ELEMENTS OF CRM WITH REFERENCE TO BANKS IN JIND

ABSTRACT

The essence of the information technology revolution and, in particular, the World Wide Web (www) is the opportunity to build better relationships with customers than has been previously possible in the offline world. The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. This revolution in Customer Relationship Management (CRM) has been referred to as the new “mantra” of marketing. In service industries, the goal is especially emphasized since a repeat customer is believed to cost merely a fraction of what needs to be spent in servicing a new customer in a service transaction. Indian banking industry has witnessed rapid development in recent past with the initiation of financial sector reforms. Today, banks are facing an aggressive competition and they have to make efforts to survive in a competitive and uncertain market place. Banks have realised that managing customer relationship is a very important factor for their success. The factors of CRM are indispensable to identify the predominant nature of CRM elements for the effectiveness of Banker-Customer Relationship. The present study focuses on the crucial CRM factors Viz., Acquisition of Customers, Implementation of CRM, Maintaining CRM through General Policies, and Specific Strategies, Customer Satisfaction and Customer Loyalty. The opinion of the employees of the bank is ascertained through a well framed questionnaire comprising relevant variables of CRM elements. This process actually enumerates all the characteristic features of the variables involved in the study and maintains the consistency of the corresponding variables. Factor Analysis by Principal Component Method is applied on the variables of CRM elements to reduce them into predominant factors. It also creates an output of number of factors extracted and their respective variable loadings.

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