Thoughts on Customer Relation Management of Small and Medium Commercial Banks

Abstract

With comprehensive interest rate liberalization in China in 2014, market competitions of banking industry become increasingly fierce. The survival pressure of small and medium commercial banks becomes heavier and heavier. Customers have become strategic resources of small and medium commercial banks. Enhancement of customer relation management becomes the most important business strategy of small and medium commercial banks. This paper introduces the concept and connotation of customer relation management, analyzes current situations and problems of implementation of customer relation management by small and medium commercial banks and finally puts forward solutions. I.Overview of customer relation management (I) Implication of customer relation management Different scholars have different explanations for customer relation management. Some think it is an advanced information technology. Some consider it is an operation principle and management mode. What is customer relation management? What's its essence? In my opinion, customer relation management means enterprises influence customers' behaviors and choices through a series of measures and behaviors so as to add the number of customers, improve customer loyalty and customer satisfaction and finally make profits. In a general sense, it includes thee aspects. Firstly, enterprises establish customer-centered idea; secondly, enterprises carry out relation creation for customers so as to establish high-quality, efficient and stable real customer relations; finally, enterprises achieve integration, i.e. unification of ideas, management and software and integration of front-desk operation and backstage service. (II) Customer relation management of small and medium commercial banks Since 1990s, modern western commercial banks have experienced the change from being product-centered to being customer-centered. This change is reflected in various aspects of bank management. As Chinese economy and financial system reform speed up, great and profound changes happen to external operating environment of China's commercial banks. Horizontal competitions become fierce increasingly. Whether can small and medium commercial banks further promote marketing service level, enhance exaction of potential needs of high-quality customers, permeation and expansion of high-quality customers added and increase marketing management force for high-quality customer? This is the key to deciding the success of small and medium commercial banks in new round of market competitions. Customer relation management of commercial banks is the product of creative application of the ideal theory and method of customer relation management in commercial banks. As a new management mode, it reflects an advanced development strategy and operation idea of commercial banks. Besides, such strategy and operation idea run through management practice of commercial banks. The direction representation is software and hardware system integration with modern information technology, including business operation, customer information and data analysis. It is a uniform technical platform and intelligent service system of banking operation activities under high datamation, informatization, electronization and automation conditions.