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The revolutionizing Customer Relationship Management in Retail Banking



Table of Contents

Introduction1

Background of the Study1

Research Questions2

Methodology3

Data Collection Procedure3

Participants4

Limitations of the Research4

The revolutionizing Customer Relationship Management in Retail Banking

Introduction

In the recent times, banking sectors worldwide have benefitted from Customer Relationship Management (CRM). The extensive use of CRM, in businesses worldwide, is actually a consequence of far-fetching quality features extended by CRM. CRM in banking industry has gained crucial importance, because of the industry's stiff competition. Investing in CRM is, at present, given strategic importance by the banks worldwide. According to researchers analyzing European IT opportunity financial services, banks, in U.K, give CRM a top-priority.

Background of the Study

The evolution of banking sectors has the long history in the world. Banks have been playing primitive role in the economic development and business expansion. Now, banks not only expand their operation within the country, but also it operates globally and participates in the development programme of the societies and communities in health, education and public awareness. Growing new technology and innovation have made the banks to focus on the customer-oriented services. At present, the banking industry is facing many challenges that include globalization, competition of capital deposit, loans, increasing customer demands and profit margin

Retail banking deal with saving and investment, which deals on deposit and lending for personal and small business financing and management. Through the different types of bank accounts, it accepts the deposit of money from the public and manages them for the investment, which has given the contribution to manage in the flow of money from government to trade and to public. Due to changes in the new technology and innovation, new entrants in the retail banking sectors has been increasing in the UK. In this challenging business environment, the quality service is the fundamental goal for most of the retail banks while customer satisfaction and loyalty are the main concerns of it. Retail banking sector has adopted the CRM system in order to enhance the customer satisfaction. Retail Banks are evolving new policies in the banking system by making innovations in the current customer management system that challenges its competitors. Effective analysis of customer experience is an opportunity for the retail banks to rebound customer beliefs and create long-term competitive differentiation. It has a perspective of retaining customers by creating better internal strategies of action and identifying cost effective methods for the incremental revenue growth (Buckle and Thompson, 2004, pp. 55-60).

Customer Relationship Management is the introduction the appropriate product at the right time for the right customer, using the right approach, to meet the ever-changing needs and wants of customers. The advent of CRM provides greater opportunities than even before for organizations, especially retail banks, to develop and grow on the long-term customer relationship (Dyche, 2002, pp. 27-40). The goal is the transformation of these customer relationships into greater profits for the bank. The banks are now exercising customer relationship building as one of their strategic initiatives for long-term growth, as they now realize the importance of customers for its survival ...