focused strategies. CRM requires many changes in contact channels, customer data and information technologies. CRM is described as the establishment, development, maintenance and optimization of the long term mutually valuable relationship between the customer and the organization. From the organizations competitive advantage to boost the profits.
Philip Kotler, CRM software is the process of carefully managing the information in detail about individual customer and all customer touch points for maximizing the customer’s loyalty.
Issues & Challenges of CRM in banking sector
Most of the officers perceived the technology limited to record the information and transaction about the customers. There are multiple integration channels that simultaneously use the latest technologies in customer interface, service, and sales.
It means the lack of knowledge and skills in converting data to customer knowledge. Which in turn, lack of motivation to utilize the potential of CRM software solution. There are less or insufficient decision-making authority and inadequate performance management parameters. In order to use the concept of CRM towards the customer centricity, sufficient decision-making power it requires to provide the customized, responsive and proactive services.
As CRM is an organizational wide strategy, so the complete process requires being aligned inappropriate manner. The CRM implementation demands a change in organizational culture in terms of shared values, vision and mission. The success of CRM software lies in the ownership by all the departments with marketing in the strategic role to combine all efforts towards better customer service.
Top FIVE ways and means of maintaining CRM in banking sector
CRM has become a progressively critical means of developing and maintaining customer loyalty while also helping the business, migrate to low value customer towards greater profitability. The banks which implements CRM practices can excel their competitors. Unbeaten accomplishment of CRM calls for a calculated approach. It includes designing customer-focused strategies, proper implementation of technology and tools, empowerment, of employees and enhancing the knowledge levels of customers. CRM is not only the technology interest; it is a business strategy to select and manage the most valuable customer relationships. To meet the challenges arising out of unbending competition and high-tech revolution, it becomes necessary to create a special bondage with the customers. This is becomes possible mainly through CRM marketing. Though loyalty and relationships are not substitutable, relationship marketing keeps the link between bank and customers intact and this would at least give a chance to the banks to convert a customer to a loyal one. Hence, the study has given a clear message that the real challenge before the banks is to translate sentiments into dealings, and a dealings-based relationship into a psychologically linked and dedicated one within a time period.
- Dave Horstein, CRM consulting to clients across a wide range of industries, including financial services and insurance. https://us.hitachi-solutions.com
- Jagdish NS, Parvatiyar A, Shainesh G (2001) Customer Relationship Management-Emerging Concepts Tools and Applications. Tata Mc Graw Hill Publishing Company Limited. New Delhi.
- Chakrabarty A (NA) Barking Up the Wrong Tree – Factors Influencing Customer Satisfaction in Retail Banking in the UK”, International Journal of Applied Marketing 1.
- Menon K, O’Connor A (2007) Building Customers’ Affective Commitment towards Retail Banks: The Role of CRM in Each ‘Moment of Truth. Journal of Financial Services Marketing 12: 157-168.
Dr. Senthil Kumar, is an Associate Professor of Finance and Business Management in Skyline University Nigeria. He has a PhD. in Business Management from Bharathiar University, India.
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