Customer Acquisition and Retention in Non-Banking Finance Companies (NBFC)

Non-Banking Finance Companies (NBFCs) are playing a key role in providing financial support to the unsupported and secure the unsecured population. The broad objective of the paper is to study how NBFCs can increase customer base and its retention. There are various variables investigated, which were anticipated to be the reasons for increase in customer base. These variables involved both employee and customer satisfaction. The data collected is both primary and secondary in nature. The variables investigated are Interest Rate, customer satisfaction over various parameters likeservice offered, interest rate, staff behavior, and documentation process. For employee satisfaction there were factors investigated like salary, incentives, working hours, flexibility with work and personal interest. Also, there were factors which were analyzed to know how customers can be increased and retained. Factors such as referral program for customers, maintain regular interaction with customers, provide benefits offered by other competitors and provide benefits to loyal customers. The study attempts to identify the relations between above factors and how we can increase customer base and retention thereafter.