A Study on Customer Realationship Management in Banking Sector

Abstract

Customer relationship management is an overall business strategy that enables the organization to maintain good relationship with customers. Customer is considered as the king of the market. There is a unique relationship between customers and banks. Some banks are still following traditional marketing because of many reasons reasons like lack of training ,new technology literacy, financial targets, risk of failure etc. and on another hand; some are adapting CRM to maintain profitable relationship with customers. In this competitive era customers have a lot of choices they are generally not loyal to any organization, so with the implementation of CRM in banking sector customers can be retained for long period. CRM is concerned with creation, establishment and enhancement of customer relationship to maximizing the value of customers. The implementation of CRM has changed the bank culture to result oriented from task oriented. The methodology of the CRM aims to maintain customer satisfaction and increase consumer loyalty. The purpose of this paper is to study the importance of CRM systems and in-depth knowledge of methods and management techniques customer relationships. The main issue of this study is that CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. Due to this complexity, a number of different variables have been used to measure CRM which investigated by several prior studies. This paper highlights the challenges facing by banking sector. The purpose of this research is to examine the relevance of CRM and impact of CRM in Indian banking sector.