Role of Relationship Marketing in Selling Financial Services – An Empirical Study on Three Major Private Sector Banks in Dimapur City of Nagaland, India

Abstract

The success of any service industry depends more on how they sell rather than what they sell. Selling of services is little difficult than that of selling of products because of the four distinctive features which make services different from that of products namely intangibility, inseparability, variability and perishability. Intense competition has created a challenge for the financial organizations such as banks to sell their services. To sustain and do business profitably in this competitive market banks have to give their major focus to the concept of relationship marketing. It will help a bank to increase customer acquisition and customer retention by creating customer loyalty which is the basis of relationship marketing. This study has been conducted on three major private banks in Dimapur to understand how relationship marketing helps a bank to increase their revenue earning by acquisition of new customers and retention of old customers.