Marketing Strategy and Customer Relationship Management in Banking Industry

Abstract

Banking Industry is one of the most important service industries which touch the lives of millions of people. Its service is unique both in social and economic points of view of a nation. Earlier the attitude of banking service was that it was not professional to sell one's services and was unnecessary in the sense that traditional relationships and quality of products were sufficient to carry forward the tasks. Before the mid 1950's the banks had no understanding or regard for marketing. The bank building was created in the image of a Greek Temple to impress the public about the importance of a bank. The interior was austere and the teller rarely smiled. Bankers maintained austere dignity and they hardly maintained friendliness. Banking is a service that encapsulates all the characteristics of services, directed towards the customer’s money and its management. A membership relationship is entailed in this industry due to its continuous nature. Banking is also high in credence qualities meaning that it cannot be evaluated confidently even immediately after receipt of the good due to customer ignorance or lack of knowledge. In addition, an extended period of time may be required in this industry for a fully informed evaluation. Hence, customer satisfaction in banking is both difficult to measure and ascertain. The present study focuses on Marketing strategies and customer relationship management in banking industry and study based on secondary sources of data.