Problem Statement For PSU Bank

The Royal Bank of Canada using CRM and customer profitability tools to gain a competitive advantage in Canada's increasingly crowded financial services market.

However, the implementation of this strategy does pose some disadvantages for NAB. The choice of NAB to reduce their products offered could potentially result in a loss of existing clientele, if these customers prioritised the use of these products. In this case, this customer segment may be inclined to move to a competing bank which offers the specific product the customer requires. This strategy also results in a large number of job cuts within NAB. This can have a negative impact on NAB's

For this reason, poor customer service of a bank may increase the bargaining power of customer and could drive down the revenue of Maybank. For instance, if Maybank could not understand what actually customers require or ineffectively handle the customer complaints, it could reduce the switching cost of customers and they will finally switch to other banks for a better service. In order to avoid a high bargaining power implanted in customers, Maybank has invested in an Analytical Customer Relationship Management system to efficiently utilise the information gained from each customer for improvement purpose. This system enables Maybank get to know the expectations of customers towards the bank. Then, Maybank formulates strategies and comes out with superior performance to cater the needs of customers. Right now, Maybank is hoping to generate a complete picture of a customer’s lifecycle by using the system to grow their business. Besides establishing of the feedback dropper on their website, Maybank also focus on the fundamental values of hospitality, friendliness and skills in handling customer complaints. To do this, Maybank promotes various incentive programmes to reward the customers, eventually enhance the customers’ loyalty towards the

An effective Customer Relationship Management (CRM) program can be used to identify, retain, satisfy and obtain customers by using technology to optimize strategies for understanding customers’ needs to manage business interactions with current, former, and prospective customers. Additionally, CRM also enables companies to maximize internal, external, marketing and customer service operations to better address the needs of the customer building a better relationship with customers that a more profitable. (Ahmad & Buttle, 2001)

Therefore, there is an overwhelming consensus among scholars and business practitioners that IT is the key success factor for CRM implementation. It is argued that IT allows achieving wider market coverage with less entry costs and increased marketing effectiveness (Exhibit 1) (Gamble, Stone, and Woodcock, 1999).

Customer relationship management (CRM) involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention while increasing organizational profitability (Nordmeyer, n.d.). CRM systems focus specifically on customers. With CRM functions, a company learns more about its customers’ needs and buying behavior and combines this information with market

As banks pivot toward accommodating to the needs of their customers, it is important to understand how to

Extensive research has been conducted on Customer Relationship Management to link business performance to CRM competence. CRM implementations have that capacity of improving the overall organizational performance especially in the important areas of customer acquisition, retention and development. The availability of empirical evidence has established a different

Emphasis on understanding on the real problem and problems complained by customers and at the same time the Bank has to protect the interest of the shareholder.

In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing

Customer relation service help customers affect their satisfaction and their choice banks to thrive, both product and service delivery for adequately aligned with customer expectations, achieving customer satisfaction and loyalty is essential for long-term survival of the industry Wood, S. (1999) this essay will focus on the three aspect of customer relation contribution to the society. It will narrate the banking industry system, professional skill and personal skill. The industry target the role of innovation base objective of performance play by the industry regulatory. Agarwal, S., Krishna, M.E. and Chekitan, D.D. (2003) this help to gather the information for the innovation occurred within to mediate the relationship

Some of the issues The Northern Bank are facing is that they cannot give the type and quality services to their customers as they used to. Many of the jobs performed at all level are becoming expensive to operate and the nature of the marketing task has become more complex.

And the customers’ exit policies are not detailed too, which do not lead to enough exit management for customers. 1.3.1.4 Unsound assessment mechanism, no well-suited accountability system In the past, the setting of performance assessment indicators was heavily equalitarian and didn’t consider risk adjusted revenue, so there was little emphasis on risk control and exit management. In addition, there were many behaviors which violated rules or policies, for instance, splitting one big number into several small pieces to avoid authority authorization, exceeding one’s authority to approve, etc., in the process of credit management, since the accountability system was not fully established. 1.3.2 Haven’t formed active and healthy credit culture The credit culture, which is the convention and method developed in credit policies. Business process and risk control are important parts of banks’ enterprise culture. The insufficiency of credit culture lies in two aspects: weak risk consciousness and misunderstanding in credit conception. 1.3.2.1 Weak risk consciousness Firstly, no established scientific development ideas, and lack notion of balance among risk, revenue and capital. No full consideration on possible loss of potential risk and having not realized business expansion, which are constrained by capital. Focusing on the possible revenue from business growth will lead to

Quality is everything in the banking industry. The maintenance of the quality of products and the provision of services is an essential feature (Zopounidis 2002). A bank whose mission and vision is to offer quality services to its clients is more likely to succeed as compared to one whose

The data were collected from retail banking customers in Ghana using a questionnaire. The respondents of the study were selected using the intercept approach (Bush, & Hair 1985). That is the data were collected from some retail banking customers who had visited some bank branches to perform transactions. The respondents were given the questionnaire after they have finished banking. The branches visited were located in Accra, the capital city of Ghana. We selected this city because of its cosmopolitan nature. The banking sector was selected because of its competitive nature. As at 31 December 2015, there were 30 banks operating as universal banks. In addition to this, four financial institutions have obtained a universal banking licence in 2016 to operate (PWC 2016). This has heightened the already intense competition in the banking sector. This situation presents customers with variety of choices and opportunity to switch to other banks easily. As a result, many banks are constantly exploring strategies to attracting new customers whilst retaining the existing customers. There were a total of 468 respondents out of which 53.2% were males. Many (66.2%) of the respondents operate a savings account. Also many (76.1%) of them have completed or were pursuing a University degree. Furthermore, 54.7% of them have being doing business with their respective banks for 1-5 years. Again, 48.7 % have an account balance ranging from GHC 3000- 3999. Table 1 provides details of the