Managing customer relationships: A comparative evaluation of public and private sector banks

CRM is a management approach that enables organizations to identify, attract, and increase retention of profitable customers through improved relationship management. However, successful customer relationship management focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of the business by integrating them with the organization's strategy, people, technology and business processes. The study tries to find out challenges of attracting the new customers and retaining the existing ones, building and maintaining strong and lasting relationships with customers and understanding the needs & wants of customers. The CRM is one such tool which helps in meeting the customer's expectations according to their changing needs. While analyzing the CRM Implementation in both the sectors, it was found that the Private Sector Banks have been able to implement the CRM practices more effectively when compared to their Public Sector counterparts. This indicates that strategically speaking, the Private Sector Banks have been more innovative in understanding their customers and in building good relations with them.