...European Journal of Social Sciences – Volume 11, Number 1 (2009) Customer Relationship Management (CRM) Best Practices and Customer Loyalty A Study of Indian Retail Banking Sector Kallol Das School of Management, International Institute of Information Technology, P-14 Rajiv Gandhi Infotech Park, Hinjawadi, Pune, Maharashtra, India E-mail: getkdas@gmail.com Jitesh Parmar Shrimad Rajchandra Institute of Management & Computer Application Gopal Vidyanagar, Bardoli Mahuva Road, Dist. Surat, Gujarat, India E-mail: jiteshsp@gmail.com Vijay Kumar Sadanand Bhoj Reddy Engineering College for Women Hyderabad Vinay Nagar Saidabad, Hyderabad - 500059 Andhra Pradesh, India E-mail: nenuvijay@gmail.com Abstract The current study explores the association between deployment of customer relationship management (CRM) best practices and loyalty of profitable customers in Indian retail banking sector. The study comprises two parts. The first part called the CRM best practices survey involves the use of descriptive research design. The second part viz. case study research involves the use of embedded customer loyalty survey. The hypothesis testing based on literal and theoretical replication is done using the concept of pattern matching. The findings reveal that there is no perfect bank, as yet, across the three bank types, which has deployed all the 29 CRM best practices to the fullest extent. The results of literal and theoretical replication done by using pattern matching...
Words: 12806 - Pages: 52
...components of CRM strategy and its effects to competitive advantage achievement. The findings of this article highlight the effects of CRM on competitive advantage and the components of CRM strategies. The findings were synthesized and summarized from few previous researches’ results which studied the topic of CRM. There are few components of CRM such as the components of perception and customers’ separation, attracting and protecting customers being faithful (making loyalty), emphasis on quality, improving and specializing the relations with the customers (customization), complaint investigation, invest in internal people, and relationship-based interfaces (Mehrdad & Hallaj, 2011; Aihie & Az-Eddine,...
Words: 995 - Pages: 4
...implementation of customer relationship management in chain of supermarkets in the United Kingdom 1. Introduction Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009). From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on the needs of customer, at the same time, the CRM system...
Words: 2446 - Pages: 10
...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
Words: 2990 - Pages: 12
...Customer Relationship Management (CRM) Services, Support, Sales, Marketing Jasim January 2016 Table of Contents Section 1 What is CRM Section 2 CRM in Telecom Business Section 3 Table of Content CRM within IT Landscape Section 4 CRM Data Source Section 5 CRM and Business Strategy Section 6 CRM and Organization Section 7 CRM as A Differentiator Section 8 Current Telecom Challenges Section 9 Current and Decision Making What is CRM ? “(CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.” “Customer Relationship Management – in short CRM - is a customer-oriented strategy. The company and its processes are customeroriented. The aim is to increase customer satisfaction and long-term customer loyalty to the company. This can be achieved by an individual customer care.” Source: SearchCRM Source: SmartCRM A management philosophy according to which a company’s goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants. Source: BusinessDictionary What is CRM ? Customer Service Sales Marketing Customer Support CRM in Telecom Business Telecom operators are considering ...
Words: 1319 - Pages: 6
...CRM IN HOTEL INDUSTRY WELCOMGROUP MAURYA SHERATON Customer Service is now more fashionably called Customer Relation Management. ITC Maurya Sheraton has been following an unstructured form of CRM with a narrow focus of serving the customer well and in a most efficient manner. The concept of Customer Relationship Management has a broader focus of not only serving the customer but also creating the customer and retaining him for measurable and substantial returns. CRM is a vast subject where the concept of one to one marketing is supported by Database Marketing. MAURYA SHERATON DEFINES CRM AS “Customer Relationship Management is a process of managing customer relations in an organized way”. They aim at managing “each moment of truth” that is experienced by the customer. According to Mr Hariharan there are various contact points where the hotel comes in direct contact with the customer which are known as ‘Touch points’ in the CRM language. These touch points are considered important as there is direct interaction with the customer and they provide valuable input to the hotel. The input provided by the customer has to be captured in such a way that it becomes information and can be used by various processes within the hotel. This can be done with the help of technology and the aim is that whenever there is a customer interface with any of FIELD PROJECT CRM IN HOTEL INDUSTRY those processes they are able to use that information...
Words: 7278 - Pages: 30
...Indian Institute of Management Bangalore Customer Relationship Management Faculty: Prof. G. Shainesh Room C-103, Tel : 3334 Term IV PGP (2014-15) 3 Credit Course Background – Businesses aim to win and keep customers. Its competitors also seek to do the same. Most successful firms have developed capabilities for attracting customers through their marketing programs. But they have shown mixed results when it comes to retaining these customers. Customer Relationship Management helps businesses in successfully implementing strategies aimed at winning and retaining customers profitably. It is also helping businesses shift from a short-term transaction based mode of operation in their interactions with customers to a long-term relationship mode. Objectives – The objective of this course is to help students understand the concept and practice of CRM derived from research and applications across businesses. These concepts and applications from real life case studies will help identify opportunities, which can be successfully implemented for long term profitability. Pedagogy – The teaching methodology will include a mix of lectures, discussions, presentations by practitioners, videos, exercises and case analysis. The cases are integrative in nature but will also help develop an appreciation of specific elements of CRM. Each session will require preparation of assigned reading / case and active participation by students. A significant portion of the performance...
Words: 2004 - Pages: 9
...network theory, and inter-organizational exchange behavior. Resource allocation and resource dependency perspectives and classical psychological and consumer behavior theories have also been used to explain why organizations and consumers engage in relational behavior. An overview of these theories will help develop insights on RM from multiple perspectives. Session 1 : CRM : The Strategic Imperatives Reading – Chapter 1 Session 2: Conceptual Foundations of CRM Reading – Chapter 2 Session 3: Building Customer Relationships Reading – Chapter 3 Session 4: Economics of CRM Reading – Chapter 4 Additional Recommended Readings Module 1 Brodie, R. J., Hollebeek, L. D., Jurić, B., & Ilić, A. (2011). Customer Engagement: Conceptual Domain, Fundamental Propositions, and Implications for Research. Journal of Service Research, 14(3), 252271. Egol, M., Hyde, P., Ribeiro, F. and Tipping, A. (2004) The Customer-Centric Organization: From Pushing Products to Winning Customers’ http://www.booz.com/media/file/The_Customer_Centric_Organization.pdf Roland Rust, Valarie A. Zeithaml ,and Katherine N. Lemon (2004), “Customer-Centered Brand Management,” Harvard Business Review, September, pp. 110-118. Parvatiyar, A and Sheth, J.N. (2001),...
Words: 1471 - Pages: 6
...Customer Relationship Management Proposal For Fish Lover’s Content Section I: Introduction Section II: Previous Works In The Field And Its Advantages Of The Approach Over Existing Prototypes Section III: Key Ideas Of Research With CRM In Today’s Trends Section IV: Prototype CRM System For Fish Lover’s Section V: Extending System To Other Area Of Business. Section VI: Conclusion SECTION I: INTRODUCTION The key element of a business is to make profit. To reach these goal customers has to be satisfied. Giving attention to the customer’s need and requirement has become the foremost important goal of 99% of the companies today. Customer Relationship Management, or CRM is a strategy highly required to enterprises in cost savings and increasing customer base by solidifying them. CRM allows bringing true data sources in to the organization giving a holistic view of customers in real time, which will help the enterprise to function according to their demands with high quality services; hence allowing the organization to make informed decisions at the right time. Through good customer care organization gain its reputation. The proposal is based on implementing a CRM system to a newly establishing organization in Maldives. The enterprise is to establish a fish processing company; mainly canning flavored fish. The CRM system for the business is the latest trends in 2014,including social media, cloud technology and mobile devices...
Words: 4000 - Pages: 16
...Customer Relation Management role When thinking about CRM, do person think first (and often only) of one department in the company? For instance, some companies use CRM for sales management or to handle market segmentation and marketing campaigns. Others use it for knowledge management. And some companies use CRM in the customer service department providing service management. But the role of CRM can be more than just a tool for marketing or customer support, sales force automation. In fact, CRM can help automate business processes and integrate every client-facing department with service organization, resulting in increased customer satisfaction, long-term relationships and increased sales. The concept of CRM is premised on the simple logic of business : it must keep tracking customers once attracted; retain them in business portfolio and profit from their growth. CRM can be viewed in 4 ways * Firstly it is a existing response to the emerging climate of unprecedented customer churn, waning brand loyalty and lower profitability. * Second, CRM is central to the task of making an organization customer centric. * Third, CRM is the definite symbol embracing IT in business. * Fourth, CRM is the most certain way to increase value to the customers and profitability to the practicing organizations. What is so special in CRM programs which drive the customer back to the store? It can be better understood from 2 perspectives: Tangible benefit + Intangible...
Words: 972 - Pages: 4
...and Management 3(2): 297 – 316 (2009) ISSN 1823 - 836X Linking CRM Strategy, Customer Performance Measures and Performance in the Hotel Industry NOR AZIAH ABU KASIMa* AND BADRIYAH MINAIb b Graduate School of Management, Universiti Putra Malaysia Faculty of Economics and management, Universiti Putra Malaysia a Customer relationship management (CRM) has been increasingly adopted because of its benefits of greater customer satisfaction and loyalty, which in turn, leads to enhanced financial and competitive performance. This paper reports on a study that examines the relationship between CRM strategy and performance and determines whether the use of customer performance measures plays a mediating role in the relationship between CRM strategy and performance. This study contributes to the limited literature on CRM strategy since little is known about the use of CRM strategy and customer performance measures and their relation with performance in the hotel industry in Malaysia. Data were collected through a questionnaire survey of hotels in Malaysia. Hierarchical regression analyses on a sample of 95 hotels revealed that only the information technology dimension of CRM strategy has a significant and positive effect on performance. In addition, the hypothesis concerning the role of customer performance measures as a mediator was supported. Keywords: Customer relationship management strategy, customer performance measures, hotels, performance, mediator. JEL Classification...
Words: 4685 - Pages: 19
... | |Customer Relationship Management | CRM_01 Nature of Customer Relationship Management LECTURE OBJECTIVES ■ Understand relationship marketing. ■ Understand the differences between relationship marketing and transaction marketing. ■ Understand customer relationship management ■ Identify the essential concepts on customer relations – customer satisfaction and customer loyalty 1. Understand Relationship Marketing 1. What is ‘Relationship Marketing’? Marketing consists of actions taken to build and maintain desirable exchange relationships with target audience. They want to build strong economic and social relationships by consistently delivering superior value. Successful firms work to build long-term relationships with their customers and initiate relationship marketing strategy. Relationship marketing is a strategy that maintains long-term partnerships with customers. It starts by understanding who your customers are what they value, what they want to buy. Companies then build relationships with customers by offering value that satisfied their customers. Relationship marketing is also known as one-to-one marketing, which is about marketing to...
Words: 1659 - Pages: 7
...HISTORY OF CRM MARKET 3 Major Vendors 5 Current Offerings 6 III. DEFINITIONS OF CRM 6 IV. DRIVERS FOR CRM APPLICATIONS 9 Reasons for Adopting CRM: The Business Drivers 9 Cost Goals 10 V. THE CRM INDUSTRY 11 Size of the CRM Industry 12 Vendors 13 Technology and Service 15 VI. INFORMATION TECHNOLOGIES FOR CRM 20 Key CRM Tasks 20 IT Factors of CRM Tasks 22 VII. CONSULTANTS 23 VIII. RETURN ON INVESTMENT OF IMPLEMENTATION 24 Cost and time 24 Benefits 25 ROI of CRM Projects 27 IX. PRINCIPLES OF CRM 27 X. CRM ISSUES 28 Customer Privacy 28 Technical Immaturity 30 XI. CASE STUDIES 31 Amazon.Com 31 Dell 32 Volkswagen 33 Wells Fargo 34 XII. CONCLUSIONS 36 REFERENCES 37 APPENDIX A BASIC ASSUMPTIONS OF CRM 40 APPENDIX B COMMON MYTHS OF CRM 41 APPENDIX C LIFETIME VALUE OF A CUSTOMER 44 C1. Simple Approach 45 C2. More Sophisticated Calculation 46 C3. Effect of Loyalty Programs 47 C4. Additional Factors to Consider 49 C5. The Arithmetic of Lifetime Value 49 C6. Example: Applying Lifetime Value Concepts in Banking 51 C7. Summary and Conclusions on Lifetime Value 53 APPENDIX D VENDOR’S WEB SITE ADDRESSES 55 2 Version 3-6 March 23, 2001 CUSTOMER RELATIONSHIP MANAGEMENT Paul Gray Jongbok Byun I. INTRODUCTION Over a century ago, in small-town America, before the advent of the supermarket, the mall, and the automobile, people went to their neighborhood general store to purchase goods. The proprietor and the small staff recognized the customer by name...
Words: 9056 - Pages: 37
...|Tesco’s Customer Relationship Management | | | |The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing | |company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts | |are discussed. The case then studies the loyalty card scheme launched by the company in 1995. It examines how the data | |generated through this scheme was used to modify the company's marketing strategies and explores the role played by the | |scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to | |offer its customers the best possible service. Finally, the company's future prospects are commented on in light of | |changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes. | |Issues: | | | |»Examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that | |can...
Words: 723 - Pages: 3
...Forward Customer relationship management’s impact in the commercial marketplace cannot be undervalued. Despite traditional economic theory on market entry and pricing prescribing that enterprises should engage customers through prefabricated reactions and interactions given the customer event taking place, the nature, impact and reach of the power of enriching customer experiences has emerged in 2008. Yet, one of the most common mistakes made by global companies is to view CRM as solely a technology or business challenge. CRM is first and foremost a business strategy that can be effectively executed through the appropriate business process and technology management capabilities that best match to an organization’s customer-facing goals. Long gone are the views of CRM being applications or business process methodologies for engaging customers in contact centers in the customer service functional domains within an organization. Today, every interaction or ‘moment of truth’ with customers can help sustain, direct, implore or resuscitate desired outcomes by enterprises. These processes transcend functional departmental silos and extend their reach across the process network to include sales and distribution partners and channels. Technology, process and organizational architectures together in concert will determine the effectiveness of how these end-to-end business processes will align to customer intents and enrich their overall experience with an organization. The CRM strategic...
Words: 5607 - Pages: 23
