1. Introduction
With the flow of time and the advancement in technology, customer relationship management has become an important factor in every field either it is banking, marketing or any other industry. This report focuses on the customer relationship in the banking sector.
1.1 Aims of the research
The aim of this research is to study the effectiveness of the process of the customer relationship. The report also aims to analyze the customer relationship in the banking industry of UK or in other words, it focuses on customer loyalty towards the banking industry of UK.
1.2 Objective of the research
The following objectives of the research work are:
1.3 Hypothesis
H1 – Customer relationship management process has been adopted and implemented by the banking industry of UK.
H0 – Customer relationship management process has not been adopted and implemented by the banking industry of UK.
2. Literature review
2.1 Introduction
Customer relationship management is an approach to maintain the relation with current customers. It focuses on strengthening relationship with current customers rather than attracting new customers. To apply or follow this approach an organization need to compile data from various sources like social media, television, company’s website and e-mail or chat etc. Information collected from such sources helps organization to get acknowledged about the need of the customers. Thus, this approach helps a company to overcome the hindrances and achieve the favorable target.
2.2 Importance of customer relationship management in UK banking industry
Banking industry is all about handling public relations. It is further more connected with customer relationship processes. Thus, customer relationship management plays an important role in the banking industry. It helps in pulling the potential customers as well as maintaining relationships with customers while launching new services and products for the customers. Customer relationship management not only helps in maintaining trustworthy relations between the bank or the bankers and the customers but also increases the level of loyalty from both sides. It further makes customer comfortable while expressing their issues they are facing from the services being provided to them from the bank. CRM evaluates the customer satisfaction level. CRM processes create a way for banks to satisfy their recent or current customers and attract the new customers with the help of their new or variety of banking services. For example, for the banks that provides huge services of loan or focuses on loan distribution are likely to follow CRM processes. With the advancement of technology, customers also want or demand for some extra services. So in the world which changes with the change of technology, customer relationship management becomes necessary. However, it requires database management to collect the information about the customers that could provide the knowledge related to their need or demands. So, CRM services helps in maintaining a level of competition in the banking sector of UK.
2.3 Summary
In today’s scenario, banking industry is expanding its business and maintaining a customer range by following the procedures of customer relationship. It further leads to a topic of discussion, i.e. importance of customer relationship management in banking sector of UK.
3) Research Methodology
3.1 Introduction
This research is carried forward by analyzing the details or information collected from different sources. The main source that has been used in the collection of data for this research is secondary data research.
3.2 Research Approach
Secondary data has been used to collect information for this study. The data is collected from various UK bank websites. Secondary data is also collected from various articles and UK bank websites.
3.3 Data collection methods
Data collection methods used in completing this report was: primary data and secondary data collection method. For primary data, 10 number of customer views were collected and for secondary data, bank websites were studied for the information. Collection of the views under the primary data collection method was done with the help of techniques like questionnaire and interviews.
3.4 Limitations
Limitations in this research was the time and budget constraint. Time allocated for the research was limited while the collection of information in that time period was tough.
3.5 Summary
The most effective way to maintain a competence nature in the field of banking is customer relationship management. This section deals with the discussion of limitations faced during the time allotted for the research work.
References
Aghaei, A., Mostafapour, M. and Rezaei, H. (2013). Investigating the relationship between service quality and customer loyalty: A case study of banking industry. 10.5267/j.msl, 3(7), pp.2147-2154.
Anabila, P. and Awunyo-Vitor, D. (2013). Customer Relationship Management: A Key to Organisational Survival and Customer Loyalty in Ghana’s Banking Industry. IJMS, 5(1).
Eid, R. (2013). Managing customer trust, satisfaction, and loyalty through information communication technologies.
Nikumanesh, E. and Albadvi, A. (2014). Customer’s life-time value using the RFM model in the banking industry: a case study. IJECRM, 8(1/2/3), p.15.
Owano, L., Alala, D. and Musiega, D. (2014). Relationship between Customer Service Innovation and Customer Satisfaction in the Banking Industry: A Case Study of Kenya Commercial Bank. IOSR Journal of Business and Management, 16(6), pp.22-31.
Rajola, F. (2013). Customer relationship management in the financial industry. Berlin: Springer.
Sedigh, A. and Alikhani, A. (2013). Investigating important factors influencing customer relationship management: A case study from banking industry. 10.5267/j.msl, pp.2909-2914.
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