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Importance Of Customer Relationship Management In Banking Sector

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This research paper offers an insight into the Customer Relationship Management (CRM) in banking sector. Customers are the most valuable assets of any business. With the increasing competition and globalization of banking sector, the need to focus on customer relationship has become essential in the organizational process. The banks today continually look for achieving competitive advantage by implementing customer-centric process. Banks being a customer oriented service, customers are the key focus in banking sector. So, it is important to establish, develop, maintain and sustain long term relationship with the target customers. To survive in competitive market place, it becomes necessary for banks to identify its most potential customers …show more content…
CRM is one of the strategies to manage customers as it focuses on understanding customers as individuals instead of as a part of a group (Lambert,2010). According to Parvatiyar and Sheth (2000), CRM is “a comprehensive strategy and process of acquiring and partnering with selective customers to create superior value for the company and the customers”. Practices, strategies and technologies that a companies use to manage and analyze customer interactions and data with the aim of building long term profitable relationship is …show more content…
The benefits that CRM provides may vary depending upon the nature of the business and industry. Operational and strategic benefits are the two main kinds of benefits banking sector are receiving through the implementation of CRM. Operational benefits refers to the operational savings of an organization resulting from its improved internal efficiency ( lacovou et al, 1995). On the other hand, strategic benefits refer to identification, prioritization and exploration of opportunities. For instance, identifying new market segments, developing new products, identifying new marketing opportunities and designing customized communication plan etc falls under the strategic benefits of

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