Creating customer lifetime 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 can be provided with products and services before he starts demanding. 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 the integrative approach of customer relationship management by emphasising customer life time value rather than product life time value. The product life c...