The use of Customer Relationship Management (CRM) in the banking sector has gained prominence with the aggressive customer acquisition and retention strategies employed by banks in today's competitive environment. This has led to the adoption of various CRM initiatives by these banks to enable them achieve their objectives. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayThe steps that banks follow in implementing Customer Relationship Management (CRM) are: Identify CRM initiatives with reference to the objectives to be achieved (such as number of customers, greater profitability per customer, etc.), establish measurable goals for each initiative in terms of profit growth, number of customers, etc. and evaluate and choose the appropriate Customer Relationship Management (CRM) package that will help the company achieve its CRM objectives (a comparison between profits and investments may be made during the evaluation exercise). Customer Relationship Management (CRM) has been implemented in the retail banking industry. The challenges in managing customer relationships in retail banking are due to the multiple products offered and the different channels used for product distribution. Customer expectations from banks can be summarized as: “Service anytime, anywhere, personalized offers and lower payments”. Aggressive marketing and promotions by banks have led most customers to happily switch their loyalty to enjoy better privileges, thus making it harder for banks to retain them. The use of Customer Relationship Management (CRM) in the banking sector has essentially been done for the following purposes: Customer targeting: It is necessary for banks to identify potential customers to approach them with suitable offers. Transactional data generated through interactions with customers and also taking into account the customer profile (such as life cycle stage, economic context, family commitments, etc.) must be collected in a single database to facilitate correct analysis . For example, a customer interacts with banks for savings accounts, credit cards, home loans, car loans, demand accounts, etc. The data generated across all these services must be integrated to enable effective targeting. Once the integration is complete, a customer profitability analysis should be undertaken to gain an understanding of the customer's profitability before targeting them with new offerings. Please note: this is just an example. Get a custom paper from our expert writers now. Get Custom Essays Sales Reference Material: A consolidated database of information on all products, pricing, competitive information, sales presentations, proposal templates, and marketing materials should be accessible to all interested persons. These prove to be very useful in Sales Force Automation (SFA), where the salesperson gets instant access to all relevant material as and when required (especially when in a meeting with a client). Consistent interface with customers: communication to customers from various departments such as sales, finance, customer service, etc.