Electronic Customer Relationship Management in banking sector of Pakistan; A challenge from the emerging Technology

~~Purpose Despite the growing debate about Customer Relationship Management has gained a lot of importance in the 21st century because of globalization and new technology advancement there is little research on role of CRM in banking sector of Pakistan. The banks in developed countries like Sweden are offering their customer relationship management in a quite different way that is through electronic customer relationship management eCRM that helps banks to improve relationships with their customers through electronic communication tools i.e., email, online banking, phone banking, SMS banking, ATM etc. Due to some demographic and economic-political factors banks in Pakistan are using still the old bookkeeping and post-mail methods to interact with their clients. There is a need for an electronic reform in order to uplift the services of this important sector. Design/Methodology/Approach A qualitative secondary data was collected from different sources including web portals and annual reports of several banks in Pakistan including State Bank of Pakistan's annual reports data was analyzed and benchmarked in relevance to our two-basic factors i.e., orthodox banking system and electronic banking system, The aim of this process was to assemble or reconstruct the data in a meaningful or comprehensible fashion.The CRM functioning models of different banks were benchmarked and a fairly new and suitable CRM model was designed. This model provides all the needed ingredients and their performance attribute towards customers and the organizations. Findings The findings show several differences in the levels of CRM activities in banking sectors of Pakistan. And every level has different customers. Banks need to identify these levels and then design the policies accordingly. If the banks firmly classify and properly manage the levels of customers then it is not difficult provide the right services they need. Due to low literacy rate in Pakistan the limitations towards use of CRM is very high and there is a strong interference towards new usage of new technology from banking customers in Pakistan as will. The use of electronic tools of communication will play a vital role in speeding the banking services and winning a proper support from the customers as good awareness program does not mean good retention as well. It means orthodox customers are getting less each day does not mean that IT based facilities cannot be designed for them. The feedback management can provide amazing results through query solve. Originality/Value The results offer needed empirical support and cross-cultural stability tothe much theorized construct of CRM by exploring its effects within banks of Pakistan. Additionally, it unifies and complements the previous work by integrating the theory of customer relationship management and the need for IT reforms in banking sectors. Thus providing a comprehensive theoretical framework for the future study on the topic and this this study requires empirical evidence from the banking sector in Pakistan.

شفيع الله حسين الله

Electronic Customer Relationship Management in banking sector of Pakistan; A challenge from the emerging Technology

ULLAH, SHAFI . 2013