Role of CRM in Indian Banking Sector

  • Virendra M. Chaudhari
Keywords: Customer Relationships Management, Customer Satisfaction, Customer Loyalty, Data, Information, Banks


Customer is a king and Customers are the mainly focused in making new marketing strategy. In the banking field a unique relationship exists between the customers and the bank. But because of various reasons  like lack of training ,new technology literacy, financial targets, risk of failure etc., some banks are still following the traditional ways of marketing and another hand some are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. Understanding on Customer Relationship Management is always a concern among the service providers especially banks. Banks makes their own way of managing their relationships new and existing customers. The aim of this paper is to examine the Customer Relationship Management as a new methodology looks forward to identify and attract consumers through the process of developing relationships (business - customer). The methodology of the CRM aims to maintain customer satisfaction and increase consumer loyalty. The purpose of this paper is to study the importance of CRM systems and in-depth knowledge of methods and management techniques customer relationships.

The main issue of this study is that CRM has become a multi-faceted and complex phenomenon that is ridden by various factors. Due to this complexity, a number of different variables have been used to measure CRM which investigated by several prior studies. However, most of businesses need  to know and look at the particular measures and dimensions of the CRM that have a significant impact  on customer satisfaction and loyalty, which would  enrich the business' performance, especially with  the increase in competition as well as lack of differentiation in providing a service.  This paper aimed to review literature on CRM and to identify its impact on customer satisfaction and customer loyalty.  The  studies are  analyzed on  the  basis  of  some general  characteristics and  variables that  significantly enhance  CRM and its  influence on  customer  satisfaction and  customer  loyalty. For this purpose, we investigate the existing  literature on the  impact  of CRM on  customer satisfaction and customer loyalty along with its spread among publications to identify the potential development in the field.


[1] Phlip Kotler & Kevin Lane Keller. (2012). Marketing management. (14th ed.). New Jersey: Prentice Hall.
[2] Bansal, Ipshita & Sharma, Rinku. (2008). Indian banking services: Achievement s and challenges. The ICFAI University Journal of Services Marketing, VI(2), 32-43.
[3] Chaitanya, K. V. (2005). Metamorphosis of marketing financial services in India. Journal of Services Research, 5, 6-15.
[4] Gupta, S., Lehmann D. R., & Stuart J. A. (2004). Valuing customers. Journal of Marketing Research, 41, 7-18.
[5] Kumar M. Ashok & Rajesh R. (2009). Whether today’s customers are satisfied? – A study with Banks. Indian Journal of Marketing, XXXIX(9), 45-53.
[6] Mbizi, R. & Muzividzi D. (2013). Customer relationship management (CRM) practices in financial sector: Role and implications to commercial bank performance in Zimbabwe. Research Journal of Finance and Accounting, 4(8), pp. 96- 103.
[7] Md. Rashid Farooqi, Sharda Kumari, & Dr. Mohd. Shoeb. (2013). Recent trend of e-CRM in commercial banks of India. International Journal of Application or Innovation in Engineering and Management, 2(4), 287-291.
[8] Pawan Kumar Gupta. (2018). Importance of CRM in Indian banking system- A contemporary insight. International Journal of Engineering and Management Research, 8(2), 124-127.
[9] Parasuraman, A., Zeithaml. V.A., & Berry, L.L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49, 41-50.
[10] Puccinelli, B. (1999) Bank delivery, service channels require more personal attention. Bank Systems & Technology, 36-48.
[11] Ryals, L. (2005). Making customer relationship management work: The measurement and profitable management of customer relationships. Journal of Marketing, 69(4), 252-261.
[12] Sachdev S.B. & Verma H.V. (2004). Relative importance of service quality dimensions: A multi-sectoral study. Journal of Services Research, 4(1), 59-81.
[13] Girdhar, Seema. (2009). Building relationship through internal customer: A study of South Asian selected co-operative banks with special reference to Surat district of Gujarat State. Pranjana-The Journal of Management Awareness, 12(2), 32-45.
[14] Sherif, K. (2002). Assessing the introduction of electronic banking in Egypt using the technology acceptance model. Hershey, PA, USA: Idea Group Inc.
[15] Sheth, J.N. & Sisodia, R.S. (1995). Improving marketing productivity. Chicago, IL: American Marketing Association NTC Publishing.
[16] Sandeep Kaur. (2016). Importance of customer relationship management (CRM) in the Indian banking Sector. Imperial Journal of Interdisciplinary Research, 2(12), 1308-1311.
[17] Suwarna S Maslekar. (2011). A study on relative importance of role of customer relationship management (CRM) in marketing various products offered by banking sector. Available at: 3/99435.
[18] G. Dharakeswari. (2014). Customer relationship management in banks: A study in Ramnad district. Available at:
[19] Peppers, D. & Rogers, M. (2004). Managing customer relationships: A strategic framework. Canada: John Wiley & Sons.
[20] Shahzeb Ali Malik. (2010). On the use of customer relationship management (CRM) in the banking industry: A qualitative cross-case analysis between the banks in Pakistan and the UK. Available at:
[21] Banking Code and Standards Board of India. (2014).
[22] Code of Bank’s Commitment to Customers (2014 January)
[23] Reserve Bank of India Bulletin and Annual Report. (2016).
How to Cite
Virendra M. Chaudhari. (2020). Role of CRM in Indian Banking Sector. International Journal of Engineering and Management Research, 10(1), 59-63.