1Research, Scholar Dept of Management, Kuvempu University, Shimoga, India.
2Chairman, IMSR, Kuvempu University, Shimoga
Online published on 23 April, 2014.
The banking sector in India has seen a tremendous change in its working and services since the last decade. The sector which was restricted towards initiating savings and a means of transferring funds for their customers has come a long way. The long queues in the bank counters for withdrawing cash, has given way to the mechanically operated and popular ATM's.
This paper focuses on the method of customer retention based by assessing lifetime value as a method of providing services to existing customers. However, the question here is, ‘is it better to invest in the front end of the business or on product innovation’ that will keep customers happy in the long run. The study shows benefits for the banker, when the focus is primarily on ‘WHAT CUSTOMERS WANT’. The rest (product innovation) would automatically take care of itself. Second, is the personal or human touch between a banker and his customer (traditional method) getting neglected because of e-CRM?
Knowledge Management, Life time value, E-CRM
