Emerging Trends in Customer Relationship Management

INTRODUCTION

The greatest challenge of managing in the new millennium of liberalization and globalization for a business is to serve and maintain good relations with the king-the customer. In the past, manufacturers have their customers for granted because at the time that customers were demanding and did not have many alternative sources of supply or suppliers. Since he was a passive customer, the producer dictated terms and had little commitment to customers. But today there is a radical transformation. The changing business environment is characterized by economic liberalization, increased competition, consumer choice, high, enlightened and demanding customers, more emphasis on quality and value of purchase.

All these changes have made producer on duty today at modern marketing from traditional marketing. Modern marketing requires more than developing a product, pricing it, promoting it and making it accessible to reach customers. Requires trust building, a binding force and value added relationship with our customers to win their hearts. The New Age marketing aims to win customers forever, where companies greet the customers, create products to meet their needs, work hard to develop lifetime customers through the principles of customer satisfaction, approval and enthusiasm.

WHAT 'Customer Relationship Management (CRM)

The process of developing a collaborative and cooperative relationship between buyers and sellers is called Customer Relationship Management CRM just called.

CRM aims to focus all organizational activities towards creating and maintaining a customer. CRM is a new marketing technique in which the marketing seeks to develop long term relations of cooperation with customers to develop customer as a time of life. CRM aims to make the customer go up the ladder of loyalty.

CUSTOMER FOCUS IN THE BANKING SECTOR

How strong competition becomes a way of doing business is the customer who calls the shot as to the nature of products and services offered on the market. Customers are becoming demanding, dominant and selective. In reality, the perceptions and expectations of customers have experienced a sea change, with the availability of banking services to customers at their door steps through the help of technology.

Marketing services the client seeks two major goals: prosperity in the bank and customers satisfied. Banks offer tangible services such as credit programs, interest rates and account types and intangible services such as behavior and efficiency of staff, speed of transactions and the atmosphere. Banks may need to include customer-oriented approach and customer focus in its five business areas such as accessibility Cash, security of assets, bank transfer, deferred payment and financial advice.

There are four strategies available to managers of customer relations:

o To save or win back customers

Ø To attract new customers and potential

or to build loyalty among existing customers and

or cross-sell or offer services.

The future of banking a lot depends on the ability of banks to develop close relationships with customers. In order to develop close relationships with clients in the banking sector must focus on technological innovations that offer convenience-oriented customers. Today, customers are offered ATM services, access to Internet banking and phone banking and credit cards. These have high bank beyond the barriers of time and space.

MARKETING OF BANKING SERVICES

Marketing of banking services means the organization of activities and programs right in rendering services to the right people at the right place at the right time at the right price and with the right communication and promotion. Marketing of banking services encompass the following unique features

inviolability-that either can not be physically seen or owned, but it can only be experienced.

The inseparability-or their production and consumption occur simultaneously.

or variability-are highly variable depending on the customer.

perishable nature, or that can not be stored.

SCENARIO GLOLBALISED

"Change" is a continuous process and the banking industry is no exception to this natural law. Change in the Indian banking sector is inevitable due to the implementation of 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 sector has undergone tremendous changes after the process of liberalization and globalization has started since 1991. These changes have forced the Indian banking sector to adjust the product mix to make quick changes in their processes to remain competitive in a global context.

COMPETITION AND FOREIGN BANKS NEW private sector banks

The entry of more foreign banks and new private sector banks, lean and agile foot structure, better technology, market orientation and cost-effective measures, have intensified competition in the Indian banking sector. Financial institutions have begun to enter the domain of banks. In recent years, the share of assets of public sector banks has decreased significantly. Then there is the urgent need for the Indian banking industry to change its marketing strategy to attract customers and to withstand the stiff competition from foreign banks and new private sector banks.

ADVANCE TECHNOLOGY

The advent of technology both in terms of computers and communications has drastically changed the method of banking. In banking, technology has opened new perspectives and, in turn, has brought new opportunities to do the same job in different ways and to greater cost-effectiveness. The technology helps to have 24-hour banking, all seven days a week. Tele banking, Internet banking and e-banking have opened up new business potential and opportunities that remain unexplored here. All this technological progress could pave the way for home banking than branch banking.

INNOVATION

Another major force for change in the Indian banking sector is innovation. Banks are innovative, pro-active hours a day and offer a first class service to customers. Play a dynamic role not only as a provider of finance, but also as a department store of finance. As a result of this, new products such as merchant banking, mutual funds, leasing, factoring, forfeiting, management consulting and venture capital are emerging. These services can increase revenue with innovative cost effective measures.

SKILLS DEVELOPMENT BANK STAFF

To cope with new challenges, banks must find new ways to meet customer requirements. To help the banking staff to obtain sufficient exposure to the technology packages appropriate hardware and software applications according to their works must be provided. In addition, a separate wing of marketing can be created in each bank to market their banking services. They must be adequately trained to keep pace with the changing environment. In order to meet the challenges, the Department of Human Resources in the banks must prepare plans for labor and the appropriate strategies.

CONCLUSION

The recent trend of globalization and liberalization, posed serious problems for domestic banks. The entry of new banks and foreign banks in the private sector with their advanced knowledge-based automation in banking strategies and aggressive marketing has pushed the public sector banks in a tight corner. Potential customers have begun to move to foreign banks and private sector banks. To survive and succeed, banks must identify the areas of marketing, develop the right resources, convert these resources in a healthy and efficient services and deploy them effectively meet the different tastes of customers.