The Importance of Customer Relationship and Sales in the Banking Sector

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INTRODUCTION

As the competition in the banking sector is continuing to rise, it is becoming increasingly difficult for many banks to achieve growth as before. Facing fierce competition from both customary brick and motor operations and the emerging internet banks, banks fail to meet performance expectations due to poor understanding of their customer’s needs, not making the most of their staff and most importantly tend to not respond to new sales opportunities.

Banks that will be able to overcome these challenges are the ones that most likely will thrive and prosper into the future, this paper examines the importance of good implementation of customer relationship management in retail banking, and how it can deliver increased revenues and cost savings that will drive profitability and shareholder value while dealing with ongoing changes in this sector (Genesys Worldwide, an Alcatel-Lucent company, 2008, p. 14).

Now a day’s banks customers are more familiar with the fact that they have myriad of options on which bank they chose to work with and that banks can no longer dictate terms and conditions and expect full acceptance from their customers. No longer will customers stay in one bank only because it was the first bank they ever opened a deposit account with or simply because it seems too complicated to deal with the hassle of switching banks.

According to King (2010) “the customer of today expects a total customer experience that works for him”. (p. 40). The customer expects the bank to provide him with the services he needs in the most comfortable way since if the bank fails to do so the customer can always decide to cross the street to a competitor bank or simply click on the competitor’s website. Banks must perform a ra...

... middle of paper ...

... their bank is being properly compensated.

Developing relationship strategies, sales planning, sales and follow up are key factors in relationship building. The first essential step in sales planning process is: prospecting (Richardson, 1992, p.134).

Key references:

King, B. Bank 2.0: How Customer Behavior and Technology Will Change the Future of Financial Services. Singapore : Marshall Cavendish Business , 2010.

MBA Knowledge Base. 2011. http://www.mbaknol.com/management-articles/customer-relationship-management-in-the-banking-sector/ (Zugriff am 29. 03 2011).

Richardson, L. Bankers in the Selling Role: A Consultative Guide to Cross-Selling Financial Services . Canada: Wiley & Sons Inc, 1992.

Worldwide, Genesys. Customer Service Strategies for the Retail Banking Industry . Industry Strategy Guide, USA: Genesys Telecommunications Laboratories, Inc, 2008.

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