The Correlation between CRM Strategy for City Commercial Banks and Core Competency Cultivation-Evidence from China

Abstract

In order to reveal the incentive functions of customer relationship management (CRM) strategy in the process of core competency cultivation, the structure equation modeling (SEM) is used in this paper. By research hypothesis, model deduction, reliability and verification test, and model checking, SEM can effectively reveal the correlation between CRM strategy and core competence cultivation in Chinese city commercial banks. For illustration, the collected copies are 300 banks, and 298 copies are valid. The sample ratio of sample data and indicators is 6:1, which meets the basic requirements for structural equation test. The empirical results show that the reliability and validity in the research measurement model are quite well and the reliability and validity in the model are also quite well. The empirical research has revealed the CRM-related strategy microcosmic mechanism in core competency cultivation, which can provide the effective theoretical references and support for banks to further strengthen CRM strategy and raise management efficiency.