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Banking Comparison

In: Business and Management

Submitted By tahir139
Words 4079
Pages 17
CRM in Banks: A Comparative Study of Public and
Private Sectors in Pakistan
Asim ul Haq
H. M. Jamal Sarwar
Tahir Hanif
Management Sciences Department, Hajvery University, Lahore
E-mail:aaim_14@yahoo.com, tahir.ibp@gmail.com, funkaari@hotmail.com

Abstract

The banking industry of Pakistan is now running in a dynamic challenge concerning both customer base and performance. Today, many banks are rushing to become more customer focused. A key component of many initiatives is the implementation of Customer Relationship Management (CRM) concept. CRM has its origin in the basic paradigm of bank marketing, i.e. to satisfy customers with the best possible alternative in the market through a relational exchange process. This paper reports on a research study of the adoption and use of CRM in banking sector and is just a small step in understanding the multidimensional construct of customer relationships and its implications in competitive environment.

Keywords: CRM, Customer satisfaction, Service quality, Bank
Introduction

The banking sector is facing enormous challenges of attracting the new customers and retaining the existing ones. The problems commonly encountered by the bankers are shifting of customer loyalty, difficulty in synchronizing demand and supply, controlling the performance quality of human interaction, etc. – need to be articulated and tackled by managers. The attraction, retention, and building strong customer relationships through quality services are at the heart of the modern marketing (Zeithmal&Bitner, 2003). A sound marketing strategy is required to be adopted by the banker to build customer trust and retain them in the business and for competitive advantage across the industry. The strategy should focus on service quality rather than existing marketing mix, understanding of the customer expectations and perceptions and what they imply for the…...

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