Customer relationship management in banks
- Introduction to customer relationship management (CRM)
- The evolution of CRM
- Concept of CRM
- Role of CRM in banks
- CRM's objectives in banking sector
- CRM tools for banking
- Analysis of the current banking scenario
- Customer retention and CRM strategy in banks
- Benefits of relation marketing
- Case study
Customer Relationship Management (CRM) is at the core of any customer?focused business strategy and includes the people, processes and technology questions associated with marketing, sales and service. Simply stated, CRM is about finding, getting and retaining customers. The aim of these systems is to assist in building lasting customer relationships ? to turn customer satisfaction into customer loyalty.
Ever increasing customer power creates the need for customer ? driven organization. The CRM concept is creating a strong customer supplier alliance and the pressure forging these alliances are stiff competition, emerging/new technologies, shorter product life cycles and quality revolution and just-in-time concept.
Banks are one of the prime users of CRM. Any bank would have such a customer that it would not be able to monitor manually and find out various customer trends and patterns. So it is essential to attract, retain and grow customer base effective management of the information about the customers and enhance relationship with them.
This is where CRM comes in for the banks. The purpose of CRM is to improve the quality of market share. While it is good to keep all customers happy, there is a time to say goodbye to some customers when they no longer fit a company's business model. It does not about let's just make everybody happy. Shareholders want the good customer and that's the great value that CRM brings. CRM technologies are also designed help identify the appropriate channels to lower the cost of servicing lower-value customers.
[...] Customer Channels Analysis of the Current Banking Scenario- Role Ahead? Most of the banks have not computerized in the recent past a positive development indeed which helps smoothen the banking operations. But everything is not all that green. Have all data been computerized? It is understood that a cut-off period was kept for date entry into the computers so that all information after this date were entered into the computer while all information prior to this date were left out. [...]
[...] Thus, consolidation in the market has increased the need for CRM which ensures banks to build and retain close relationship with their customer, especially the most profitable ones. This is aimed not only to prevent the customer from taking their business elsewhere but also to ensure that they are offered the product and services that a most appropriate and most likely to result in new revenue for the bank. CRM helps categorize and segment customers and align products that best suit them. [...]
[...] The company might decide to invest in the customer to retain him and thus reduce the rate of customer defection (churn) or to turn low-profit customers into more profitable ones by increasing the longevity of the customer relationship and/or by enhancing the growth potential of each customer through cross-selling, up-selling, and increased share of wallet. Interact: Interact with individual customers to improve learning about their individual needs and to build stronger relationships. Customize: Customize products and services and personalize all communications with each individual customer. [...]