CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES IN SELECT PUBLIC AND PRIVATE SECTOR BANKS

Abstract

Firms especially banks have realized the importance of becoming the customer centric approach and therefore Customer Relationship Management (CRM) Practice is seen to be very important especially in the banking sector. Most of the banks felt the need of customer retention and customer satisfaction as one of the most important objectives in their organization’s mission and vision. The CRM practices help the banks in value creation to all the stakeholders who are involved in the banking sector. This CRM Practices is about the creation of sustainable competitive edge for being the best in the understanding the need, value, importance of the customers and delivering the service as per the expectations of the customers. This also leads to customers’ retention and generating new customers. This CRM Practices helps the organization in identifying the exceptional and valuable customers who have been with the banks and helping them back with various products and services. CRM is considered as the management process from the perspective of Banking Industry where it deals with the acquiring, retaining and generating of new customers. This study will be of exploratory research in nature whereby different aspects of CRM practices in the banking sector. The data is analyzed to know how far CRM practices are implemented effectively to secure a competitive advantage. Based on the finding, a set of recommendations were made to pinpoint CRM practices to secure competitiveness based on five important dimensions such as: (i) Customer Acquisition. (ii) Customer Response, (iii) Customer Knowledge, (iv) Customer Information System, and (v) Customer Value Evaluation in public and private sector banks in Hyderabad city