CRM in Customer Satisfaction in Financial Services

This report discusses the importance of customer relationship in maintaining customer satisfaction in financial services and products. It also provides a brief discussion regarding the steps that are to be taken for proper processing of customer satisfaction in the field of financial services and products.

Running head: CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
Table of Contents
Introduction......................................................................................................................................2
Literature Review............................................................................................................................2
Literature gap...................................................................................................................................8
References......................................................................................................................................10

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
Introduction
In this competitive market, having a positive relationship with the client’s acts important.
Retention of clients have been one of the major goals of the business organizations. Progressing
in business will be getting benefitted in a manner that ensures that sectioning of proper business
can be performed. This section ensures that satisfying the customers have been acting as a major
goal. It has been noted that higher customer satisfaction has been leading to higher customer
loyalty and hence wise increasing of audience base of the business. With increase in audience
base, it gets obvious that revenue collection will be getting easier. This is the main reason that
growth of the business organization can be achieved. This report will be discussing the
importance of customer relationship in maintaining of the customer satisfaction in financial
services and products. This report also provide a brief discussion regarding the steps that are to
be taken for proper processing of the customer satisfaction in the field of financial services and
products. The report also provides the advantages that will be enjoyed by the business
organization as they implement proper customer relationships. Proper discussion of basic
concepts of customer relation management that affects customer satisfaction is made. Research
gap of the literature is also stated in the report.
Literature Review
According to Sivaraks, Krairit and Tang (2011), customer Relation Management has
been acting as the set of activities that are adopted by the business organizations for maintaining
the customer base and hence wise increase the same customer base. Implementation of CRM in
the processing of financial services and products have been leading to proper processing of the
relationship building with the clients that are already present in the system (Khodakarami and

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
Chan 2014). Business organizations namely the banks and insurance companies have been
highly focused on implementing CRM due to the aspect that CRM have been enhancing the
functioning process of business management. With the help of implementation of CRM, banks
and other financial services that are provided also help ion capturing new client in the process.
Retaining the customers have also been benefitting the functional process of the banks and the
insurance companies (Zahay, Peltier and Krishen 2012). As per the requirements, Insurance
companies are highly dependent on the client base that they possess. The revenue that is earn is
completely dependent on the total number of clients that they have. Hence wise implementing
CRM in their business process have been acting as an important prospect.
Again according to Nguyen and Mutum (2012), Retaining customers and increasing their
satisfaction rate also provides a lifetime value to the banking organization and insurance
organization. CRM have been collaborating IT along with the marketing strategy, leading to
proper understanding of the client demands and wants. Hence wise implementing technology for
developing the relationship have been the main goal of CRM. This blending of IT strategies
along with the marketing strategies helps in retaining of the clients in a manner that will ensure
that the client will be staying associated with the insurance company or the bank or any other
sector that deals with financial services or products for a prolonged period. Another aspect that is
to be taken into consideration is that happy clients acts as free advertisements (Paul, Mittal and
Srivastav 2016). In this case the clients who will be satisfied with the products and services of
the financial organization will be spreading good will for the organization, leading to the fact that
advertisement of the company will be done and the source of advertisement will be genuine in
nature as well. Another aspect that is to be included is that retaining of clients in financial sector
in considered to be more difficult than gaining new audience (Chu, Lee and Chao 2012). This is

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one of the major reason that implementing CRM has been gaining importance and there have
been a constant increase in the processing of the business management. This has led to the fact
that the financial business organizations have been becoming more service oriented and usage of
CRM has been acting as the methodology to understand the needs and demands of the clients so
that they can be fulfilled and hence wise providing them higher level of satisfaction (Payne and
Frow 2013). Customer satisfaction can be defined as the level of satisfaction of that is achieved
due to fulfilling of the needs, expectation and wishes during providing them with the product or
services of the financial based organization (Sarwar, Abbasi and Pervaiz 2012). Customer
satisfaction in the field of financial services and product transaction is considered as re
purchasing of the customer loyalty, which in turn indicates higher satisfaction level of the clients.
Customer satisfaction is considered as the central or focal point of intent that leads to
implementation of CRM. ‘
Again according to Khan, Ehsan, Mirza and Sarwar (2012), there has been high
competition in the banking sector leading to the fact that retaining of the clients have been
getting more necessary. This high necessity of retaining existing clients have been leading to the
implementation of CRM in their business processes respectively. It has been becoming more and
more important for the financial organizations to develop a proper relationship in between the
clients (Lee, Lee and Kang 2012). Hence wise CRM implementation has been becoming an
integral part of the financial sectors, especially in the banking and insurance industry. CRM has
been responsible for proper collaboration of the service quality, employee behavior,
acknowledging customer issues, data that are to be retrieved from the database and social media
interaction that affects the satisfaction of the clients (Soliman 2011). Usage of CRM in proper
management of the customer’s interaction with the company and hence wise performing proper

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
understanding of the factors that will help in increasing the satisfaction of the clients. It is also
stated that there is an inverse link in between the complexity in the CRM infrastructure and the
benefits received due to this process. Simpler the infrastructure, more are the benefits that are
received from the CRM system. It has been seen that implementation of CRM has been leading
to establishing of electronic system and hence wise performing digital marketing programs with
the help of CRM. This has been positively affecting the functional process of the business
management of the financial organization. There is a noticeable change that is seen after
implementation of the RM technology in the financial sectors (Garrido-Moreno and Padilla-
Meléndez 2011). CRM in financial sector acts as a tools that enhances understanding of the
customer behavior, leading to the fact that proper estimation of the client activities can be made
and hence wise proper steps can be taken for satisfying the needs of the clients. This will not
only increase the satisfaction of the clients, but also increase the brand loyalty and increase the
good will of the financial business organization (Baumann, Elliott and Burton 2012). Collection
and recording the data of the individuals gets performed in a proper manner which increases the
efficiency of the service that is being provided by the financial business organization. Proper
analysis of the collected data ensures that better estimation process can be performed and hence
wise satisfaction level can be increased. Usage of e commerce as a tool of CRM can also be
performed.
Again according to Keshvari (2012), CRM helps in providing tailored service to the
clients of the banks and this helps in increasing the satisfaction of the clients as the service
provided by the banks and the insurance companies will be as per the need of the clients. Proper
marketing strategies can be developed. This development of the marketing strategies not only
help in increasing of client satisfaction but also help in understanding the potential clients and

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increase the audience base. A proper relationship can be established with the clients and the
employees of the finance based business organization (Lam, Cheung and Lau 2013). As per the
strategies that are concerned the main aspect that is considered is that proper understanding of
the relationship with the client on which investment can be made is determined. This has been
one of the major aspect that proper relationship can be established. Profitability of the
relationship can also be well determined with the help of CRM implementation.
According to Soeini, Jafari and Abdollahzadeh (2012), the sections that has led to high
importance of CRM includes Interaction management, Relationship development, Service
Quality and behavior of employees with the client. In case of interaction management, the main
aspect that is taken into consideration is the willingness to make a proper and stable relation with
the clients. This includes proper usage of the interaction points as well as the distribution
channels. This section also helps in understanding the mode of communication that is preferred
by the clients and individual data analysis is made in this section and hence wise specialized
mode of communication for each client is prepared (Hurley, Jan and Abdullah 2014). This leads
to the fact that efficient communication can be performed. Again in case of relationship
development proper study is made regarding the relationship that is to be maintained in between
the clients and the organization that is providing them with the financial products and services.
Again it can be stated that quality of services is well monitored by the CRM tool (Kumar, Dalla
Pozza and Ganesh 2013). This process includes proper assessment of the expectations of clients.
Providing pricing and quality of service and product as per the need of the client. CRM has also
been acting as an important aspect that helps in dealing with the complaints of the customers.
These are the major aspects that has been leading to the satisfaction of the clients in larger format
(Oghojafor, Aduloju and Olowokudejo 2011). Monitoring the behavior of the employees with

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
the clients is also performed by CRM. This monitoring of the employee behavior also creates an
impact on the satisfaction of the clients. As per the gained knowledge and collected data,
reshaping of the marketing strategy can be made, leading to the fact productivity of insurance
companies and banks will be increasing. Customer satisfaction and customer pleasing has been
one of the major goal of the financial organizations that implement CRM in their business
management.
Again as per Lee, Tsao and Chang (2015), optimizing marketing effort has been the
major concern of financial organization that will ensure proper performance of the project. This
section will be including proper assessment of the customer satisfaction is completely based on
the predictions that are performed by the issues and this will also be improving the customer
retention and hence wise increasing the collection of revenue (Jeon and Choi 2012). Performing
better communication can be performed with the help of CRM. Performing better internal
communication is also performed. This insists the fact that real time updates can be provided to
the clients and hence wise providing higher customer satisfaction of the clients who are taking
the financial service and the product of the company (Matiş and Ilieş 2014). Even the customers
are economically affected in a positive manner and hence wise customer’s satisfaction will be
increasing. Providing the customers deals that will be benefitting the customers will help in
increasing the effectiveness of the business process and hence wise this will be affecting the
satisfaction of the clients.
As per Shukla, Bhatt and Shrivastava (2012), providing real time communication process
has been one of the major advantage that will be gained after the implementation of CRM
system. This real time communication process ensures that the queries that are present in the
mind of the clients can be resolved. Hence this will also help in increasing the satisfaction of the

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
clients. This will also ensure that the competition level will also be getting lowered and hence
wise proper management of the business can be performed. This section ensures the fact that
there is a proper connection in between the CRM, customer satisfaction and Customer retention
(Kaura, Durga Prasad and Sharma 2015). This will enhance that proper assessment of the
business management.
Lam, Cheung and Lau (2013), stated that Marketing Mix is another aspect that is to be
made for proper assessment of the allocation of resources. This leads to the fact that better
assessment of task completion can be made. With proper task completion the main aspect that is
considered is that clients are well managed.
Literature gap
The articles that are considered for completion of the project have precise data in them.
The data that are present in the system have been helping in understanding the importance of
CRM in establishing proper customer satisfaction. Proper understanding of the customer
relationship establishment will also be benefitting in understanding the importance CRM has in
increasing customer satisfaction in case of dealing with financial products and services. Despite
these data being provided in the journals, there are few missing sections as well. This missing
sections includes the disadvantages of implementing CRM in the processing of the business
management. This sections include the fact that incomplete knowledge is gained regarding the
relation of CRM and customer satisfaction. In case the negatives of CRM is not discussed in a
proper manner, the issues that will be arising due to CRM will not be addressed in a proper
manner. This will be affecting the business process as well. This will again lead to inefficient
risk assessment. This inefficient risk assessment might lead to lower satisfaction level of the
clients. Another major missing that was seen while performing the research is that loyalty of the

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clients also get affected due to the implementation of CRM in both positive and negative manner.
No proper journal regarding the relationship in between employee satisfaction, loyalty of clients
and CRM implementation is provided. Another aspect that was missing includes presence of
factors that are considered by CRM for performing predictive analysis which helps in gaining
proper estimation of the wants of the clients. This aspect is also needed to be analyzed in a
proper manner. This will ensure that complete knowledge will be gained in the process. Data is
needed to be provided in the field of service and product image along with the type of the
financial service and the products that is provided by the financial based organization. Variables
that acts as prime factors are needed to be focused on. This section will ensure that proper
understanding of the business processing will be performed. Missing of this sections makes the
entire study incomplete and the negative issues that might arise due to CRM implication is
completely avoided. Again their mighty be issues regarding privacy in the implementation of
CRM. This process will be affecting the data transaction process. This section is missing as well.
This section is also needed to be covered in specific terms. This will be acting important in the
study. Relation of CRM with Market Mix is also not very well described. This leads to the fact
that improper understanding of the concept will be affecting the study of the CRM’s importance
in customer satisfaction in case of the financial service and product is not understood in a proper
manner. This leads to the fact that higher customer satisfaction can be gained will not be
completely understood. This articles also misses the communication process and architecture that
is required for real time communication process. This enhancement of the communication
process would have been providing better results for the clients and hence wise higher
satisfaction from client’s point of view.

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
References
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survey data versus data mining. Journal of services marketing, 26(3), pp.148-157.
Chu, P.Y., Lee, G.Y. and Chao, Y., 2012. Service quality, customer satisfaction, customer trust,
and loyalty in an e-banking context. Social Behavior and Personality: an international
journal, 40(8), pp.1271-1283.
Garrido-Moreno, A. and Padilla-Meléndez, A., 2011. Analyzing the impact of knowledge
management on CRM success: The mediating effects of organizational factors. International
Journal of Information Management, 31(5), pp.437-444.
Hurley, R., Jan, M.T. and Abdullah, K., 2014. The impact of technology CSFs on customer
satisfaction and the role of trust. International journal of bank marketing.
Jeon, H. and Choi, B., 2012. The relationship between employee satisfaction and customer
satisfaction. Journal of Services Marketing, 26(5), pp.332-341.
Kaura, V., Durga Prasad, C.S. and Sharma, S., 2015. Service quality, service convenience, price
and fairness, customer loyalty, and the mediating role of customer satisfaction. International
Journal of Bank Marketing, 33(4), pp.404-422.
Keshvari, R.S., 2012. The impact of E-CRM on customers attitude and its association with
generating competitive advantages in Iranian financial B2B context. International Business
Research, 5(4), p.34.
Khan, A., Ehsan, N., Mirza, E. and Sarwar, S.Z., 2012. Integration between customer
relationship management (CRM) and data warehousing. Procedia Technology, 1, pp.239-249.

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CRM IN CUSTOMER STAISFACTION IN CASE OF FINANCIAL SERVICES
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management
(CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Kumar, V., Dalla Pozza, I. and Ganesh, J., 2013. Revisiting the satisfaction–loyalty relationship:
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