Increased competition, highly educated consumers, and increase in standard of living are forcing many businesses to review their customer service strategy. Many business firms are channeling more efforts to retain existing customers rather than to acquire new ones since the cost of acquiring new customer is greater than cost of retaining existing customers. There is enough evidence that demonstrates the strategic benefits of quality in contributing to market share and return on investment. Maximizing customer satisfaction through quality customer service has been described as ‘the ultimate weapon’ by Davidow and Vital (1989). According to them, in all industries, when competitors are roughly matched, those with stress on customer’s service
Value, quality and satisfaction are the three main theories bring into satisfaction for literature. Hence, good employee satisfaction in banking industry will bring into a good service quality and it will lead to the customer satisfaction. There is a correlated relationship
A satisfied customer is likely to come back for repeated or further service. Hence, customer loyalty largely depends on the extent of customer satisfaction the provider is able to provide the customer in each service encounter. Exceeding customer expectations brings customer delight. Satisfying or delighting the customer in the service exchange is the key mantra to marketing success which is now identified and taken with due importance in modern day business marketing. A customer retained is a business success.
These benefits are distinguish in the following subsections. 3.1. Creation of customer profiles According to , the tasks that can be achieved by combining CRM with KM in the banking sector include gathering customer information in one place, making it easily accessible, identifying the best customers, defining their requirements, and finally turning anticipation and first-time users into long-term loyal customers. These tasks will allow banks to create their own detailed customer profiles. 3.2.
4.3 Swot Analysis of CRM in Banking Industry STRENGTHS Analyzing Profitability Jayashree, Shojaee, Pahlavanzadeh (2011), this is the key strength of a good Customer Relationship Management (CRM) strategy due to those customers will make profit in future. Profitability is determined in the light of the lifetime value of the customer to the organisation, taking into consideration the income and expenses related with each customer over time (Gordon, 1998). Oliver (1999) suggests that a customer is loyal when he is committed to repurchasing a service or product that favour by customer although when there are marketing efforts and situational influences having the potential to cause switching behaviour. The customers who regularly purchase a bank’s
Customer been satisfied gives high retention rate there by increasing profits and also success. Therefore factors that lead to customer satisfaction must be identified and that is a very critical step for a bank that wants to be ahead of competition and also be the preferred bank by all standards. The definition for customer satisfaction is vague and an applied concept and the actual indication for the state of satisfaction will differ from person to person and also on products and services that is offered by the bank. Customer satisfaction state is subject to both physical and mental variables which relates to satisfaction behaviors such as return and recommend rate. The kind of products and services an organization render will also determine the level of satisfaction a customer will gain as the customer will compare products and services from one organization to another.
Prabhakaran and Satya (2003) mentioned that a high customer satisfaction is highly significant in maintaining a loyal customer base in the banking industry. Besides they argue that there is a link between service quality and customers satisfaction. More recently Kumar, Kee and Manshor (2009) did a study and they found that a high quality of service will result in a high customer loyalty. Besides they found a high customer satisfaction will increases customer loyalty. In the same year, Naeem and Saift (2009) found that customer satisfaction is the outcome of high service quality within the banking sector.
This slender from that actuality rival has been firm, each bank is attempting to hold old consumers and charm new consumer. Quality, fulfillment and worth are ideas that offered unmistakably in the consumer fulfillment writing. Clarifying these ideas are going to be exceptionally helpful. Besides, the ISO 1002 demonstrates satisfaction is degree to which prerequisites of the consumers have been met where necessities means expressed needs or desires whether suggested or compulsory. As indicated by Oliva, satisfaction is in accordance with the administration supplier meets the desires and standards of consumers.
• As the competitive rivalry was high in the market but the competitors lagged in one part that they didn’t had as flexibility as Toyota had and this will let the organisation to sustain further. • The y provided emphasis on being the cost leader in the market so if they focuses more and more upon that part this will let them be the cost leader in the market and this will let them sustain longer and help them enjoy the competitive advantage. • The way they approached the customers were different. They produced the products which the customers demanded and as a result they served the customers better and became one of the major players. AS per the approach if they cling on to it then they will be enjoying the competitive advantage for