Customer Relationship Management: Strategies And Practices In Selected Banks Of Pakistan
Iftikhar Hussain , Mazhar Hussain, Shahid Hussain and M. A. Sajid∗
As economic globalization intensifies competition and creates a climate of constant change, winning and keeping customers has never been more important. Nowadays, Banks have realized that customer relationships are a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their revenues and profits. CRM in the banking sector is of greater importance. The aim of this study is to explore and analyze the strategic implementation of CRM in selected banks of Pakistan, identify the benefits, the problems, as well as the success and failure factors of the implementation and develop a better understanding of CRM impact on banking competitiveness as well as provide a greater understanding of what constitutes good CRM practices. In this study, CMAT (Customer Management Assessment Tool) model is used which encompasses all the essential elements of practical customer relationship management. Data is collected through questionnaires from the three major banks (HBL, MCB, and Citibank) of Pakistan. The evidence supports that CRM is gradually being practiced in studied banks; however the true spirit of CRM is still needed to be on the active agenda of the banking sector in Pakistan. This study contributes to the financial services literature as it is one of the very few that have examined CRM applications, a comparatively new technology, in the Pakistani banking sector, where very limited research has taken place on the implementation of CRM.
Field of Research: Relationship Management
Over the last 5 years, Pakistan witnessed a phenomenal growth of consumer banking. This unprecedented