MEANING OF CRM

Customer Relationship Management is the establishment,

development, maintenance and optimization of long-ter m mutually

valuable relationships between consumers and the organizations. Successful

customer relationship management focuses on understanding the needs and

desires of the customers and is achieved by placing these needs at the heart of the

business by integrating them with the organization's strategy, people, technology

and business processes.

At the heart of a perfect CRM strategy is the creation of mutual value for all the

parties involved in the business process. It is about creating a sustainable

competitive advantage by being the best at understanding, uncaring, and

delivering, and developing existing customer relationships in addition to

creating and keeping new customers.

DEFINITION OF CRM

“Customer Relationship Management (CRM) is a co-ordinate approach to the selling

process allowing the various operational, customer contact and sales

promotional functions of an organization to function as a whole.”

OBJECTIVES OF CRM IN HOTEL INDUSTRY

CRM, the technology, along with human resources of the employees ,

enables the banks to analyze the behavior of customers and their value. The

main areas of focus are as the name suggests: customer, relationship,

and the management of relationship and the main objectives to implement CRM

in the

business strategy are:

• To simplify marketing and sales process

• To make call centers more efficient

• To provide better customer service

• To discover new customers and increase customer

Revenue

• To cross sell products more effectively

• Attracting present and new customers

• Acquiring new customers

• Serving the customers

• Finally, retaining the customers

• Customer satisfaction and loyalty

• Customer insight/ 360º view of customer

• Speed to market for products and service

• Increase products-to-customer ratio

• Improve up sales and cross sales

• Capitalizing on New market opportunities

In today's increasingly competitive environment, maximizing organic growth

through sales momentum has become a priority for hotel industry . To build this

momentum industry are focusing on Customer relationship management

initiatives to improve

The idea of CRM is that it helps businesses use technology and human

resources gain insight into the behavior of customers and the value of those

customers. If it works as hoped, a business can: provide better customer

service, make call centers more efficient , cross sell products more effectively,

help sales staff close deals faster, simplify marketing and sales processes,

discover new customers, and increase customer revenues .It doesn't happen

by simply buying software and installing it. For CRM to be truly effective, an

organization must first decide what kind of customer information it is looking for and

it must decide what it intends to do with that information.

OBJECTIVE OF STUDY

The primary objective of the study remains to identify the impact of CRM activities on customers in banking sector. The study will, in an overall perspective, aim to cover following objectives.

1. The objective of this study is to bring insight and deeper understanding into the

objectives, strategies and the expected benefits of CRM initiatives by organizations

particularly service companies like banks.

2. To find out that how the expected benefits of CRM can initiatives by organizations

be described?

3. To find out positive impact on the overall performance of the organization in the

long run.

4. To get more knowledge about CRM in banking sector

5. To understand consumer psyche about CRM in banking area.

6. To analyze that how CRM works as a link between banks and customers.

TYPE OF RESEARCH:

Research Design - It was an exploratory research.

The data for study was collected by using both, primary as well as secondary sources. The data was collected by using various techniques and sources which are briefly described below. Data was collected from customer and marketer of banks. Like HDFC, ICICI bank etc.

Apart from the data collected for aforesaid companies, data will be collected from regulatory sources, Journals, Books and Internet etc.

Primary data collection:

Primary data will be collected from following sources:

1. Customer and marketer of banking service

2. Bank officials

Data will be collected through interviews and filling of questionnaire.

Secondary data collection:

Secondary data will constitute an integral part of the study and it will be assimilated in following areas:

1. Published data regarding financial performance of banking companies by internet channels

2. Data regarding customer behavior towards new channels

3. Data regarding opportunities for marketer in banking sector

Secondary data will be collected through extensive literature survey and sources will include newspapers, internet, journals, magazines books reports and other publications

SAMPLE SIZE & METHOD OF SELECTING SAMPLE:

Sample size: 50 respondents

Sampling method: Convenience Sampling

SCOPE OF STUDY:

1. The objective of this study is to bring insight and deeper understanding into the

objectives, strategies and the expected benefits of CRM initiatives by organizations

particularly service companies like banks.

2. To find out that how the expected benefits of CRM can initiatives by organizations

be described?

3. To find out positive impact on the overall performance of the organization in the

long run.

4. To get more knowledge about CRM in banking sector

5. To understand consumer psyche about CRM in banking area.

6. To analyze that how CRM works as a link between banks and customers.

LIMITATION OF THE STUDY:

The study might be limited by following factors:

1. CRM in banking is a very recent phenomenon.

2. The primary data, collected in form of questionnaires and interviews, might have

inherent limitations of biasness and casual response.

3. Time Period of the project was not sufficient to study all the factors in deep.

4. The area of study was Jaipur so it cannot be generalized to other cities.

5. A different composition of sample skew the

RECOMMENDATIONS AND SUGGESTIONS

Customer Relationship Management (CRM), the most exciting strategies that

emerged from networking technology revolution of the nineties, is today fast

emerging one of the most important cooperates strategies. A well-executed

Customer Relationship Strategies can result in number of quantitative benefits,

including greater ability to sell and cross sell, improved retention besides cost of

services.

Customer Relationship Management is do-able. However the following must

take into consideration before embarking upon its implementation. All aspects of

customer relationship management, including technology solution, must be

fully explored effectively deliver the competencies required to realize the business

benefits.

1. Tackling any one competence alone will lead to a dysfunctional

business. One competence does not customer relationship management make.

2. Take pragmatic steps with a clear view on delivery of all the components in the

Medium term, rather than piecemeal in the short term.

3. Successful mass customization is crucial to reducing customer acquisition cost

and

Improving the cross selling capacity.

4. Channels are a delivery mechanism. The effectiveness of the mechanism is

achieved when it is faultless!

5. 75% of all Customer Relationship Management projects have failed due to lapses

in implementation. Technology is not enough, implementation is the key and this is

where the people aspect comes into the forefront.

6. Customer Relationship Management implementation is effective when companies

are able to identify the internal and external customer and integrate them with its

core business process.

“No-one can guarantee success. You cannot foresee the future. However,

you can develop the possibilities and capabilities today, which will put you in a

position tomorrow to deal with future risks and opportunities to your advantage. And

that is a whole lot better than waiting to see what "fate" has in store.”