Barriers for implementing Customer Relationship Management Strategies in Indian Banks – A Study

Nataraj Balasubramanian


Customer relationship management in banks has become a catchy word to attract, treat and retain customers. Recently Indus Ind Bank opened video calling facility through smart phones to its customers for interacting with the bank staffs and even the branch heads. Customers are being empowered and convenience to the customers is being treated as unique selling proportion for the banks. In this scenario maintaining proper relationship with the customer will improve business of the banks and could be a competitive advantage for the banks. In spite of various benefits there is a huge resistance in implementation part of CRM activities in the banks. This article analyses the barriers for implementing customer relationship management strategies in bank. A descriptive research has been carried out and convenient sampling method has been followed.   The sample respondents were employees of various public and private sector banks and the sample size is 37. The analytical tools used are weighted average, cause and effect analysis and simple percentage analysis. The key findings include the major barriers for implementing CRM in Banks is lack of guidance for the employees, resistance to change and non-accountability. The results and suggestions provided in the article could be used for identifying the major obstacles for implementing Customer Relationship Management strategies in Banks, ranking the barriers for implementation and concentrating on the most important factors; the research helps in enhancing the relationship of the bankers with the customers, the research helps in improving the retail bank’s performance, and also help to improve the net worth of the customers.


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ISSN : 2251-1563