Chapter 6 Summary, Findings and Recommendations 4 SUMMARY customer relationship management, an important aspect in today's banking envionment has been attempted in this research study. in recent years, the banking industry around the world has been undergoing a rapid transformation, nindia also, the wave of deregulation of early 1990s has created heightened competition and areater risk for banks and other financial intermediaries. The cjoss-border flows and entry of new players and products have forced public and pivate sector banks to adjust the product-mix and undertake rapid changes in their processes and operations to remain competitive. The deepening of technology has facilitated better tracking and fulfilment of commitments, multiple deivery channels for customers and faster resolution of customer complaints. Unlike in the past, te banks today are market driven and market responsive: “he top concern in the mind of every bank's CEO is increasing or at least nainaining the market share in every line of business against the backdrop of heightened competition. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discemning and less “eat to banks. This makes it imperative that selected six banks provide best possible products and services to ensure customer satisfaction and to address the challenge of retention of customers. The success of such a model depends upon the approach adopted by the selected public and private banks with respect ‘ocustomer data management and customer relationship management 219‘The study focused on CRM practices in selected three Public sector banks- the state Bank of India, Punjab National Bank and Oriental Bank of Commerce and inselected three private sector banks- ICICI, HDFC and Axis Bank, The cross case analysis and the comparative study of CRM in these selected public and private sector banks has resulted in the clear cut emerging picture of customer relationship management in these selected public and private sector banks. Chapter 1 presents the importance of the growing concepts of customer relationship management in banking organizations. The scope of customer réationship management in banking has been explained, and a brief review of research literature on various topics related to customer relationship management in banks has been presented alongwith the objectives of the research and the methodology used in this study. The significance of the comparative study of CRM in selected public and private sector banks has been discussed, The emerging concepts of CRM since globalization, CRM goals, CRM ey elements, CRM process, significance of CRM, CRM systems, relationship value concepts and total customer focus has been presented in chapter 2. The CRM practices in selected public sector banks alonwith the detailed introduction of each bank and several important parameters considered for CRM practices have been explained in chapter 3. The data relating to the three selected public sector banks- SBI, OBC and Punjab National Bank has been presented in the way to answer various research queries of the study in chapter 3. Chapter 4 presents CRM practices being followed in selected three private sector banks on parameters of management of demand and supply. managing customercomplaints to customer satisfaction. The data felating to the three selected pivate sector banks- ICICI, Axis and HOFC has been presented in the way to answer various research queries of the study in chapter 4, Chapter 5 deals with the comparative study of CRM practices in selected public and private sector banks. The cross case analysis and comparative analysis of the selected six banks has been presented and discussed on various parameters of customer felationship management practices like management of demand and supply, managing customer complaints, customer retention, CRM strategy, CRM programs, CRM implementations, relationship marketing, managing customer experience, total customer focus and customer salisfaction in these selected banking organizations. In chapter 6 the findings of the study has been presented and discussed along with the summary. Detailed discussion on the results obtained has been presented in the relevant chapters. The summary of the research, conclusion drawn from the study and recommendations to improve the CRM practices in these selected banks on the basis of the findings has been presented and the scope for further research in the area are summarized in the following sections. in a competitive world there is a need for banks to maximise all their resources. One of the resources that are often overlooked is that of existing customer base. Customer relationship management (CRM) is 2 tool that is becoming increasingly popular as it provides a method of maximising existing customer resource as well as adding value from tre customers’ perception. CRM consists of three simultaneous considerations that drive CRM strategy: (1) people, banking culture 8Band relationships, (2) processes, and (3) technology. In a globalise economy, comparative study is becoming of extreme importance to many researchers, but there is @ lack of literature on the impact of comparative study on CRM implementation. Banking organizations face the situation of lw tv adopt CRM implementation process according to differences in service culture factors from public to private sector banks. They face the problem of implementation process from place to place, from branch to branch within the same organization. The most critical issue that drive CRM projects to fail is ignoring culture readiness. This will lead to develop a framework for CRM implementation process in tanking organizations environment. To achieve the proposed aim and measurable objectives, the study has employed a critical evaluation approach to accomplish the research objectives. The study has used a comparative case study, which helps to compare between different cultures of CRM in the selected sublic and private sector banks to investigate the various CRM practices and its impact on CRM implementation in these selected banks. The reason for qualitative research is to deeply analyse why and how comparative study affect CRM implementation process. in Indian banking industry the private sector banks in general are ahead in responding to opportunities provided by the Internet and best practices show that hey are beginning to come to fruition from being customer-centric. By contrast, public sector banks in India are now grappling with some perceptual issues and are not in the face of worldwide competition yet, moreover, lacking sophisticated applications and professional support, their CRM adoption 'S progressing) Bbjn today's competitive world, achieving total customer satisfaction is found to be akey element in setting the bank's business goals and objectives of the service dented banking organizations. Improving performance in service delivery and paris responsiveness to the customer has emerged as a source of competitive advantage in banking industry. Customer relationship management is being increasingly used by these selected six banks to identify, attract and retain most valuable customer that helps these selected public and private banking arganisations to sustain profitable growth. The selected banking organizations xe achieving long term performance in customer relationship management by gining deep insights about their customer which helps them design sroductiservice offering that match or exceed the customer expectations which in tum help in building customer trust and help the banks to gain loyalty. The rapid growth of internet-based technologies are making impact on managing customer relationship where banking organizations are establishing one-to-one customer relationship online. The selected public and private sector banks are increasingly using internet as electronic channel for selling and for servicing the customer, either directly or in combination with traditional channel intermediaries, {also helped these six selected banking organizations to offer personalized souions, Besides, it served as a catalyst in raising expectations about the customer experience. Customer Relationship Management emerged as a core banking activity for these selected banking organizations operating In fiercely competitive inwapsnsezes, Gens emssene, Wao apeeteneinns RIPE OOH customers.jn today's competitive world, achieving total customer satisfaction is found to be key element in setting the bank's business goals and objectives of the service ojented banking organizations. Improving performance in service delivery and tanks responsiveness to the customer has emerged as a source of competitive advantage in banking industry. Customer relationship management is being increasingly used by these selected six banks to identify, attract and retain most yauable customer that helps these selected public and private banking organisations to sustain profitable growth. The selected banking organizations are achieving long term performance in customer relationship management by naining deep insights about their customer which helps them design roductservice offering that match or exceed the customer expectations which in tum help in building customer trust and help the banks to gain loyalty. The rapid growth of internet-based technologies are making impact on managing customer relationship where banking organizations are establishing one-to-one customer relationship online. The selected public and private sector banks are increasingly using internet as electronic channel for selling and for servicing the customer, either directly or in combination with traditional channel intermediaries. It also helped these six selected banking organizations to offer personalized solutions. Besides, it served as a catalyst in raising expectations about the customer experience Customer Relationship Management emerged as a core banking activity for these selected banking organizations operating In fiercely competitive environments. On an average, banks spend six times more to acqure sustore3, Itis also found that as a technology initiative, CRM automated the various processes and activities that an organization undertook throughout the life oycle of customers, including prospecting, sales activities and maintaining successful relationships 4, The public sector banks are short of specific policies to smoothen the random fluctuations in demand so as to shift demand from peak periods and shifted to slack periods. The banks left to the customers to learn when facilities were crowded and when they were not. It was found that, on an average 41.6% of the managers perceived CRM to be a reality. It was further found that, on an average only 39% of the customer of these selected public sector banks were of the strong opinion that their banks operating hours were convenient to the customers. The public sector banks services were also account oriented rather than customer oriented. However, the private sector banks were found to have specific policies to smoothen the random fluctuations in demand so as to shift demand from. peak periods to slack periods. It was found that, on an average 61.6% of the managers perceived CRM to be a reality. Further, on an average only 66.6% of the customers of the selected private sector banks were of the opinion that their bank operating hours were convenient to the customers The private sector banks services were more or less customer oriented rather than account oriented. 5. twas further revealed that in public seetor banks complaints were usually not entertained. However, complainants complained directly to thepivate banks, which are major participants in the financial system, was the first fine of defence against financial risks. Strong capital positions and balance sheets place banks in a better position to deal with and absorb the economic hocks. The selected banks need to supplement this with sophisticated and robust risk management practices to face competition without diluting the operating standards Thus, the selected three public and three private sector banks use CRM approach to identify key activities that must be implemented to be successful, and an evaluation of the activities can provide a means for comparing their level of CRM implementation with that of competitors in the banking industry. Secondly, the results indicated that the CRM process performance link was not as sirong as expected. This suggested that there was considerable room for improvernent in the implementation of CRM processes. In particular, the research findings strongly suggested that mere implementation of CRM technology would not lead to the desired effect, it might even have a negative effect. Therefore, the bank managers of the selected six banks needed to evaluate the contributions of technology differently at the different stages of CRM processes. Thirdly, managers also needed to pay greater attention to other aspects of CRM process implementation. The alignment of organizational aspects was a critical tlement in the CRM implementation effort. For example, @ customer focus needed to be brought deeper into the functional areas of the bank; it wouldn't be isolated among bank branch managers. The installation of technology or CRM sot gram will be profitable. Employees fe was not enough to ensure that 2 pro 226grivate banks, which are major participants in the financial system, was the first je of defence against financial risks. Strong capital positions and balance cheets place banks in a better position to deal with and absorb the ecanamic shocks. The selected banks need to supplement this with sophisticated and bust risk management practices to face competition without diluting the operating standards. thus, the selected three public and three private sector banks use CRM approach to identify key activities that must be implemented to be successful, and an evaluation of the activities can provide a means for comparing their level of CRM implementation with that of competitors in the banking industry. secondly, the results indicated that the CRM process performance link was not as sirong as expected. This suggested that there was considerable room for improvement in the implementation of CRM processes. In particular, the research findings strongly suggested that mere implementation of CRM technology would not lead to the desired effect, it might even have a negative effect. Therefore, the tank managers of the selected six banks needed to evaluate the contributions of \echnology differently at the different stages of CRM processes Thirdly, managers also needed to pay greater attention to other aspects of CRM process implementation. The alignment of organizational aspects was @ critical element in the CRM implementation effort. For example, a customer focus needed to be brought deeper into the functional areas of the bank; it wouldn't be isolated among bank branch managers. The installation of technology or CRM software was not enough to ensure that a program will be profitable. Employees 226became More accustomed to the system. May be that in the long run, a more gosiive relationship between the two variables would be expected. Therefore, a future longitudinal study might also provide worthwhile insights. Thirdly, it would be worthwhile to investigate, further, how various public and private sector banks and various banking organization's specific characteristics rive the degree to which the CRM dimensions and practices were developed geross these selected public and private sector banks. Finally, the study examined CRM processes at the customer convenience of comfortability. The study findings compared observations from the selected public and private sector banks widely and at the various functional levels. The critical issues were diferent at these selected public and private sector banks and at other levels. For a complete picture of CRM, a comparative analysis has been taken at all the levels which has resulted in the clear cut emerging picture of customer relationship management in these selected public and private sector banks. The banking industry is much further along than other industries in recognizing the value of customer relationship management and implementing decision support systems to support it. Most of these selected public and private sector banks have focused on tactical point solutions though they're ready for a transition toward strategic, enterprise-wide CRM initiatives that cross major banking business lines. An effective decision support system for CRM enabled these selected banks to collect data about their customers from every touch point, consolidated this information into a single view of the customer, and used ths information for customer profiling, segmentation, cross-seling, up-selling andretention efforts. The adoption of Internet and wireless technologies would further accelerate interest in CRM solutions, as selected public and private sector banks continue to seck a unified understanding of customer relationships across diverse channels. The results of the study provides managers with insights in managing the behavioural aspects of CRM system Projects, making resource location decision and contemplating on CRM system structure and functionality issues. It is hoped that the results of the study will complement the proposition presented in the background literature section and will provide impetus for further research in examining the CRM system phenomenon. the study found that all the six banks have their different views of CRM, however, the definitions used by the banks in the study were supported in the CRM concept. While making within case analysis the research study has found that CRM is a very broad term and it encompasses a lot of different dimensions giv the six banks have been following different ways. but their destinations remained same i.e. keeping long term customer relationship. It is also interesting to noe that the selected six banks have different views about CRM benefits, but they all believed that long term customer relationship will create value for them The study has found that banks are applying customer oriented relationship management and struggling for long-term relationships. Clearly stating the study has also found that all the six banks have applied the CRM process which is a condition for handling customers as individuals and not as part of a segment. Banks were clearly implementing customer centric approach As regards the question on how the CRM technology in banks be described 229jooking at the conclusions regarding technology, the study has found that all th at all the gx banks fully understood the technology in the best possible way. Th ey are ysing most popular and easily, accessible channels for customer interaction. It is. inleresting to note that all the selected six banks are following the technology in gmost the same way by the needed identification, personalized offers, most groftable customer identifications and providing them with standardized eustomer care. It is revealed that the selected public and private sector banks are using the technology which is described as Integrated CRM solutions. regards the question on the CRM organizational structure and people in inks, the study has found that organizations in all the six banks are aligning sith communication process. People are working effectively to share a process and activated their skills to complete the activities and task required for success ly is also found that same persons may have the responsibility for all the communication process in a bank, including recognizing the right customer, telating the right offer, scheduling the offer at the right time, and interacting with customers across the right channels. The study has also found that all the six sanks are paying attention to the training of employees though they used rent training programs. The banks recognized that “people were the brand” There are four main findings. Firstly, banks knew the term CRM very well Secondly banks have implemented CRM processes that were condition of being a customer centric organization. Thirdly, banks have integrated technology wih the service processes in a very good way and the banks are exploiting iechnolegy for becoming truly customer oriented. Fourthly, the banks wereparks are making investments in staff hiring and training, recognizing that quality human interactions are core to meaningful customer relationship. tne study indicated that these selected public and private banks have seen a soar resurgence of CRM initiatives. It was also interesting to note that all the six banks featured in this study, representing leading CRM capabilities in the region, would like to go further in their CRM journeys and will continue to attain benefits out of their investments. Therefore, it is recommended that the selected six tanks must realize the term CRM in its broader term. Banks should not only just concentrate on one segment of CRM, but by using a mix of different elements they can give @ real customer oriented services with a long-term relationships. All the selected six banks must develop continuous leaming process system. Since customer needs and requirements seemed to be very much volatile, therefore, it is recommended to keep one foot ahead of the customer. Banks must know what is going to happen in future so that they can prepare offers according to the changing environment. Allthe selected six banks should develop effective customer information system itis recommended to keep on tracing the customer and get thorough knowledge about customer's problems and concerns: itis recommended that the banks should develop effective organizational sinclure. CRM is not just a technology or some sort of equipment to buy and implement it, it is @ total philosophy. To implement the sole of GRM it is tecommended to make changes in each'and every department and from top-to bottom management. The whole banking organization should be organizedvase “vn Invesiments in staff hiring and training, recognizing that quality rumen interactions are core to meaningful customer relationship. jhe study indicated that these selected public and private banks have seen a ear resurgence of CRM initiatives. It was also interesting to note that all the six sanis featured in this study, representing leading CRM capabilities in the region, ould like to go further in their CRM journeys and will continue to attain benefits ut of their investments, Therefore, it is recommended that the selected six tanks must realize the term CRM in its broader term, Banks should not only just concentrate on one segment of CRM, but by using a mix of different elements they can give @ real customer oriented services with a long-term relationships. All she selected six banks must develop continuous learning process system. Since wustomer needs and requirements seemed to be very much volatile, therefore, it is recommended to keep one foot ahead of the customer. Banks must know what 's going to happen in future so that they can prepare offers according to the hanging environment. ithe selected six banks should develop effective customer information system. tig recommended to keep on tracing the customer and get thorough knowledge about customer's problems and concerns lt is recommended that the banks should develop effective organizational structure. CRM ig not just a technology or some sort of equipment to buy and implement it, it is @ total philosophy. To implement the sole of CRM it is recommended to make changes in each and every department and from top-to bottom management. The whole banking organization should be organizedgocording to CRM requirements. In conclusion it may be said that the essence of customer service should not be ignored to achieve a long-term sustainable advantage. Earlier the banking organizations did not pay to much attention towards the customer but due to rapid innovation in the field of customer relationship management and technology and due to heavy cut throat competition in banking services, banking organizations are ‘struggling and paying too much attention to the customers to retain them by producing innovative products with cheaper rates, prompt service and flexibility of operation. Thus, it can be said that in the global competition scenario, these selected banking organizations are needed to be more aggressive and customer focused by visualizing customer relationship as its most significant asset. Moving Ahead CRM is not only one of the most important applications of banking organizations, but also the key success driver to substantial competitiveness. Embracing CRM means a bank must transform its focus from a product-centric view to a customer-centric view, which requires the selected six banking organizations to conduct changes in organizational culture and operations as well as have a closer cooperation between the CRM systems and stakeholders. This study has employed cross case comparative analysis of all the selected six banks reviewing best CRM practices in the banking industry and then figures out the CRM architecture with action plans to the selected public and private sector banks in the hopes of offering an agenda for them to move ahead The banking environment and IT infrastructure are different among the selectedgublic and private sector banks. The selected banks may enhance their CRM efforts by focusing on only one part of their banking, such as a point solution to address CRM in a call center or field service, or on an enterprise-level. The architecture will also benefit by further studying CRM readiness. The selected public and private sector banks should focus on customers and highlight the instantaneous interaction relationship with customers to satisfy the specific needs of the individual customers. Moving from efficiency to effectiveness represents a big shift in banking emphasis and is one of the drivers behind the surge of attention and investment in CRM 6.2 Findings Based on the above summary, the following are the main findings emerging from the study- 4 The CRM concept and practices in these six selected banks were in infancy stage. The banks like ICICI in private sector and SBI in public sector hold significant market share in deposits, believing that considerable effort enabled these banks to overcome the challenges of size and eventually received significant results from their CRM initiatives Certainly, effective CRM was found to be significantly affecting the selected six banks-overall performance. 2 Ibis also revealed that many banks are still focusing on the fundamentals around data warehouses and customer information repositories, but growing number were still looking at sophisticated analytics to support @ variety of tactical CRM initiatives. It has revealed the best practices that these banks have discovered as CRM supporting technologies. BIndia, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the retums and market risk on this investment portfolio. DFC India deals in varieties of products like home loan, standard life insurance, mutual fund, security, credit cards etc. HDFC has branch offices in all major cities in India like Kolkata, Chennai, Delhi, Banglore, Hydrabad, Ahemdabad apart from HDFC Mumbai. HDFC Bank provides the following range of products such as- i ii ii, iv. v, vi vii vill, Savings Account HDFC Bank preferred Sweep-in account Super saver account HDFC Bank plus Demat Account HDFC Mutual Fund HDFC Standard Life Insurance HDFC Bank provides innovative services such as- vi, HDFC phone banking HDFC ATM- The ATMs of HDFC India can be accessed by all domestic and International visa/master card, visa electron/maestro, plusicinrus and American Express Credit/Charge card holders. HDFC Inter-city/Inter-branch banking HDFC net banking HDFC International debit card HDFC mobile banking ; 137manager who in tum solved the problem then and there, In this regards findings revealed that, on an average, 55% of the bank employees were found to be customer friendly and added intangible value to the services rendered and on an average, 50% of the employees of these public sector banks rendered customers prompt services. In order to manage customer complaints 45% of the managers had guidance signs, for certain service to resolve the issues. However, only 50% of the complaints were resolved bya certain time as promised by the employees. it was further revealed that in private sector bank complaints were usually solicited by various means. These private sector banks had specific counters and also complaint forms for managing customer complaints. Further, on an average 76.6% of the bank employees were customer friendly and 80% of the employees of these private sector banks rendered customers prompt services. The study also revealed that 80% of the managers in their banks have guidance signs indicating as to which counters were offering which services. It is found that, on an average, 78.3% of the complaints were resolved by a certain time. In public sector banks, it was noticed that only 27% of the customers were of the opinion that their bank kept up with ensured promised service and only 36.6% of the customers were of the opinion that their banks made efforts for acquiring new customers, whereas, in private sector banks, it was revealed hat, on an average, only 59.6% of the customers were of the opinion that their bank kept up with ensured promised service and only 2369% of the it 60.6% of the customers were of the opinion that their bank made efforts for acquiring new customers. The study revealed that public sector banks had no concer regardin: ig customers closing accounte, wher ustomers closing accounts, whoroas, in private sector banks expressed their concern regarding the same. Customer retention was not at all practiced in public sector banks, whereas, were i fancy stage in private sector banks. It was found that the specific customer relationship training were given to only 45% of the bank employees of the public sector bank, compared to 78.3% in private banks. g. The study revealed that the public sector banks did'nt practiced the strategy of acquiring and continuously updating knowledge about customer needs, motivation and behaviour over the lifetime of the relationship. The implementation of appropriate systems to support customer knowledge acquisition, sharing and the measurement of CRM effectiveness were not at all practiced as a strategy by aforesaid banks. Similarly, customer retentions and relationship development was not at all followed by these banks. Web-based CRM and eCRM were being followed by SBI and PNB but OBC still lacked behind in the same. Using technology to replace human contact in many CRM applications were followed by all the three public sector banks alongwith providing banks products and services to a larger customer base: On the other hand the private sector banks practiced the strategy of cl ods, acquiring and continuously updating knowledge about customer neemotivation and behaviour ol the lifetime of the relationship. The implementation of appropriate systems to support customer knowledge acquisition, sharing and the measurement of CRM effectiveness were also practiced as a strategy. Similarly, customer retentions and relationship development was also followed by these barks. Web-based CRM (uses the internet to integrate and simplify customer-related business processes, reducing cost of customer-facing operations while enhancing the customer experience) and eCRM (as a means of selling, serving or communicating with customer through web) were used by all the three private sector banks. At the same time it is interesting to note that customer/consumer education initiative series was one of the latest strategy being followed by ICICI Bank and HDFC Bank, whereas, Axis Bank lagged behind. 40.lt may be noticed that both public and private sector banks were found structuring their organization for CRM, Data warehousing, effective complaint handling and front office applications. However, State Bank of India was focused and initiated customer education inttatve cRM programs, Similarly ICICI led among all selected six Banks and it regularly comes with customer education services in The Times of India every Tuesday of each week. 41.As far as customer centricity was concerned, on an average, 55% of the public sector bank managers belicved that their processes were customer centric, and 60% of the managers selected the technology on the basis of understanding of customer centricity. Further, on an average, 73.3% of the 238of managers of these banks have empowered their employees to deliver superior service and 65% of th the managers are able to manage their customer relationships by having the customer knowledge strategy which helped them to organize customer touch points, helps bank to respond to a customer need’s instantaneously and helped in one-to-one marketing, whereas, on an average, 81.6% of the private sector bank managers believed that their processes were customer centric and 76.6% of the managers selected the technology on the basis of understanding of customer centricity. On an average, 80% of the managers of these banks have empowered their employees to deliver superior service and 85% of the managers are able to manage their customer relationships by having the customer knowledge strategy. 42. Further, it was noticed that the private sector banks were aggressively focusing their attention and resources to be closer to customers sufficiently responsive to their requirements and performance in meeting the customer needs, whereas, public sector banks still lacked the required aggressiveness in focusing their attention. 13.As far as customer relationship was concemed, on an average, 65% of the managers of the public sector banks practiced it against 85% of the managers of the private sector banks. Similarly, in customer responsiveness, percentage was 71.6% in public sector banks compared to 80% in private sector banks. 239ia it was, further, noticed that, on an average, 50% of public sector banks managers were keen for customer delight alongwith 71.6% of them were keenly interested in educating employees for the same against the 71.6% managers of private sector banks practiced customer delight and 75% of them were interested in employees education for the same. 15.,As far as bank procedural working was concermed, it was noticed that, on an average, 68.3% of the managers of the public sector banks felt satisfaction, 63.3% of the managers felt their procedural working were appealing compared to 81.6% of the managers in private sector banks showed satisfaction and 80% expressed in favour of appealing procedures. On the other hand 36% of the customers of public sector banks opined that their bank was sincere in procedural working against 80.6% in private sector banks 46.Most significant and salient finding of this study was that the banks selected were ot the opinion thal investment in staff hiring and training must be given top priority for rewarding customer relationship 17. It was noticed that banks in both the sectors became interested in using CRM for service and segmentation (HDFC) as well as (ICICI) alongwith (SBI) in loyalty. 48. As far as technology innovation was concerned Both Sector Banks 1.e., Public Sector Banks and Private Sector Banks strongly felt that up to extents 25% investment must be provided for latest CRM modules to rtlatest CRM imperatives. 2404a.The finding further indicated that these six banks believed strongly th rongly that speed to develop models, the ability to deal with the increasing number of models, and a jump in the frequency of scoring will be key competitive faviurs in CRM management. 20, It was interesting to find out that Event-based marketing (EBM) was on the rise in banking sector which will significantly change the marketing resources of the banks concemed. ai.This study revealed that customer segment and preferences became highly competitive and many leading banks in both the sectors were busy cic, HDFC, SBI) in enhancement of customer segment and preferences 22 Investigation also revealed that selected six banks ad witnessed clear resurgence of CRM and further innovations and improvements in CRM technology would certainly benefit the banks concerned 23; Ine study also revealed that majeity of banks in bath the sectors were strongly integrating marketing and risk management through technology which was available in many banks. Similarly majority of the banks in both the sectors were popularizing analytical outsourcing So that analytical bank function may be outsourced. 24. The most significant finding was the keen desire of studied banks were to enhance investment in CRM management and find solutiuns to various CRM issues for better customer understanding and service 241gs.as for a8 availability, reliability and ° . data use was concerned, the study revealed that modeling, scoring and customer insight requirements were given top priority in majority of banks investigated and some of these banks possessed their own analytical centers also for effective and useful CRM management 6.11 is interesting to mention here that investigation of the six banks significantly revealed that some other supplemental aspects and CRM management also surfaced to be attended immediately and sincerely i.e., customer service, segmentation and client retention alongwith customer loyally. Majority of banks had already sought CRM consultants to readdress aforesaid aspects for enhancing the banks popularity towards customer safety and dependability. a7-Both Public Sector Banks and Private Sector Banks were noticed in restructuring the banking services in the light of latest innovations in banking technology by using latest information technology tools which in tum in coming years will lead to more customer friendliness with sufficient accountability and speed. This way banks are sure fo enhance customer ‘base with competitive services 28.it was also noticed, that bureaucracies affected the working of Public of customer service and satisfaction which lead Sector Banks at the cost to the desertation of customers from Public Sector Banks to Private Sector Banks and, rence, Public Sector Banks were limited to CRM management 22and failed in providing competitive, dynamic and speedy leadership. Whereas Private Sectors had nil insignificant presence. 29.The most significant finding of this investigation was on the decision making capacity of the bank officers. In Public Sector Banks even a small, insignificant decision in effective CRM management were kept in wait for even a year or more, on the other hand same was disposed amicably in Private Sector Banks on the same day to the best satisfaction of the qustomers concerned. This may be looked upon seriously otherwise Public Sector Banks would lag behind and gradually become unacceptable in public. 30 Investigation aiso revealed that banking services industry has lost, eroded, forgotten, overlooked and diluted so much of its core business discipline in recent years, but now both public and private sector banks were realizing the power of customer focus in creating and retaining satisfied customer and in achieving other services objectives. 31.It was further noticed that public and private sector banks were ready to use common CRM drivers such as customer as the starting point in their CRM strategy formulation, customer as the base of their commitment to excellent performance and customer satisfaction as the ultimate criteria for their performance evaluations. Within the banking service industry, prominent examples of customer focus banks were ICIC] Bank, HDFC Bank and SBI. 24332, The study revealed that in private sector banks the bank management and employees perceived their business purpose largely in terms of satisfying a target set of customer requirements and preferences in a manner that lead customers to select the bank over competition in cufficient volume and prices to realize satisfactory profits. 33.One of the most significant finding was that customers satisfaction demands error-free performance, not just a rational service structure. The in-depth interviews with 600 customers from six banks banking customers regarding the quality of its services resulted in one of the key findings was that for many of these banking organizations, customer service implied instant attention to resolving problems when they arose. In the high- pressure banking environment, a delay of even one day can be @ source of great irritation and concer. These findings led to the formation of the bank's Error Resolution Teams, which bring together employees from variety of areas to correct prubiems quickly in ICIC} bank, One af the key aims was to create a general belief among those involved that when an ciror occurred, it immediately became “our problem, not just their problem’. Considerable success has been achieved through this approach, which was modeled to a large extent on the “quality circle” concept. Of course, the relationship manager retains principal responsibility for the overall maintenance of the relationship However, aforesaid approach was lacking in Public Sector Banks, 2434.{t was also noticed that private banks engaged in marketingibanking that can deal with each clienticustomer individually and develop a close, continuous and long-term relationship with the clientcustomer. Private banks were practicing CRM correctly to increase their ability to identify, acquire and create loyalty in the best clients, with the aim of increasing turnover and profit, whereas, it was significantly absent in Public Sector Banks 35. The most significant finding was that the banks were now being designed around its customers. The managers of these banks now believed that CRM is more than customer care or customer interface management was integration of customer acquisition, enhancement, and retention through managing the customer relationship overtime. 36. It was revealed that private banks had more advantages than public banks in CRM implementation. They intended to almost double the CRM investments but by contrast, public sector banks only hoped to keep what they have done so far. The contrast between the two was remarkable and revealed that private banks were more aggressive to customer intimacy 37.It is interesting to note that HDFC Bank had boosted customer retention by four percent, and executed focused acquisition campaigns, which roculted in reduction of acquisition cost by 60 percent due to effective targeting and channel optimization. However. 7 Public Sector Banks the data were rot available38.t was also observed that in order to increase their market share, banks were aiming for product differentiation rather than price. While concentrating on product and delivery channel innovation, banks often overlooked process innovation, which incidentally would also reduce costs and consequently raise the profits. Particularly, the public sector banks neglected innovation as they were more socially-oriented than profit- oriented. 39.It was found that OBC and Axis bank viewed CRM as a process of personal interaction, whereas, PNB, ICICI and HDFC viewed CRM as customer oriented strategy and SBI was the only bank which viewed CRM as marketing, sales and support system. 40, The investigated banks were using almost same but partly different technologies to reach their customers. ICICI and SBI were utilizing most of the technologies compared to other selected banks. 41. The study revealed that CRM was the issue that both public and private banks cared largely, but are short of knowledge and professional support Most CRM projects were highly fragmented and lacked customer focus, and then they failed to meet their objectives. 42.The study also revealed that CRM had started gaining popularity as a system for managing not only contacts but also accounts, opportunities, activities, marketing customer support and other related processes. Banks vere forced to differentiate on basis of customers, not product. Banking organizations were witnessing these changes in India in both private and 246largely at public sector banks. CRM applications were proving to be the “key drivers of customer acquisition and retention’ 43.t was found that this impacts their CRM development in the banking organization-wide strateay. Private banks already exercised custamer- centiic strategies and systems integration to streamline the business processes by orchestrating extensive organizational change. Few public banks put forth such efforts in the banks-wide management. They only understood and continuously set service automation at slow-moving, slow- changing and little risk pace, rather than radical changes by re- engineering or paradigm shifts with high rewards and substantial chance of failure. 44.The study also revealed that it was becoming increasingly difficult for the panks to sustain a competitive advantage for long, primarily due to shortening of product-cycle and product-design cycle. Therefore, in order to maintain customer relationship the banks must think of continuous working to improve its competitive advantage. The banks, therefore, were trying to find innovative ways to customize and add value to the product or service being provided in addition to approaching towards cost leadership. Depending upon the position of an individual bank, different overall strategies of CRM was adopted such a5 customer focus, differentiation, joint ventures. forming strategic alliances, mutual sevice consurtia, licensing, value chain partnership, etc 2475.3 RECOMMENDATIONS ‘on the Based on the above summary and findings, the following are the main jecommendations emerging from the study- 4, Banks must realize the term CRM in its broader term. No doubt the personal interaction, marketing and sales are the right view of CRM but CRM includes 3 lol more than that. In its vital sense CRM includes personal interaction, marketing and sales, IT, customer knowledge, people, process and technology. There can also be some other dimensions of CRM. Banks should not only just concentrate on one segment of CRM, but by using a mix of diferent elements they can give a real customer oriented services with a ong-teisn1 relationships. 2 All the banks should have continuous learning process system. Customer needs and requirements are very much volatile, therefore, it is recommended to keep one foot ahead of the customer, Banks must know what is going to happen in fulure so thal they can prepare offers according to the changing environment. In changing environment, it is good to look forward by anticipating the future threats. All the banks should develop effective customer information system. Customer is loyal only when the bank has the thorough understanding of the customers requirements, if banks don't have enough information about customer, itis impnssible to understand customer's Business problems. !t is therefore, recommended to keep on tracing the customer and get thorough knowledge about customer's problems 4 iis recommended that the banks should develop effective organ’ 24sstructure. CRM is not just a technology or some sort of equipment to buy and implement it, it is @ total philosophy. To implement the sole of CRM it is recommended to make changes in each and every department and from top to bottum management. The whole organization should be organized according to CRM requirements. Everyone working in the organization must have a very clear goal in mind i.e. the whole organization must be working as a single unit, It is not affordable that the higher managment is looking CRM as marketing and sales and middle management looking towards personal interactions and so on. At every level CRM definition must be very clear, here definition does not mean by few writien words, but i's sole. Why CRIM is important, who are the bank customers. why to make contact with them, how to make contact, how to make customer satisfied and how these salisfied customers are made {0 come again and again and other questions must be very clear in every one's mind of those working in the bank. itis recommended that the public sector banks should have specific policies to smoothen the random fluctuations in demand so as fo shi demand from peak periods and increase demand in slack periods. The bank should not only leave to its customers to learn when facilities were crowded and when they were not but also try to make proper arrangement so as to reduce for the customer, It will make the customer waiting time and transaction ti satisfied and bank effective. The public sector banks services should be customer oriented rather than account oriented 249itis recommended that public sector banks should and must solicit cust licit customer laints by ai complaints by any means. In case the problem is taking some time in getting resolved, the branch manager should to let the customer know the status of the complaint and there should be a proper cumplaint redressal system. The public sector banks should have specific counters and also complaint forms for managing customer complaints. The bank employees should be customer friendly and should add intangible value to the services rendered Customer retention should be practiced in public sector banks aggressively. It is also recommended that in both private and public sector banks the specific customer relationship training should be given to the bank employees. othe public sector bank should follow the strategy of acquiring and continuously updating knowledge about customer needs, motivation and nehaviour over the lifetime of the relationship, whereas, the private sector banks should follow the CRM strategy aggressively. {Roth public and private sector banks should structure their organization for ORM. Data warehousing, effective complaint handling, front office applications are some of the initiatives which should be undertaken by these banks aggressively for customer relationship management 42.lt is found that the private sector banks are aggressively focusing their attention and resources to be closer 10 customers appropriately responsive to their requirements and performance in meeting the customer needs, whereas. public sector banks stil lack the required aggressiveness in focusing theirattention. Therefore, it becomes imperative for public sector banks to be very much aggressive in focusing customer centricity, jg The banks should be extremely responsive to customer requirements ahead of its competitors which is very important and should also work on managing customer experiences. This factor appears to have influenced and is affecting changes in the customer relationship management in the public and private sector banks i4itis recommended that the bank managers of both public and private sector panke should look for more meaningful and lasting ways to educate employees to make for more informed customer interactions and to create 2 unique customer banking experience for total customer experience 1s itis, further, recommended that CRM is the issue that both public and private tanks should care about the most, with more customer knowledge and professional support. Most CRM projects are highly fragmented and lack customer focus, and then they feil to meet their needs and concerns. Theretore it is recommended that CRM project should be more customer focused in banks and should be an enterprise-wide strategy. sé Ranks must now devote themselves with considerable thoughtfulness, 1 to implementing the core CRM business imagination, care and determinatio principle of giving the target customer the services they want and that the custorners will select over competition: Today this challenge has to he taken by the bank management greater than ever before because of the increased competition in the banking sector 251ine customer stay with Axis bank, but possibilty of quitting is some time there cai Technology in Axis bank giebel analytics is used in Axts Bank which provides analysis and reporting tools used to develop customer insights. Siebel sales provides comprehensive tools nd information access to help the banks sales personal in the sales process, including planning, strategy, lead qualification, lead management, closing and siebel service which helps service representatives rapidly capture, track and resolve service related issues. The bank is using these types of software to interact with customers such as call centre automation, data warehousing, e-mail management, marketing automation, personalization and sales force automation. Bank is looking towards ‘he technology as Customer-Centric Processes. By using technology the customer can contact with the bank very quickly and can get betler information and help. By using technology the bank can have win-win situation. Avis bank offers @ wide range of concepts and Interaction-based tools to support and enhance customer decision-making processes. Their concepts and services are constantly developed and refined to meet the changing needs of their customers. By using CRM technology, Axis bank is providing customers more knowledgeable products. Axis bank CRM technology not only saves time and money, makes the job easier but also improves the customer experience, CRM Organizational Structure and People The Avis bank follows a decentralized organization structure. Branch works on customer oriented business strategy. All branch puts the customer at the first Briony, The CRM organization of Axis bank 's described in figure as-and capital resources to supporting the CRM process, make ki , make key ment: appointments and modify the banking organizational structure as required they must strengthen and focus the CRM performance goal-setting -setting, evaluation, and reward systei as required. consciousness-raising will be an important biock. Strong, clear and continuous “customer focus’ explanations, endorsements, performance monitoring and rewards by the banks will be needed. In addition special onentation and training programs should be developed for the CRM core themes, clarify the CRM requirements and pay off potential to the banks, and identity the desired behavior and involvement for employees in all tevels and functions Cansciousness-raising can be strengthened further through, publicity in bank house organs, promotions to elicit employees suggestions and special events such as customer-visitations programs and visit to other banks that are highly regarded as “customer-focused”. 22 Skill building and teamwork building forums can Pe developed to enhance employee capabilities for undertaking customer-focused endeavors. both individually and collectively. it is important. that persons with direct responsibility far customer relations have high expectations of the business potential and staff capabilities. It Is Vital, too, that persons without direct customer contact also feel part of the customer-focused effort, strengthening their customer-focus commitment and capabilities. These employees should join thase having direct customer contact in formulating strategies and newproducts and services, as-well-as identifying opportunities for improving the bank's ability to respond competitively to marketplace changes. ga the bank's organizational structure must be reevaluated and modified to maximize support and minimize the barriers to CRM banking organizational effectiveness. Now the bank should use professional account management concepts for closer focus and responsiveness to customers. The creation of aqcount manager position, commitment of backup support to these people, designation of accounts for each of them, and design of their liaison and teamwork with others in the bank organization (particularly “CRM managers") who also have customer contact is @ prime example of structural change to facilitate and serve as a “rallying point” for customer-focused behavior. 24, The phenomenon of bank “drift” away from @ customer-focused discipline and zeal should be studied in various banks. The defense against “drift” in this regard can be strengthened if bank management does the following- «. Strives to use the various approaches to inculcate and reinforce the spirit and capability of customer focus throughout the bank organization, so that it becomes an integral part of individual and organizational functioning (what everybody believes and how they behave). i. Periodically reminds bank employees at all levels and functions of the value and purpose of “customer-focus” as-well-as the risk loosing the CRM focus and competitive edge. The competitive edge can be reinforced through specific reference to other organizations that have “drifted” and lost their market position, as-wellas to outsiders assessments of the firm’s cusiomer- 254fo sed spirit and capability. Through si : non uch occasional, high-profile endeavors. 4 bank's conscious SNess can be raised again vg Vgrious public Sector banks lose thei : it marketplace preeminence and profit- anilty largely by taking their eyes of yes off customers, underrating competitors, pecoming slow and inflexible and deci decision-making, and stackening their pace and commitment to product and service innovations. Senior management of the banks must commit the banks to consistently, persistently, and comprehensively, reinforcing customer-focused endeavors and spirit. It must constantly monitor and support the customer-focused effort. The banks must jocus the! altention and recources to he rinsar to customers, sufficiently responsive to their requirements and preferences and more successful than tition in meeting CRM needs. x6 Communications with and among the people who interrelate with banks customers is of paramount importance to the CRM strategies and their execution, Therefore CRM managers in private sector banks should trigger and perhaps quide the creative thinking required for each new idea and each new opportunity in each banking days unique combination of economic, competitive and human vanables own employees tend to be their most devoted & should think that their ing audience. They like to learn about products and services, they ttc leave up to the slagans tne Bank pitch Te the public, and they want to heir frends. Thus we should try 10 fil the needs and the customers and t sneugswith “the vank with the personal touch’rd. suppl 2A _ 5 i" Of consumer-oriented forms on products and services should be available in exactly the same place, in or on each customer service \obby desk that is occupied by a rotating cadre of customer service personnel. These supplies should be replenished regularly. A person assigned to open a new account who mutters and fumbles for materials creates a negative image. An overly long wait for a response can cause the customer to consider choosing another bank. 29.Safety deposit services often receive less-than-minimal marketing attention pecause un @ stand alone basis, they are unprofitahla. They seem to present a bleak décor and minimal service, with a staff of doddering pre-retirees. However, surveys show that safe deposit services are key element in promoting longevity of banking relationships. Banks should invest in changing the décor and service from “bleak to “nice” particularly public sector banks. In these usually window-less departments, fresh flowers and background music are a welcome addition. Staffing this service with allancdants who have same sparkle is also helpful. Trust and estate-planning literature that is attractively arranged and displayed likely to pique the customer's interest, which is usually high during access time toa save deposit box 30. Printed bank forms destined for public use are too often designed to suit the systems manager, the clerk, all professionals who are likely 0 over look illegible type size, awkward composition, un necessary legalese, non 2 h contrasting paper color, write-in areas that are too small etc suct inadequacies confuse and infuriate the public these material are designed toinform. A success banker will continu 1oush i ly Monitor forms production, with the need constantly in mind for protection ar i ind edification of a baffled public. 1 Bank should follow closely few caveats such as: | itis much cheaper to keep a customer happy that it is to take @ customer away from a competitor, so be sure your ratesipricesiinterest rates are competitive. j, Time spent educating and motivating your own people is critical to the success of CRM strategy. 4, The world of banking can be challenging, rewarding, fascinating and fun with CRM Andlastly, the old saw “bankers never die; they only lose interest”. \. The banks mission statement should addressed the banks commitment to cient needs, particularly through superior service. i Emphasis should be placed on those services and products which provide attractive return on investment, competitive service value and opportunity for growth. In all its operations the bank should focus on the needs of their customers, and their goals should be to provide them with the best service 32. While customer service has always been important for banking industry, ithas been a vital element for the survival of modern day banks. Continued good service through which bank establishes an advisory rapport with his client, has remained extremely important. Many banks have learned the hard way that business disappears when service begins to slip. However, the "needs of the customer’ have not always been paramount in banking. The bankh should be “ i sporoacl we can offer this service profitably to our clients, so let them know the needec - The competitive revolution reflects CRM in banks and it is very clear that to continue its orderly growth banks have to work on RM aggressively. The bank with CRM should responds to customer needs, and back it products with superior service to compete successfully for banking business Although faced with stiff and increasing competition in every area, the banks should position itself well to continue with CRM 43.Consumers/customers strongly desire and expect change within the banking industry. Times have changed, ways of doing things have changed. Atitudes nave chanyed. Therefore it is imperative for the banks to go for a change Yes, banks should change by bringing effective CRM in their services une @ business philosophy, relationship managements (CRM) holds that multifaceted banking relationships with customers are best coordinated through a single professional customer relationship manager This concepts seems simple but the practice of successful relationship management may be complicated and difficult. Successful customer relationship management is entral to the progress of moder days banks. Like most major banking sneifuions. various publio-sestor banks are facing increased competition and reduced margins in the corporate banking arent This has been due in part to the larger numbers of financiel institutions seeking the seme business with greater mtensity. A customer relationship management philosophy can be helpful in maximizing banking profitability and services delivered as-well-as customer satisfaction. 258ag The relationship manager ® — —_ a Principle link between the banks and its Create and sustain the relationship, interpreting the bank to the client and client to the bank, The relationship manager must be “a professional banker, broadly knowledgeable about the neads of his customers and the products and services of his bank sg Customers appreciates a relationship management approach much more than @ transactional approach. Because the relationship manger has the knowledge and authority to “deliver the bank” to the customer, the enter relationship is greatly simplified. Therefore, itis recommended that the banks should focus un CRM practices aggressively. 37.Practicing relationship management allows the astute banking organization to maximize profitability. Because all services are organized around the central concept of the relationship, destructive intemal competition can be reduced, Crose-selling is fostered, product delivery effectiveness 1S maximized, and the favorable result through to the bottom line Extensively relationship management can benefits a bank and its client. Clearly the successful relationship manager must be 4 good marketer of the banks services. The effective relationship manager should plan his work and works his plan. 38.Some personal characteristics such as 2 need, well-groom appearance, punctuality, prompt responses, and thorough follow-up are essential matters of business like behavior for te CRM manager and should be followed banks. The effective relationship manager make should make a practice of 259carefully documenting all actions and g may designate a bi ackup to fill in during jis or her absence. Se there is no interruption of servi ice. i competitors are also operating und ler a relationshi ip Management approach i may Weseme quite tricky to set appropriate prives. The balihs sh ives. The barks should develop a new. computer-based “relationship profitability system” which will enabie to determine the cost on an account basis it will provide a compreh siv tool for pin-pointing the most appropriate an profitable combir ation of services that should be offered each corporate customer yaRelationsnip management also saves the bank lime and money and aliminates confusion in the organization. Relationship managers, with their broad kr wiedge, each function as a one-person sales force for the entire range ank services. Instead of approaching the customer through vaticty of vertically integrated delivery channels, the bank benefits from both ability and the professionalism of its lead representatives found that time is @ major constraint for the relationship manager for the clients. Therefore the CRM manager must strike a critical nalance between attention ta existing customers and selling to new azin general, it has been found existing customers to be the most valuable y business. This is natural, a8 @ satisfied cusiomer is inclined if le, to stick with a oanking organization he or sne aitwady knows anig-term growth of the sank depends on constantly replenishi 20!supply of customers through new relationships, particularly with the rapidly growing numbers of customers. 43,Once the corporate banking relationship is established, then the CRM manager should look after the issues that arises in properly maintaining that relationship 44. Alll this system will provide the bank with capability to “use a rifle rather than a shotgun” in setting prices and recommending additional services to customers. 45.More impurlant, the new system will permit a detailed examination of individual relationships to determine whether they are highly profitable, un- profitable, or somewhere in between. This will take the guesswork out of relationship banking, rendering a traditionally unscientific “art” more reliable 46. Excellent implementation in a “relationship environment’ clearly demands a very strong commitment to team work on the part of all concerned. 47.The relationship manager in particular must have @ broad as-wellas deep knowledge of the institution's products and personal involvement in arranging operational support is entical. If accounts are setup correctly to began with, problems at latest stages will be minimized. The effective reiationship manager must be more of a "people manager’ than a "paperwork manager’ 48.The importance of customer service to success in the banking world has received much attention in recent years. It seems that every bank wants to outdo the next in committing itself to achieving excellent performance in this area 26149.4 relationship management philosophy facilitates customer service excellence. To begin with, the customer should be provided with a single point of contact within the bank. Any problems that arise can be brought to the attention of the relationship manager, who has the authority to get them resolved. Secondly, the team work demanded by relationship management also fosters a high level of commitment to meeting customers needs. The banking organizational focus should be on service excellence rather than on competition between different, vertically integrated product lines. 50.In banking, the relationship manager must strike a delicate balance between sales to existing customer who are generally the reach source of new business, and developing new relationships to further the long-term goals of the bank 51.The telationship manager should work effectively with a wide variety of people of different temperaments and different professional responsibilities The manager should back up his or her peers, seeks to develop subordinates, and does not hesitate to offer constructive criticism (but avoids packbiting gossip) 52.An effective relationship manager must be a person of good character: honest, credible, reliable. The manager must avoid any appearance ofa conflict of interest and if such a conflict develops in the course of daily pusiness, he or she should disclose it immediately. The relationship manager rnust maintain strict confidentiality in relation to its clients. 26253. Regardless of style, talent stands out. Strong banking organizations must find ways to communicate to talented people that they will find a congenial atmosphere in which to work. This palpable but hard-to-define aspect of banking culture is becoming ever more important in recruiting and training the standout relationship managers of tomorrow. In today's competitive talent market, the best and most competitive individuals are in demand by a variety of banks as-wellas less traditional financial institutions. Successful relationship managers can almost “name their price” in moving from one banking organization to another. 54.A multi pronged approach is needed to realize the outstanding potential that relationship banking offers for improving corporate banking profitability. First, the concept itself, at all levels of the organizations must be clearly understood to include a combination of strong marketing and close team work. Everyone from top management down, must “buy in’ to the idea that transactional business as usual will not work in a relationship environment 55. The relationship manager should be viewed primarily as an investment in sales, not in credit management. They should be given the respect and status that they deserve since effective multi-product selling of sophisticated Financial services is a highly demanding and highly professional task 56. Routine tasks should be transferred to others-A very significant proportion of ‘elationship management time is devoted to routine administrative tasks such as managing credit matters (for example. authorization of takedowns, credit documentation), handling operational problems, and dealing with post-sates 263servicing requirements. While these tasks are important, most need not, and should not, be performed by such high-priced and highly trond pereonnel, The argument that piacing such tasks with the relationship manager yields a better sense of accountability and control can not be justified when weighed against the high opportunity cost of keeping the relationship manager away from the market place 57.Close team-work must be encouraged increasingly, the relationship manager must function in an organization that is also staffed with diroct product sales personnel, technical sales support, customer service, credit approvers etc. all these individuals can help the relationship manager sell but only if they are coordinated effectively. Unfortunately, coordination that relies on traditional hierarchical control by one senior manager will not work with this diversity of people and functions. Traditional control methods must be replaced by team- work, leamawork that motivates Individuals from various organizational 1inits to perform effectively for the customer. 58, Banking is more fiercely competitive today than at any other time in its history. The number of competing banks and their range of services continues to multiply. In this environment successful CRM strategies ore required for increasing market share. This has been one of the most significant, far- teaching changes resulting from competitive pressure, as-well-as new technology, introduction of new services, and the expanding securitization of many banking services. Along with rapidly the requirements of customers who are increasingly sophisticated and well informed. Competing in this 264environment makes considerable demand on a banks resources. The main thrust of investment should be on CRM stratecies, 59,\ is recommended and found also that by investing sufficient time and money into training staff to interact well with customers, banks can fully exploit the opportunities that face-to-tace presents as a customer touch- point. The face- to-face experience can act as a test base to gain and act upon customer reactions to improve the impact of these banks CRM efforts. Bank staff should be trained to talk more relevantly with customers. 0.This study provides some prescriptive guidelines for managers interested in or currently implementing CRM systems within their banks especially in globalized environment when the banking organization are facing severe cut- throat competition in rendering banking services. Implementation of the CRM system should be conducted within the context of the overall strategic thrust of the bank. It is important that the bank comes up with CRM system that relates to the overall banking strategy. Once that is done they need to sell the idea to their employees and customers. Thus, managers need get total commitment from the top management at all stages of the CRM system implementation. Active participation of the affected personnel throughout the project needs to be solicited and their concerns need to be taken into consideration. Before implementing the CRM system, barrier to change need to be identified and later effectively managed. This process needs to continue at later stages of the implementation current training of the users and post port services are intention that managers can implementation system SUPI 265effectively use in enhancing the like likelihood of CRM system implementation success in the banks. 6t.itis recommended that both public and private sector banks should respond to the above mentioned important issues and CRM-solutions tailored to private and public sector banking have to be developed and applied. They must empower the people who have face-to-face contact with clients, such as relationship managers, assistants and advisory desk staff and the banks should give more emphasis on the quality and frequency of the relationship, the quality and the timing of the advice, the quality of the service, and the relevance of the information provided Recommendations for Further Research While conducting this research, some interesting subjects for further research popped-up in the mind of the researcher. Firstly it would be nice to investigate why different managers have different view of CRM, even its the same phenomenon, and it is getting so vast that at one stage it was thought that one day banking organizations will be finding the original CRM instead of implementing CRM. There is lots of research on technology integration with business but there is not enough research on technology integration with customers i.e how customers are looking towards technology: ch on real CRM organizational it is, further, recommended that for a resear structure, banks claim that they are CRM structured, but are they really So.gurther the following research areas are interesting to investigate: |, To perform the study with comparison to indian and International banks. To perform how cultural changes effect CRM. ji, To investigate which factors stop organizations from applying CRM. 267