INTRODUCTION:

The world has become competitive, it’s unlike before. Technology has taken over most of the sectors, whether it's banking, insurance, entertainment, healthcare, education etc. Most of the sectors are putting an effort to make their operations more consumers oriented. The change in the psychology, preferences, and need of the customers demands the implementation of CRM in the organization.

CRM helps any business to fight the cutthroat competition, know about customer’s expectation, maintain the integrity of the customers towards that particular brand and retain its customers. CRM is a key function in the customer-oriented marketing, which involves the process of retaining its existing customers and acquiring new customers. The whole concept of CRM is that which enables the organization to gather all the information regarding its customers and it also involves in setting up a framework which measures customer satisfaction. This assists the organization to retain its existing customers and gaining new customers.

The 1980s and 1990s were considered as a global development in Information and communication technology which gave rise to this concept when all the businesses started getting advanced and customer friendly emerging to the concept called e-CRM. With the penetration of internet culture in all the parts of the world, CRM evolved as e-CRM whichdeveloped way too popular as a tool for effective communication in the relationship-constructive platform with its customers. Henceforth it can be called a tool which builds, maintain and enhance long-term relationship with customers.

Today there is a drastic change in the business environment as the result of technological advancement; many sectors especially service sectors like banking and insurance have moved their attention from concept of CRM to e-CRM in order to endure long-term relationship with customers. e-CRM emerged from the concept of traditional CRM which came into existence in the mid-1990s, when the various companies and its customers started using web browsers and various electronic means which enabled the organizations to improve their organizational culture, behavior through technological infrastructure and business processes. It has emerged as the key and basic function in all the sectors which is customer oriented. As stated earlier, the concept of e-CRM emerged into the modern world with the advancement in the technology and market environment. This has made every organization shift their idea from CRM to e-CRM helping them undergo better strategies in the organization. There are various definitions given by various scholars which say e-CRM is a arrangement of software, hardware, application as well as executive commitments which further act as a basic tool in order to have better customer service which is web based. Initially it emerged as major techniques in the customer retention process.

Business organizations use database management system for customer retention and the result of such a system is e-CRM. With the advancement in technology, the customer has been made the major priority in sectors like Banking, which is gaining massive importance from past few years. And these service sectors seek extension in their business culture by satisfying its customers through their qualitative service and this was possible through the concept CRM which has been a marketing strategy for various organizations since decades and which is now emerged as e-CRM

The basic idea of e-CRM is that it stands on three concepts which include people, process, and technology; these concepts serve as the key towards the success of any organization who has adapted e-CRM. Currently, banking sector is flourishing with its advancements. The sector is becoming more and more complex and competitive, to sustain in the market with the increase in the number of private and public participation. It is providing its customers with IT-based services in order to ensure better product and services, improved financial performance, increased customer satisfaction and productivity. Most of the transactions undertaken these days are wholly on an electronic basis. It has changed its slogan from product oriented to customer oriented. The major advantage of this concept is that it enables the mutual beneficial relationship between the company and its customers through online services which is the major boon to any organization to improve its goodwill. It not only includes technological implementation in managing its customers, it can also be called as one of the strategies used in the business management process.

With the emerging importance of banking in today’s world, this study aims to throw more light on this concept of e-CRM as an effective tool which is also observed as best strategic implementation in the vast sector like banking, which is making its global penetration from the past few years.

REVIEW OF LITERATURE:

(Kavitha, 2013)Any company, be it a manufacturing or a service sector will have to adapt right CRM strategies, to focus on the major issues in the organization.One of the major issues includes, the managers in the service firm fail to rely on the process of customer based understanding, and their involvement in technological advancement is lacking. As an effective measure they must ensure that their employees are trained to deliver better service to its customer in order to arrive at customer satisfaction. Few researches even stated that service sectors are undertaking initiatives to retain its customers.

(Shilpa Santosh Chadichal, 2013) Every organization must develop a framework to measure its customer satisfaction and identify the issue related to e-services to measure the degree of satisfaction leading to retention and creation ofcustomers.

(Saumaya Ben Lataifa) CRM met the needs of competitive advantage by improving sales management, marketing and customer service in the organization.

(Bihari, 2012)Approach towards CRM differs from organization to organization. It is a process which initiates from collecting information about customers, sales, efficiency of marketing program and any transformations required in the organization. This concept uses human resources and technology to analyze the behavior and value of their customer.

(Arun Kumar Agariya, 2012) CRM has emerged since more than a decade and its gaining momentum both in academics as well as business. Dynamic changes in the business environment, its competition as well as customer expectation has resulted from in a shift from one-time transaction based method to long term relationship oriented method through electronic– Customer Relationship Management.

(Manish Dhingra, 2013) e-CRM acts as a tool for maintaining a long term and safe relationship between buyers and sellers. From the past few years, many sectors have diverted their attention in building a stable and long-lasting relationship with its customers. Most of the businesses have paved way in understanding the role of effectiveness to gain sustainability in the business. Customer is the centric in all business and it’s essential for the companies to be customer oriented to accumulate information about customers and provide them with affective service. This led to the emergence of a concept called electronic- Customer Relationship Management due to advanced development in market environment and web technology. It has emerged as a new way of working in different sectors.

(Sagar Deshmukh, 2013) e-CRM is a strategy for any organization to extend its infrastructure, which facilitates opportunities in learning needs of its customers, gain new economies and reaching new customers adding value through IT (Information Technology). e-CRM techniques include training and empowering the employees in the automation of systems resulting in customer interaction and communication.

(Aris YC Lam, 2013) CRM implementation led to superior customer service and allowed restored management of customer loyalty by considering their expectations. Global penetration of intranet has led to e-CRM which is gaining massive popularity as a best communication tool and a relationship building platform. It helped the companies in developing customer centric promoting programs to create worth for customer data by managing it and then providing modified products and services.

(Md Rashid Farooqi, 2014) e-CRM denotes the marketing activity tools and techniques conveyed through internet with technologies such as email, chat rooms, world wide web, social media, forums, etc with a view of refining long term customer relationship.

(salami) The advantage of this concept is that it enables mutual beneficial relationship between company as well as its customers through online services which is a boon to the organization.

(Kavita, 2016) Improving the physical facilities for e-CRM services, training of the personnel and providing precise information on all functions related to e- CRM services offered by organization are the best way for the management of e-CRM.

(Azila, 2011) This paper examines the level of control of e-CRM presentation on customer loyalty. It found a positive association between e-CRM performance and devotion which means that the customers are highly pleased and ready to repurchase and give good word of mouth.

(Jha, 2012)The Indian banking industry has undergone a large transformation by adopting CRM. CRM strategies are implemented in banks with the aid of IT support and this process creates value for the customers. All business functions like advertising, sales, processes, information technology, and design and customer services are used as strategy tool.

(Ahmad, 2012)Identified various reasons of why customers are reluctant to adopt new technology based on CRM in the banking sector. Lack of trust in technology and low computer literacy rate are few main factors that create hesitation for the customers to new technology.

(Fagbemi & Olowokudejo, 2011) This paper aims to evaluate the degree of implementation of CRM strategies in finance oriented companies like banks and insurance with the help of customer focused services, information and communications technology, high quality service, complaints management, timeliness in service delivery, friendliness of employees, competitive changes on services and ease of opening accounts / taking policies. The degree of implementation of CRM strategies is greater at banks when compared to the insurance companies.

(Anagreh, 2015)The rapid progress in ICT (Information and Communication Technology) has made the banking sector to accept e-CRM and build association with its customers and enhance its profits by providing customer happiness and trustworthiness on their services. The author has projected a scaffold to provide guidance about the research foundation on banks, its customers along with the market problems. Investigation been made by the banks to analyze its potential direction. Results indicate that there were few shortcomings in terms of research dimension as well as the analysis on keywords. Research states the necessity to explore the public relation aspects on conduct of e-CRM.

(Karangutka) The research paper expresses the author’s views as, most of the businesses like banks, indemnity corporations including various other service organizations have realized the significance and importanceof CRM in acquiring new customers and hold on to existing ones, making the most of their lifetime worth. At this point, close association with consumers will need a strong management between IT and promotion units to provide a long-standing retention of chosen consumers. It has been observed that IT-enabled industry’s strategy centered on increasing and holding on to clientele scores on happiness and trustworthiness. Customer information may be used as a stand for CRM arrangement for communicating, generate loyalty, consumer service, reliance cultivation and association continuation.

(Kumar, 2013) This paper has proposed the rapid shifting economic atmosphere; achievement of banking depends ahead on knowledge, consumer, and people. The happiness of the customers is the most important dimension to be measured in the context of service sector especially banks. So banks try to change the strategies and perform as per the response of their customers to satisfy them. In this aggressive and competitive age, banks have to attempt hard to increase the customer base and sustain in the market. Thus, e-CRM is termed as a buzz word which places a major role as an efficient tool in business sector including banks.

OBJECTIVES OF THE STUDY:

The objectives of the study are:

· To examine the hypothetical ideas of e-CRM.

· To substantiate the effectiveness of e-CRM in Indian Banks.

EVOLUTION AND CONCEPTION OF E-CRM:

CRM is a traditional way of acquiring its customers. It’s an effective business strategy to establish a long term relationship with its customers and also termed as a process of retaining its offered customers and creation of new customers. According to Peter keen (1997) “Customer relationship management is the assurance of the company to place the customer experience at the center of its priority and to guarantee that incentive systems, process and information resource influence the rapport by enhancing the experience”. Overall, it’s a strategy adapted by every business organization to analyze customer behavior and enhance interactions with customers throughout customer life cycle, with the all-round aim of improving business relationship with its customers, providing effective service enabling customer retention and finally reaching the business goal.

e-CRM is a combination of traditional Customer Relationship Management which suggests that it’s an application of e-business along with the traditional form of customer management, thus being a subset of CRM. It covers various aspects with the inclusion of information technology in its business operation as a form of companies advanced strategy. It is also a process of retaining its customers through electronic means. Electronic form of customer relationship expand the time-honored customer relationship management techniques by integrating new electronic channels such as web wireless and voice technologies and combines them with e-business application into the generally enterprise customer relationship management strategy.

Table 1: Evolution of e-CRM

Era	Year	Lesson Learned	Milestones
Overview	The 1980s to early 1990	Expensive maintenance.	Concentrating on mechanizing and regulating the internal practices to make the customers an asset.
Emergent	Mid 1990 to end 1990	Some dealers were slow to account to the Internet.	Due to the emergence of the Web and client/server, the architecture behind CRM applications vanished.
Model shift	2000	Adoption of ICT	e-CRM
Universal	After 2000	Facilities and services across platforms.	mCRM, Self Service, CRM etc.

Source: Report on Indian Banking, 2016

NEED FOR e-CRM:

The principle of e-CRM is to assist the customers in a healthier way, keep hold of valuable customers and boost analytical capabilities in the business. It will also speed up the transaction with better accuracy and integrity in all sectors, enabling the organization to extend its infrastructure, provide opportunities for learning, gaining new customers and improving the economy. It also enables the companies for interactive and relevant communication with its distant customers. It is therefore broader in its scope focusing on CRM strategy through electronic means, simplifying marketing and sales processes,reducing administrative costs, increasing goodwill and profitability to the companies.

GOALS OF e-CRM:

The main goal of e-Customer Relationship Management is to reduce the various costs involved in operations like marketing costs while improving the efficiency, customer satisfaction and competitive advantage through differentiation. It raises customer responses and profitability, adding value to customer retention and frequency. Other goals include convenient customer interaction and satisfaction through online services, focusing on improving the organizational strategy by discovering new customers. It also focuses on training and empowering the employees with the process of system automation.

e- CRMIN BANKING SECTOR:

e-CRM in banks refers to the use of internet, technologies, electronic channels that facilitate customer relationship management. It ensures quality of services, high speed in the business transactions and also enables real time response. As all the banking operations are automated now, the productivity of the banks has increased comparatively. e-CRM helps the banks to get a global presence. Through these electronic channels, banks are trying to establish a long term relationship with customers to gain more loyal customers.

In spite of all the benefits, the bank which relies on e-CRM faces a major drawback too. Personal interactions between the bank and the customers are lacking. Banks are unable to estimate its customers as most of the processes are executed using internet and various other electronic channels.

TECHNIQUES OF e-CRM ADOPTED IN BANKS:

Automated Teller Machines (ATMs), Telex, Fax, Internet, Tele Banking/Phone Banking, Electronic Clearing Services, Online Banking, Infinet, Swift, Mobile Banking, Wireless Banking Services, Electronic Fund Transfer (EFT), Total Branch Mechanization (TBM) are few techniques adopted by e-CRM dependent Banks.

ATM is a mechanism that provides money to the clients on request after confirmation. The facility is made accessible always. Phone Banking Telephone/tele banking helps in managing banking transactions through phone. A client can ring the banks help line to direct transactions.Internet banking is an electronic payment system that empowers the customers of the bank to administer monetary dealings through its website. Mobile banking is a facility provided by a bank or other monetary organization that permits its customers to conduct financial transactions distantly using a mobile device such as a smartphone or tablet. Various banking services provided include Account Balance Inquiry, Fund Transfer Facilities, Bill Payment Alerts, Minimum Balance Alerts, Credit/Debit Alerts, Transaction History, etc. can be accessed from your mobile. Electronic Funds Transfer (EFT) helps in moving funds between different accounts in the same or different banks, through the use of wire transfer, automatic teller machines, or computers, but exclusive of the use of paper credentials. It refers to any transmission of funds initiated through an electronic terminal, including credit card, ATM, Fed wire and point-of-sale (POS) transactions. It is used for both credit transfers, such as payroll payments, and for debit transfers, such as mortgage payments. The augmented use of EFTs for online bill payments, purchases and pay processes is the chief to a paper-free banking system, where a great numeral of invoices and payments take place over digital network.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a linkage that allows monetary institutions universally to send and accept information about financial transactions in a safe and sound, homogeneous and consistent atmosphere. The SWIFT network does not actually transfer funds, but instead it sends payment orders between institutions’ accounts, using SWIFT codes. It was SWIFT that standardized IBAN (International Bank Account Numbers) and BIC (Bank Identifier Codes). SWIFT retains and controls the BIC system, sense that it can speedily recognize a bank and send a payment progressively. Electronic clearing service is an uncomplicated, trustworthy and cost effective solution for mass and recurring payment transactions like salary, pension, interest, commission, dividend etc. by public or private companies and government units through banks. Data Warehousing andData Mining procedure is used to advance and use customer data to check their profile, retaining ability and reliability forms. They provide valued inputs for retentive customers and increasing products and services for the upcoming. RBI has introduced Indian Financial Network (INFINET), a Closer User Group (CUG) to upgrade the country’s payment and clearance system in banking and other monetary sector. INFINET uses VSAT (Very Small Aperture Terminal) technology. Some of the main applications of INFINET in banking services/operation are e-Mail, any branch banking, treasury management, EFT, clearing and settlement system for securities–delivery/payment. POS is a device which is a kind of electronic transaction terminal used while selling the goods and services. It consists of both software and hardware that facilitate retail outlets to accept payments via card without updating their cash registers to read cards directly. The expense of installing POS terminals depends on the conditions of the suppliers and size of the business. The functions of POS is to scan the data of debit/credit card of the customers and makes sure that the balance in the bank account of the customers is adequate, and it facilitates remittance of money to the seller’s account from the customer’s account and even checks the if transactions are recorded and even prints the receipt.

COMMONLY USED e-CRM TOOLS IN INDIA:

Internet Banking, ATM, Mobile Banking and Call Centre are the most used tools in Indian. Internet is an enormous system of individual processor and a PC system linked to and commune with all other using the same communiqué code of behavior–TCP/IP (Transmission Control Protocol/Internet Protocol). Internet Banking is an invention of e-commerce in the area of banking and economic services. It can even be explained as a B2C sphere for the banking industry, Internet Banking presents dissimilar online services like balance check, requirements for chequebooks, recording stop-payment commands, balance transfer orders, financial credit opening and additional methods of customary banking services.

ATM (Automated Teller Machine) is yet an additional ease created out of the e-CRM plan by the private segment banks. Initially, the ATM process was confined to withdrawing the required amount of several from a picky location. But nowadays banks are enhancing the use of the ATMs from intra bank transfer to mobile phone recharge expenses and much more. With the practice of ATMs getting well-liked, this practice has activated good competition in the midst of the banks working in India. This has guided to the increased figure of ATMs being established recently.

With mobile banking, consumers have an immediate access to uncertainty related to the dealings of their financial records. It frequently keeps the consumers aware of the balance in their accounts and therefore often reduces the amount of assenting actions that are being asked after a business transaction. So it can assist and put up trust and happiness from the customer's viewpoint.

The call centerin addition provides a chance to shift the qualitative character of the connection between bank and consumer to a new level. The additional control that the call center has with its customers that the call centeris tactical.

BENEFITS OF USING e-CRM IN BANKING SECTOR:

e-CRM enables service level improvements using an incorporated database to bring consistent and better customer reply. It increases revenue growth thus lessening costs through focus on interactive service tools to trade extra products to its customers. The productivity and reliability of trade and service measures to create well-organized work practice. The customer satisfaction can be increased through automatic consumer tracking facility and revealing will ensure inquiries are encountered and the problem is sorted. This will advance the customer’s general understanding in trade with the business. E-CRM software facilitates automate operation including, telemarketing, telesales and direct mail.

The exchange history and accessibility of same data to everybody facilitates them to distinguish the substantial cost of the client and benefit to the bank. The bankers are currently ready to anticipate the sort of products the clients may buy and furthermore the timing of the purchase.e-CRM has reduced the work load on bank branches. High coordination amongst sales and operation staff members and focus on client needs and fulfilling their objectives through effective administrations can be achieved. Also, through words of mouth, satisfied customers of the banks market their products. The bankers can also get the customer’s feedback and solve the issues at the earliest. Banks can disseminate information and advertise their products through their website through which the investors can impart all the more advantageously and successfully. The proper implementation and utilization of e-CRM has helped to enhance the income of banks.

The benefits to the bank customers are that it will help them to be well aware of the banking transactions. They can receive inquiries, criticize and send fast feedback. This enables them to save cost and time and also enjoy the quality of services. They need not have to wait in queues for paying bills or making any financial transaction.

PRESENT e-CRM STATUS OF FEW BANKS OPERATING IN INDIA:

ICICI Bank, the primary bank to facilitate e-banking services in India and it has a financial record of nearly one lakh standard internet users, of which 25 percent are of NRIs. The bank has scrutinized complex sequence knowledge as a decision-making and modest tool and has attempted to harness knowledge to the utmost likely level to bring better customer services.

HDFC Bank Ltd advanced into a fully-fledged state of the art Customer Relationship Management (CRM) scheme to accept documentation and follow customer problems and grievance. The Bank will make sure efficient handling of the CRM System. The Bank shall make sure that the CRM structure and associated practice are implemented to resolve complaints raised by customers and noncustomers. The bank shall ensure this by the creation of proper consumers which works in an incorporated manner across channels like-branches, call centers, IVR, internet and mobile to provide help to consumers and non-customers. The employees in the Call centers who accept the queries/complaints shall be made well prepared to provide relevant information to the consumer and shall also be authorized to help customers.

Axis Bank provides, Relationship Management by providing a broad and actionable 360⁰ vision to relationship executive by incorporating with 3rd party and backside office structure. With depository CRM, RMs gets right of entry to rich, systematic profile and history so as to lay the base for a more significant, long-term big business relationship. Account Planning system by Tracking financial plan, annual plans, and file share for corporate clientele with CRM for Bank. Developing and managing implementation of policy to maximize prospect conversion by prepared information accessibility and teamwork on a single system.

DISCUSSIONS:

e-CRM as a concept is not just used in marketing and sales instead it is by far used in all the areas of banking as the benefits suggest. Public sector banks in India have been upgrading their banking practices with respect to e-CRM to be on par with the private and foreign banks.

The organization can follow certain strategies for implementing a successful e-CRM. The organization can develop strategies based on customer centric, redesigning workflow management systems. Re-engineering work process can be adopted as a part of database consolidation, where all interactions of customers are recorded in one place. The organization should support the right technologies with adequate infrastructure. The organization can integrate systems and channels where customers can respond through the conduit of their preference like electronic mail, telephone, chat line etc.

CONCLUSION:

Electronic customer relationship management is now well received by the Indian banks as they have considered e-CRM processes necessary for a consumer-centric organization. In today’s world, customers are more centered towards using the advanced ICT instead of the traditional banking practices. To meet the changing needs, it is better banks adopt and provide better service to its clients to taste success.

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Received on 05.01.2018 Modified on 08.02.2018

Asian Journal of Management. 2018; 9(2):913-919.

DOI: 10.5958/2321-5763.2018.00144.0