27-09-2013, 03:23 PM
A PAPER ON CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR
INTRODUCTION
CRM is a sound business strategy to identify the bank‘s most profitable customers and
prospects, and devotes time and attention to expanding account relationships with those
customers through individualized marketing, reprising, discretionary decision making, and
customized service-all delivered through the various sales channels that the bank uses.
CRM OBJECTIVES IN BANKING SECTOR
The idea of CRM is that it helps businesses use technology and human resources gain insight
into the behavior of customers and the value of those customers. If it works as hoped, a
business can: provide better customer service, make call centers more efficient, cross
sell products more effectively, help sales staff close deals faster,simplify marketing and
sales processes, discover new customers, and increase customer revenues.It doesn't
happen by simply buying software and installing it. For CRM to be truly effective, an
organization must first decide what kind of customer information it is looking for and it
must decide what it intends to do with that information. For example, many financial
institutions keep track of customers' life stages in order to market appropriate banking
products like mortgages or IRAs to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information about customers comes into
a business, where and how this data is stored and how it is currently used.
FOCUS ON ICICI BANK’S INITIATIVES
The use of Customer Relationship Management (CRM) in banking has gained importance
with the aggressive strategies for customer acquisition and retention being employed by
banks in today‘s competitive milieu. This has resulted in the adoption of various CRM
initiatives by these banks to enable them achieve their objectives.
The steps that banks follow in implementing Customer Relationship Management (CRM)
are:
Identifying CRM initiatives with reference to the objectives to be attained (such as
increased number of customers, enhanced per-customer profitability, etc.),
Setting measurable targets for each initiative in terms of growth in profits, number of
customers, etc. and
CONCLUSION
Results obtained by extensive usage of customer data to develop and apply Relational
Marketing have convinced the ICICI Bank to proceed along the line undertaken. As lists of
customers eligible for four very important banking product/services are available.