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Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs.

Foss said that banks are highly focusing on CRM for the last five years that is expected to continue.

According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to;

Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets.

Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales.

The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability.

The above goals can be achieved through the seamless integration of Information Technology solutions and business objectives at every process of the bank business that affects the customer.

2.3 THE PHASES OF CRM

The main phases of CRM are as follows;

Customer selection or Segmentation

According to Dave Chaffey (2009), customer selection is defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed.

Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says “Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!”

According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the co本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。