CUSTOMER RELATIONSHIP MANAGEMENT MODEL FOR BANKS | Open Access Journals
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN BANKS IN THE ICT ERA : AN EMPIRICAL STUDY OF CUSTOMER ACCEPTANCE. Article (PDF. Customer Relationship Management in Banks: A Comparative Study of Public and Private Sector Banks in Kerala. Article (PDF Available) in International. Here in this paper, effort is given to study the comparative perception of SBI customers and other nationalised banks customers' in the issue of CRM practices .
The customers are flooded with lot of information and becoming more tech savvy. This has increased the competition among the bankers.
The competitive forces over the years are compelling the banks to concentrate more on increasing the number of customers and in providing better service quality.
CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SYSTEM (CASE OF KOSOVO)
In other words CRM has become a major focus for the banks. The banks in the present era are facing stiff competition and they are struggling to find a place in the industry. They have realized the fact that CRM is a powerful tool to achieve success in their business.
CRM is an effective tool for the bankers to acquire new customers and to retain the existing ones. CRM in the banking sector is of strategic importance [ 5 ]. The banks are confronting numerous problems in attracting new customers and in maintain the existing customer base.
Implementation of CRM poses a greater challenge to the banks after acquiring the customers. The various ways and means through which CRM is implemented by the banks determine the success or failure of the entire concept. The banks should concentrate highly on the valid elements of their CRM strategy for generating customer satisfaction and customer loyalty. This will be possible only with the help of effective and efficient communication with the customers.
Effective interaction between the bankers and the customers will help the banks to implement CRM in the best possible manner [ 7 ]. Any concept which is implemented would yield better results only when the same is maintained over a period of time. CRM is not an exception to this rule. There exists a wide plays the role of boundary spanning that manages and distributes customer information.
But the space between marketing and Information Technology affects the effective implementation of CIS.
The CIS must be modified in order to establish a better communication system between the customers and the business [ 8 ]. The banks cannot be assured of the fact that their customers would continue to transact with them once the relationship is established. With many financial institutions now offering multi-channel access, customer relationships are becoming more complex to handle.
CUSTOMER RELATIONSHIP MANAGEMENT MODEL FOR BANKS
CRM can be used as the best tool for information tracking about the previous interaction of the customers with the business. CRM can generate a comprehensive report about the total customer interaction.
CRM can supply data to all the departments to deliver better service quality. The success of the entire concept of CRM depends on its ability to generate customer satisfaction.
A highly satisfied customer will continue to find ways to strengthen the relationship with the banks.
The banks should collect information relating to the present levels of customer satisfaction and their vital determinants. This would help them to narrow down their efforts to work more towards customer satisfaction. The location of the branch, the courteous and friendly attitude of the bank employees are the key determinants of customer satisfaction in the banking industry [ 10 ].
CRM helps banks to provide lot of benefits to their customers; some key benefits are as follow. Relationship marketing is all about creating, building and maintaining the relationships with the customers for the long-term profits.
While CRM is the comprehensive approach of creating and maintaining long term relationships. This one to-one marketing approach has impacted a lot on different aspects of the organization.
Information Resources Management Journal 3. The Customer Relationship Revolution — A methodology for as creating golden customers. Electronic customer relationship management. Revisiting the dl general principles of usability and resistance — an integrative implementation framework. Business Process Management Journal. Information w technology and management.
CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SYSTEM (CASE OF KOSOVO) | Open Access Journals
European Journal of Information Systems. Improvising Organizational Transformation Over Time: A Situated Change Perspective. Journal of Services Research. The purpose of the research is to evaluate the benefits of presenting the concept of Customer Relationship Management in the Kosovo banking sector by defining strategies, adapting the organizational structure, culture and internal processes with the help of modern technology.
The banking sector in Kosovo is at the stage of his development, after the end of the war inthis system began to set out his consolidation steps.
The study was done on the basis of quantitative and qualitative research methods. Keywords CRM Concept; CRM Strategy; Processes; Banking Sector; Management Introduction Kosovo's banking market is at its beginnings, but the variety of customer requirements and a large number of banks in the market forces firms banks to use different systems and strategies in order to keep their customers.
CRM for bank executives is the key to their success in the market, the total of all the tools, technology and processes that manage, improve and facilitate sales, but also support customer relationships.
Banks, in addition to maximizing profit, they aim to create a stable relationship with their clients, by identifying their preferences and competing in real time. Almost all of the banks under review used the same CRM process but understood with different development strategies, Figure 1 gives an overview of CRM processes.
Review Literature Managing client relationships is a strategic platform that has its origins in relationship marketing. Marketing of relationships is considered one of the main areas of modern marketing development, which has generated great research interest for years [ 1 ]. After the s, CRM increased the ability of banks to better understand the actual needs of their clients and also helped them develop strategies for meeting their benchmarks [ 2 ].
CRM as a strategy offers companies banks the attributes to compete with them for a limited number of customers in order to absorb more and more of the market segment. In seeking the current trend of the globalizing economy, competition from substitutes and from entirely new off-the-shelf offers or packages is becoming increasingly harsh [ 3 ].