Swot Analysis Of CRM In Banking

943 Words4 Pages
4.3 Swot Analysis of CRM in Banking Industry
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
…show more content…
To attract more customers, bank have to tailor their products and services based on customers’ needs and expectations. By doing so, the cost of a bank will be increase. According to Peppard, (2010), to predict the percentage of repeat purchase, or purchasing additional products and individual marketing programs, the organization has to gather the information and data of the customers based on their interactions with the organization. Sreenivasan, Solmaz, Shojaee (2011), Once the bank meets the level of customer satisfaction, thereby customers become more dependent on it so customers will not leave the organization which they familiar with it. This can be seen as Maybank has won the CRM Excellence Award 2010 for its high performance, high - ROI customer relationship management (CRM)…show more content…
According to Hallowell (1996), financial performance of banks it has been found that neither customer satisfaction nor customer loyalty have an effect on the profitability of the bank. While on the technological factor, the advance banking technology provides bank convenient, time-saving, reduce the manpower and cutting down the cost. Such as Internet Banking or E-Banking. With the use of internet banking system allows them to reduce the costs due to the cost of printing has been reduced due to the printing of bank statements has been decreased. Furthermore, by implementing CRM system could also provide cost-efficiency and enhance the customer relationship with financial institutions. Besides, sales, customer support and marketing can be done by CRM system, thus the use of technology helps financial institutions cutting down lots of cost as some tasks can be done by using CRM system. (technology allow bank to create new system or enhance
Open Document