| INTRODUCTION | | | | simultaneously.o Variability-they are highly variable |
| The biggest management challenge in the new | | | | depending on the merit of customers.o Perishability |
| millennium of liberalisation and globalization for a | | | | -they cannot be stored. |
| business is to serve and maintain good relations with | | | | GLOLBALISED SCENARIO |
| the king-the customer. In the past, producers took | | | | "Change" is a continuous process and banking industry |
| their customers for granted because at that time | | | | is no exception to this natural law. Change in the |
| customers were not demanding nor had many | | | | Indian banking industry is inevitable due to the |
| alternative sources of supply or suppliers. Since he | | | | implementation of the financial sector reforms and |
| was a passive customer, the producer dictated | | | | policies in the country. The main objective of financial |
| terms and had little customer commitment. But today | | | | sector reforms is to promote an efficient, |
| there is a radical transformation. The changing | | | | competitive and diversified financial system in the |
| business environment is characterised by economic | | | | country. Indian banking industry has undergone |
| liberalisation, increasing competition, high consumer | | | | tremendous transformation after liberalization and |
| choice, enlightened and demanding customer, more | | | | globalisation process initiated from 1991. These |
| emphasis on quality and value of purchase. | | | | changes have forced the Indian banking industry to |
| All these changes have made today's producer shift | | | | adjust the product mix to effect the rapid changes in |
| from traditional marketing to modern marketing. | | | | their process to remain competitive in the globalised |
| Modern marketing calls for more than developing a | | | | environment. |
| product, pricing it, promoting it and making it | | | | COMPETITION FROM FOREIGN BANKS AND NEW |
| accessible to target customers. It demands building | | | | PRIVATE SECTOR BANKS |
| trust, a binding force and value added relationship | | | | The entry of more and more foreign banks and new |
| with the customers to win their hearts. The new age | | | | private sector banks, with lean and nimble footed |
| marketing aims at winning customers for ever, where | | | | structure, better technology, market orientation and |
| companies greet the customers, create products to | | | | cost effective measures, have intensified the |
| suit their needs, work hard to develop life time | | | | competition in the Indian banking industry. Financial |
| customers through the principles of customer delight, | | | | Institutions have also started entering into the |
| approval and enthusiasm. | | | | domain of banks. In recent years, the share of |
| WHAT IS CUSTOMER RELATIONSHIP | | | | business of public sector banks has declined |
| MANAGEMENT ( CRM ) | | | | considerably. So there is a compelling need for the |
| The process of developing a cooperative and | | | | Indian banking industry to modify its marketing |
| collaborative relationship between the buyers and | | | | strategy to attract the customers and to withstand |
| sellers is called customer relationship management | | | | the stiff competition from foreign banks and new |
| shortly called CRM. | | | | private sector banks. |
| CRM aims at focusing all the organizational activities | | | | TECHNOLOGICAL ADVANCEMENT |
| towards creating and maintaining a customer. CRM is | | | | The advent of technology both in terms of |
| a new technique in marketing where the marketer | | | | computers and communications has drastically altered |
| tries to develop long term collaborative relationship | | | | the methodology of banking business. In the banking |
| with customers to develop them as life time | | | | sector, the technology has opened new vistas and in |
| customers. CRM aims to make the customer climb up | | | | turn has brought new possibilities for doing the same |
| the ladder of loyalty. | | | | work differently and in a most cost-effective |
| CUSTOMER FOCUS IN BANKING SERVICES | | | | manner. Technology helps to have 24 hours a day |
| As the intense competition becomes a way of doing | | | | banking, all seven days in a week. Tele banking, |
| business, it is the customer who calls the shot in | | | | Internet banking and E-banking have opened new |
| deciding the nature of products and services offered | | | | business potentials and opportunities which hither to |
| in the market. The customers are becoming | | | | remained unexplored. All these technological |
| demanding, dominant and selective. In fact the | | | | advancement may pave the way for home banking |
| perceptions and the expectations of the customers | | | | rather than branch banking. |
| have undergone a sea change, with the availability of | | | | INNOVATION |
| banking services to the customers at their door | | | | Another important force of change in the Indian |
| steps through the help of technology. | | | | banking sector is innovation. Banks are innovative, |
| Marketing of customer services aims at two | | | | pro-active now-a-days and offer top class service to |
| important goals: prosperity to the bank and satisfied | | | | customers. They play a dynamic role not only as a |
| customers. Banks offer tangible services like loan | | | | provider of finance but also as a departmental store |
| schemes, interest rates and kinds of account and the | | | | of finance. As a result of this, new products like |
| intangible services like behavior and efficiency of | | | | merchant banking, mutual funds, leasing, factoring, |
| staff, speed of transactions and the ambience. The | | | | forfeiting, corporate advisory services and venture |
| banks may need to include customer oriented | | | | capital are emerging. These innovative services may |
| approach or customer focus in their five areas of | | | | augment revenue with cost effective measures. |
| businesses such as Cash accessibility, asset security, | | | | DEVELOPMENT OF THE SKILLS OF BANK |
| money transfer, deferred payment and financial | | | | PERSONNEL |
| advices. | | | | To meet the new challenges, banks have to devise |
| There are four strategies available to customer | | | | novel ways of meeting the customer's demands. To |
| relations' managers:o To win back or save | | | | help the banking staff to get sufficient exposure to |
| customerso To attract new and potential | | | | technology, suitable packages relating to hardware |
| customerso To create loyalty among existing | | | | and software applications in relation to their works |
| customers ando To up sell or offer cross services. | | | | are to be provided. Further, a separate marketing |
| The future of banking business very much depends | | | | wing may be created in every bank to market their |
| upon the ability of the banks to develop close | | | | banking services. They must be trained suitably to |
| relationship with the customers. In order to develop | | | | keep pace with the changing environment. In order |
| close relationship with the customers the banking | | | | to meet the challenges, the Human Resource |
| industry has to focus on the technology oriented | | | | Department in banks have to prepare appropriate |
| innovations that offer convenience to the customers. | | | | manpower plans and strategies. |
| Today customers are offered ATM services, access | | | | CONCLUSION |
| to internet banking and phone banking facilities and | | | | The recent trend of globalisation and liberalization has |
| credit cards. These have elevated banking beyond | | | | posed serious problems to domestic banks. The |
| the barriers of time and space. | | | | entry of new foreign banks and private sector banks |
| MARKETING OF BANKING SERVICES | | | | with their advanced knowledge base of automation in |
| Marketing of banking services means organizing right | | | | the banking operations and aggressive marketing |
| activities and programmes in rendering right services | | | | strategies has pushed public sector banks to a tight |
| to the right people at the right place, at the right | | | | corner. Potential customers have started moving |
| time at the right price and with right communication | | | | towards foreign banks and private sector banks. To |
| and promotion. Marketing of banking services | | | | survive and succeed, banks must identify their |
| embrace the following unique featureso | | | | marketing areas, develop adequate resources, |
| Intangibility-they cannot be seen or possessed | | | | convert these resources into healthy and efficient |
| physically but can only be experienced.o | | | | services and distribute them effectively satisfying the |
| Inseparability-their production and consumption occur | | | | manifold tastes of customers. |