Term Paper

Topics: Marketing, Customer relationship management, Bank Pages: 30 (6847 words) Published: April 7, 2013
Arth Prabhand: A Journal of Economics and Management    Vol.1 Issue 6, September 2012, ISSN 2278‐0629  


Department of Commerce,
Lumding College, Lumding,
Nagaon, Assam.

            Pinnacle Research Journals                   68       http://www.pinnaclejournals.com  

Customers are the focal point in the development of successful marketing strategy. Marketing strategies both influence and are influenced by consumers’ affect and cognition, behaviour and environment. In the banking field a unique ‘Relationship’ exists between the customers and the bank. But because of various reasons and apprehensions like financial burdens, risk of failure, marketing inertia etc., many banks are still following the traditional ways of marketing and only few banks are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. The lack of understanding on Customer Relationship Management (CRM) is always a concern among the service providers especially banks. Banks have their own way of managing their relationships with the customers. However, the perception of customers on CRM practices among banks should also be taken into consideration. Here in this paper, effort is given to study the comparative perception of SBI customers and other nationalised banks customers’ in the issue of CRM practices. It is observed that the approach of CRM by SBI and other nationalised are to some extent same and one but the reach is quiet distinguishable. It is due to the profile, their capability and the strategy of CRM in making it and reaching down to customers. On the contrary, it can also be asserted that the background of both banks also found as a big cause for reaching the top CRM. Hence, CRM is an inevitable tool of marketing that can be considered as Critical Responsibility of Market with regard to Banks in present context.

______________________________________________________________________________ INTRODUCTION
Customer relationship management is one of the strategies to manage customer as it focuses on understanding customers as individuals instead of as part of a group (Lambert, 2010). Managing customer relationships is important and valuable to the business. The effective relationship between customers and banks depends on the understanding of the different needs of customers at different stages. The ability of banks to respond towards the customers’ needs make the customers feel like a valuable individual rather than just part of a large number of customers. CRM manages the relationships between a firm and its customers. Managing customer relationships requires managing customer knowledge. CRM and knowledge management are


Arth Prabhand: A Journal of Economics and Management    Vol.1 Issue 6, September 2012, ISSN 2278‐0629  


directed towards improving and continuously delivering good services to customers. To understand more in customer relationship management, we first need to understand three components which are customer, relationship and their management (Peppers and Rogers, 2004). More often, managers always make mistakes by seeing customers’ satisfaction from their eye not from customers’ eye (Peppers and Rogers, 2004). Banking sector is a customer-oriented service where the customer is the KEY focus. Research is needed in such sector to understand customers’ need and attitude so as to build a long relationship with them. Customer Relationship Management includes all the marketing activities, which are designed to establish, develop, maintain, and sustain a successful relationship with the...
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