Emerging Trends In Customer Relationship Management

Emerging Trends In Customer Relationship Management


The biggest management challenge in the new millennium of liberalisation and globalization for a business is to serve and continue 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 different supplies of supply or suppliers. Since he was a passive customer, the producer dictated terms and had little customer commitment. But today there is a drastic transformation. The changing business ecosystem is characterised by economic liberalisation, increasing competition, high consumer choice, enlightened and demanding customer, more emphasis on quality and value of buy.

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 easy to reach to target customers. It demands building trust, a binding force and value additional 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 by the principles of customer delight, approval and enthusiasm.


the time of action of developing a cooperative and collaborative relationship between the buyers and sellers is called customer relationship management shortly called CRM.

CRM aims at focusing all the organizational activities towards creating and maintaining a customer. CRM is a new technique in marketing where the marketer tries to develop long term collaborative relationship with customers to develop them as life time customers. CRM aims to make the customer climb up the ladder of loyalty.


As the intense competition becomes a way of doing business, it is the customer who calls the shot in deciding the character of products and sets offered in the market. The customers are becoming demanding, principal and selective. In fact the perceptions and the expectations of the customers have experienced a sea change, with the availability of banking sets to the customers at their door steps by the help of technology.

Marketing of customer sets aims at two important goals: wealth to the bank and satisfied customers. edges offer tangible sets like loan schemes, interest rates and kinds of account and the intangible sets like behavior and efficiency of staff, speed of transactions and the ambience. The edges may need to include customer oriented approach or customer focus in their five areas of businesses such as Cash accessibility, asset security, money move, deferred payment and financial advices.

There are four strategies obtainable to customer relations’ managers:

o To win back or save customers

o To attract new and possible customers

o To create loyalty among existing customers and

o To up sell or offer cross sets.

The future of banking business very much depends upon the ability of the edges 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 sets, access to internet banking and phone banking facilities and credit cards. These have elevated banking beyond the barriers of time and space.


Marketing of banking sets method organizing right activities and programmes in rendering right sets 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 sets embrace the following rare features

o Intangibility-they cannot be seen or possessed physically but can only be experienced.

o Inseparability-their production and consumption occur simultaneously.

o tendency to change-they are highly variable depending on the merit of customers.

o Perishability -they cannot be stored.


“Change” is a continuous course of action and banking industry is no exception to this natural law. Change in the Indian banking industry is unavoidable due to the implementation of the financial sector reforms and policies in the country. The main objective of financial sector reforms is to promote an efficient, competitive and diversified financial system in the country. Indian banking industry has experienced tremendous transformation after liberalization and globalisation course of action initiated from 1991. These changes have forced the Indian banking industry to adjust the product mix to effect the rapid changes in their course of action to keep competitive in the globalised ecosystem.


The entry of more and more foreign edges and new private sector edges, with lean and nimble footed structure, better technology, market arrangement and cost effective measures, have intensified the competition in the Indian banking industry. Financial Institutions have also started entering into the domain of edges. In recent years, the proportion of business of public sector edges has declined considerably. So there is a powerful need for the Indian banking industry to modify its marketing strategy to attract the customers and to resist the stiff competition from foreign edges and new private sector edges.


The arrival of technology both in terms of computers and communications has drastically changed the methodology of banking business. In the banking sector, the technology has opened new vistas and in turn has brought new possibilities for doing the same work differently and in a most cost-effective manner. Technology helps to have 24 hours a day banking, all seven days in a week. Tele banking, Internet banking and E-banking have opened new business potentials and opportunities which hither to remained unexplored. All these technological advancement may pave the way for home banking instead of branch banking.


Another important force of change in the Indian banking sector is innovation. edges are inventive, pro-active now-a-days and offer top class service to customers. They play a dynamic role not only as a provider of finance but also as a departmental store of finance. As a consequence of this, new products like merchant banking, mutual funds, leasing, factoring, forfeiting, corporate advisory sets and venture capital are emerging. These inventive sets may augment revenue with cost effective measures.


To meet the new challenges, edges have to devise novel ways of meeting the customer’s demands. To help the banking staff to get sufficient exposure to technology, appropriate packages relating to hardware and software applications in relation to their works are to be provided. Further, a separate marketing wing may be produced in every bank to market their banking sets. They must be trained suitably to keep speed with the changing ecosystem. In order to meet the challenges, the Human Resource Department in edges have to prepare appropriate manpower plans and strategies.


The recent trend of globalisation and liberalization has posed serious problems to domestic edges. The entry of new foreign edges and private sector edges with their progressive knowledge base of automation in the banking operations and aggressive marketing strategies has pushed public sector edges to a tight corner. possible customers have started moving towards foreign edges and private sector edges. To survive and succeed, edges must clarify their marketing areas, develop adequate resources, transform these resources into healthy and efficient sets and spread them effectively satisfying the manifold tastes of customers.

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