Enhancement of Efficiency and Effectiveness in Banking through CRM Systems

Abstract

Financial Services Industry in India is experiencing robust growth and intensity of competition unlimited by geographical operations and multiple methods of service delivery, witnessed by the ever dynamic and increasing role of Information Technology (IT). Relationship Marketing has replaced traditional Transactional Marketing and in this direction, the concept and tools of customer relationship management (CRM) have become significantly important. This research paper examines the multi-fold impact of CRM systems on the growth and efficiency of plethora of banking operations. This empirical study is based on descriptive research design using questionnaire as the key research instrument. Descriptive statistics, Pearson correlation and Stepwise regression and chi-square were used to test the research hypotheses. Cross selling helps to retaining the customer and give more than one platform to engage with the client. It also gives employees an opportunity to learn various non-related products for their skill development for career progression. Banks can improve their efficiency by structured and scientific approach towards cross selling through implementation of CRM tools. Desired results can be obtained by training staff on various products and close tracking on sales process.