Professional Documents
Culture Documents
Han-Yuh Liu
International Journal of Management; Mar2007, Vol. 24 Issue 1, p15-32, 18p
This paper tells that Although Customer Relationship Management (CRM) is arguable
the most important area of concern to enterprises in an era of electronic commerce (EC),
few studies have explored it from an industry-specific perspective to develop usable
action plans. The banking industry is one of the major beneficiaries of the ‘explosion’ in
CRM across all sectors of the economy, but there is an absence of information and
support for it in Taiwan. Embracing CRM requires changes in many aspects of
enterprises. This paper employs a four-strategic framework; of contact channel
management, enterprise-wide management, customer data management, and information
technology management, in its review of what constitutes best practice in the leading
banks in Taiwan with respect to CRM. It is argued that if Taiwan's banking industry
adopts this framework it should be able to respond effectively to the various internal and
external challenges identified in this study as well as to develop its own CRM initiatives.
Wettemann
Health Management Technology; Sep2007, Vol. 28 Issue 9, p48-50, 2p
``Singapore Management Review; 2002 2nd half, Vol. 24 Issue 2, p1, 27p, 11
Advances in computer hardware and data mining software have made data mining
accessible and affordable to many businesses. Hence, it is no surprise that data mining
has gained widespread attention and increasing popularity in the commercial world in
recent years. Data mining provides the technology to analyse mass volume of data and/or
detect hidden patterns in data to convert raw data into valuable information. This paper
discusses the potential usefulness of data mining for customer relationship management
(CRM) in the banking industry. First, the paper introduces the CRM concept and
summarizes the data mining methodology and tools. Second, it discusses the data mining
literature, particularly its applications in banks. Third, it illustrates a possible CRM
application of data mining in banking. Finally, it suggests other potential data mining
banking applications and highlights some of the limitations of data mining.
Eid, Riyad
In recent years, customer relationship management (CRM) has been the favored theme
for numerous studies and reports. Yet, there is a lack of systematic empirical evidence
regarding the critical success factors (CSFs) for the CRM implementation, the activities
that are affected by the use of the CRM programmes, and their consequent performance
outcomes. In this article, he document the role of the CRM programmes in the banking
sector and identify marketing activities that are affected by CRM usage. Taking a sample
of 159 banks that utilize a CRM system, we found a substantial positive effect of the
CRM usage on relationships effectiveness and marketing objectives. The results of this
study have major implications for marketing people, as they suggest the notion that the
CRM critical success factors should be implemented holistically rather than piecemeal to
achieve the full potential of the CRM. The findings also stress the central role of
customer services in the successful implementation of CRM programmes within banks.
This paper considers the shift towards relationship marketing principles and the
implementation of CRM in the retail financial services sector. Many players offering
personal banking and related products have now 'bought in' to the concepts behind
relationship marketing, and are investing heavily (particularly in new information
technology) to enhance customer relationships and improve retention rates. This trend is
considered from the perspective of an organization that is one of those leading the
change. An in-depth case study reveals the progress made in recent years towards the
company's goals, focusing especially on the introduction of new systems and moves to
enhance customer data. However, the analysis also suggests that major challenges remain
if the benefits of CRM are to be fully realized. Issues involving the structure of the
organization and its approach to a range of staff issues such as recruitment and training
are of particular concerns for the implementation of CRM principles.
Economist; 9/6/2003, Vol. 368 Issue 8340, special section p18-21, 3p, 2 Color
Photographs, 2 Graphs
Once the most aggressive users of information technology (IT), financial institutions have
learned to make do with less, as their technological developments now focus on cost-
cutting, improved system integration and the revival of old-fashioned branch networks.
For makers of computers, storage devices and high-speed networks, that is grim news.
The fact is that no other sector of the global economy drives capital spending on IT as
much as the financial-services business does, and until that recovers, the IT slump will
continue. Mark Sievewright of TowerGroup, a Reuter’s subsidiary in Needham,
Massachusetts, notes that financial-services firms continue to spend heavily on
technology. He expects to see worldwide spending top $337 billion in 2003, a 2.3%
increase over 2002. Wireless finance remains a dream in America, though there are hints
that things might change when (if) the latest generation of mobile phones takes off. But
compared with the rest of the world, America is still struggling in the dark ages of mobile
telephony. Perhaps the most glaring lack of innovation in American financial services is
in trading equities. While much of Europe and Asia eschews the use of cheques because
they are slow and expensive, the United States Federal Reserve reckons that more than
60% of all financial transactions in America were paid by cheque in 2001. While it leads
the world in processing transactions, America's backwardness in other aspects of
financial technology stems from differences in national policy. one thing' that unites
financial-services firms everywhere is the need to build a better relationship with their
customers. Few things in technology have promised so much and delivered so little as
"customer (or client) relationship management" (CRM) software.
Today, banks are facing an aggressive competition and they have to make efforts to
survive in a competitive and uncertain market place. Banks have realized that managing
customer relationships is a very important factor for their success. Customer relationship
management (CRM) is a strategy that can help them to build long-lasting relationships
with their customers and increase their profits through the right management system and
the application of customer-focused strategies. CRM in the banking sector is of strategic
importance. In this study, a single descriptive case study of one major Greek bank that
has implemented CRM is presented. The aim of this study is to analyse the design and
implementation of CRM in the bank, identify the benefits, the problems, as well as the
success and failure factors of the implementation and develop a better understanding of
CRM impact on banking competitiveness as well as provide a greater understanding of
what constitutes good CRM practices.
E.W.T. Ngai,
Marketing Intelligence & Planning, Vol. 23 Iss: 6, pp.582 – 605
The Purpose of this research to review the academic literature on customer relationship
management (CRM), provide a comprehensive bibliography and propose a method of
classifying that literature.A range of online databases were searched to provide a
comprehensive listing of journal articles on CRM. Six hundred articles were identified
and reviewed for their direct relevance to CRM. Two hundred and five articles were
subsequently selected. Each of these articles was further reviewed and classified. The
review and classification process was independently verified. All papers were allocated to
the main and sub-categories based on the major focus of each paper.Papers and research
on CRM falls into five broad categories (CRM – General, Marketing, Sales, Service and
Support, and IT and IS) and a further 34 sub-categories. The most popular areas covered
by the papers lay in the sub-category of CRM management, planning and strategy; and
CRM general, concept, and study followed by papers in software, tools and systems; data
mining, knowledge management, and e-commerce.This is the first identifiable academic
research. The bibliography provides an academic database of the literature between 1992
and 2002 covering 89 journals. The classification approach provides a means to
conceptualise the coverage of CRM and the relative popularity of CRM topic areas.
This paper aims to give a short overview on bank/customer relationship experience in the
Latvian banking system and the impact of developing technology in banking. Without
usage of technology commercial banks cannot provide customers with effective services,
but short banking history increases the danger of such a reduced loyalty towards the
services supplier.Satisfaction with services provided is not the only factor influencing
customer loyalty level. Customers experiencing a short banking history can be loyal to
the service provider due to the lack of financial literacy. A great impact on loyalty level is
made by other factors, such as: image, prestige, word of mouth, etc.
The sample used for research did not include all 23 commercial banks of Latvia. Further
research should be developed to compare customer loyalty levels in the more
technologically developed and less technologically developed banks, and additional
loyalty-influencing determinants could be included.An analysis of ITC development in
banking side-effects provides useful information not only for transitional countries but
also for developing countries.
The purpose of this paper is to review the literature on customer relationship management
(CRM) to obtain a comprehensive framework of mutually exclusive CRM research areas
and sub-areas free of all potentially disruptive factors (plethora of CRM definitions,
personal judgments, etc.).The keywords reported in 396 CRM articles published during
the period 2000-2006 are used to uncover first a great number of detailed keyword sub-
groups and, by subject summation, the CRM-related research areas. This classification
scheme is considered unbiased, in contrast with any direct classification of articles alone
among CRM research areas fixed in advance. An up-to-date conceptual and functional
CRM framework emerges, consisting of a total of nine distinct research areas having their
own weights, importance and popularity among the research community. Newly
emerging CRM research areas are self-identified as attracting the interest of the
researchers and managers. Keywords are activated, for a first time, as an added value
characteristic reflecting genuinely the authors' beliefs about the subject content fields of
their articles, important enough to reveal a self-supported and self-weighted unbiased and
exhaustive CRM framework, useful to researchers and marketing practitioners. The paper
offers strong evidence that e-CRM is too complex to be comprehensively classified by
mere procedures and simple criteria alone.
Jegham, Sahut,
Applications and the Internet Workshops, 2004. SAINT 2004 Workshops. 2004
International Symposium on
Issue Date: 26-30 Jan. 2004
On page(s): 29 - 33
This paper argues that retail banks need to focus more strongly on components of their
Customer Relationship Management (CRM) strategy that will generate customer
affective commitment and lead to an increase in customer retention, share of wallet, and
advocacy. It is suggested that affective commitment is generated during 'moments of
truth' or episodes of interpersonal interaction between customers and bankers. As shown
in social psychology, effective interpersonal interactions are a function of the
assertiveness and affiliation demonstrated during the interaction. Applying this to retail
banking, bankers should mine their databases to identify customers in terms of their
levels of profitability and longevity, and should deliver levels of assertiveness and
affiliation appropriate to each customer. Testable research propositions are developed
regarding how affective commitment might evolve during a customer's tenure with a
retail bank, when bankers should deliver assertiveness and/or affiliation to customers of
differing longevity and profitability, and how these strategies to increase affective
commitment will impact retention, share development, and advocacy. Overall, the call is
to complement the emphasis on the use of high-tech CRM strategies that generate huge
databases with a more high-touch strategy that will indicate to bankers how to interact
with each individual customer.
India is on the threshold of a stark global competition, especially so for the banking
sector with the likelihood of the economy opened for global banks soon. The Indian
public sector banks which have come face-to-face with competition just since last decade
are found wanting both with regard to performance as well as their customer orientation.
This paper, first of all, evaluates the need for CRM implementation in the Indian public
sector banks (PSBs) through the study of secondary as well as primary data. With the
insight received from the exercise, and the review of other implementation models found
in CRM and related IT literature, an optimum model for CRM implementation for Indian
PSBs has been suggested in the second part.
The customer relationship management (CRM) is essential and vital function of customer
oriented marketing. Its functions include gathering and accumulating customer-related
information in order to provide effective services. e-CRM is a combination of IT sector
but also the key strategy to electronic commerce. e-CRM is a combination of software,
hardware, application and management commitment. Aim of e-CRM system is to
improve customer service, develop a relationship and retain valuable customers. e- CRM
is a concern for many organizations especially banking sector. The purpose of this study
is to gain a better understanding of the benefits e- CRM to customers and organization in
banking industry. To justify the purpose two research questions have been addressed and
on the basis literature review, a frame of reference was developed which helped us to
answer the research questions and collect data. A qualitative research approach was used
for this study. Empirical data was collected through in- depth interviews were conducted
with two Swedish banks and a group of their customers. In the last chapter findings and
conclusions were drawn on the basis on research questions. Our findings indicate that
Swedish banks are well aware of the benefits and applications of the e-CRM and use the
system to maintain good relationships with their customers. Our findings also indicate
that with the implementation of e-CRM and the latest technologies. We have found that
both the banks seem to have same description about the benefits of e-CRM. We found
that both banks have maintained good relationships with customers due to the usage of e-
CRM. Our finding indicates that with the implementation of e-CRM and the latest
technologies banks have ensured full security for the transactions of their customer’s. E-
CRM facilitates the organizations to provide one to one services and also maintain the
transaction security of the customers.
The potential impact of E-CRM on cost savings, revenue growth, and increased
customer’s convenience has generated considerable interest and speculation across the
industries. The immense growth of E-CRM market has opened new vistas of business for
E-CRM vendors. However, with plethora of vendors and products available in the market
it makes the choise of the companies difficult. The present study after reviewing the
literature of E-CRM attempts to do a comparative analysis of various E-CRM vendors.
Tim Coltman
Arpita Khare
Technology is fast altering the business services cape. Its role in improving customer
service levels is being used strategically and increasingly by service organizations. The
service attributes and quality can be enhanced by deployment of technology. The Internet
has facilitated convenience in customer interactions and transactions with the banks.
Online banking is currently emerging as a new approach in India for providing improved
accessibility and expediency to customers. Most banks have their own websites for
improving the customer interface and offering online services. The article studies the
applicability of online banking in India and its role in fostering relationships with
customers and giving them more value. The research was conducted on customers
familiar with online banking in India, and their perceptions about online banking were
studied. The findings reveal that customers are using the services but are skeptical about
the financial transactions and service quality dimensions.
K. Askool, S.S.Nakata,
Web 2.0 at a high level is described as the convergence of technologies that enable
people to easily interact and collaborate. The use of these tools as a channel for
communication and sharing information by individuals has also an effect on customer
relationship management (CRM). This paper reports on a scoping study that explored the
current situation of CRM adoption in banking industry in Saudi Arabia. It aims to
identify the factors that influence the use of social CRM (SCRM). Various models have
been proposed to study technologies acceptance and usage. This paper proposes an
enhancement of the Technology Acceptance Model (TAM), by incorporating a range of
factors identified in the business relationships literature believed to influence SCRM
adoption.
Customer Relationship Management (CRM) is no longer a new term but a reality for
many organizations. Banking is a prime candidate for CRM transformation, as
competition in this sector increases; an excellence in service becomes a critical success
factor. The study discovers the factors that influence CRM in Indian Banking Sector and
evaluates the current CRM implementation process. Respondents are from both private
and public sector banks. Findings of this study have relevance for managers as these
findings provide them with the current scenario of CRM. Further managers learn to
identify CRM-related factors that could contribute to CRM implementation.
The advancement in information and communication technology has made the new
millennium, e-millennium. The dividing line between banks and non-banking financial
institutions, like insurance and mutual funds, is getting blurred. Competition from players
in the market has resulted into products and services traditionally offered by banks and
financial institutions, are now being offered by non-banking organizations more
efficiently and effectively. In India the monopoly of banks over payment systems would
be broken very soon after the launching of satellite based money order services by the P
& T department. Now banking activities are not confined to borrowing (collection of
savings) and lending (disbursement of loans), but provides a plethora of services keeping
in mind the requirement and convenience of customers In the fast changing banking
environment worldwide, banks in India will not only have to learn the new rules but also
upgrade the skills as well as the tools of banking. The challenge lies in addressing these
issues and at the same time keeping the wheels of growth moving.
Technology, people and customer are the three elements on which hinge the success of
banking in the e-millennium. Technology will be an enabler in managing the pace and
quantum of change. Success in technology can be brought about by skilled human
resources. In response to these technological challenges, organizations have to evolve
internal capabilities and skilled human resource management which is fundamental in
generating these capabilities. However, ultimately the bank’s performance depends upon
the satisfaction of its customers. In the emerging competitive and technological driven
banking era, banks have to strive hard for retaining and enlarging their customer base.
E-CRM, which is the latest buzzword in the corporate sector, is perceived as one of the
effective tool in this direction by the banks. The present paper attempts to analyze the
concept of e-CRM in Indian banks from its various dimensions covering specifically its
need, process, present status and future prospects.
Sami Alsmadi
The purpose of this study is to develop a CRM model and empirically test its underlying
constructs in the banking and financial sector in Jordan. The empirical data was
collected from a convenient sample of 141 banks and financial institutions, drawn from
three major Jordanian cities (Amman, Irbid, and Al-Zarqa). A drop-off method of data
collection was used (Aaker et al. 2004). The findings show that Jordanian banks and
financial institutions were likely to have a clear CRM strategic vision with specific goals
and programs, possess necessary resources to establish CRM, be able to manage CRM
programs, and use two way communications to handle CRM. Nevertheless, the analysis
unveiled that these firms were not likely to have a sufficient marketing database, nor
customer intelligence, with little motivation to either measure effectiveness of CRM
programs or take actions to improve an unpopular CRM strategy. Further analysis of the
findings indicated that the CRM concept did not seem to be well incorporated in
the business strategy of most Jordanian banks and financial institutions. Several
recommendations were made and certain directions for future research were highlighted.
Kallol Das, Jitesh Parmar, Vijay Kumar Sadanand
T. R. Coltman
Dr. R.K.Uppal
The present paper exhibits the growth of information technology in various bank groups.
In our country in 2009, 79 percent branches are under core banking. The
maximum technology is taking place in new generation private sector banks as well as
foreign banks. 43.5 percent are off site ATMs in our country. Public sectors banks
have more on site ATMs where as new private sector banks and foreign banks have more
off site ATMs. The paper also suggests some strategies to enhance e delivery
channels in banks particularly in public sector banks.
CRM and service marketing are developing into competing paradigms in customer
service marketing literature. Practicing managers are either ready to invest or already
investing in CRM systems without substantiated results in terms of improved
performance and resultant returns on investments. Should companies in developing
countries get onboard this bandwagon? The hypothesis of this paper is that
both CRM and service marketing practices show considerable similarities, which
make these two paradigms close cousins rather than competitors. The paper
therefore builds an integrative model of commonalities of activities drawn from the
two domains. Using academicians and practicing managers these groups of
common activities are operational zed into current practices in the banking
industry of Pakistan. A survey is conducted using these items to verify if the banks
are practicing these activities and if so then it is premised that such banks
may be ready to fine tune their operations to become fully CRM systems
oriented, which would mean incorporating further technology into the system
OR else they should focus on continuing to improve their current service
marketing operations as defined by the activities that form part of the
integrative model. The results support the later strategy for banks in Pakistan, at this
point in time.
Indian banks are investing heavily in the technologies such as telebanking, mobile
banking, banking, and automated teller machine (ATMs), credit cards, debit cards, smart
cards, call centers, CRM, data warehousing etc. To convince the management, investors
and other stakeholders for this heavy investment in technology, it is desirable to evaluate
the impact of computerization on the performance of Indian banks in terms of their
profitability and productivity. In this paper, after defining input and output parameters,
Data Envelopment Analysis (DEA) is used to study the impact of computerization on
Indian banks profitability and productivity. Private sector banks, which took more IT
initiative, were found to be more efficient in productivity and profitability parameters
than public sector banks.
Shwu-Ing
Jr-Ming Hung
Total Quality Management & Business Excellence; Apr2008, Vol. 19 Issue 4, p321-
342, 22p
Recently, CRM (Cause-Related Marketing) has gradually been adopted by non-profit
organizations. However, for the evaluation of CRM's effect, a non-profit organization
still refers to traditional financial data, which could not understand the influence and
effect of CRM on a non-profit organization completely. This research introduces the
concept of the Balanced Scorecard as the framework for the evaluation of CRM, and
utilizes the Balanced Scorecard's five dimensions in a non-profit organization to design a
questionnaire. The questionnaire is used to collect the performance data of a non-profit
organization after the execution of CRM, and uses Structural Equation Modeling (SEM)
to verify the relations and interaction between each performance dimension. The primary
purposes of this research are (1) to analyze the influence and effect on a non-profit
organization of its participation of CRM; (2) to design a reliable measurement index to
evaluate the effect of CRM; (3) to establish the relationship structure model of the
influence factors of the CRM's effect. This research shows that the measurement index
developed by this research could measure the fact that the non-profit organization has
effects in five dimensions after the execution of CRM - namely, organizational mission,
financial, customer, internal process, learning and growth - and these five dimensions
influence each other.