Relationship marketing is the process of building long-term, win-win relationship with the customers, distributors, dealers and suppliers based on trust. Over time, relationship marketing promises and delivers high-quality and efficient services. It is accomplished by strengthening economic, technical and social obligations between members of two organizations or between the marketer and the customer. With this backdrop, the present case study identifies the extent of Customer Relationship Management (CRM) implementation in the banks. An analysis of the impact of CRM on service quality and customer retention has also been made.

The service sector has emerged as the key sector of the Indian economy. According to the current year's budget report, the contribution from this sector to the Indian Gross Domestic Product (GDP) is approximately 55%. In fact, the continuous GDP growth at 8% and above has become possible due to the good performance of this sector. In the post-reforms era, there has been a sea change in the financial sector. In such a scenario, the services have grown rapidly and the customer has been more often a purchaser of services rather than a product. Factors like intense competition and technological advancement are equally responsible for an increased contribution from this sector.

Thus, services have a significant role to play in the development of an economy. One of the key services that is not only the backbone of the sector but of the economy as a whole is the financial service, more specifically banking. This is so because banking is a catalyst and life of modern trade and commerce. It is an integral part of all the businesses and social activities. This rapid transformation of services in the banking system has led to the evolution of a highly competitive and complex market where there is a continuous refinement of services. Hence, the increased role of banking in India's economic development, on the one hand and the changes in the business climate on the other have put increased pressure on them. These changes are compelling the banks to reorganize and reorient themselves in order to cope with the present conditions.

As the customer is being served at his doorstep, he has truly become `the king'. As a result, his expectations have increased manifold. Intense competition among the banks has redefined the concept of the entire banking system.This has compelled the banks to look out for new ways not only to attract but also retain the customers and gain competitive advantage over their competitors. The banks, like other business organizations, are deploying innovative sales techniques and advanced marketing tools to gain supremacy.One of the important marketing tools is Customer Relationship Management (CRM). Today, customers have become the focal point either to develop or maintain stability in the business.

Relationship marketing, Customer Relationship Management, CRM, Gross Domestic Product, GDP, Banking system, Business organizations, Marketing tools, Financial services, Financial sector, Economic development, CRM strategy, Financial services, Banking sector.