Learning Objectives:

  • Define CRM and explain its strategic importance in banking.

  • Understand the key principles of effective CRM.

  • Describe the CRM implementation process.

2.1 Defining Customer Relationship Management

CRM is the active work to handle customer relationships on a large scale with long-term profitability and survival in mind. The Amrita Vishwa Vidyapeetham course covers the “Introduction, Need and Importance of Customer Relationship Management, Implementation Process of Customer Relationship Management in Banks, Benefits of Customer Relationship Management, Impact on Customer Satisfaction” as core topics . The EFOS course in Osijek includes “Customer Relationship Management (CRM)” as a core topic in its Banking curriculum .

2.2 The Principles of CRM

The Alpha Partners Training course outlines the CRM framework as: “Definition of Customer Relationship, The Importance of CRM, Developing a customer strategy, Creating a plan to interact with customers, Assigning a value to the customers” . Key principles include:

  • Customer-Centricity: Putting the customer at the centre of business decisions

  • Data-Driven Approach: Using customer data to inform strategy

  • Customisation: Tailoring products and services to individual needs

  • Proactive Engagement: Anticipating customer needs and reaching out

2.3 CRM Implementation Process in Banks

The Amrita Vishwa Vidyapeetham course covers the “Implementation Process of Customer Relationship Management in Banks” . Key steps include:

  1. Strategy Development: Defining clear CRM objectives aligned with business strategy

  2. Technology Integration: Selecting and implementing CRM software

  3. Data Management: Collecting, storing, and analysing customer data

  4. Process Alignment: Aligning internal processes with customer needs

  5. Staff Training: Equipping staff with CRM skills

  6. Performance Monitoring: Measuring and improving CRM effectiveness

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