CRM Strategies in Banking Sector: A tool for Customer Protection
The Indian banking industry which was operating in a bureaucratic style prior to 1991 had to undergo large scale transformation with the opening up of the economy. The sector has been facing unprecedented challenges with the wave of liberalization, privatization and globalization of Indian Economy. The banks in India are under intense presure in today’s volatile market place. Steep competion, globalization, growing customer/consumer demand and exposure to higher credit risks are forcing the banks to find new ways of improving profitability. On the other hand, cost-cutting measures have forced banks to manage operations with a few customer relationship managers and product specialists. Industry consolidation also poses fresh challenges to this sector. The search few new strategies began to meet not only the high expectations of customers by also to retain them. The competitive world witnessed many banks participating in the race to optimize their profits. It increased the pressure leading to the adoption of advanced technology and better skilled work force. Therefore, business model change from bank-centric approach to customer centric approach, hence, the becomes not only an essential but also the most prominent part of the business activities. In this association, the important factors that establish the need for the CRM in the banking industry are Intense Competition, Well Informed Customers, Decline in Brand Loyalty, Improved Customer Retention. On the other hand, the various CRM Strategies such as Serviece quality management, Customer interaction management, Customer retention management, Customer service strategies, Problem faced by customers, Customer contact programmes are need to implemented in the banking sector. In this context, this paper is based on the “CRM Strategies in Banking Sector: A Tool For Customer Protection”.
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