The Indian banking sector, at
present, is witnessing a substantial growth and many drastic changes. The working
style of banks has become very complex due to high degree of
competition. Competitive forces are intense now than ever before in the
banking sector with the presence of both private and foreign players,
and will only grow stronger with the opening up of the
banking sector to more foreign players in future.
More and more banks are trying to grab a larger share of the
pie. Banks are continuously revamping their product and service
portfolio with enhanced features and schemes and better
services. This is being done to have an edge over their competitors. In today's
cutthroat competitive environment, the banks are making efforts to
acquire new customers, and also trying to retain the existing ones.
Protecting the customer base from multi dimensional competitive forces is
certainly a challenge for the banks.
Customer Relationship Management (CRM) is a process that
helps in identifying customers, creating knowledge about customer
knowledge, building customer relationships, and shaping their
perceptions about the organization and its products.
It is the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between
consumers and the organization. Successful CRM focuses on
understanding the needs and desires of the customers and this can
be achieved by placing the needs at the heart of the business by
integrating them with the organization's strategy,
people, technology and business processes. |
