A Study on Impact of Customer Relationship Management in Banking Sector

CRM is at the core of any customer–focused business strategy and includes the people, processes and technology questions associated with marketing, sales and service. Simply stated, CRM is about finding, getting and retaining customers. The aim of these systems is to assist in building lasting customer relationships – to turn customer satisfaction into Customer Loyalty. CRM has developed into a major corporate strategy for many organizations. It is said that CRM is not a product or service; it is an overall business strategy that enables companies to effectively manage relationships with their customers. It provides an integrated view of a company’s customers to everyone in the organization. With the intensified competition, companies realized that they have to treat their customers with respect. Customers have a lot more choices and they do not have to be loyal to any company. Companies are now trying to figure out ways to manage customer relationships effectively, not only to acquire new customers but also to retain their existing customers. CRM has developed into a major corporate strategy for many organizations. Banks are one of the prime users of CRM. Any Bank would have such a customer that it would not be able to monitor manually and find out various customer trends and patterns. So it is essential to attract, retain and grow customer base effective management of the information about the customers and enhance relationship with them. The paper analyses some of these challenges and the impact of CRM in banking sector.