Conceptual Framework of Customer Value Management (CVM) in Indian Banking Sector

Abstract

With the financial development of any country in rapid growth manner, the function of the banking sector is gaining importance. In an agitated bidding markets, all the commercial banks in India were confronted towards the challenging tasks in favor of holding on to the prevailing customers as well as fascinating novel customers. There exist struggle in describing customer value owing to its complexity, moreover it is necessary for the long term profitability as well as productivity. Thus, Bankers must make maximizing the value of customer, an unambiguous and assessed business goal. Many businesses have capitalized in huge customer databases to monitor, understand, and impact customer behavior. The subsequent information is cast-off to obtain and recall customers as well as to bring out the behavior of customer with the marketing approaches like the value of all present and upcoming customers are enhanced. A conceptual foundation is a tool which can aid the managers in manipulating the distribution approaches in a value-based field. The representation can guide executive thinking in framing the value of customer in a system of banking. This paper conceptualizes the value of customer in a dissemination system as the interactions among customer service, costs, acquisition factors, and customer feedback.