.68 Sundry Debtors 839.00 405.00 103.45 190.87 296.24 Cash and Bank Balance 1,582.00 1,125.00 1,928.97 592.08 1,124.70 Total Current Assets 2,565.00 1,657.00 2,217.81 821.75 1,458.62 Loans and Advances 22,497.00 18,646.00 17,120.93 13,377.02 12,479.69 Fixed Deposits 0.00 0.00 0.00 272.41 42.83 Total CA, Loans & Advances 25,062.00 20,303.00 19,338.74 14,471.18 13,981.14 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 8,885.00 7,558.00 3,121.99 2,736.10 1,685.22 Provisions 1,144.00 293.00 827.74 936.04 939.81 Total CL & Provisions 10,029.00 7,851.00 3,949.73 3,672.14 2,625.03 Net Current Assets 15,033.00 12,452.00 15,389.01 10,799.04 11,356.11 Minority Interest 0.00 0.00 0.00 0.00 0.00 Group Share in Joint Venture 0.00 0.00 0.00 0.00 0.00 Miscellaneous Expenses 0.00 0.00 90.62 85.91 113.02 Total Assets 30,559.00 27,492.00 28,106.37 22,484.06 21,645.19 Contingent Liabilities 2,771.00 1,568.00 1,511.11 330.66 826.89 Book Value (Rs) 487.35 479.09 317.14 313.64 303.44
  55. 55. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 54 Profit and Loss Statement Consolidated Profit & Loss account ------------------- in Rs. Cr. ------------------- Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 7,470.00 6,577.00 5,386.82 6,107.87 5,932.96 Excise Duty 0.00 0.00 0.00 0.00 0.00 Net Sales 7,470.00 6,577.00 5,386.82 6,107.87 5,932.96 Other Income 89.00 67.00 111.65 -2.49 -41.93 Stock Adjustments 0.00 0.00 0.00 0.00 0.00 Total Income 7,559.00 6,644.00 5,498.47 6,105.38 5,891.03 Expenditure Raw Materials 0.00 0.00 0.00 0.00 0.00 Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00 Employee Cost 607.00 548.00 496.82 535.35 554.07 Other Manufacturing Expenses 0.00 0.00 0.00 0.00 0.00 Selling and Admin Expenses 0.00 0.00 0.00 869.69 729.60 Miscellaneous Expenses 3,683.00 3,256.00 3,198.44 2,615.31 2,058.31 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Total Expenses 4,290.00 3,804.00 3,695.26 4,020.35 3,341.98 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 3,180.00 2,773.00 1,691.56 2,087.52 2,590.98 PBDIT 3,269.00 2,840.00 1,803.21 2,085.03 2,549.05 Interest 2,343.00 2,250.00 1,462.04 1,340.58 1,268.13 PBDT 926.00 590.00 341.17 744.45 1,280.92 Depreciation 56.00 54.00 49.96 67.63 56.71 Other Written Off 0.00 0.00 0.00 104.67 51.90 Profit Before Tax 870.00 536.00 291.21 572.15 1,172.31 Extra-ordinary items 0.00 -1.00 -1.08 18.72 31.89 PBT (Post Extra-ord Items) 870.00 535.00 290.13 590.87 1,204.20 Tax 127.00 189.00 56.89 149.15 181.09 Reported Net Profit 743.00 329.00 232.66 440.57 1,023.06 Minority Interest 62.00 7.00 4.79 10.35 7.84 Share Of P/L Of Associates -131.00 -136.00 0.92 -3.16 -0.45 Net P/L After Minority Interest & Share Of Associates 772.00 459.00 228.61 415.81 983.83 Total Value Addition 4,290.00 3,804.00 3,695.26 4,020.35 3,341.98 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Equity Dividend 376.00 196.00 171.07 159.66 159.66 Corporate Dividend Tax 47.00 33.00 27.75 27.14 27.14 Per share data (annualised) Shares in issue (lakhs) 2,456.33 2,456.33 2,456.33 2,456.33 2,456.33 Earning Per Share (Rs) 30.25 13.39 9.47 17.94 41.65 Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00 Book Value (Rs) 487.35 479.09 317.14 313.64 303.44
  56. 56. Reliance Securities Ltd. CUSTOMER SATISFACTION ANALYSIS 55 References The secondary data used in the making of this report have been collected and compiled from the following sources: Websites  http://www.mbaskool.com  http://www.dnb.co.in/  www.sebi.gov.in  www.rsec.co.in  http://www.traderji.com/  www.moneycontrol.com  www.busines-standard.com  http://www.encyclopedia.com/  www.surveyanalytics.com Research Reports  Equity Broking Industry: A Financial Analysis – D&B  Broker Reports – Money Control  Indian Brokerage Industry – ICRA  Indian Equity Brokerage Industry: Running to Stand Still – Research & Market Reports  Asia-Pacific Market Share Report 2014 – Thompson Reuters  Customer Gap Analysis In Organized Retailing–An Empirical Study – Everil Fernandes News Articles  Reliance Money launches wealth management services – Reuters- 01/07/2008  Atom technologies partners with Reliance Securities, Visa for online debit card payments – Money-life- 3/05/2012 Books  Customer Satisfaction: The Customer Experience through the Customer's Eyes - Nigel Hill, Greg Roche, Rachel Allen  The Handbook of Customer Satisfaction and Loyalty Measurement- Nigel Hill, Jim Alexander  Delivering Satisfaction and Service Quality- Peter Hernon, John R. Whitman  Modern Analysis of Customer Surveys: with Applications using R- Ron Kenett, Silvia Salini

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