Building Effective CRM Systems

Discussion and implications

CRM in banking is crucial for the success of the business but many times it is poorly defined. There are many examples of firms who use CRM, install an IT system but never see any kind of return on investment. This study has shown that all the processes and places where the firm interacts with customers need to be considered when developing a CRM process. The general discussion informs that the bank is yet to develop an integrative approach which focuses on the customer needs and deliver it to the customer. Today, many businesses such as banks, insurance companies, and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquire new customers, retain existing ones and maximize their lifetime value. At this point, close relationship with customers will require a strong coordination between IT and marketing departments to provide a long-term retention of selected customers. Zeng et.al, describe the characteristics of well-working CRM with the use of smart IT. CRM can provide instant service responses based on customer inputs and requirements and automatically analyze the customer’s current and previous purchase trends. Based on this, estimations of future buying behavior can be made. Thus, the use of the technology available to deliver up-to-date information about each customer and to provide key performance indicators about each customer is equally crucial for meeting customers’ needs better, being flexible, and moving on information analyses process smoothly. Through the study, we have concluded that the major reasons why Saudi Credit Bank and other banks are implementing CRM are to improve customer satisfaction, retain existing customers, provide strategic information, and improve customer lifetime value. Gummerson explains that the building relationship is a key to reaching and maintaining a successful market share. Additionally, he emphasizes that by learning relevant information about customers such as; names, habits, preferences, and expectations, one-on-one relations can be formed and customers can be kept coming back continuously; maybe even become friends. Through the use of IT, a feeling of intimacy can be created with the customer. The major benefit of establishing relationship is increased profits attained by both parties adapting better to each other. As shown by the study, the bank is far from developing a customer centric approach both for the customer as well as for the employees. Thus, customer relationship management should play an integrative role within the bank and ensure that all processes are integrated in the bank global strategy, which is far from reality in the study above.

In view of this, to implement a CRM integration strategy, the following recommendations can be adopted: In such a competitive environment, banks should adopt suitable marketing skills rather than depending on the trading skills. Hence, new services should be constantly introduced to ensure the growth of banks and to enable them to be competitive in the market and to keep up the enthusiasm of the employees and customers. It is highly necessary to implement a Customer Centric Process in banks and increase customer experience through the website. More importance should be given to handling online transaction and using commerce, mobile banking services. Employee relationship management should be put before customer relationship management. Bank personnel should be given good care by the banks before they come and work in the field and more emphasis should be put on the development of channel integration for effective customer relationship management.

CRM in Saudi Credit should help identify and target their most profitable customers. It involves new and advanced marketing strategies that not only retain the existing customers but also acquire new customers. CRM has been found as a unique technique which can bring remarkable changes in total output of companies. Through the literature survey and data analysis, it can be concluded that CRM tries to find out the relationship between perception and satisfaction, commitment, and loyalty which is also highly significant in the banking sector. Customers largely select their banks based on how convenient the location of bank is to their homes or offices. The banking industry is much lacking behind than other industries in recognizing the value of CRM and implementing decision support systems to support CRM. Though most of the banks have already focused on tactical point solutions, they’re not ready for a transition toward strategic, enterprise-wide CRM initiatives that cross major business lines. An effective decision support system for CRM enables to collect data about customer from every touch, consolidates this information into a single view of the customer, and uses this information for customer profiling, segmentation, cross-selling, up-selling, and retention efforts. As banks continue to seek a unified understanding of customer relationships across diverse channels, the importance and penetration of CRM is expected to grow.