Using the emergence of CRM
technologies, helped bank to their customer before the development of a
relationship, this will lead to an increase of customer loyalty and give a
greater competitive advantage over other competitors. Firms must focus on
retaining existing customers to achieve customer loyalty. CRM helps to emphasis
customers needs such as the complaint management system, firms can learn from
customer feedbacks and improve from it. This will avoid future negative
experiences and will increase the customer satisfaction. CRM consist of
customer resolution, customer knowledge, customer empowerment and customer
orientation. If CRM is implemented properly, it will build loyalty and trust in
customers which will lead
to the increase of money the customer place in the bank. Therefore,
customer empowerment will lead to long-term competitive advantage.
The purpose of this research
proposal is to analyse the impact of Customer Relationship Management on
customer loyalty and the competitive advantage in banking sector. It also discusses
the negative impact when CRM is not implemented properly and recommends ways to
build and sustain competitiveness in competitive banking sector.
The following methods will be used
to accomplish the proposed tasks.
Consist of four CRM dimensions and two exogenous
Data from a private bank from 278 customers
Analyse data collected from the private bank
To examine the causal relationship, structural
equation modelling(SEM) was used
PRESENTATION OF FINDINGS
The findings including the
following data will be presented
Research data on relationship of customer
resolution, customer knowledge, customer empowerment, customer orientation
leads to increase of customer loyalty and competitive advantage.
Indian banks have poor complaint resolution
system and evidence shows that it has impact on customer loyalty.
In banks, CRM system are used to provide
additional customer services, communications which create loyalty, trust and
SEM that shows there is a relationship between
CRM and competitive advantage and customer loyalty mediates relationship
between CRM and competitive advantage.
Recommendation and implication to build and
sustain competitiveness in competitive banking sector.