Case Study: Customer Relationship Management And Knowledge Management

Introduction

Customer relationship management (CRM) is strategies to accomplish customers as it emphases on understanding customers as a single person instead of counting as part of a mass group. CRM maintains the relationships between a company and its clients. The terms CRM and knowledge management are focused on improving and incessantly distributing decent services to customers. For understanding more about customer relationship management (CRM), firstly we need to understand three components; these are customer, relationship and their management. To manage customer relationships, those are important and valuable to the company. Nowadays, many companies such as banks, insurance companies, and other service providers understand the significance

The model of CRM developed to answers what the diverse customer segments are, who more likely to reply to a given offer is, which customers are the bank possibly to lose, who most likely to nonpayment on credit cards is, what the risk associated with this loan applicant is. A greater concentration on CRM is the only way the banking industry can defend its market share and increase progress. Having intensifying competition, declining market share, deregulations, smarter and more demanding customers, there is stiff competition between the banks to attain a competitive advantage over one another or for sustaining the survival in competition of customer acquisition strategy. Over past few years, technical evolution has mostly affected the banking sector. ATM card service placed against cashier tellers, telephone call service turn into call centers service in the bank branch, internet service replaced the mail, traditional cash transaction replaced by credit cards and electronic credit cash card. Recently, banks have moved towards relational marketing orientation and the approval of customer relationship banking principles. Every bank needs a

It helps banks to use relative technology and human resources to gain insight into the attitude of customers and the value of those customers. If CRM works as hoped, a bank can provide improved customer service, make call centers more effective, increase more account, and help staff close deals faster, simplify marketing and sales processes, and introduce new customers. Through CRM a bank identify customer’s actual demand and take appropriate decision. In the competitive banking sector in Bangladesh CRM is the only tools to attract new customers. Bank uses CRM to analyze customer psychology and what the actual need of customer. Analyzing collected information of customer’s behavior banks take immediate action for customer