A study on Crm Practices in Banks

“Customer Relationship Management (CRM) is the process of identifying, attracting, differentiating and retaining customers. Banks are concentrating only on acquiring new customers. They seldom understand the importance and profitability of creating loyalty and retaining customers. For the last decade, many banks have been so absorbed in their own internal issues, particularly merger drives, cost-cutting and re-engineering, that customers and their relationship often received short shrift. Banks have to come out with innovative measures to satisfy the needs of both the present and potential customers and at the same time, adopt procedures to win back the lost customers. Building relationships is a challenge, especially when a firm has often millions of customers who interact with the firm in several ways. Realizing the need for Customer Relationship Management in banks, this article focuses on the bankers’ perception and customers’ perception regarding the CRM measures adopted by banks, technology used and various services offered by banks.