The Study of CRM Systems and End User Satisfaction in Indian

Banking Sector
LITERATURE REVIEW
Customer Relationship Management (CRM) has been in India for over a decade but its
penetration into the industry in general and financial services sector in particular has not been
very impressive. The Icfaian Journal of Management Research, Vol. VII, No. 7, pp. 55-72,
July 2008 has found that CRM is a holistic strategy which can help the banks to become
customer-oriented and implement customer-focused strategies, which in turn will help them
build long-lasting relationships with the customers and hence increase their profits.
Deepak Agrawal (Assistant Professor Maharaja Ranjit Singh College of Professional
Sciences, Indore (M.P.) http://ssrn.com/abstract=1032316 has found the various aspects of
analytic CRM and shows how can be best use to manage the customer life cycle more Cost
effectively.
CRM is based on the basic marketing belief that an organization that knows its customers. Its
components may include ware house that stores all the company information, customer
service system, call centres, e-commerce, web marketing, operating system and sales
systems. In practices, CRM system range from automated customer contact system to the
company wide pooling of customer information. (Kotler, Marketing management pp.409410)
In the article published by authors PTACEK, MEGAN J. in American Banker; 05/10/2000,
Vol. 165 Issue 90, p16, 1/3p has found the importance of CRM to banks' efforts to boost their
value; Investment trends in CRM tools; Progress of large banks in embracing CRM.
From another perspective, CRM is a strategic view of how to handle customers relations
from company perspective. The strategy deals with how to establish develop and increase
customer relations from a profitability perspective. Based upon the knowledge about the
individual customers need and potential, the company develops customized strategies
describing how different customers should be treated to become long term profitable
customers. The basic philosophy underlying CRM is that the basis of all marketing and

management activities should be the establishment of mutually beneficial partnership

relationship with customers and the other partners in order to become successful and
profitable. (John Johansson &Fredrik Strom-Pg.2)
CRM is a new customer centric business model that reorients firm operations around
customer needs in order to improve customer satisfaction, loyalty, and retention. CRM is the
integration of customer focus in marketing, sales, production, logistics and accounting, i.e. in
all parts of companys operations and structure. (Ibid)
PROBLEM STATEMENT
The concept of CRM and its implementation creates chaos for the marketers, as they are
unable to comprehend the benefits of this approach to enhance their relationships with their
customers and ultimately gain the long-term profitability profits. This work tries to capture
upon those key issues, which are critical for evaluating and estimating the utility of CRM and
its implementation in Banking sector.
The purpose of this work was to study the CRM environment in banking industry and to find
out the CRM market scenario in banking sector. The study also focuses on finding out the
Gap between expected level of performance and actual level of performance of the CRM
system in the end-user perspective. The other major objective of the study was to determine
the impact on Change in revenue, Operating costs, User productivity, Customer satisfaction,
Customer retention in the banking sector due to deployment of CRM systems.
Hence the study The Study of CRM Systems and End User Satisfaction in Indian
Banking Sector is conducted.
OBJECTIVES OF THE STUDY

To find out the CRM market scenario in banking sector.

To find out the Gap between expected level of performance and actual level of
performance of the CRM system in the end-user perspective.

To study the CRM environment in banking industry.

To find the impact of CRM deployment on

a) Increase Revenue in the Organization
b) Increased User Productivity in the Organization
c) Decreased operating cost in the organization

d) Increased retention of customers