IMS Manthan (The Journal of Mgt., Comp. Science & Journalism)

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Conceptualizing CRM with Special Reference to Banking


Affiliations
1 National Institute of Bank Management, NIBM P.O., NIBM Campus, Kondhwe Khurd, Pune, India
     

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Purpose:

This paper aims to trace the conceptual framework and evolution of CRM. It then elaborates on the significance and applications of CRM concept in Banking.

Design/Methodology/Approach:

This is a descriptive paper in which a detailed review of literature has been carried out to develop understanding of the CRM concept and its application in Banking.

Findings:

CRM is a very powerful strategy, with potential to differentiate and capitalize on customer relationships for business growth. The rate of success of CRM solutions is low. Banking, today is poised to differentiate with CRM, but a lot many impediments exist. A detailed action plan is suggested to implement CRM in Banking.

Practical Implications:

The CRM has become a buzzword, and many myths surround it making it more complex and less used. The paper demystifies CRM concept and appl i cat ions . Prac t i cal sugges t ions for CRM implementation in Banking are proposed. Particularly, for banking industry in India, in the present highly competitive scenario, understanding and application of the concept has become a must. The paper proposes action plan which suggests a phased manner in which Banks should utilize the benefits of CRM.

Originality/Value:

The paper will be very useful in filling the vacuum today, in the field of CRM, where CRM systems are in place, need is there, but initiative and information about it's use and significance is not there. Also a lot of missing links are there which impede use of state of the art information technology for customer acquisition, retention, better service and loyalty. The paper addresses these issues in light of literature study and practical observations and discussions.


Keywords

CRM, Customer Relationship Management, Relationship Marketing, Bank Marketing, Customer Service
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  • “Customer Relationship Management in Banking: Reassessing Theory and Practice”, Journal of Financial Services Marketing, Special Issue (2007).

  • Foss Bryan, Stone Merlin, (2002) ‘CRM in Financial Services: A Practical Guide to making customer relationship management work’, Kogan Page Limited.

  • Kumar Pankaj, (2009), “CRM in Banking”, The Journal of Indian Institute of Banking and Finance, October-December 2009, pp 41- 48.

  • Mishra Hari (2007) “Operational Intelligence in Banking”, IBA Special Report.

  • Parvatiyar, Atul, and J.N. Sheth (2001), “Conceptual Framework of Customer Relationship Management”, in J.N, Sheth, A. Parvatiyar and G. Shainesh (Eds), Customer Relationship Management : Emerging Concepts, Tools and Applications, New Delhi : Tata McGraw Hill.

  • Peppers Don, Rogers Martha (2004), ‘Managing Customer Relationships: A Strategic Framework’, John Wiley and Sons

  • Raah, David “How to select a CRM system, ABA Bank Marketing, 38(8) October 2006 pp 38-42.

  • Ramchandra S.J, (2002), “Customer Relationship Management : Emerging Strategies”, Thesis for C H Bhabha Scholarship Award.

  • Rushforth, Jason A, “Maximising Relationship Value with CRM Systems”, Commercial Lending Review, 22 (1) January-February 2007.

  • Seth Rakesh, Seth Kriti, (2005), “Creating Customer Delight : TheHow and Why of CRM”, Response Books.

  • Silverthorne Sean (2008), “The new math of Customer Relationships : Question and Answer with James Heskett” HBS Working Knowledge.


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  • Conceptualizing CRM with Special Reference to Banking

Abstract Views: 469  |  PDF Views: 0

Authors

Sarita Bhatnagar
National Institute of Bank Management, NIBM P.O., NIBM Campus, Kondhwe Khurd, Pune, India

Abstract


Purpose:

This paper aims to trace the conceptual framework and evolution of CRM. It then elaborates on the significance and applications of CRM concept in Banking.

Design/Methodology/Approach:

This is a descriptive paper in which a detailed review of literature has been carried out to develop understanding of the CRM concept and its application in Banking.

Findings:

CRM is a very powerful strategy, with potential to differentiate and capitalize on customer relationships for business growth. The rate of success of CRM solutions is low. Banking, today is poised to differentiate with CRM, but a lot many impediments exist. A detailed action plan is suggested to implement CRM in Banking.

Practical Implications:

The CRM has become a buzzword, and many myths surround it making it more complex and less used. The paper demystifies CRM concept and appl i cat ions . Prac t i cal sugges t ions for CRM implementation in Banking are proposed. Particularly, for banking industry in India, in the present highly competitive scenario, understanding and application of the concept has become a must. The paper proposes action plan which suggests a phased manner in which Banks should utilize the benefits of CRM.

Originality/Value:

The paper will be very useful in filling the vacuum today, in the field of CRM, where CRM systems are in place, need is there, but initiative and information about it's use and significance is not there. Also a lot of missing links are there which impede use of state of the art information technology for customer acquisition, retention, better service and loyalty. The paper addresses these issues in light of literature study and practical observations and discussions.


Keywords


CRM, Customer Relationship Management, Relationship Marketing, Bank Marketing, Customer Service

References