Banks play an important role in the economic development of developing countries. The traditional functions of banking are limited to accept deposits and to give loans and advances. Today banking is known as innovative banking. Information technology has given rise to new innovations in the product designing and their delivery in the banking and finance industries. Customer services and customer satisfaction are their prime work. Current banking sector has come up with a lot of initiatives that oriented to provide better customer services with the help of new technologies. In the recent past, banks have slowly realized the importance of building and maintaining customer relationships. Concentrating and continuing customer relationship management in banks are the emerging trends in banking industries.
ROLE OF CRM IN BANKING
Dr. K. VISWA SAROJINI DEVI,
ASSISTANT PROFESSOR OF COMMERCE,
THIRUVALLUVAR COLLEGE, PAPANASAM.
There is an unprecedented growth in the field of banking. Indian banking industry is gradually moving towards adopting the best practices in accounting, corporate governance and risk management. Today the banking industry is stronger and capable of withstanding the pressures of competition. The bankers in India face a tough competition, and in this competition, they make hectic efforts to increase and retain their clientele base. Their offerings have become much more customer centric and customer specific than ever before. Maintaining a good relationship with customers is becoming important in banking industries. Banks can no longer rely on customer inertia in order to retain customer loyalty. Customers are drifting away from inherited relationships to managed relationships, from face-to-face to virtual banking and from branch specific to anywhere banking. Therefore, every bank should pay full attention to keep their customers satisfied by providing the needed products and services. Customer Relationship Management (CRM) is the integration of the two cornerstones of Indian banking viz. technology and relationship marketing. It has a potential to bring about dynamic changes in marketing practices of banks in near future, with the objective of business growth through managing customers as assets. OBJECTIVES OF THE STUDY
To understand the correct meaning of the term - CRM in banking To know the importance or benefits of CRM in banking industries To analyse the role of CRM in banking
To explain the different types of CRM adopted in banking sector To discuss the steps in the successful implementation of CRM
MEANING OF CRM
CRM is the strategy for building, managing and strengthening loyal and long-lasting customer relationships. CRM is a customer centric approach based on customer insight. Its ultimate objective is towards ‘Personalised’ handling of customers as distinct entities through the identification and understanding of their differentiated needs, preferences and behaviours . Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. There are many definitions for CRM and all of them are more or less correct. It is important that the client not the product is in the centre. The CRM definition we use is - ‘Having the right offer for the right client, at the right time via the right channel’.
CRM IN BANKING
Implementing a CRM in banking industry can be very challenging. A powerful CRM should optimize the existing customer strategies and makes them future-proof without affecting the bank's flexibility. All major banks have invested heavily in technology and infrastructure over the last 5 to 10 years in this...