Creating Customer Life Time Value through Effective CRM in Financial Services Industry

Abstract

Customer Relationship Management (CRM) has its origin in the basic paradigm of marketing i.e. to satisfy customers with the best possible alternative in the market through a relational exchange process. Customer relationship management goes beyond the transactional exchange and enables the marketer to estimate the customer’s sentiments and buying intentions so that the customer cab be provided with products and services before he starts demanding about it. This is possible through the integration of four important components i.e. people, process, technology and data. Customer data management gives us leads about the probability of customer demand and the technology helps us in tracking the characteristics and categorization of customers depending on his past behavior. The process reorients the traditional business models to suit to the integrative approach of customer relationship management by putting emphasis on customer life time value than a products life time value. The simpl...