Customer Relationship Management Impact on Customer Retention (A Case of Banks in India)

Impact of Customer Relationship
Management on Customer Retention
(A Case of Banks in India)

TABLE OF CONTENTS
1. BACKGROUND INFORMATION/BRIEF SUMMARY OF EXISTING LITERATURE.......1
2. PROBLEM/OPPORTUNITY STATEMENT.............................................................................2
3. RESEARCH OBJECTIVES/QUESTIONS.................................................................................2
4. STATEMENT OF THE SIGNIFICANCE OF STUDY..............................................................3
5. PROPOSED METHODOLOGY.................................................................................................3
6. PROPOSED TIMELINE/MILESTONES...................................................................................5
7. REFERENCES............................................................................................................................6

1. BACKGROUND INFORMATION/BRIEF SUMMARY OF EXISTING
LITERATURE
Customer relationship management is considered as a key approach to manage business
interaction with current and potential customers effectively. Data analysis about customer history
helps to improve organisation’s relationship with consumers in the market. It is mainly focused
on customer retention and driving sales growth. This will help to improve connection with
clients, to streamline procedures and improve profits. Relationship management with customers
helps to enhance loyal and regular clients by filling their needs accordingly and effectively.
There are various tools and technologies used by businesses to make interaction with customers
in order to analyse data throughout customer life cycle.
According to Nyadzayo and Khajehzadeh, (2016) every business needs customers to
enhance its production and profitability that help to accomplish the set objectives and goals. In
addition, the basic solution of CRM approach is to improve and develop customer retention to
increase acquisition at a low cost without jeopardising existing consumer relationship to ensure
effective transition of a new client to a long term and loyal customer effectively. Tailor made
efforts by everyone in the business help to build comprehensive viewing of their journey map.
This also helps to create target consumers in the market. Personal interactions with them also
helps to determine business performance. CRM software is used by most of the banks in India in
order to save customer data and information. Customer services are also provided for further
support in Banks in India.
A number of ideas, thoughts and strategies are available to support customer relationship
management which is a key towards business success Rouse, (2015). Loyal customers are always
beneficial for firm that relationship management is important with them to deliver satisfaction.
CRM can be described as a combination of business strategy, procedures and systems that helps
to build long-lasting relationships between customer and firm. It also outlines principles,
guidelines and practices which a firm abides by when dealing with client. In addition to this,
CRM approach also helps banks in India to build relationship with consumers in the market that
helps to create loyalty and retention. Revenues and customer loyalty are both qualities that affect
business revenues. It is a management strategy used to enhance profits and productivity.
This also provides opportunity to understand requirement and demand of consumer for a
particular product that helps to make certain changes to improve their satisfaction level. The
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