A STUDY WITH SPECIAL REFERENCE TO BANKING INDUSTRY IN INDIA

Customer Relationship Management (CRM) has emerged as a popular business strategy in today's competitive environment. It is a discipline which enables the business to identify and target their most profitable customers. CRM involves new and advance marketing strategies which not only retain the existing customers but also acquire new customers. It has been invented as a unique technique capable of remarkable changes in total output of companies. CRM in financial services industry is a cyclical process which starts with definition of customer expectations which are difficult to manage but are often the cause of dissonance which results in loss of existing customer base. So understanding of customer expectations with regard to service delivery levels and product quality is essential for establishing a long term symbolic value relationship. The challenge before the banks is not only to obtain updated information for each customer, but also to use the information to determine the best time to offer the most relevant products. The banking industry in India is now running in a dynamic challenge concerning both customer base and performance. Today, many banks are rushing to become more customer focused. A key component of many initiatives is the implementation of Customer Relationship Management. This paper reports on a research study of the adoption and use of CRM in banking sector and an attempt is made in understanding the multidimensional construct of customer relationships and its implications in competitive banking environment.