Customer Relationship Management (CRM) is a managerial philosophy which helps to build a long term relationships with potential customers. Maintaining customer relationships is essential and valuable to the business organizations.
CRM IN BANKING SECTOR:
Stone et al (2002) point out that most sectors of the financial services were trying to implement the customer relationship management techniques in order to reach their goals. Banks were trying adopt these techniques of CRM such as create customer-centric culture and organization, integrate communications and supplier that is customer interactions across the channels, maximize customer profitability, secure customer relationships, identify sales prospects and opportunities, support pricing, channel management and migration, manage the value of customer by developing propositions aimed at various groups of customers and support cross and up-selling initiatives. Successful CRM concentrates on understanding the requirements and desires of the customer and this can be fulfilled by placing these requirements at the business heart by integrating them with organization’s technology, strategy, people and business processes.
Customer relationship management is a sound business strategy in order to find out the bank’s most profitable prospects and customers and banks have to spend time and attention in expanding the long term relationship with customers through individualized reprising, marketing, customized service and discretionary decision making through the different sales channels that the banks uses. Any financial institution which is trying to adopt a model for customer relationship then they should consider six key requirements for the business such as create a customer-focused infrastructure and organization, assess the lifetime customer value, gaining accurate picture of various customers, maximize the profitability in each and every customer relationship, perceive how to attract and retain the best customers and maximize the return rate on marketing campaigns (Chary and Ramesh, 2012).
It is concluded that CRM has emerged as a famous business strategy in the today’s competitive business. It involves advance and new marketing strategies which not only manage the existing customers but also obtain new customers.
1. Chary T. Satya Narayana & Ramesh, R. (2012). Customer Relationship Management in
Banking Sector- A Comparative Study, KKIMRC IJRHRM, 1 (2), 20-29.
2. Stone, Merlin et al. (2002). The Evolution of CRM in Banking, Publication Kogan Page