According to the changing of the general conditions the German banks are forced to break new ground in order to assert their position: The market became much more lucent for customer because of new media.
The consequences are an increasing pressure of competition and demanding cus-tomer. Therefore a binding and long-term customer relationship seems to be neces-sary for many banks to react to the changed conditions and to guarantee the continu-ity. A majority of German credit institutions tried to implement concepts of Customer Relationship Management (CRM). In some cases the afford - to turn the customer re-lationship into the road to success - were unsatisfying and unsuccessful.
In this paper I want to show, how CRM works, how CRM can be implemented in banks and what problems can result from the implementation.
In the first chapter I describe the current situation of German banks. After a brief overview about CRM in general we analyze the previous attempts of CRM implemen-tation. Two examples - Dresdner Bank and Deutsche Leasing, a member of the "Sparkassen - Finanzgruppe" - follow. At the end I identify the problems of the im-plementation of CRM at the banks.
Table of Contents
1 General survey of the German banks
2 Customer Relationship Management
2.1 Definition
2.2 Systematization of CRM
2.2.1 Analytical CRM
2.2.2 Operational CRM
2.2.3 Collaborative CRM
3 CRM in banking sector
3.1 Expectations from companies in the banking sector
3.2 Requirements of a successful implementation
3.3 Analytical CRM: Determination of the target group
3.4 Maesurement of the success of CRM in the banking sector
3.5 Example of Dresdner Bank
3.5.1 Departments where CRM was implemented
3.5.2 Goals of the CRM implementation
3.5.3 Realization of the CRM project
3.5.4 Benefits gained
3.5.5 What made this CRM project special?
3.6 Example of Deutsche Leasing
3.6.1 What was implemented?
3.6.2 Results of implementation
4 Problem of implementation
Objectives and Core Topics
The paper examines the implementation of Customer Relationship Management (CRM) within the German banking sector, analyzing how banks adapt to changing market conditions and identifying the core challenges associated with these systemic shifts.
- The current competitive landscape and structural transformation of German banks.
- Fundamental definitions and systemic classifications of CRM (Analytical, Operational, Collaborative).
- Methodological requirements for the successful deployment of CRM strategies.
- Comparative case studies of CRM implementation at Dresdner Bank and Deutsche Leasing.
- Common pitfalls and organizational challenges during the implementation process.
Excerpt from the Book
3.2 Requirements of a successful implementation of CRM
For a successful implementation, there must be a common sense that the implementation will affect all parts of the company and that there might be severe changes to get positive results. Due to that the project must be supported by the management from the very beginning.
The employees must be convinced about the necessity of the company alignment towards customers. If needed there must be training for the employees concerning the alignment towards customers.
The proceeding of the implementation has to be clearly structured (project management), but also goals, personal and financial resources have to be clearly defined. A high amount of capital is required, due to the necessity of implementing the system in various sales channels, departments and branches where a bank is active. For a fast buildup of a data warehouse it is important that data quality of the existing data is good. The utility of analytical tools is relying on the quality but also quantity of the customer data. Normally the needed data quantity is ensured (I will refer about the data-input-possibilities later).
Summary of Chapters
1 General survey of the German banks: This chapter outlines the current competitive pressure and shifting demand patterns in the German banking market, emphasizing the need for new distribution channels.
2 Customer Relationship Management: Defines CRM as a business strategy and provides a systematization of the approach into analytical, operational, and collaborative components.
3 CRM in banking sector: Explores the specific expectations and prerequisites for CRM implementation in banking, illustrated through practical examples from Dresdner Bank and Deutsche Leasing.
4 Problem of implementation: Discusses the manifold causes of project failure, highlighting the importance of organizational restructuring and data quality.
Keywords
CRM, Banking Sector, Customer Relationship Management, Analytical CRM, Operational CRM, Collaborative CRM, Multi-Channel-Distribution, Customer Value, Scoring, Data Quality, Dresdner Bank, Deutsche Leasing, Implementation, Organizational Change, Customer Satisfaction.
Frequently Asked Questions
What is the core focus of this paper?
The paper explores how CRM systems are utilized by German banks to manage customer relationships effectively in response to increasing competitive pressure and changing customer behavior.
What are the primary CRM components discussed?
The author classifies CRM into three distinct categories: Analytical CRM, Operational CRM, and Collaborative CRM, each serving different functional roles within a bank.
What is the central research question?
The study aims to demonstrate how CRM functions, how it can be successfully implemented in banking institutions, and what specific problems might arise during the implementation process.
Which scientific methodology is used?
The work employs a descriptive and analytical approach, combining industry overviews with case study analysis to evaluate the efficacy of CRM implementations.
What topics does the main body cover?
It covers market conditions, theoretical CRM frameworks, implementation requirements, and detailed case studies (Dresdner Bank and Deutsche Leasing), followed by an analysis of potential project failures.
Which keywords best describe the work?
Key terms include Customer Relationship Management, Banking Sector, Multi-Channel-Distribution, Implementation, Customer Value, and Scoring.
What role does data quality play in CRM?
Data quality is described as the base for efficient CRM; insufficient or poor-quality data is identified as a significant obstacle to achieving the desired benefits of the system.
How is the success of CRM measured?
The author notes that measuring success in pure financial figures is difficult because many benefits, such as increased customer satisfaction, generate revenue only indirectly.
- Quote paper
- Nils Merkel (Author), 2005, Customer Relationship Management in Banking Sector, Munich, GRIN Verlag, https://www.grin.com/document/58251
