Analytical study of CRM: As a strategic tool in Banking sector in Western Vidarbha with reference to Akola District Prof. Dr. G. L. Pedhiwal. HOD (Co-ordinator) Smt.L.R.T. College of Commerce, Akola.
& Sanjay J.Tale
Abstract : Customer relationship management systems are being widely across various sectors and have emerged as a popular business strategy in today's competitive environment in companies. It has been viewed as a process aimed at collecting customer data, find profiles of customers and use the customer knowledge in specific marketing activities. It is a discipline which enables the companies to identify and target their most profitable customers. CRM implementation is on way in many Indian banks. However such implementations are not without hiccups. This paper takes a look at the status of a CRM in major banks operating in Western Vidarbha District. CRM involves new and advance marketing strategies which not only retain the existing customers but also acquire new customers and also analyzes their efforts in terms of a strategic framework and points out some of the deviations that have occurred in the implementations. It has been invented as a unique technique capable of remarkable changes in total output of companies. INTRODUCTION: Rising competition, proliferating customer contact, intensifying attacks on customer information, increasing customer expectations, identifying new marketing opportunities etc have made Banking Sector to face superior challenges than ever before in executing their Customer management strategies. Every organization believes in the significance of knowing the customer. The current economic environment and financial crisis has most probably led many financial services institutions to focus on their CRM strategies while screening customer relationship as a key to profitability of a retail activity and managing the cost and risk associated with it. Every bank wants to provide goodquality customer service. Most of the Banks believe that CRM is one of the best strategies for increasing revenueprofit margin, developing new market share and to create good brand image among the customers. In Marketing Customer Relationship Management have assumed mounting importance in the overall of a Bank, particularly when competitive onslaught has been fiercely active, Customer Relationship Management has been recognized a, a new marketing paradigm and is emerging as the core marketing activity. No wonder that it has emerged as a strategic tool in the hands of marketing people. Customer relationship management is more focused on trust, commitment and conceptualized now. This paper deals with the role of Customer Relationship Management in banking sector, to gain better understanding of the role of CRM in maximizing customer profitability and to serve their customer better and meet their business objectives. Objectives: The research objective of this study is to try to identify the success factors for an effective CRM implementation within Banks in Western Vidarbha Districts. This thesis will provide valuable information on the viability of a CRM implementation and on the barriers that are related to it. The steps taken and the issues that will be addressed in order to achieve the objective of this thesis are: To study CRM in Banking Sector. To study the consumer behavior towards CRM in Banking Sector. Customer Relationship Management Ideally, CRM defines an enterprise-wide program that helps to align business processes and functions against customerdriven priorities. A broad definition of Customer Relationship Management (CRM), beyond a tactical or technical project, is being defined by Bottle (2003). "CRM is the core business strategy that integrates internal processes and functions and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and...
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