Management (CRM), this is an effective tool to withstand such a competition. Customer Relationship Management approach helps one to understand the needs of the customers and to serve them in a professional manner. In the recent years, CRM is one of the important tool which helped in the growth of many industries, majorly banking sector. CRM is This paper, therefore, aims to delve into the strategies, benefits and challenges intertwined in the implementation of Cloud CRM in banking sector and provide reliable solutions. View Show abstract The Effect of Customer Relationship Management (CRM) Concept Adoption on Customer Satisfaction – Customers Perspective The Case of Coastal Municipalities Water Utility CMWU- Rafah Branch by Zaidan A. Zaidan Dhman Supervisor: Dr. Rushdy Wady A thesis Submitted in Partial fulfillment of the requirements for the degree
Abstract of Customer Relationship Management in Indian Commerc
In the area of banking and financethere has been a long-standing view that the more customers a bank has, the more profitable it could be. Built around this thinking, banks therefore embarked on a customer-recruitment scheme that sought to gather as phd thesis on crm in banking sector people as they could possibly get, and design their marketing and promotional activities around phd thesis on crm in banking sector particular way of thinking.
On the one hand, it is good to have a large number of customers for a retail bank. But then, on the other hand, based on a common sense thinking, it would be better to have a handful of big customers who are loyal to the bank.
But these thoughts all fit into an overall framework of managing the relationship of the bank with its customers. Another line of phd thesis on crm in banking sector that supported this one is the notion that more customers will lead to a higher net profit for the bank. The problem is that these assumptions have been challenged by recent findings in the market.
According to a study conducted by Cooper and Kaplanp. That is a far cry from the usual idea that retail bankers had. Order custom essay Customer Relationship Management for Retail Banking with free plagiarism report, phd thesis on crm in banking sector.
Even more surprising is that the largest customers of retail banks are the ones causing the big losses of these kinds of banks, phd thesis on crm in banking sector.
This is because customers with large amounts of money in the banks demand for the best prices as well as for the best service while at the same manage to put the bank at a disadvantage from a profit point of view.
Naturally, the findings of the above authors caused a stir in the banking community. As such, people started thinking about the kinds of customer that they have, the profits that they are making and what kinds of activities they should embark on in terms of their relationship with their clients. In another study conducted by Uncles, Dowling and Hammondp. The findings of these authors have cast a large pall of doubt on the cherished thinking that if a bank has a large number of loyal customers, then profitability will follow.
Through the studies mentioned above, it becomes necessary for retail banks to understand their clients better and enhance their services. By understanding their clients and the factors affecting the profitability that can be derived from the customers, retail banks will be able to implement strategies in managing their relationships with their clients better. It is a daunting task truly but if banks would invest in achieving a good understanding of their customers and the forces affecting them, they can then formulate strategies in maximizing their profits while keeping their customers happy.
This paper deals with retail banking and the way that they interface with their customers. It looks at the nature of the customers and the different strategies and principles that banks can implement in order to better deal with their customers. Particularly, this essay seeks to generate recommendations and practices that can help banks deal with customers without compromising the level of their profitability.
Retail Banking and Customer Relationship Management Customers are the lifeblood of any business operating in the market. It is because of the customers that the businesses provide their services. Without the continuous support of the customers, the banks will lose profits and might eventually file for bankruptcy. Given this very simple phd thesis on crm in banking sector, managing the way that customers relate with the banks is very important.
Customer relationship management CRM was born as a result of the realization that customers need to be taken care of by the businesses. At first, customer relationship management was limited only to the technology side of relating with the customers. Because customers were becoming savvy with technological applications and most of the customers need quick access to the services provided by the businesses that they contacted, phd thesis on crm in banking sector.
Probably because businesses were enamored with the technological aspect of managing the relationship of businesses with their customers, a lot of these initiatives failed. The CRM initiatives of any business can fall under several categories. There are areas of the business that has direct contact with the customer. There are self-service kiosks where customers can go and they can accomplish what they want without the express assistance of anyone from the company.
An effective organization also has a dedicated customer service department that can help customers with their concerns and issues that only the organization itself can resolve. There are also different departments within the organization coordinating with each other in order to deliver the services to the customers. Within the organization, phd thesis on crm in banking sector, there are also people under departments that coordinate with other suppliers and vendors outside of the organization so that the operations of the business remain smooth and uninterrupted.
There are also marketing professionals and analysts who are always on the lookout of new strategies to attract customers and keep those that may opt to move out of their relationship with the company. There are also professionals dealing with the quality of service and process that the entire organization delivers. The common pitfall, however, in thinking about and implementing CRM is an over-reliance on the technological aspect of this framework. Even before contracting a consultant or using a CRM software, a business entity should have a clear idea of what it wants to accomplish with its relationship with its customers.
A good understanding of its customers is therefore needed if it were to become effective. This kind of understanding, however, should not only come from perceptions or from opinions.
Rather, there should be a deliberate move to seek the perspectives of customers and how retail banks can deal with customers. The following section deals with a kind of profiling of the customers of retail banking with special attention given to the different variables that do affect the nature of the relationship of retail banks with their customers.
This way, a framework of CRM for retail banking will be arrived at. Retail Banking Customers in Focus. The retail banking industry entered the new millennium with a bang and with a gradually changing customer base. In the first place, banks have already realized the importance of marketing and dealing with their customers. More than that, given the increasing globalization in the area of finance and banking, banks are now more competitive and the marketplace has become even more fragmented.
The customers of retail banks have also evolved. They are now more adept in managing their finances and in looking for the most suitable banks around, thanks to the greater diffusion of knowledge through the Internet.
The customers also have a lot of technology at their disposal in communicating with their banks—phones, internet, and fax among others. Given this two-pronged situation, banks need to manage their customer relationships better, phd thesis on crm in banking sector.
The use of customers of the Internet is well and good. However, this might also pertain to a segment of the customer base only and not to the entire spectrum. Although some customers may not use Internet technology, what cannot be denied is the ability of marketers to look at data and up to a certain degree, manipulate this so that the customers would have a better understanding of the nature of services that the banks are providing Dibb,p.
The banks, however, also need to take into account other segments of their customer base that are not very savvy with technology. If they do not, then these phd thesis on crm in banking sector may also be left out with the products and services that they provide. If a customer becomes dissatisfied with the level of service that he receives from his retail banking provider, he may switch banks.
Or if he is able to find a bank with a better deal, he may also switch banks. In addition to these difficulties, there are also customers who change their buying and consumption patterns depending on several factors.
Banks, as well as every business in operation, know that retaining a customer is far phd thesis on crm in banking sector than finding a new one. Because of this reason, customers embark on retaining their customers instead of losing them. This is done through several strategies such as offering a rewards and benefits system or providing incentives to long-term customer.
Although there are customer retention programs in most banks, there are also those choose to change the patterns of their consumptions and buying, phd thesis on crm in banking sector. Given this scenario, it is now difficult to gauge the level of profitability derived from a customer based only on the satisfaction or the defection of a customer from any given bank, phd thesis on crm in banking sector.
Coyles and Gokeyp. Rather, it is the smaller changes in consumption patterns that matter in the longer run. Hence, for banks who wish to retain their customers, they should focus on these smaller changes rather than on the big ones.
Customer Segmentation and Stratification Not every customer is alike. There are differences among customers which can be discerned by a retail bank meaning to make the most out of every customer. More than just the profiles of the customers, retail banks also have to take into account the nature of their relationship with their customers. Given this, relationship marketing has been used by various banks in dealing with their customers. Hence, there is a call for greater understanding of what the customers give value to or how the retail bank values the customer.
Customer Segmentation. In this regard, retail banks tend to evaluate the profitability of each customer that they deal with. This economic value, however, is not without shortcomings. More than just the economic value, there should also be a reckoning of the relationship of the customer with the bank. Even though relationship is very difficult to quantify, the customer who is satisfied with the services of bank will more likely refer other customers to the bank.
As such, banks are encouraged to maximize their relationships with their customers Ryals,p, phd thesis on crm in banking sector. The larger the body of data that a retail bank collects regarding a certain segment of its customers, the better its understanding would be of the value of the customers to the profitability of the bank. There are already a number of tools and technological equipment that firms can use in mining data regarding their customers.
A study conducted by Verhoef, Spring, Hoekstra, and Leeflangp. Based on their findings, they realized that there are different areas of concern highlighted by each segment of customers in the study.
The use of segmentation and positive modeling affects positively the relationship of companies with their customers. The database size of the company is also affected, the level of frequency that the customers get in touch with the business, as well as the channels of distribution that the customers get exposed to. Hence, through this process of segmentation and positive modeling, companies can better take a look at the way that their customers behave and how they can achieve better results with them.
As part of its customer relationship management strategy, companies should have extensive customer database so that this body of data can be used to ensure that the particular situations and demands of customers are met. Although the level of implementation of this strategy may vary from industry to industry, the said authors called for the need to collect up-to-date data, which can be used for the segmentation of the customers and to ascertain the level of profitability that the company can derive from these customers.
This should not be forgotten by companies seeking to derive profitability from different segments of customers. Profitability Segmentation In seeking to maximize profitability in different segments of the market, companies may have to realign their internal processes as well as their relationship with external service providers in order to promote profitability among different segments of their customer base.
Doing this, however, does not come in a one-size fits all approach. Rather, the company has to think about the nature of its business as well as the different needs and demands of its customers. Although there may be a lot of differences among the segments of the customers, the company has to focus on the segments where it can derive a greater level of profitability.
Campbellp. What is important, however, is the way in which the companies gather important customer knowledge both within the organization as well as on the part of the customers so that they can best achieve profitability in the different customer segments that they are serving. Through this competence in customer knowledge, the firm can maximize its efforts in managing its customer relationship Campbell,p.
Segmentation, however, is not easily attained. In this regard, phd thesis on crm in banking sector, the richness of the data that companies collect will dictate the kind of understanding that they will derive regarding their customers.
Tutorial: How I do CRM demo's - an example in Banking
, time: 30:45Customer Relationship Management for Retail Banking - blogger.com
Feb 19, · Retail Banking and Customer Relationship Management Customers are the lifeblood of any business operating in the market. It is because of the customers that the businesses provide their services. Without the continuous support of the customers, the banks will lose profits and might eventually file for bankruptcy Jun 01, · A dissertation on customer relationship management and importance of relationship marketing in the banking sector 1. blogger.com A Dissertation On Customer Relationship Management And Importance Of Relationship Marketing In The Banking Sector This project report is being submitted as a part of the requirements of the MBA Program of Bangalore This paper, therefore, aims to delve into the strategies, benefits and challenges intertwined in the implementation of Cloud CRM in banking sector and provide reliable solutions. View Show abstract
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