Customer Relationship Management

Topics: Customer relationship management, Customer service, Marketing Pages: 21 (5329 words) Published: April 12, 2013

Volume 1, Issue 3 (July, 2011)

(ISSN 2231-5985)


Customer relationship management (CRM), being disciplined and holistic approach in identifying the tastes and preferences on individual basis to enhance relationship over the customer’s life, is the buzz word for competitive advantage and so the companies are spending enormous resources on it. In CRM every customer is viewed on his life time value, and the realization is loud and clear that not only customer retention but customer satisfaction is more important than just customer acquisition for a transaction. In real terms CRM is a philosophy and the software solution part is a mere tool to aid better implementation of the philosophy. CRM goes way beyond a software solution. The present level of MIS covers, information needed for control, performance monitoring, decision making etc. and encompasses activities in administrative offices like processing of statutory returns, monthly/quarterly performance reports from branches, credit information personnel inventory, profit and loss accounts, funds management, and branch maintenance etc. The purpose of this research is to study the comparative use of CRM in various private sector banks. The study analyzes the perceptions of the customers regarding the impact of CRM on service quality and evaluates the impact of CRM on customer retention. The results bring out the comparative ratings by customers, ICICI being rated first in implementation of CRM, HDFC rated first in service quality and customer retention. Keeping this challenge in mind it is an attempt to rediscover the power of upcoming Technologies of digital revolution in the field of banking sector – the challenges and their impact on future economy.. *Research Scholar, Dept of Management, Dayalbagh Educational Institute, Agra, INDIA, **Ast. Proferssor, Dept of Management, Anand Engineering College, Agra, INDIA, ***Associate Professor, Dept of Mgt, Dayalbagh Educational Institute, Agra, INDIA,

International Journal of Research in Finance & Marketing http://www.mairec org 12


Volume 1, Issue 3 (July, 2011)

(ISSN 2231-5985)

Key Words: Customer Relationship Management, Customer retention, service quality, competitive advantage, competitive strategy, Information Technology

Customers Relations Management (CRM) helps in maintaining customer database and providing better services. Over the last decade, firms across a wide variety of industries (for example, banking, insurance, telephone, retailing and airlines to name a few) have increasingly focused on customer as opposed to a product or brand management strategy. With a customer management focus, these firms have changed from a transactional to a relationship orientation, where they differentiate customers as a function of the lifetime value of the relationship to the firm (Blattberg and Deighton 1996; Peppers and Rogers 2001; Gupta et al. 2004). To implement such a customer relationship strategy, firms have not only made massive investments in information infrastructure to store and analyze customer information, but also changes in organizational structure, employee incentives, accounting and operations management practices to facilitate the implementation of the strategy (Day 2003). Yet, despite such massive investments in Customer Relationship Management (CRM), the current state of the literature provides feeble information on the usage of CRM strategies by some of the good MNC’s private sector banks in developing country.

CRM and its evolution CRM is the business buzzword on the Internet these days. Customer Relationship Management promises faster customer service at lower costs, higher customer satisfaction and from this, better customer retention and ultimately customer loyalty. Naturally, all this is done in hope for more sales and...
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