Implementation of e-CRM (Customer Relationship Management) in Banking

CRM is neither a product nor a service, but a business strategy to learn more and more about the customers’ behavior and requirements in order to create long-term relationships with them. CRM signifies a comprehensive approach for creating, maintaining and expanding customer relationships. CRM is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. Every organization should have its own, clearly defined strategy. The success of an organization depends upon how effectively it satisfies its customers. The CRM strategy may be rolled into a larger strategy such as a customer service strategy or even an overall business strategy. In today's business environment, commercial banks face increasing competition from new players including global banks and alternative sources of funds. CRM enables a bank identify customers who entail high costs and those who bring benefits. CRM provides them with the required analytical tools that will help them focus on the importance of segregating these two types of customers. Together with the creation of Sales Force Automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as e-CRM today. We can define e-CRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customer's specific needs.