A study on “Measuring the dimensions of customer relationship management with reference to banking sector” Ms. Tiwari Neha*, Ms. Karande Priyanka*, Dr. Gupta Rajiv** *Asst. Prof, Vikrant Institute of Technology & Management, Indore **Prof, Institute of Management Studies, Indore Online published on 7 April, 2014. Abstract Today, many businesses such as banks, insurance companies, and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquire new customers, retain existing ones and maximize their lifetime value. At this point, close relationship with customers will require a strong coordination between IT and marketing departments to provide a long-term retention of selected customers. This paper deals with the role of Customer Relationship Management in banking sector and the need for Customer Relationship Management to increase customer value by using some analitycal methods in CRM applications. CRM is a sound business strategy to identify the bank‘s most profitable customers and prospects, and devotes time and attention to expanding account relationships with those customers through individualized marketing, repricing, discretionary decision making, and customized service-all delivered through the various sales channels that the bank uses. Under this case study, a campaign management in a bank is conducted using data mining tasks such as dependency analysis, cluster profile analysis, concept description, deviation detection, and data visualization. Crucial business decisions with this campaign are made by extracting valid, previously unknown and ultimately comprehensible and actionable knowledge from large databases. The model developed here answers what the different customer segments are, who more likely to respond to a given offer is, which customers are the bank likely to lose, who most likely to default on credit cards is, what the risk associated with this loan applicant is.Finally, a cluster profile analysis is used for revealing the distinct characteristics of each cluster, and for modeling product propensity, which should be implemented in order to increase the sales. The entire Service Industry is now metamorphosed to become customer- specific. In this context, the management of Customer Relationship in Financial Services Industry demands special focus. This paper deals with the role of CRM in Banking Sector and to find out the factors affecting the overall profitability of the sector also to analyze the need for the sector to increase customer value by using some analytical methods in CRM applications. The Indian Banking scenario, which is still at an embryonic stage as far as the CRM domain is considered, needs to strive towards CRM implementation to meet the emerging demands of “universal banking”. Top Keywords Customer Relationship Management, Banking Sector, Customer Loyalty, Customer Satisfaction, Trust, Commitment. Top |