CRM is an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time. The core theme of all CRM is its focus on co-operative and collaborative relationships between the firm and its customers, and/or other marketing actors.
CRM is based on the premise that, by having a better understanding of the customers' needs and desires we can keep them longer and sell more to them.
An important facet of CRM is "customer selectivity". Several research studies have shown not all customers are equally profitable. The company must therefore be selective and tailor its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. In some cases, it could even lead to "outsourcing of some customers" so that a company better utilize its resources on those customers it can serve better and create mutual value. However, the objective of a company is not to really prune its customer base but to identify appropriate customer programs and methods that would be profitable and create value for the firm and the customer.
Banking is changing we are seeing technology being introduced in the sector. A greater amount of dis-intermediation is taking place in the higher segment of the corporate sector and there is a need for providing better quality customer service. The market is becoming more & more buyer dominated. In Banking, the final result as to who will actually be able to woo customers will depend on their ability to react and respond to the customer requirement. The customer is going to be the real decider of fate of Banks.
[...] This is where Customer Relationship Marketing has seen its rise, where in organization seeks to build strong relationships with its current and potential customers. A CRM system features a Customer Information System (CIS) data warehouse, data mining, Sales Force Automaton (SFA) and a Campaign Management System (CMS). The first step is to gather relevant data/information of the target customer. Then all the information that resides in islands through the organization probably in various functional areas should be streamlined. Once this is done a suitable CRM package or program should be identified, implemented and upgraded on timely basis. [...]
[...] The CRM marketplace is full of inflated claims and misconceptions, but one thing is certain: a good CRM system can help level the playing field for midsize companies who take the time to think about their markets and their customers. CRM IN THE BANKING SECTOR "Banking" is not different from selling coke. The seismic shift witnessed last year was driven by just one pervasive goal of reaching out to the customer. The last decade has seen many changes taking place in the structure of banking and also in the way the Banking sector has opened up. [...]
[...] A comprehensive definition of CRM is "the business strategy, process, culture and technology to enable organizations to optimize revenue and increase shareholder value by understanding and meeting customers' needs." To be successful, a company should look at CRM as an opportunity to shift its focus from performing processes to serving customers. That requires a critical examination of all a company's business processes from the standpoint of optimizing its relationship with the customer, not just maximizing efficiency and quality. It requires a re-orientation of company culture based on the recognition of the fact that every employee - from customer service representative to billing clerk to stock picker - directly contributes to building the relationship with the customer. [...]
[...] Trying to sell something new under such circumstances makes an organization look uniformed at best and rude at worst. Empower the customer: All the interaction methods with the customer should be simple and user- friendly. Always keep in mind that all the customers aren't frequent users so they can have a really painful experience handling complicated stuff. Too many Websites and IVR (Integrated Voice Response) applications can be very confusing. Even with the proliferation of Web users, customers still prefer other options. [...]
[...] However, the challenge is to develop and integrated CRM platform that collects relevant data input at each customer interface and simultaneously provides knowledge output about the strategy and tactics suitable to win customer loyalty and support. If a call center personnel cannot identify or differentiate a high value customer and does not know what to up-sell or cross sell to him then it would be a tremendous loss of opportunity for the company. Although most CRM software solutions based on relational databases are helping share customer information, they still do not provide knowledge output to the front line personnel. [...]
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