A STUDY ON CUSTOMER RETENTION THROUGH CRM IN BANKING SECTOR

Dr. ANANDARAJ. P

Volume : V, Issue : XI, November - 2015

A STUDY ON CUSTOMER RETENTION THROUGH CRM IN BANKING SECTOR

Dr. Anandaraj. P

Abstract :

 Consumers mainly select their banks based on how convenient the locations of bank’s anches are to their homes or offices. After the development of new technologies in the business of bank, such as Internet Banking and ATMs, now customers are freely choosing the bank for their transactions. The pressures of competitive and dynamic markets have contributed to the growth of CRM in the Financial Services Sector. 5% increase in customer retention can increase profitability by 35% in banking business, 50% in insurance and okerage, and 125% in the consumer credit card market. Therefore, banks are now focusing more on retaining customers and increasing market share. Private Banks have traditionally viewed themselves as exceedingly ‘Customer Centric‘ offering what they believe to be highly personalized services to the High Net Worth Customers. The structured approach to CRM provides various benefits to the bank, viz., and a distinctive and consistent customer experience, clear identification of the organizational, technological and process–related capabilities and prioritization of these capabilities. This paper discuss about the structure and hierarchy of the customer experiences.