Page 347 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes far-fetched, there can be little doubt that enterprises will integrate the CRM solutions with B2B
market places.
The biggest management challenge in the new millennium of liberalisation and globalization
for a business is to serve and maintain good relations with the king-the customer. In the past,
producers took their customers for granted because at that time customers were not demanding
nor had many alternative sources of supply or suppliers. Since he was a passive customer, the
producer dictated terms and had little customer commitment. But today there is a radical
transformation. The changing business environment is characterised by economic liberalisation,
increasing competition, high consumer choice, enlightened and demanding customer, more
emphasis on quality and value of purchase.

Notes All these changes have made today’s producer shift from traditional marketing to
modern marketing. Modern marketing calls for more than developing a product, pricing
it, promoting it and making it accessible to target customers. It demands building trust, a
binding force and value added relationship with the customers to win their hearts. The
new age marketing aims at winning customers for ever, where companies greet the
customers, create products to suit their needs, work hard to develop life time customers
through the principles of customer delight, approval and enthusiasm.

There are four strategies available to customer relations’ managers:
 To win back or save customers

 To attract new and potential customers
 To create loyalty among existing customers and
 To up sell or offer cross services.
The future of banking business very much depends upon the ability of the banks to develop
close relationship with the customers. In order to develop close relationship with the customers
the banking industry has to focus on the technology oriented innovations that offer convenience
to the customers. Today customers are offered ATM services, access to internet banking and
phone banking facilities and credit cards. These have elevated banking beyond the barriers of
time and space.

13.1.5 Marketing of Banking Services

Marketing of banking services means organizing right activities and programmes in rendering
right services to the right people at the right place, at the right time at the right price and with
right communication and promotion. Marketing of banking services embrace the following
unique features
 Intangibility: They cannot be seen or possessed physically but can only be experienced.
 Inseparability: Their production and consumption occur simultaneously.

 Variability: They are highly variable depending on the merit of customers.
 Perishability: They cannot be stored.
13.1.6 Globalised Scenario

“Change” is a continuous process and banking industry is no exception to this natural law.
Change in the Indian banking industry is inevitable due to the implementation of the financial

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