Customer relationship management in banking industry

customer relationship management in banking industry

In the ongoing era of financial sector reforms in India, because of intense competition commercial banks are vying with each other for market share. Customer. The purpose of the research is to evaluate the benefits of presenting the concept of Customer Relationship Management in the Kosovo banking sector by. Customer Relationship Management in Banking Sector-. What More Needed? Abstract. Customer Relationship Management has become.

The purpose of the research is to evaluate the benefits of presenting the concept of Customer Relationship Management in the Kosovo banking sector by defining strategies, adapting the organizational structure, culture and internal processes with the help of modern technology.

The banking sector in Kosovo is at the stage of his development, after the end of the war inthis system began to set out his consolidation steps. The study was done on the basis of quantitative and qualitative research methods.

Keywords CRM Concept; CRM Strategy; Processes; Banking Sector; Management Introduction Kosovo's banking market is at its beginnings, but the variety of customer requirements and a large number of banks in the market forces firms banks to use different systems and strategies in order to keep their customers.

CRM for bank executives is the key to their success in the market, the total of all the tools, technology and processes that manage, improve and facilitate sales, but also support customer relationships.

Banks, in addition to maximizing profit, they aim to create a stable relationship with their clients, by identifying their preferences and competing in real time. Almost all of the banks under review used the same CRM process but understood with different development strategies, Figure 1 gives an overview of CRM processes. Review Literature Managing client relationships is a strategic platform that has its origins in relationship marketing. Marketing of relationships is considered one of the main areas of modern marketing development, which has generated great research interest for years [ 1 ].

After the s, CRM increased the ability of banks to better understand the actual needs of their clients and also helped them develop strategies for meeting their benchmarks [ 2 ]. CRM as a strategy offers companies banks the attributes to compete with them for a limited number of customers in order to absorb more and more of the market segment.

In seeking the current trend of the globalizing economy, competition from substitutes and from entirely new off-the-shelf offers or packages is becoming increasingly harsh [ 3 ]. In today's developments, customers are the key assets for an organization, and customer relationship management is equally critical for organizations [ 4 ].

CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SYSTEM (CASE OF KOSOVO)

Customer Relationship Management CRM from a financial institution perspective is a sound strategy to identify clients and the bank's most lucrative prospects and takes time and attention to expanding account relationships with those clients through individualized marketing, repricing, decision making - discretionary and customized service - all offered through various sales channels used by the bank.

The overall success of the organization depends on customer satisfaction and customer satisfaction cannot be achieved without being managed Relationships with clients [ 4 ]. CRM aims to coordinate all customer-related business processes and includes collecting, comparing, and interpreting customer data to determine purchasing behavior models that can be used to support effective marketing programs [ 5 ].

Being competitive and the products are easily copiable, many companies banks are trying to gain a foothold over the competition through customer relationship management policies. In this situation, consumer behavior is volatile as they have a wider choice of products that are often less distinct and they are much more informed. For many bids, the balance of power moves toward the customer that raises their expectations of how companies should look after them [ 3 ].

customer relationship management in banking industry

Simple Random Sampling Method is used to gather the primary data. The sample for the research study is selected scientifically. Two sets of questionnaires have been used for the study to collect information from Customers and Bank Employees.

The average mean scores of six elements of CRM of customers and employees are This parametric yield is a perfect projection of customers and employees perception. The percentage difference would reveal the effectiveness side of CRM as well as the lacunae in the process. The banks have to employ specific strategies to fulfill the lacunae in the process of CRM and to obtain the full effectiveness of CRM.

The study has given a clear message that the real challenge before the banks is to translate sentiments into dealings, and a dealings-based relationship into a psychologically linked and dedicated one within a time period.

CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SYSTEM (CASE OF KOSOVO) | Open Access Journals

The study has developed an empirically tested CRM model for the banks to acquire new customers and retain the existing ones. Keywords Customer Acquisition; Customer Retention; Customer Satisfaction; Customer Loyalty Introduction The quintessence of the knowledge revolution and the world wide usage of internet has enabled the businesses to establish a better relationship with their respective customers when compared to the past.

The present day organizations have great scope and wide opportunities to service their customers in the best possible manner. Customer acquisition and retention can be practiced by the firms in a well-established manner than ever before. The primary goal is to convert these relationships into superior productivity by multiplying the purchase rates and also by decreasing the cost of acquiring new customers. Originally, marketers were concentrating more on acquiring new customers for the products and services offered by them.

customer relationship management in banking industry

This was made possible through huge investment on advertising and sales promotion activities. But nowadays, there is a paradigm shift from customer acquisition to customer retention. The focus is shifted from acquiring new customers to retaining the existing ones.

New sets of plans and policies have to be adopted to carry out the same. Customer Relationship Management CRM is a primary business of each venture and it demands a overall tactic and course of action to make it victorious [ 1 ].

BANKER CUSTOMER RELATIONSHIP (G.A for IBPS & RRB MAINS CLK & P.O 2016 EXAMS)

CRM is a complete movement which offers flawless amalgamation of each every aspect of business that establishes a contact with the customer viz. Customer Relationship Management in Service Industry CRM is recognized as the principal goal of marketing and the primary objective of any business.

Particularly, in service industries, it is specifically stressed as the cost of maintaining an existing customer is much less than acquiring a new customer in a service transaction. It is a well-accepted fact that associations with the customers prosper when marketers take the extra effort to reach the customers and to satisfy their unsatisfied needs and expectations.

Service industry has been the forerunners in implementing CRM practices [ 2 ].

customer relationship management in banking industry

Customer Relationship Management in Banks The instigation of financial sector reforms has led to swift progress in the banking industry in India.

The influence of financial sector transformation aimed to increase the effectiveness and the competitiveness of the monetary structure. The establishment and the functioning of new generation technology driven banks have given a new face to the Indian Banking industry. CRM is a vital factor to improve the performance of the banks [ 3 ]. In order to excel in their services, the present day banks have shifted their focus from the twin functions of accepting of deposits and lending of loans to anytime and Anywhere Banking.

Customers are considered as the fundamental non-core financial asset by the banks across the globe in the present day scenario. Courteousness, correctness and rapidity are the imperative factors in the efficient running of a bank.

A highly satisfied customer will market for the bank and bring in more new customers to increase the business of the banks [ 4 ]. The banks should adopt novel strategies and policies to decide on what to offer, whom to be focused, when to approach, how to promote and be unique in product and service offerings to increase their profitability. Banks need to make a difference in them by offering general products to meet the general demands of the customers and to offer customized services for the specific requirements of the customers.

Banks should identify right type products for the right type of customers. This would help the banks to serve the customers in the with utmost cost efficiency. This will lead the banks towards customer satisfaction and customer loyalty.

Statement of the Problem There is a revolution happening in the banking industry.

CUSTOMER RELATIONSHIP MANAGEMENT MODEL FOR BANKS | Open Access Journals

The customers are occupying the Centre stage outshining other factors. The customers are flooded with lot of information and becoming more tech savvy. This has increased the competition among the bankers. The competitive forces over the years are compelling the banks to concentrate more on increasing the number of customers and in providing better service quality.

In other words CRM has become a major focus for the banks. The banks in the present era are facing stiff competition and they are struggling to find a place in the industry.