Page 1 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1116
Customer Relationship Management In Banking Sector
POOJA SHARMA
Assistant Professor, Department of Commerce
Chandigarh University, Mohali (Punjab), India
ABSTRACT
Globalization and technology improvements have exposed companies to a situation with tough
competition. In this new era, companies are focusing on managing customer relationships in
order to efficiently maximize revenues. Today marketing is not just developing, delivering and
selling, it is moving towards developing and maintaining long term relationships with customers.
Relationship marketing is becoming important in financial services. CRM is an opportunity that
banks can avail to rise above minor advantages by developing actual relationships with their
customers.
Now each and every bank is realizing the significance of relationship with customer to survive in
the competitive world. So, in this paper, we have discussed the Role of Customer Relationship
Management (CRM) in the Indian banking Sector. In this day and age, customers are regarded as
an article of trade. With the growth of Service Marketing, Customer Relationship Management
(CRM) advanced and became popular in India.
Nowadays, many businesses such as banks, insurance companies, and other service providers
realize the importance of Customer Relationship Management (CRM) and its potential to help
them acquire new customers retain existing ones and maximize their lifetime value. This paper
deals with the role of Customer Relationship Management in banking sector and the need for
Customer Relationship Management to increase customer value by using some analytical
methods in CRM applications.
Keywords: CRM, Banking, Customer, Relationship
Page 2 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1117
INTRODUCTION
Today, many businesses such as banks, insurance companies, and other service providers realize
the importance of Customer Relationship Management (CRM) and its potential to help them
acquire new customers retain existing ones and maximize their lifetime value. At this point, close
relationship with customers will require a strong coordination between IT and marketing
departments to provide a long-term retention of selected customers. This paper deals with the
role of Customer Relationship Management in banking sector and the need for Customer
Relationship Management to increase customer value by using some analytical methods in CRM
applications.
CRM is a sound business strategy to identify the bank’s most profitable customers and prospects,
and devotes time and attention to expanding account relationships with Banking Industry in India
has undergone a rapid changes followed by a series of fundamental developments. Those
customers through individualized marketing, re-pricing, discretionary decision making, and
customized service-all delivered through the various sales channels that the bank uses. Under this
case study, a campaign management in a bank is conducted using data mining tasks such as
dependency analysis, cluster profile analysis, concept description, deviation detection, and data
visualization. Crucial business decisions with this campaign are made by extracting valid,
previously unknown and ultimately comprehensible and actionable knowledge from large
databases. The model developed here answers what the different customer segments are, who
more likely to respond to a given offer is, which customers are the bank likely to lose, who most
likely to default on credit cards is, what the risk associated with this loan applicant is. Finally, a
cluster profile analysis is used for revealing the distinct characteristics of each cluster, and for
modeling product propensity, which should be implemented in order to increase the sales.
CRM OBJECTIVES IN BANKING SECTOR
The idea of CRM is that it helps businesses use technology and human resources gain insight
into the behavior of customers and the value of those customers. If it works as hoped, a business
can: provide better customer service, make call centers more efficient, cross sell products more
effectively, help sales staff close deals faster, simplify marketing and sales processes, discover
Page 3 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online:https://ejbss.org/ P a g e | 1118
new customers, and increase customer revenues. It doesn't happen by simply buying software
and installing it. For CRM to be truly effective an organization must first decide what kind of
customer information it is looking for and it must decide what it intends to do with that
information. For example, many financial institutions keep track of customers' life stages in
order to market appropriate banking products like mortgages or IRAs to them at the right time to
fit their needs. Next, the organization must look into all of the different ways information about
customers comes into a business, where and how this data is stored and how it is currently used.
One company, for instance, may interact with customers in a myriad of different ways including
mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and
marketing and advertising efforts. Solid CRM systems link up each of these points. This
collected data flows between operational systems (like sales and inventory systems) and
analytical systems that can help sort through these records for patterns. Company analysts can
then comb through the data to obtain a holistic view of each customer and pinpoint areas where
better services are needed. In CRM projects, following data should be collected to run process
engine:
1. Responses to campaigns,
2. Shipping and fulfillment dates,
3. Sales and purchase data,
4. Account information,
5. Web registration data,
6. Service and support records,
7. Demographic data,
8. Web sales data.
CRM DEVELOPMENT
To be prepared to the changing economic conditions and, in particular, to a rapidly decreasing
inflation rate scenario Garanti Bank has started timely to focus on developing a customer
relationship management (CRM) system. The total number of customers is presently around two
