Customer Relationship Management in Indian Banking Industry.
详细信息
文摘
The Indian banking industry has undergone a large transformation in the last two decades. It has moved from the bureaucratic banking style in 1990s to the open economy model today. This sector is facing unprecedented challenges in this new wave of privatization,liberalization and globalization of the Indian economy. The market place for Indian banks has become extremely volatile putting the players under immense pressures of steep competition,globalization,growing customer demands and exposures to higher credit risks. These factors have forced the banks to look at more innovative ways of interacting with their customers to increase their market share and profitability. However with the economic meltdown banks have been forced to adopt cost cutting measures forcing them to manage with fewer customer relationship managers and product specialist. Industry consolidation has also posed a fresh challenge to the players in the Indian banking services domain. This resulted in a huge proliferation of customer choices. In order to aid this process Information Technology IT) was chosen as the tool to help marketers in the banking sector transform these challenges into opportunities. The banks moved from a bank-centric to a customer centric approach and adopted what popularly became known as Customer Relationship Management or CRM. The CRM strategies of the banks were executed or aided by strong IT support to help create value for customers in a more efficient and effective manner. There has been a shift of the focal point from acquisition of new customer to retention of the existing ones. The intense competition has made every interaction of the bank with the customer extremely critical to either making or breaking the customers faith in their bank. As the customer became not just the most import but the most essential part of the business the need for customer relationship management grew. However the banks were the latest to adopt this strategy compared to other industries as they found it extremely challenging to incorporate it in the currently existing framework due to organizational and resource constraints. This paper aims to study the current implementation of CRM in the Indian banking sector across various public,private and foreign banks in the country. The research shall provide insights into the current state of CRM in various financial institutions in the country,factors which encouraged them to implement CRM,factors which deterred other players from spending heavily in same. It shall also help understand the contribution of CRM to the overall growth and profitability of the various banks and identify scope of improvement when compared with the global players. The study shall provide a more holistic view of CRM as a strategy tool across all business functions like marketing,sales,operations,information technology,product,and customer service. It will also help analyze the various organizational issues which arise when such fundamental strategy changes are adopted by a bank and how various organizations have overcome or succumb to the same. Lastly it shall look at CRM from the point of view of the IT sector in India and how they have managed to popularize the concept in the Indian banks. It shall also study the difficulties faced by them while implementations of such system. The findings of the research help contrast the implementation across the public,private and foreign banks in India and propose a framework to help understand customer relationship management in the banking industry in the Indian market.