CRM for UK banking services- how its effect customer retention and relation

A Study on the Customer Relationship Management (CRM ) Practices of Banks in the United Kingdom (UK

Executive Summary

Customer Relationship Management (CRM ) is one of the key factors for strong client retention and eventually creating a loyal customer base CRM is a concept which is closely related to Relationship Marketing (RM which concerns mainly about organizing client information in to create appropriate and thoughtful communication and action that could strengthen the bond between a particular company and its clients . CRM is important to UK banks because it allows the aforementioned to be

more customer-centered in terms of their strategic plans to management . In addition with this , the act of documenting patterns of behavior of customers could be converted to a customer knowledge base that will serve for the purpose of analyzing or creating company rules and policies that would directly affect the customer

Foremost CRM processes that are used in the UK banking industry more particularly of those in Barclays and Lloyds TSB are the adoption of CRM softwares which enables the aforementioned to offer service upgrades cross-sell or just be extra sympathetic to their customers . ERP systems are also used in to integrate all of its customer data coming from various departments such as human resources , sales and transaction processing systems , financials , inventory , purchasing , and marketing system . Distribution channels like mail , e-mail , website , telephone personal call are used by both Barclays and Lloyds as well as this allows them to implement a multi-channel coverage strategy to sell products and services , negotiate , administer and retain customers Individualized marketing and repricing are also done that in the manner in which customers will feel that they are being rewarded due to their loyalty . Finally , a CRM strategy would not work if the people behind it such as the human resource factor of the bank are not being taken into close account . A very effective human resource will make sure that the implementation of the CRM strategy of the organization will always be at is best

Acknowledgements

Table of contents

Title Page i

Executive Summary ii

Acknowledgements iv

Chapter I : Introduction and Objectives 1

1 .1 Introduction 1

1 .2 Background of the Problem 1

1 .3 Significance of the Study 4

1 .4 Research Question 6

1 .5 Research Objectives 6

1 .5 Research Structure 6

Chapter II : Literature Review 8

2 .1 Introduction 8

2 .2 Relationship Marketing 8

2 .3 Factors Influencing Customer Loyalty and Retention 10

2 .4 Customer Relationship Management (CRM ) 13

2 .4 .1 CRM and Customer Knowledge 22

2 .5 Service Quality and Customer Retention 24

2 .6 Commitment and Customer Retention 26

2 .7 Customer Loyalty and Customer Retention 28

2 .8 Banks in the United Kingdom and their CRM Practices 31

2 .9 Barriers in Implementing CRM 35

Chapter III : Research Methodology and Methods 36

3 .1 Introduction 36

3 .2 Research Question 36

3 .3 Research Objectives 36

3 .4 Research Tradition 37

3 .5 Research Approach 38

3 .6 Primary...