CRM (Customer Relationship Management) essay How to help in the Banking Sector? Competition and globalization of banking services are forcing banks to productive and profitable. To retain High Net Worth individuals, banks should focus strongly on relationship management with customers. Innovative Customer Relationship Management (CRM) strategies and cutting-edge software can help, to a great extent, in achieving the desired results. To provide customized services, banks are opening Personalized Boutiques that provide all the required financial needs of a customer. Role of Price Perception in Consumer Buying Process. So, what is the problem we going to discuss; Customer Relationship Management in the Banking Sector.
Customer Relationship Management in the Banking Sector, Understanding the Relationship!
The entire service industry is now metamorphosed to become customer-specific. In this context, the management of customer relationships in the financial services industry demands special focus. Gone are the days when customers at a bank did not mind the long serpentine queues and waited patiently for their turn with a token in their hand. In today’s Internet era, no one has the leisure to wait. In this context, online banking is assuming great significance. Today, banking is more customer-centric, unlike yesterday when it was transaction-centric. As well as, Banks are increasingly focusing on the premise that customers choose the service provider who differentiates through quick and efficient service.
However, there is more to Customer Relationship Management (CRM) than just managing customers and analyzing their behaviors. Banks are well aware that their success is predominantly dependent on the CRM strategies adopted by them. Service providers have recognized that good CRM bonds customers with the organization for a longer-term, resulting in increased revenues.
Things topic 01:
With customers’ expectations becoming even more competitive, banks are coming up with a wide array of novel products and services every day. Also, the challenge is for the banks to work towards ensuring that customers prefer their products and services over that of competing brands.
The key to developing and nurturing a close relationship with customers is by appreciating their needs and preferences and catering to their requirements. Leveraging on IT, to appropriately analyze and understand the needs of existing customers better, to ensure customer satisfaction, and exploring the possibility of cross-selling products to gain a competitive advantage are the other issues drawing attention and interest.
Things topic 02:
With the opening up of the economy, several private sector banks have joined the fray and are offering a plethora of products and services – rechristening themselves as ‘Financial Boutiques’. Knowledge dissemination has been propelled by electronic and mass media campaigns. Today’s knowledgeable consumer is challenging the Indian retail banking industry to redefine itself.
Thus in this current competitive scenario, for a bank to survive competition, succeed, and make a profit, there is hardly any option but to learn from and actively respond to consumers’ needs. As well as, Banks offering retail products need to reorient their strategy from a product-centric to a customer-centric approach to attract and retain High Net Worth Individuals (HNI) and profitable customers as well.
Things topic 03:
The battle of the banks, for gaining a greater slice of the market share, is taking on a new dimension. In the current falling interest rate scenario, banks are finding it increasingly difficult to meet the high growth expectations. To bolster their top lines, banks are in pursuit of newer ways and means of achieving organic growth through strategies that enable the acquisition of new customers and retaining the loyalty of the existing customers. Also, the success of a bank’s strategy towards customer acquisition will depend on its ability to develop customer insights and translate these into effective operating models.
Things topic 04:
Ensuring a good customer experience at every customer touchpoint is the cornerstone of a successful growth strategy. A good customer experience will drive customer acquisition and promote customer retention, which translates into increased profits. This, in other words, is the hallmark of a successful CRM strategy. Emphasis on CRM arises on account of the challenges confronting retail managers managing to sustain and achieve growth and profits.
Things topic 05:
Bankers are conscious of the relative costs of acquiring new customers. As top management emphasizes “delivering results”, most bankers resort to customer grabbing, rather than customer cultivation and creation, with the result that “customer churn” is the call of the day. Incidentally, bankers are fully aware that losing the existing customer and acquiring new customers is an expensive affair. Moreover, it acts as a drain on the existing resources of the bank. Which can be better employed for growth initiatives. Therefore, the challenge for the banks is to retain and deepen the profitability of the existing customer relationships. Which is borne out by Nat West’s success.
Things topic 06:
With the shift from a transaction-centric to a relationship-centric business approach, leveraging CRM has become a sine qua non. Also, Banks are adopting CRM to converge people, processes, and products more effectively to embark on true relationship banking – with the result of accelerating the business momentum. Towards this end, experts propose various ideas and approaches to understanding the fundamental marketing motivations driving Customer Relationship Management in the Banking Sector.
Things topic 07:
To meet the challenging preferences of the customers and to stay ahead of competitors. Bankers are bound to attract customers by providing a spectrum of services. Online banking, ATM banking, and telebanking are just a few of them. As well as, Banks can enhance customer service by leveraging on technology, maintenance of efficient service delivery standards, and business process re-engineering. On their part, employees need to demonstrate certain service traits such as putting on pleasing attire. At the end of the day, bankers should display a flair for cultivating a good relationship with customers through the mechanism of better customer service.
Things topic 08:
Having understood the significance, it is prudent to plan for CRM in retail banks. To a large extent, the success of a CRM plan is dependent on the choice of the software. Towards this end, bankers should identify domain enterprise, credibility in the market, cost implementation, and relationship with the vendor as factors on which vendor selection is based. Also, the domains of software systems, multiple product databases, and tracking require a specific CRM focus. Besides understanding the requirements for CRM implementations such as the setting up of a CRM cell and conducting surveys at periodic intervals to track their effectiveness, banks need to understand how CRM assists them n customer identification, acquisition, and retention.
Things topic 09:
As a part of the planning process, frontline executives in banks should thoroughly understand. Their organizational structure, infrastructure, as well as the production environment. In this context, the management initiatives for CRM assume importance. A top-down CRM focused approach that starts with the top management, percolating, and permeating to all levels of the CRM is a necessity in the present business scenario. Initiatives, such as, introducing CRM audit by independent teams to identify the existing lacunae, and plugging. Also, the loopholes in the CRM strategy as per the recommendations of the audit report are required to adopt by the banks for reaping benefits.
Things topic 10:
It is observed that banks lose their best clients to competitors due to a variety of reasons. The rationale behind losing their best clients to other service providers such as non-brokerage houses. And, mutual fund houses need to analyze by banks. Also, Experts opine that inefficient and improper service is one major reason. The remedies suggested by them are that banks should adopt customer relationship building approaches such as responding to complaints instantaneously. Analyzing the attrition of the clients in a particular product, and rating of services across the network of branches. The creation of a suggestion box to elicit the views and suggestions of their employees. Another dimension of the relationship-building exercise is to obtain electronic feedback from customers to understand. The level of acceptance of existing products, which will facilitate the development of better products.
Things topic 11:
Banks can gain a competitive advantage from CRM by becoming low-cost players in the market, achieving operational efficiency, and maintaining customer loyalty. Also, the ability to predict the products that customers are likely to purchase over a period of time increases. The productivity of managerial executives, sales, and customer service staff. Streamlining of business processes are some of the benefits. Retail banks obtain by taking to successful management of their customer relationships.
Implementing the right CRM tools can enhance customer satisfaction leading to business growth. Also, CRM enables organizations to motivate customers to initiate revenue-generating contacts. Several CRM issues such as its effectiveness, application, and challenges draw the attention of the banking industry. Having witnessed how several global banks have benefited through CRM. The Indian retail banks need to focus on and continuously invest in customer relationship activities, banking scenario. Which is still at an embryonic stage as far as the CRM domain is considered. Needs to strive towards CRM implementation to meet the emerging demands of “universal banking”.
To increase your bankroll in slot-machine gambling, one of the best ways to do it is to play bonus game slot machines. Although some slot machines give out bonus upon winning, not all of them do. There are also casinos that do not offer winnings with in-game bonuses. In this case, it will be wise for slot players to find these casinos by themselves or through online resources. There are some people who have taken it upon themselves to study all the different types of machines in the casino or online casinos; through this they will know when they should lay down their cash and when they can simply take their chances.
The online casinos offer free bonus game slot machines that enable the gamblers to win real cash bonus. You have to understand that there are a number of casinos that offer this service on the internet. To know more about it you can read the blogs and reviews written by the casino’s customers or check with the casino’s online casinos that are associated with the slot machine business. A good online casino should be well known for providing the best casinos and bonus games. You should also read the bonus news that is provided to you by the online casinos so that you will be aware with any new update in the bonus game slot machines.
If you wish to appreciate some fun, you’ll have a lot of enjoyment on game slot machines. If you don’t know significantly about gambling, you may be interested to understand more in regards to the several types of slots, their particular functions and the different methods for enjoying them. This short article provides you with some data that can help you get acquainted with this kind of game. Game Position Products is also referred to as Blackjack and Video Poker. Many of these on line casinos offer a wide selection of casino games including Bingo, Craps, Keno, Poker, Slots and Roulette.
If you should be planning to see an on the web casino and wish to enjoy your chosen game slot device, rest assured that there are numerous options for you really to choose from. In fact, you will not only have lots of choices available, but you will also get the opportunity to perform for free. These types of casinos allow participants to enjoy their favorite slot devices from the comforts of their own domiciles, so this means that you do not need to happen to be Vegas or Atlantic Town if you intend to perform some of your chosen casino slot games.