Role of CRM in Indian Banking Sector

Abstract

Customer is a king and Customers are the mainly focused in making new marketing strategy. In the banking field a unique relationship exists between the customers and the bank. But because of various reasons  like lack of training ,new technology literacy, financial targets, risk of failure etc., some banks are still following the traditional ways of marketing and another hand some are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. Understanding on Customer Relationship Management is always a concern among the service providers especially banks. Banks makes their own way of managing their relationships new and existing customers. The aim of this paper is to examine the Customer Relationship Management as a new methodology looks forward to identify and attract consumers through the process of developing relationships (business - customer). The methodology of the CRM aims to maintain customer satisfaction and increase consumer loyalty. The purpose of this paper is to study the importance of CRM systems and in-depth knowledge of methods and management techniques customer relationships. The main issue of this study is that CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. Due to this complexity, a number of different variables have been used to measure CRM which investigated by several prior studies. However, most of businesses need  to know and look at the particular measures and dimensions of the CRM that have a significant impact  on customer satisfaction and loyalty, which would  enrich the business' performance, especially with  the increase in competition as well as lack of differentiation in providing a service.  This paper aimed to review literature on CRM and to identify its impact on customer satisfaction and customer loyalty.  The  studies are  analyzed on  the  basis  of  some general  characteristics and  variables that  significantly enhance  CRM and its  influence on  customer  satisfaction and  customer  loyalty. For this purpose, we investigate the existing  literature on the  impact  of CRM on  customer satisfaction and customer loyalty along with its spread among publications to identify the potential development in the field.